Alpargatas struggles in Q2 as sale is approved
09/08/2017
Sales in Brazil, the company’s domestic market, fell 21.9%, while in Argentina, where it was founded, sales were down 19.9%. There was better news from overseas, however, with international sales increasing 7.5%.
Alpargatas’ profit also decreased during the quarter, falling 9.9% to $17.4 million.
The disappointing figures come as Alpargatas undergoes a change of ownership. It was reported in July that J&F Investimentos, which purchased Alpargatas in 2015, had agreed a deal to sell the brand to two of Brazil’s most important banking families for 3.5 billion reais ($1.1 billion).
The transaction was approved by Brazilian antitrust authority Cade on August 4. The majority stake in Alpargatas will now be held by a group made up of Cambuhy Investimentos, Itaúsa Investimentos and the Brasil Warrant fund.
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