Brazil · Delayed Price · Currency is BRL Alpargatas Earnings Call Transcripts
Fiscal Year 2026
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Q3 delivered growth across geographies, a 50% gross margin and continued deleveraging. International regions turned EBITDA-positive; Brazil sell-out rose 8%, while U.S. growth accelerated after the distribution transition.
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Global volumes rose 9% with strong growth in Brazil and Europe, while the U.S. saw a temporary volume dip due to a business model shift but posted 40% growth in the first half. Gross margins and EBITDA improved, supported by premiumization, disciplined execution, and positive cash flow.
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Record quarterly EBITDA driven by strong volume growth in Brazil and Europe, with margin expansion from operational efficiency and a new U.S. distribution model. Market share gains continued in key channels, while cash generation and capital discipline supported further deleveraging.
Fiscal Year 2025
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2025 closed a turnaround cycle with record profitability, strong sell-out growth in Brazil, and a return to growth in Europe. Premiumization, efficiency gains, and a new U.S. partnership drove margin expansion, while cash generation enabled BRL 1.2 billion in shareholder returns.
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Growth achieved across all geographies, with record EBITDA margin and strong cash generation. Efficiency gains, disciplined pricing, and premium product mix drove profitability, while capital structure reduction and operational improvements support future growth.
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International growth accelerated with strong results in Europe and the U.S., while Brazil gained market share and improved efficiency. Gross margin and EBITDA per pair rose despite lower volumes, and a BRL 150 million capital reduction was announced, with dividends expected to resume as profitability grows.
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Q1 2025 saw strong volume and margin growth in Brazil, early recovery in Europe, and improved U.S. profitability through channel optimization. Cash generation and deleveraging continued, with disciplined capital allocation and a focus on sustainable efficiency.
Fiscal Year 2024
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2024 marked a transition with strong operational improvements, inventory normalization, and positive cash generation, setting the stage for sustainable growth in 2025. International recovery and core product focus remain priorities, with disciplined capital allocation and no major write-offs expected ahead.
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Achieved strong net profit and cash generation, driven by portfolio simplification, operational efficiency, and targeted marketing investments. Brazil showed robust growth, while international markets, especially Europe and the U.S., remain focus areas for brand rebuilding and expansion.