Alpargatas' consolidated net earnings jumped by 71.3 percent to 119.8 million reais (€27.6m-$31.3m) in the third quarter ended on Sept. 30, but this was partly due to non-recurring items. Excluding them, the Brazilian group's Ebitda margin fell by 1.3 percentage points to 12.3 percent on 2.2 percent lower revenues of R$ 930.7 million (€214.2m-$243.2m).
The gross margin declined by 0.1 percentage points to 43.4 percent, partly due to the higher cost of rubber. It improved by 1.4 percentage points to 68.6 percent for the group's international sandals business, represented mainly by Havaianas, but its operating losses increased because of big investments for its future development, especially in Asia.
Havaianas recorded sales increases in local currencies in Europe, the Middle East and Asia. Its business with distributors in the Middle East improved. Revenues from the Asia-Pacific region rose by 43.2 percent, partly because of late invoicing of previous shipments. The first six Havaianas stores in India were opened during the quarter.
The revenues from Alpargatas' international sandals operations grew by 35.4 percent to R$ 146.8 million (€33.8m-$38.4m), largely because of the devaluation of the Brazilian currency against the euro and the U.S. dollar. They were offset by sales declines of 0.3 percent in Brazil and 33.0 percent in Argentina.
The company has stopped breaking down its sales of sports products, which now consist mainly of its Mizuno license for Brazil and Argentina. It did say, however, that its sales of sports shoes went up in volume by 17 percent during the quarter, thanks to the introduction of more basic items and new medium-priced products.
Alpargatas complained that its competitors in the Brazilian sports market engaged in aggressive discounting. It also reported on the opening of the first two Mizuno factory outlets in the country.