Havaianas mother Alpargatas will slide deep into the loss zone in 2023

The Brazilian shoe supplier Alpargatas SA suffered significant losses in sales and a high loss in the 2023 financial year. This emerges from a statement that the parent company of the Havaianas brand published on Wednesday.

Accordingly, group sales reached 3.73 billion Brazilian reals (696.4 million euros) last year, 10.7 percent below the 2022 level. Sales of the main brand Havaianas shrank by 10.5 percent to 3 .67 billion Brazilian reals. The label suffered significant losses both in Brazil (-6.8 percent) and in international business (-19.4 percent).

Due to a lower gross margin and higher costs and depreciation, the company slipped into the red. The loss before interest and taxes (EBIT) amounted to 1.57 billion Brazilian reals, after an operating profit of 387.0 million Brazilian reals was achieved in the previous year.

The bottom line was a net loss of 1.87 billion Brazilian reals (348.3 million euros). Alpargatas closed the 2022 financial year with a surplus of 108.5 million Brazilian reals. However, management emphasized that the first positive effects of the comprehensive savings program were visible in the second half of the year.