Annual Report • Mar 17, 2022
Annual Report
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| Informazione Regolamentata n. 0923-6-2022 |
Data/Ora Ricezione 17 Marzo 2022 12:09:27 |
Euronext Star Milan | |
|---|---|---|---|
| Societa' | : | AEFFE | |
| Identificativo Informazione Regolamentata |
: | 158640 | |
| Nome utilizzatore | : | AEFFEN02 - Degano | |
| Tipologia | : | 1.1 | |
| Data/Ora Ricezione | : | 17 Marzo 2022 12:09:27 | |
| Data/Ora Inizio Diffusione presunta |
: | 17 Marzo 2022 12:09:28 | |
| Oggetto | : | AEFFE FY 21 Results | |
| Testo del comunicato |
Vedi allegato.
Progress reflected in all economic indicators and focus on the new strategic direction of Moschino
San Giovanni in Marignano, 17th March 2022. The Board of Directors of Aeffe Spa - luxury products company listed in the STAR segment of Borsa Italiana, operating both in the prêt-à-porter sector and in the footwear and leatherwear sector with extremely well-known brands, including Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini - met today and approved the consolidated financial statements and the draft separate financial statements for 2021.
The Aeffe Group generated 2021 REVENUES of Euro 324.6 million, compared with Euro 269.1 million in 2020 (up by 20.8% at constant exchange rates and by 20.6% at current exchange rates). Against a background of generalized growth in all geographical areas and distribution channels, the Group has experienced sharp acceleration in the United States (+41.4%), Greater China (+23%) and Continental Europe (+24.5%), as well as in direct on-line sales.
Massimo Ferretti, Executive Chairman of Aeffe Spa, commented: "Revenue growth in 2021 was significant, with a more than proportional increase in profitability. This reflects the good performance of all our brands in the various markets and distribution channels, combined with the benefits of work to improve the structural efficiency of our business model. Notably, the Fall-Winter 2022-23 sales campaign was successful, helping to mitigate the effects of the healthcare emergency linked to the Covid-19 pandemic. Despite the uncertainties caused by geopolitical tensions (Russia and Ukraine contributed 2.6% of turnover in 2021), we remain focused on the pursuit of medium/long-term initiatives: development of the new strategic direction of Moschino, with the integrated management of all clothing licenses tied to the brand; direct management of distribution in Mainland China; significant strengthening of the on-line sales channel".
| (migliaia di Euro) | 12M 21 | 12M 20 | $Var.$ % | $Var. \%^*$ |
|---|---|---|---|---|
| Italia | 132.138 | 114.912 | 15,0% | 15,0% |
| Europa (Italia esclusa) | 105.535 | 84.731 | 24.6% | 24,5% |
| Asia e Resto del Mondo | 65.368 | 53.926 | 21,2% | 21,2% |
| America | 21.551 | 15.548 | 38.6% | 41,4% |
| Totale | 324.592 | 269.117 | 20,6% | 20,8% |
(*) At constant exchange rates.
Even though the ongoing healthcare crisis provoked by Covid-19 had some effect on 2021, impacting the direct retail channel in particular, the Group still achieved double-digit growth in all markets served, with very substantial increases in Europe, Asia, the Rest of the World and America:
| (migliaia di Euro) | 12M 21 | 12M 20 | Var.% | $\textsf{Var}\ \%^*$ |
|---|---|---|---|---|
| Wholesale | 238.805 | 195.117 | 22.4% | 22,6% |
| Retail | 72.164 | 63.527 | 13.6% | 13,7% |
| Royalties | 13.623 | 10.473 | 30,1% | 30,1% |
| Totale | 324.592 | 269.117 | 20.6% | 20,8% |
(*) At constant exchange rates.
The Group achieved double-digit growth across all active distribution channels during 2021, in particular:
| DOS | 31.12.2021 | 31.12.2020 | Franchising | 31.12.2021 | 31.12.2020 |
|---|---|---|---|---|---|
| Europa | 42 | 42 | Europa | 38 | 40 |
| Stati Uniti | Stati Uniti | ||||
| Asia | 14 | 16 | Asia | 105 | 104 |
| Totale | 57 | 59 | Totale | 143 | 144 |
With regard to the network of directly-owned stores (DOS), openings and closures during year took account of access to the most strategic locations, consistent with the positioning of our brands.
No significant events have taken place subsequent to year end.
The Board of Directors also approved the draft separate financial statements of Aeffe S.p.A., the Parent Company, for 2021.
The Board of Directors will recommend the Shareholders' Meeting, called for 28th April 2022, to use the extraordinary reserve to cover the loss for the year of Euro 15,920,238.
