Alpargatas S.A

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What it is

Alpargatas was founded on 3 April 1907 by Scottish entrepreneur Robert Fraser and a group of English investors in the Mooca neighbourhood of São Paulo, beginning as a maker of espadrilles. Today it is one of Brazil’s largest footwear groups, whose main product is Havaianas — the rubber flip-flop brand introduced in 1962 and now one of Brazil’s most recognised names globally.

The company operates four manufacturing facilities in Brazil, employs over 17,000 people across its international operations, and sells in more than 130 countries. Its production lines can turn out more than 200 million pairs a year — the group made 217 million pairs in 2024.

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Who owns it

In July 2017, Cambuhy Investimentos and Brasil Warrant (both vehicles of the Moreira Salles family) together with the Itaúsa holding company purchased a controlling stake in Alpargatas for R$3.5 billion (US$672 mn). Itaúsa oversees the fortune of Brazil’s Villela and Setubal families, who control Itaú Unibanco — Latin America’s largest bank; Cambuhy is the family office of the billionaire Moreira Salles family, also a major Itaú shareholder.

The EODHD data show insiders collectively hold roughly 89% of the company, leaving a free float of about 11% — this is a tightly held stock. The board of eight directors prominently features representatives of the controlling consortium: Alfredo Egydio Setubal serves as Chairman, alongside Pedro Moreira Salles, Rodolfo Villela Marino and João Moreira Salles from Itaúsa, plus Marcelo Pereira Lopes de Medeiros (Cambuhy) and Silvio Tini de Araujo (Bonsucex Holding).

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Who runs it

Liel Miranda has been CEO since February 2024. He has over 30 years of experience in commercial and supply-chain roles, joining Souza Cruz as a trainee in 1992 and later serving as president of Mondelēz in Brazil from 2019 until December 2023.

The executive team of 12 includes André Natal as Vice President of Finance and Investor Relations. Natal is a production engineer from UFRJ, holds MBAs in finance from COPPEAD, and has over 20 years across industry, investment banking, and asset management.

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The money, in plain words

The headline is a sharp recovery. In 2023 the company booked a net loss of R$1.87bn (US$359m) — a year of write-downs and restructuring costs.

In 2024 it swung back to a net profit of R$108m (US$21 mn), compared with that R$1.87bn (US$359 mn) loss a year earlier. By the most recent twelve-month period (TTM), net profit has risen further to R$569m (US$109m), a net margin of 13.2% on EODHD data — keeping roughly 13 cents of profit from every real of sales, a healthy level for a branded footwear group.

Revenue has grown at double-digit rates in both recent years: up 10.0% in 2024 and a further 11.1% in 2025 to R$4.56bn (US$877m) (our calculation). The balance sheet carries net debt — total borrowings of R$1.40bn (US$269 mn) exceed cash of R$556m (US$107 mn), leaving a net debt position of R$843m (US$162m) (our calculation) — manageable against an equity base of R$3.32bn (US$638 mn), but worth watching.

The price-to-earnings ratio of 10.7× is low relative to global consumer-brand peers, reflecting the market’s wait-and-see stance on whether the recovery is durable. Return on equity of 16.5% — earning R$16.50 (US$3)for every R$100 (US$19)of shareholders’ money — is a sign the underlying business still has genuine power when running well.

No dividend is paid today; cash is being directed at debt reduction and operations.

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What it is doing now

In June 2025, Alpargatas announced an exclusive distribution agreement with The Eastman Group for the Havaianas brand in the United States and Canada, switching from a direct sales model to a partnered approach starting in the 2026 season — with no upfront cash outlay for either party. The move is a bet that a specialist distributor with an established North American lifestyle network can open more doors than a costly direct operation.

Ownership by the controlling consortium has shaped strategy, including shedding non-core assets and putting returns on invested capital at the centre of decision-making. Management has been tasked with a more focused portfolio built firmly around Havaianas, rather than a sprawling brand house.

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What to watch

• North America partnership: The Eastman deal is a meaningful test — if Havaianas volumes in the US pick up from 2026, it validates the new model; if not, it raises questions about international demand.
• Net debt trajectory: R$843m (US$162 mn) in net debt (our calculation) must keep falling; any revenue softening could quickly tighten that headroom.
• Dividend resumption: With the yield at 0%, income investors sit on the sidelines; a first dividend would be a signal that management considers the repair job done.
• Rothy’s contribution: In the third quarter of 2024 Rothy’s — Alpargatas’s US-based footwear subsidiary — reported a 29% revenue increase year-on-year to US$39m. Whether that growth rate holds will determine how much Rothy’s adds to the group’s overall margin mix.
• Ownership concentration: At ~89% insider ownership, any move by the controlling families — a full buyout, a share sale, or a de-listing — would be a defining event for minority holders.

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This is news, not investment advice.