SÃO PAULO, May 6, 2021 /PRNewswire/ -- Havaianas' global expansion — prioritizing Europe, China, and the U.S., in addition to Brazil — remains on a strong path. The world market leader in open footwear delivered revenue growth in all regions, including distributors. Outside Brazil, net revenues in constant currency reached R$317.9 million (~US$59.2 million) in 1Q21, climbing 27% year-over-year. Volume increased 34.3% in the period to 7.9 million pairs/pieces. At 24%, EBITDA was 16 p.p. higher than a year earlier.
On May 3, Havaianas brand owner Alpargatas announced the acquisition of technology startup company ioasys to boost the Havaianas brand growth, with global expansion, acceleration of online sales and extension of the product portfolio as its pillars. Acquired company ioasys has a proven track record of success in end-to-end digital solutions and a strong culture centered on user experience.
1Q21 Earnings
In the so-called Big Bets, or priority markets, year-over-year growth in net revenues in constant currency reached 26% in Europe, 13% in the U.S., and 736% in China in 1Q21. All these markets also saw margin gains.
"Havaianas is stronger than ever, inspired by people in Brazil and around the world. The brand has expanded globally, accelerated online sales, and broadened its portfolio with innovation and sustainable technologies. We take pride not only in our ability to expand revenues and profits, but also to support society in the fight against the pandemic and in socioenvironmental causes. We are on the right track to capture the full potential of Havaianas," says Beto Funari, CEO of Alpargatas, owner of Havaianas, a brand that is present in more than 130 countries. The Brazilian multinational disclosed earnings on Monday, May 3.
After a solid performance in 2020, the company had its best first quarter in a decade, delivering expanding revenues, margins, and EBITDA. Consolidated net revenues climbed 32.7% year-over-year to R$901.3 million (~US$168 million). Recurring EBITDA totaled R$158.7 million (~US$ 29.6 million), almost double the figure seen in 1Q20. Recurring net income increased 73.3% year-over-year to R$135 million (~US$25.1 million). These results supported cash generation of R$237 million (~US$44 million), and the company ended the quarter with a financial position of R$698 million (~US$130 million).
For the full earnings report, please visit: https://ri.alpargatas.com.br/default.aspx?linguagem=en#
ioasys acquisition
The acquisition represents yet another major step in Alpargatas' digital transformation, focused on user experience. Together, the firms will have an ecosystem to accelerate and scale up strategic projects, such as the creation of Havaianas DTC (direct-to-consumer) solutions and expansion of the CRM platform based on customer experience, in addition to the acceleration of digital experiences in international markets to strengthen the brand.
"We saw in ioasys the same business purpose, a company that is inspired by people, with a digital mindset and culture focused on user experience. With expertise in technology, innovation, and agile methodologies, we will speed up the Alpargatas growth pillars: global expansion, digital acceleration, innovation in scale, and sustainability," says Beto Funari, CEO of Alpargatas.
The amount attributed to 100% of ioasys' share capital is as high as R$200 million (~US$37.3 million), to be paid within 5 years after the parties sign the share sale agreement. Part of the payment will be in cash and part in Alpargatas shares.
