Supermarket inflation hindered Havaianas sales – 07/14/2023 – Panel SA

Inflation and the weather hurt Alpargatas, owner of Havaianas, last year. In its annual sustainability report, the company informs a profit of BRL 184 million in total, down 84%.

Alpargatas’ net income alone fell by 4 percentage points, reaching R$439 million.

According to the company, the year was hampered by the damage caused by high inflation on the pockets of Brazilians who, with the rise in food prices, were further away from supermarkets — the main point of sale for the brand’s famous sandals.

Another factor was the climate, with low temperatures in spring and summer, considered the most important seasons for the sector.

In addition, the increase in raw material costs also weighed on the result.

The report was not signed off by the company’s CEO. Roberto Funari resigned in April and board member Luiz Fernando Edmond took over on an interim basis.

The result was that, between January 2021 and December 2022, Alpargatas lost 85% of its market value. In the period, the accumulated decline in shares traded on B3 was 63%

With Diego Felix

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