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.

• Consolidated net operating revenue reached R$4.56 billion (+11.1% YoY), with net income of R$567.9 million (+428.8% YoY), the highest in company history.

• International volume grew 5%, with Europe rebounding after two years of decline and the U.S. transitioning to a new distribution partnership with Eastman.

• Brazil saw a 4.8% annual sell-out increase and market share gains, with double-digit growth in direct-to-consumer and specialized channels.

• R$1.2 billion was returned to shareholders through dividends, interest on capital, and capital reduction.

Financial highlights

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

• Adjusted EBITDA for 2025 was R$865.5 million (19.0% margin, +10.4pp YoY); net income was R$567.9 million (+428.8% YoY).

• International EBITDA improved from negative in 2024 to R$42.1 million in 2025; Rothy's EBITDA turned positive at US$17.9 million.

• Havaianas brand net sales grew 12% in 4Q25 YoY, with international volume up 82.5% in Europe and 332% in the USA.

• Cost of goods sold decreased 6.5% YoY, reflecting operational efficiency and normalized inventory.

Outlook and guidance

• Focus remains on sustainable growth, financial discipline, and operational excellence, with optimism for continued sell-out growth in Brazil and further scale in Europe and premium channels.

• No formal guidance provided, but management sees opportunities for efficiency and scale, and is monitoring tax reform and OECD rules.

• U.S. transition to Eastman expected to reduce costs and improve marketing and design focus.