Alpargatas, the parent of Havaianas, reported revenues rose 8.7 percent in the first quarter, to Brazil real (R) 948.9 9 million ($315.3 mm).
Net income declined 14.9 percent to R99.2 million ($33.0 mm). Excluding the sale of the factory in Rio Grande do Norte during the year-ago quarter, net income grew 17.3 percent. Gross margins improved to 44.6 percent from 42.2 percent. EBITDA reached R161 million ($53.5 mm), up 15.7 percent.
Net revenue in the domestic market was R560.9 million ($186.6 mm), a decline of 1.5 percent. Sandals increased 3.8 percent despite
lower volumes, due to increased average sale prices; growth in sales of closed footwear and Havaianas apparel, which have higher average prices; and an overall improved sales mix. The sporting goods channel, impacted by an increase in the cost of living that affected the sales of higher price footwear, saw a 28.4 percent drop in revenue.
Argentina’s sales jumped 38.6 percent to R197.5 million ($65.6 mm) due to the increase in sales prices in addition to the 5.7 percent appreciation of the peso against the real in 1Q15.
In its USA, Europe and Exports segment, revenues grew 18.2 percent to R190.5 million ($63.3 mm) due to a 23.9 percent growth in revenue in dollars at Alpargatas USA and 9.9 percent growth in euros for Alpargatas Europe. Revenue from Havaianas sandals exports grew 3.6 percent in dollars.
