Alpargatas (ALPA4) Q4 2025 earnings summary

Executive summary

• 2025 marked the end of a turnaround and the start of a new growth cycle, with record profitability, improved efficiency, and strong domestic and international performance after restructuring.

• International volume grew 5%, with high single-digit growth in Europe and a new U.S. distribution partnership with Eastman starting January 2026.

• Brazil saw annual sell-out growth between 3.8% and 4.8%, with significant market share gains in grocery and specialized channels.

• Direct-to-consumer and specialized channels grew double digits, outpacing overall company growth.

• Total cash distributions to shareholders exceeded R$1.2 billion, representing a 12% yield.

Financial highlights

• Net revenue for 2025 was R$4.6 billion (+11.1% YoY), with gross profit at R$2.4 billion (+34.4% YoY) and gross margin at 52.2% (+9.0pp YoY).

• Adjusted EBITDA for 2025 was R$865.5 million (19.0% margin, +10.4pp YoY); 4Q25 adjusted EBITDA was R$211.2 million (16.8% margin).

• Net income for 2025 was R$567.9 million (+428.8% YoY), the highest in company history.

• International EBITDA improved from BRL -56 million in 2024 to BRL 42 million in 2025.

• Rothy's EBITDA turned positive, from -$30 million in 2022 to +$20 million in 2025, with net income of US$24.0 million.

Outlook and guidance

• Optimism for continued sell-out growth in Brazil in 2026, supported by strong Q4 momentum and commercial execution.

• No formal guidance provided, but management sees further efficiency and scale opportunities, especially in Europe and premium channels.

• Focus remains on sustainable growth, financial discipline, and operational excellence, with international priorities on rebuilding volumes and consolidating the new U.S. business model.