Alpargatas (ALPA4) Q4 2024 earnings summary

Executive summary

• Net revenue grew 10% to R$4,108.3 million in 2024, with net income of R$107.4 million, reversing a loss of R$1,867.5 million in 2023.

• Operational improvements, inventory normalization, and disciplined capital allocation led to a net cash position and set the stage for sustainable growth in 2025.

• Adjusted EBITDA rose 64.7% in 2024, with margin reaching 14.0%, reflecting productivity gains and scale recovery.

• Rothy’s achieved positive EBITDA for the first time, contributing US$17.7 million in 2024, with net sales up 20%.

• Audit committee and independent auditors issued unqualified opinions on the financial statements.

Financial highlights

• Net operating revenue: R$4,108.3 million in 2024 (+10% YoY); net income: R$107.4 million (vs. -R$1,867.5 million in 2023).

• Adjusted EBITDA (excl. write-offs): R$575.2 million in 2024 (+64.7% YoY); margin 14.0%.

• Gross margin improved to 43.1% in 2024 (+3.1pp YoY); adjusted gross margin 48.6% in 4Q24.

• Net cash generation reached R$1.1 billion from May 2023 to December 2024.

• CapEx for 2024 was R$159 million, a 52% reduction YoY, focused on commercial, digital, and innovation projects.

Outlook and guidance

• 2025 strategy focuses on sustainable growth, core product expansion, international market recovery, and operational discipline.

• Continued investment in brand and marketing to support topline growth, with marketing spend at 7% of revenue.

• Management expects the full impact of Brazil's tax reform to be understood after further regulation.