Investor Presentation • Jul 28, 2023
Investor Presentation
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TURIN, 28 JULY 2023
EXECUTIVE SUMMARY NETWORK ACTIVITY
1H 2023
GROUP INTERIM RESULTS 1H 2023
EXECUTIVE SUMMARY
1H 2023 characterized by strong direct sales of goods (+15,55%) consistently with Q1 as network sales are basically steady due to a downfall in sales of sourcing centers (-7,0%). EBITDA slightly improving vs PY, NFP unchanged compared to Q1 and year-end levels.
01 EXECUTIVE SUMMARY
1H aggregated sales amounted to € 558,3 mln (-1,7% YoY), led by aggregated brand sales (ASL) up 0,7% YoY. Aggregated sales of sourcing centers (ASSC) reduced by -7,0% compared to 1H 2022 exceptional purchases following covid and logistics disruption.
Group consolidated revenues amounted to € 180,0 mln (+10,9% YoY). Direct sales of goods (+15,5% YoY) benefitted from a strong performance of all countries and brands directly managed by the Group plus the consolidation of K-Way France (only Q2 in 2022).
EBITDA stood at € 22,6 mln (€ 22,4 mln in 1H 2022) driven by a strong contribution from the newly acquired K-Way France and good commercial performances from all geographies of direct operations, as the Group keeps investing to foster long term growth.
Net Financial Position with banks, at € 97,0 mln (compared to € 93,9 mln at YE 2022) as the Group has paid the first instalment of K-Way France earn-out and generated a strong operating cash flow exceeding € 22,5 million.
-1,7% vs 2022 (€ 567,9 mln)
NFP WITH BANKS - € 97,0 mln
- € 3,1 mln vs YE2022 (- € 93,9 mln)
NETWORK ACTIVITY 1H 2023
| in € million | 30.06.23 | in % | 30.06.22 | in % | Var | Var % |
|---|---|---|---|---|---|---|
| Europe | 279,6 | 70,6% | 248,5 | 63,1% | 31,1 | 12,5% |
| Asia and Oceania | 28,9 | 7,3% | 35,0 | 8,9% | (6,1) | (17,4%) |
| Americas | 44,8 | 11,3% | 60,0 | 15,3% | (15,3) | (25,4%) |
| Middle East and Africa | 42,9 | 10,8% | 50,0 | 12,7% | (7,1) | (14,2%) |
| Total ASL | 396,2 | 100,0% | 393,5 | 100,0% | 2,6 | 0,7% |
10 Participation into Rimini Wellness th edition of Kappa® Future Festival
Launch of SS23 lifestyle collection in co-lab with AS Monaco
Kappa as Lifestyle Partner at Giro d'Italia
Launch of the 2024 bike collection at Eurobike (Frankfurt)
Sponsorship of the Bardiani CSF Faizanè team, riding at Giro d'Italia
Briko took part into the 9th edition of BAM! Festival
Koshi Mizukami
Launch of the first co-branding with Universal Works
New capsule collection with Highsnobiety in exclusive for Paris Fashion Week
Limited edition in co-lab with Japanese artist Yu Nagaba
Sponsorizzazione del surfista Leonardo Fioravanti Secondo drop with Italian brand Santini Cycling Wear
Co-lab with Pacha Ibiza
Co-lab with Max&Co
Co-lab with Roy Roger's
Co-lab with Barbie as of the eponymous Movie hits the theaters
Co-lab with Alaïa
02 NETWORK ACTIVITY AT 30/06/2023
Co-lab with the iconic menswear brand Drake's The Earth Collection: second co-lab with Hanami
GROUP INTERIM RESULTS 1H 2023
€ 10,7 mln € 7,4 mln
| in € .000 | 30.06.23 | in % | 31.12.22 | in % | 30.06.22 | in % |
|---|---|---|---|---|---|---|
| Sub-total net money holdings | (37.427) | 27,1% | (26.439) | 18,7% | (29.063) | 24,4% |
| Short-term portion of m/l term loans | (15.428) | (15.423) | (12.479) | |||
| Short-term net financial position | (52.854) | 38,2% | (41.862) | 29,5% | (41.543) | 34,8% |
| Long-term portion of m/l term loans | (44.021) | (51.756) | (30.617) | |||
| Financial leasing payables | (153) | (259) | (380) | |||
| Sub-total loans and leasing payables | (44.174) | 31,9% | (52.014) | 36,7% | (30.997) | 26,0% |
| Net financial position with banks | (97.028) | 70,1% | (93.876) | 66,3% | (72.540) | 60,8% |
| Right of use debts | (31.570) | (30.734) | (33.118) | |||
| Payables for future acquisition of company shares | (9.738) | (17.081) | (13.598 | |||
| Net financial position | (138.336) | 100,0% | (141.691) | 100,0% | (119.256) | 100,0% |
22,6 (5,2) (7,3) (1,2) (3,6) (+) Adjusted net result: € 15,5 mln (+) Δ in Net Working Capital: € 7,2 mln (–) Other: € 0,1 mln
NFP with banks YE2022 - € 93,9 mln OPERATING CASH FLOW INVESTMENT IN FIXED ASSETS TREASURY SHARES PAYMENTS OF LEASES NFP with banks 6m2023 - € 97,0 mln (8,4) K-WAY FRANCE EARN-OUT DIVIDEND PAYMENTS
| 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 |
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