The Brazilian owner of Havaianas announced a decline in revenue and profits in the first quarter of 2023.
“We expect that better timing should be reflected in higher cost efficiency, and lower capital employed in inventories, as well as meeting the specific demands in our various sales channels and geographies with more precision. We consider that this focus on greater cost and capital allocation efficiency and better coordination of our operational planning process are structural and fundamental components to support our growth recovery trend”, reads the company’s statement.
In the first quarter of 2023, Alpargatas' net revenue amounted to 905.2 million Brazilian Reais (165.6 million euros), down 2.7 percent on a comparable basis to the same period of last year.
Havaianas saw its net revenue decline by 1.5 percent in the three months to the 31st of March to 894.3 million Brazilian reais (163.6 million euros), on a comparable basis to the same period of the prior year. In Brazil, the brand's net revenue was up by 1.6 percent to 575.3 million Brazilian reais (105.2 million euros), while international revenue decreased by 6.8 percent to 318.9 (58.4 million euros).
The Brazilian company reported that its normalised EBITDA stood at 65.8 million Brazilian reais (12.0 million euros) in the first quarter of the current fiscal year, reflecting a decrease of 62.4 percent as compared to the same quarter last year. “Results were impacted by the lower volume sold in the quarter, in addition to pressures on operating costs and expenses.”
Alapargatas’ also posted a net loss of 199.7 million Brazilian reais (36.5 million euros) in the first quarter of the year, against a profit of 112.1 million Brazilian reais (20.5 million euros) registered in the same period of the previous year.
