The company will anticipate cash distribution and invest R$600 million (US$108 million) to meet Havaianas growing demand and expansion of the Core and Beyond Core portfolio
Alpargatas took in revenue more than R$3 billion (US$539 million) in the first nine months of 2021, representing a 35% increase year-over-year. Of this amount, R$1 billion (US$180 million) came from international operations of Havaianas, the leading global brand in open shoes. In 9M21, the company reported net income of R$389.5 million (US$70 million), marking a 498% advance year-over-year.
“3Q21 results show Havaianas’ strength, with growth in international markets and in Brazil. For a second consecutive quarter, the brand broke historical records in terms of volume and net revenues with EBITDA growth. We took an important step in expanding our portfolio with the successful launch of Havaianas casual sneakers and rising penetration of sandals,” says CEO Beto Funari.
In Brazil, where Havaianas is deeply consolidated and sells more than one pair per capita per year, net revenue climbed 10%. Internationally, the brand experienced year-over-year growth rates of 23% in volume, 8% in revenue and 167% in EBITDA in 3Q21. The latest quarterly figures show progress in the company's global expansion strategy, as superior execution and expense control translated into margin gains. With good results and robust cash generation, Alpargatas announced that will anticipate cash distribution in the amount of R$150 million (US$ 27 million).
To sustain Havaianas' growth, Alpargatas approved the investment of R$600 million (US$108 million) by 2022. The amount of investment in the last two years reached R$900 million (US$160 million), the largest in the company's history.
The allocation of this resource will be focused on expanding manufacturing capacity, optimizing the logistics network, intensifying the expansion of the Core and Beyond Core portfolio in Brazil and in international markets, and sustaining the growth of digital and physical sales channels. This investment will bring efficiency and cost reduction benefits, as well as increased capacity.
Read more about Havaianas on the brandpage: fashionunited.com/companies/havaianas