Alpargatas (ALPA4) investor relations material

Executive summary

• Achieved record quarterly EBITDA, with nominal EBITDA reaching R$300 million and margin expanding to 24%, the highest for a first quarter in company history, driven by volume growth and operational efficiency across all geographies.

• Net sales rose 12.5% year-over-year to R$1.2 billion, with Havaianas contributing R$1,216.6M, and net income increased 44.8% to R$162.8 million.

• Strategic focus on accelerating growth in Brazil and international markets, with a new distribution model in the U.S. and continued expansion in Europe.

• Maintained disciplined capital allocation and marketing investments to strengthen global brand presence and support sustainable expansion.

• Operational improvements included margin expansion, disciplined expense management, and strong cash generation.

Financial highlights

• Global volume grew 8.4% year-over-year to 61.5 million pairs, with Brazil up 8%, Europe up 18%, and U.S. up 161% due to the new distribution model.

• Gross profit increased 15.4% to R$646.8 million, with gross margin up 1.3 p.p. to 52.6%, and Brazil's gross margin hit an all-time high of 49% for the first quarter.

• EBITDA surged 47.3% to R$286.3 million, with adjusted EBITDA margin at 24.4%, up 5.5 p.p. year-over-year.

• Cash generation reached R$207 million in the quarter, totaling R$352 million over the last 12 months.

• Net debt/EBITDA LTM at 0.5x, reflecting continued deleveraging.

Outlook and guidance

• Confident in continued improvement of financial indicators and further margin expansion through scale and efficiency, with a focus on sustainable expansion in Brazil and gradual volume recovery internationally.

• Expectation of regaining growth in Middle East and Africa after geopolitical tensions subside.

• No planned price adjustments currently, but monitoring cost pressures from raw materials and freight.

• Continued rollout of new product usage occasions and global marketing calendar.

• Emphasis on maintaining capex and SG&A discipline, improving ROIC, and expanding cash generation.