Alpargatas posts net income decline in third-quarter

Brazil
Published:  12 November, 2019

The Brazilian producer of footwear, apparel and sporting goods has posted a net revenue of over R$1 billion (US$240 million) in the third quarter of 2019, up 11.4%.

Alpargatas’ net revenue totalled R$1.037 billion (US$249.72 million) in the third quarter of the year, up 11.4% on a year-on-year basis. All the Group’s businesses are said to have reached a double-digit growth in the period. In Brazil, sales of Havaianas and Osklen on a direct-to-consumer basis increased 10% and 13%, respectively. Recurring EBITDA margin was 15% (up 270 bps) in the quarter and EBTIDA stood at R$155.5 million (US$37.44 million), while gross profit amounted to R$480.3 million (US$115.65 million), up 18.8%, driven by a better cost management and efficiency gain projects, according to Alpargatas.

However, net income for the period totalled R$58.5 million, down 51.2% year-on-year. The Group has attributed the results to a successful outcome of a lawsuit claiming the exclusion of ICMS (state VAT) from the COFINS calculation base in the amount of R$189.2 million (US$45.55 million). In July 2017, J&F, the holding that owns meatpacking giant JBS, agreed to sell Alpargatas to Brazilian financial investors Cambuhy and Itaúsa. Part of the money was to be used by the Batista brothers to repay creditors and to finance the lawsuit faced by JBS.

Brands owned by Alpargatas include Havaianas, Osklen and Misuno.

Osklen garments made from pirarucu skins.