Havaianas parent Alpargatas disappoints in fiscal 2022

The Brazilian shoe retailer Alpargatas SA fell short of its own expectations in the 2022 financial year. The results were “disappointing”, admitted CEO Roberto Funari in the annual report published on Friday. High costs and operational challenges played a key role in the fact that the parent company of the Havaianas brand did not meet its goals.

Overall, group sales rose by 5.9 percent year-on-year to 4.18 billion Brazilian reals (751.1 million euros). However, business in the home market developed worse than expected in the second half of the year because the effects of high inflation dampened demand considerably.

Cost increases and negative one-off charges ensured that earnings fell significantly. Reported earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 26.6 percent to 550.5 million Brazilian real. Adjusted for special effects, it fell by 9.5 percent. Net profit was 108.5 million Brazilian reals ($18.3 million), down 84.3 percent from 2021.