The Brazilian shoe company Alpargatas SA makes it back into the profit zone. Cost reductions and improved sales in the home market helped.
The Havaianas parent company was able to win a profit of 107.4 million Brazilian real (euro) for the whole year. After a rich loss of 1.87 billion Brazilian real in the previous year, Alpargatas managed the turnarge for the time being through the strict cost discipline and also wants to continue to hold on to his course.
“The year 2024 was a transition year with good and bad things that still come from the past,” said Managing Director Liel Miranda during a web cast on Tuesday. “We assume that 2025 will be the beginning of sustainable growth and we stick to our strategy absolutely consistently.”
Overall, the operating costs in the past financial year were reduced by 43 percent to 1.7 billion Brazilian real by reducing investments compared to the previous year. At the same time, the shoe manufacturer focused on building a solid position on liquid funds by concentrating on the core models of the Havaianas collection and thus having to hold lower stocks.
Havaianas sell better in the home market
The bottom line was also the bottom line due to the higher sales of the main brand Havaiana. The cult flip flop brand generated almost the total sales of Alpargatas with revenue of 4.06 billion Real.
With 62 million couple of sandals sold, Brazil remains the largest market in the company. In the home market, the brand not only managed to increase sales volume by 11 percent, the average price per sandal sold also increased by 4.4 percent.
Outside the home market, it was less good with an income decline from 3.1 percent to 954 million Brazilian reals. The company tries to counteract this decline, especially in the Europe, Middle East and Africa region, with a restructuring of sales channels and marketing editions.