The Board of Directors of Aeffe S.p.A., meeting today, examined and approved the preliminary results of the Consolidated Non-Financial Statement for 2021, prepared as an integral part of the consolidated financial statements for the year, as envisaged in Decree 254/2016.
The Board of Directors of the Company evaluated existence of the independence requirements specified in arts. 147-ter, para. 4, and 148, para. 3, TUF, and art. 3 of the Corporate Governance Code, and resolved that the requirements are met by Daniela Saitta, Michela Zeme, Marco Francesco Mazzù and Bettina Campedelli, all non-executive directors, based on statements received from them and other information available to the Company. Director Roberto Lugano is considered to be an independent director pursuant to the provisions of arts. 147-ter, para. 4, and 148, para. 3, TUF, but not pursuant to the Corporate Governance Code; accordingly, he is formally recognized as a non-executive director. The Board of Directors of Aeffe S.p.A. approved the Report on Corporate Governance and the Ownership Structure and the Compensation Report, which will be made available by the legal deadlines at the registered office, on the website www.aeffe.com and on the website of the authorized repository .
Following the resignation of Director Michela Zeme after approval of the separate and consolidated financial statements, due to the intensification of her professional commitments and in order to avoid exceeding the maximum number of appointments, given her duties for other bodies within the Company, the Board of Directors arranged to co-opt a female independent director pursuant to art. 15.6 of the Articles of Association and in compliance with the current regulations governing gender balance. She will remain in office until the Shareholders' Meeting called for 28th April 2022, which will either confirm or replace her using ordinary majority voting procedures, without adopting the list voting system. Accordingly, Francesca Pace was appointed as a director of Aeffe S.p.A. who satisfies the independent requirements envisaged in art. 148, para. 3, of Decree 58 dated 24th February 1998 and the Corporate Governance Code for listed companies. The curriculum vitae of Francesca Pace is available at the following address: https://aeffe.com/it/organi-sociali/.
The Board of Directors appointed Giancarlo Galeone, executive director and member of the Executive Committee, as the Interim Investor Relations Officer (replacing Annalisa Aldrovandi). Given the evolution of the organizational structure, this function will most likely be performed within a few months by the new CFO of the Parent Company, whose selection is now at an advanced stage.
As part of the corporate rationalization and reorganization process, intended to enhance the operational efficiency and coordination of Group activities, now under examination by the Executive Committee, the Board of Directors of Aeffe resolved to consider the absorption of Velmar S.p.A., a wholly-owned subsidiary, and consequently mandated the Executive Committee to take the steps needed to prepare the draft merger document for presentation to the Board.
The Board of Directors of Aeffe S.p.A. resolved to call the Shareholders' Meeting for 28th April 2022 to discuss and resolve (i) on approval of the separate financial statements of Aeffe S.p.A. as of 31st December 2021 and
related and consequent resolutions, (ii) on the remuneration policy of the Company, and (iii) on confirmation of the Directors co-opted by the Board of Directors to replace those who had resigned. The documentation relating to the items on the agenda will be made available to the public on the basis and with the timing envisaged in current regulations.
The following consolidated schedules of Aeffe S.p.A. are attached: Income Statement, Balance Sheet and Cash Flow Statement.
The 2021 data reported in this communication has not yet been verified by the auditing firm.
The Presentation of Financial Results for the year ended 31st December 2021 is available at the following address: www.aeffe.com
The consolidated financial statements, the draft separate financial statements as of 31st December 2021 and the respective reports on operations will be made available to the public, by the legal deadlines, at the registered office, on the website www.aeffe.com and on the website of the authorized repository .
"The Executive responsible for preparing the Company's accounting documentation, Simone Badioli, confirms pursuant to art.154-bis, para. 2, TUF that the accounting disclosures contained in this communication agree with the related corporate documents, legal books and accounting entries".
