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Basic Net SpA

Earnings Release Feb 10, 2023

4229_rns_2023-02-10_1c32afbd-f7e0-411a-a553-12b734455918.pdf

Earnings Release

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2022 PRELIMINARY RESULTS CONFERENCE CALL

TURIN, 10 FEBRUARY 2023

EXECUTIVE SUMMARY NETWORK ACTIVITY

FY 2022

GROUP PRELIMINARY RESULTS FY 2022

EXECUTIVE SUMMARY

FY 2022 results confirm the commercial growth trend: aggregated sales up 34,1% exceeding 1,2 billions. Group consolidated revenues up 30,0% as EBITDA surpasses € 60 million. Higher indebtedness to finance both long-term investments and working capital.

TOTAL AGGREGATED SALES

01 EXECUTIVE SUMMARY

FY22 aggregated sales amounted to € 1.273,1 mln (+34,1% YoY), led by aggregated brand sales (ASL) up 27,1% YoY with all geographies being up doble digit. Aggregated sales of sourcing centers (ASSC) improved at +54,8% YoY.

GROUP CONSOLIDATED REVENUES

Group consolidated revenues amounted to € 386,1 mln (+30,0% YoY). Direct sales of goods (+29,4% YoY) benefitted from a strong performance of all countries directly managed by the Group plus the first consolidation of K-Way France since Q2 2022.

EBITDA

EBITDA at a historical high nearing € 61 million (€ 60,9 mln vs € 44,2 mln in FY 2021) with a strong contribution from the newly acquired K-Way France and improvement in all geographies of direct operations, despite the unfavorable impact of USD on marginality.

NFP WITH BANKS

Net Financial Position with banks at € 93,7 mln, compared to € 37,7 mln at year-end 2021: the Group financed strategic investments for the future, acquiring K-Way France, renovating BasicVillage Milan and supporting the increase in TWC, while remunerating its shareholders pursuing the buy-back program. - 3 -

TOTAL AGGREGATED SALES (TAS) € 1.273,1 mln

+34,1% vs 2021 (€ 949,4 mln)

+30,0% vs 2021 (€ 297,0 mln) € 386,1 mln GROUP CONSOLIDATED REVENUES

EBITDA € 60,9 mln

+37,7% vs 2021 (€ 44,2 mln)

NFP WITH BANKS - € 93,7 mln

- € 56,0 mln vs 2021 (- € 37,7 mln)

NETWORK ACTIVITY FY 2022

ASL – GEOGRAPHIC AREA

in $\epsilon$ million 31.12.22 in $%$ 31.12.21 in $%$ Var Var %
Europe $\sqrt{N}$ 612,3 67,9% 482,3 68,0% 129,9 26,9%
Asia and Oceania $\blacksquare$ 71,8 8,0% 51,1 7,2% 20,7 40,4%
Americas $\blacksquare$ 114,3 12,7% 96,4 13,6% 17,9 18,6%
Middle East and Africa $\blacksquare$ 103,6 11,5% 79,8 11,2% 23,8 29,9%
Total ASL 902,0 100,0% 709,6 100,0% 192,4 27,1%

Sponsorship deal with the South African team Kaizer Chiefs

Co-lab with Drôle de Monsieur to re-design

Sponsorship of the Sole DXB festival in Dubai

the AS Monaco kit Presentation of the first US Ski collection branded Kappa

Q4 MARKETING

Launch of the re-edition of the iconic Dectector goggles, which were awarded the Compasso d'oro and worn by the likes of Mario Cipollini and Alberto Tomba

Opening of the first two Chinese monobrand shops, in Beijing and Shanghai

Cyril Lancelin's installation to celebrate the first opening in Hong Kong

Limited edition co-lab with Moleskine

Sponsorship of the 13° edition of Artissima in Torino

Participation in the ISPO in Munich

Q4 MARKETING

Opening of 15 pop-up Superga Kidswear stores in Spain with Miniconf

First co-lab with Engineered Garments

Sponsorship of Movement festival in Torino

Presentation of the Outsides Q3Q4 collection with the European Vampires First co-lab with the concept store Slowear

GROUP PRELIMINARY RESULTS FY 2022

NET FINANCIAL POSITION

in € .000 31.12.22 in % 31.12.21 in % Var Var %
Sub-total net money holdings (26.282) 18,6% 6.325 -10,2% (32.607) -515,5%
Short-term portion of m/l term loans (15.423) (9.243) (6.180)
Short-term net financial position (41.705) 29,5% (2.918) 4,7% (38.787) n.s.
Long-term portion of m/l term loans (51.756) (34.268) (17.488)
Financial leasing payables (259) (515) 257
Sub-total loans and leasing payables (52.014) 36,9% (34.783) 56,3% (17.231) 49,5%
Net financial position with banks (93.719) 66,2% (37.702) 61,1% (56.018) 148,6%
Right of use debts (30.734) (24.041) (6.692)
Earn-out debt K-Way France (17.081) - (17.081)
Net financial position (141.534) 100,0% (61.743) 100,0% (79.791) 129,2%
  • 16 -

03 NET FINANCIAL POSITION WALK

GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES

Commercial licensees or licensees independent business owners, granted licenses to distribute Group brand products in their respective regions
Productive licensees or sourcing centers third-party entities whose function is to manufacture goods branded with the Group brands for the exclusive sale
to Commercial licensees or to Group companies
Total Aggregated Sales (TAS) the sum of Aggregated Brand Sales (ASL) and Aggregated Sales of Sourcing Centers (ASSC)
Aggregated Brand Sales (ASL) sales by commercial licensees –
that generate royalties for BasicNet Group –
and sales by the Group
companies
Aggregated Sales of Sourcing Centers (ASSC) sales by productive licensees –
that generate sourcing commissions for BasicNet Group
Consolidated revenues the sum of royalties, sourcing commissions, sales of products made by BasicNet Group companies and
real estate revenues
EBITDA "operating result" before "amortisation and depreciation"
Net Financial Position total of current and medium/long-term financial payables, less cash and cash equivalents and other current
financial assets
Net Financial Position with banks Net Financial Position, excluding IFRS 16 and financial liabilities for the acquisition of businesses

THANK YOU

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