Alpargatas, the parent of Havaianas, is reaping the benefits of a three-year-old international expansion strategy, despite the impact of Covid on cross-border travel.
In the year to December, Alpargatas recorded sales of US$739 million, a 25.7-per-cent improvement on 2020. Outside its home market of Brazil, net revenue climbed 41.5 per cent US$227 million.
“The numbers are the result of a long-term strategy. Three years ago, we established that Alpargatas’ long-term value creation thesis would be based on leveraging the strength of desired and hyper-connected brands such as Havaianas,” said CEO Beto Funari.
“In this short period, we have proved this thesis as we accelerate the brand’s growth and restructure the business portfolio.”
The company sold a record 260 million pairs of flip-flops, up 13 per cent year on year. Of those, 31 million pairs were sold outside Brazil, an improvement of 38.8 per cent versus 2020.
Funari also said the company’s growing portfolio of non-flip flop products – sandals, flats, sneakers, accessories and apparel – increased by more than 200 per cent during the period.
In December, Alpargatas secured a deal to acquire a 49.9 per cent stake in Californian sustainable footwear brand Rothy’s. Now it is planning a share issue to help fund the acquisition, expected to raise around $400 million.