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 in 2020. Outside its home market of Brazil, net revenue climbed 41.5 percent 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 percent year on year. Of those, 31 million pairs were sold outside Brazil, an improvement of 38.8 percent 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 percent during the period.
In December, Alpargatas secured a deal to acquire a 49.9 percent 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.