Alpargatas: 2tri strong with plan to repeat Ambev and Natura outside Brazil

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“We see ourselves as a platform for global consumer brands such as Ambev and Natura.” The phrase comes from Roberto Funari, president of Espadrilles, owner of Havainas and Osklen brands. It was an answer about whether the company is thinking about acquisitions. The clue: think and it doesn’t have to be in Brazil. But the executive went no further than when, who, and how much—or where.

This answer is also the picture and the central explanation for the balance of the second quarter. The company’s net revenue grew 71.4%, year-on-year, to R$ 1.095 billion — a number similar to the first quarter, the company’s strong period due to the summer.

Recurring Ebitda had an expansion of 163%, to R$ 196.7 million, equivalent to an 18% margin. Net income attributed to controlling shareholders increased 239% and totaled R$107 million — which is equivalent to a net margin of approximately 10%.

“When we looked at the average of the company’s last 10 years, revenue doubled and EBITDA was multiplied by 2.5 times”, comments Funari, in an interview with EXAME IN.

The execution of two strategies is behind the collection of numbers: increasing the internationalization of the Havaianas brand (focusing on the United States, Europe and China) and the expansion and diversification of the product portfolio, that is, life beyond the flip flop. Both movements seem obvious, but they spent years parked within the business, until the design and execution of a plan by the new controllers and managers.

From April to June of this year, even with the worsening of the pandemic, Havainas continued to advance both in digitalization and in the opening of physical stores – there were 43 new monobrand units in the period. In volume, the company sold 54% more in Brazil and 74% more in the foreign market. Online sales, which were 9% of the total, in 2019, surpassed 20% in the consolidated brand and, in the foreign market, surpassed 40% of the total.

“We are advancing faster than the industry average on this front”, he reinforces. Havaianas took a long time to “take ownership” of its digital project. It was only in October last year that the company internalized and centralized the care of its e-commerce, which even ended up causing some mishaps in deliveries for Christmas. But that is behind us.

In this interval of the second quarter, the international revenue of Havaianas rose 63% and Ebitda, 132% – exchange and sales channels explain the advance of the margins. While in Brazil, the advance was 72% in revenue and 20% in Ebitda. With this performance, exports accounted for half of the brand’s revenue in the second quarter and 47.5% in the semester.

To get an idea of ​​what portfolio diversification means, the president of Alpargatas explains that a year ago there were 3 different styles in addition to flip flops and today there are 23, with 79 colors. The brand has just launched itself in the sneakers market, which opens the prospect of accelerating this movement even further.

Funari says that in the channels where Havaianas is already able to place its complete product portfolio, sales of products that go beyond the core business already represent 20% of the total. “Our recent moves triple the brand’s addressable market.”

Size matters

For those who think of being for Brazil what Ambev is, in beers, and Natura&Co, in hygiene and beauty, in the global consumer market, having a safe and a significant market value matter. The company ended June with R$ 637 million in net cash, that is, in addition to financial commitments — 38% more than at the end of 2020.

The company is traded close to its historical highs, valued at more than R$27.5 billion on B3. For comparison purposes, this total was R$ 20 billion in December last year. Accessing the market in search of resources is not in Funari’s plans, but the executive follows the market closely, as he knows that it will be essential when any inorganic movement occurs.

Among investors, there is great expectation that the company will be included in the Bovespa Index soon. Funari does not comment on the matter, but points out that the company has been attracting more and more foreign investors and points out that the daily turnover with the paper, which was around R$ 15 million in 2019, is approximately R$ 75 million.