Alpargatas (ALPA4) Q3 2024 earnings summary

Executive summary

• Net sales rose 16% year-over-year in 3Q24, surpassing R$1 billion, with gross profit up 36.2% and normalized EBITDA increasing 78% to R$137 million, reflecting strong operational improvements.

• Net profit reached R$66 million in 3Q24, reversing a loss in 3Q23, and normalized EBITDA margin improved by 4.6pp to 13.2%.

• Havaianas Brazil saw 13% volume growth, market share gains, and a 15% increase in net sales, while international operations posted 13% volume growth and margin recovery.

• Rothy’s posted 29% revenue growth and improved margins, supporting consolidated performance.

• Interim financial statements for the quarter and nine months ended September 30, 2024, were reviewed and found to be in compliance with CPC 21 and IAS 34, with no material modifications required by auditors.

Financial highlights

• Consolidated net sales: R$1.04 billion (+16% YoY) in 3Q24; 9M24: R$2.99 billion (+10% YoY).

• Gross profit: R$494.5 million (+36% YoY); gross margin 47.7% (+7.2 p.p.).

• Normalized EBITDA: R$137 million (+78% YoY); margin 13.2% (+4.6 p.p.).

• Net income for the nine months was R$105.3 million, reversing a net loss of R$261.3 million in the same period last year.

• Net cash position: R$58 million at quarter-end, with R$186 million cash generation in 3Q24.

Outlook and guidance

• Focus remains on sustainable, consistent growth, disciplined capital allocation, and operational efficiency.

• Continued investment in brand innovation, international expansion, and efficiency improvements.

• No explicit forward-looking guidance provided, but management and audit committee noted no identified risks impacting short-term performance or equity.