Alpargatas, the company that owns the Havaianas brand, announced its results to the market for the second quarter of 2021 on July 30th. Three strategic drivers impacted the growth of the global leader in open footwear: advances in international markets, acceleration in online channels, and portfolio expansion with product innovations. “We continue to see strong global demand for the brand, which in line with casual fashion trends, has been prioritizing comfort and the migration of users in search of digital experiences. These trends have strengthened Havaianas globally,” comments the president of Alpargatas, Beto Funari. As a result, Havaianas doubled its net revenue and EBITDA in 2Q21 compared to its average for the last ten years.
Net revenue in 2Q21 was BRL 1,095 million, up 71% compared to 2Q20, with growth in all operations. At Havaianas International, revenue grew in all international markets. Net revenue in constant currency was R$516 million (US$100.14 million), up ~63% vs. 2Q20. The big highlight was Europe, where volume increased 38%, and revenue in constant currency grew ~41%, impacted by the implementation of RGM (Revenue Growth Management). In addition, as a result of the restructuring of DTC stores and on online sales focus (DTC and B2B), Havaianas US delivered volume (+52% vs. 2Q20) and EBITDA (+600% vs. 2Q20) growth, contributing to the growth and expansion of margins at Havaianas Internacional.
Digitization is one of the company’s strategic pillars, and online sales reached R$ 220 million (US$ 42.7 million) in revenue in 2Q21, growth three times higher than in 2Q19 last year, representing 20% of total sales and 38% of international sales. Additionally, it completed 100% of its stores into the omnichannel environment in Brazil and Europe. Havaianas Brasil and International both had a record EBITDA in 2Q21. Corporate EBITDA in 2Q21 was BRL 222 million, an increase of 56% compared to 2Q20. In addition, Havaianas Internacional’s EBITDA margin reached 30% in 2Q21, a ~9pp expansion compared to 2Q20.
For Funari, the 2Q21 numbers reflect the advances in the global expansion strategy and execution discipline in strategic pillars and the focus on expanding margins. “The execution of the RGM and ZBB (Zero Base Budget) initiatives accelerated Alpa’s growth and profitability, mitigating the increase in raw material prices observed in the industry,” he comments.
The operational result is reflected in an improvement of the net financial position of R$176 million (US$34.15) in the first semester, closing the quarter with a financial position of R$637 million (US$123.62). “We are still well-positioned and confident with the recovery in commerce and services, focused on delivering consistent long-term results,” emphasizes Funari.