AEFFE Spa Giancarlo Galeone [email protected] +39 0541 965211
Press Relations Barabino & Partners Marina Riva [email protected] +39 02 72023535
| (In thousands of Euro) | FY 21 | % | FY 20 | ℅ | Change % |
|---|---|---|---|---|---|
| Revenues from sales and services | 324,592 | 100.0% | 269,117 | 100.0% | 20.6% |
| Other revenues and income | 8,521 | 2.6% | 10,486 | 3.9% | (18.7%) |
| Total Revenues | 333, 113 | 102.6% | 279,603 | 103.9% | 19.1% |
| Changes in inventory | (17, 640) | $(5.4\%)$ | 2,341 | 0.9% | (853.5%) |
| Costs of raw materials, cons. and goods for resale | (114, 386) | (35.2%) | (110, 162) | (40.9%) | 3.8% |
| Costs of services | (93, 183) | (28.7%) | (93, 242) | (34.6%) | $(0.1\%)$ |
| Costs for use of third parties assets | (5,730) | $(1.8\%)$ | (6, 631) | (2.5%) | (13.6%) |
| Labour costs | (63, 136) | (19.5%) | (61, 753) | (22.9%) | 2.2% |
| Other operating expenses | (3,694) | $(1.1\%)$ | (5,662) | $(2.1\%)$ | (34.8%) |
| Total operating costs | (297, 768) | (91.7%) | (275, 109) | (102.2%) | 8.2% |
| EBITDA | 35,345 | 10.9% | 4,493 | 1.7% | 686.6% |
| Total Amortization and Write-downs | (26, 176) | $(8.1\%)$ | (29,059) | (10.8%) | (9.9%) |
| EBIT | 9,169 | 2.8% | (24, 565) | $(9.1\%)$ | (137.3%) |
| Total Financial Income /(expenses) | (2,850) | $(0.9\%)$ | (3,022) | $(1.1\%)$ | (5.7%) |
| Profit/(loss) before taxes | 6,318 | 1.9% | (27, 587) | (10.3%) | (122.9%) |
| Taxes | 5,808 | 1.8% | 4,231 | 1.6% | 37.3% |
| Net Profit/(loss) | 12, 126 | 3.7% | (23, 357) | (8.7%) | (151.9%) |
| Profit attributable to minority shareholders | $\equiv$ | 0.0% | 1,960 | 0.7% | $(100.0\%)$ |
| Net Profit/(loss) for the Group | 12, 126 | 3.7% | (21, 397) | $(8.0\%)$ | (156.7%) |
(1) EBITDA – Earnings before interest, taxes, depreciation and amortization - represented by the operating profit before provisions, depreciation and amortization. EBITDA as defined above is a parameter used by the management of the Group to monitor and assess its operating performance; however it is not identified as an accounting measure in the context of ITA GAAP or IFRS and, as such, is not checked by the auditing firm.
| (In thousands of Euro) | 31 December 31 December | |
|---|---|---|
| 2021 | 2020 | |
| Trade receivables | 50,034 | 39,095 |
| Stock and inventories | 91,407 | 109,285 |
| Trade payables | (78,690) | (69, 328) |
| Operating net working capital | 62,751 | 79,052 |
| Other receivables | 39,150 | 39,036 |
| Other liabilities | (22,052) | (20, 778) |
| Net working capital | 79,848 | 97,309 |
| Tangible fixed assets | 58,771 | 61,658 |
| Intangible fixed assets | 68,866 | 72,489 |
| Right-of-use assets | 85,962 | 100,472 |
| Investments | 30 | 132 |
| Other long term receivables | 1,566 | 2,616 |
| Fixed assets | 215, 195 | 237,367 |
| Post employment benefits | (4, 479) | (4,900) |
| Long term provisions | (1,758) | (1, 544) |
| Other long term liabilities | (1, 120) | (1,769) |
| Deferred tax assets | 15,164 | 21,287 |
| Deferred tax liabilities | (13, 945) | (28,016) |
| NET CAPITAL INVESTED | 288,905 | 319,734 |
| Capital issued | 24,917 | 25,044 |
| Other reserves | 110,438 | 131,312 |
| Profits/(Losses) carried-forward | (27, 321) | 13,274 |
| Profit/(Loss) for the period | 12,126 | (21, 397) |
| Group share capital and reserves | 120, 160 | 148,232 |
| Minority interests | 30,524 | |
| Shareholders' equity | 120, 160 | 178,756 |
| Short term financial receivables | (2, 914) | (652) |
| Liquid assets | (31, 307) | (39, 828) |
| Long term financial payables | 90,697 | 34,349 |
| Long term financial receivables | (2,037) | |
| Short term financial payables | 36,595 | 60,939 |
| NET FINANCIAL POSITION WITHOUT IFRS 16 EFFECTS | 93,072 | 52,770 |
| Short term lease liabilities | 13,321 | 12,974 |
| Long term lease liabilities | 62,352 | 75,233 |
| NET FINANCIAL POSITION | 168,745 | 140,978 |
| SHAREHOLDERS' EQUITY AND NET FINANCIAL INDEBTEDNESS | 288,905 | 319,734 |
(2) The reclassified balance sheet reflects the aggregations used by management to evaluate the financial performance of the Group. These are parameters generally adopted in financial communications that are directly traceable to the reported data; however, they are not identified as accounting measurements in the context of IFRS and, as such, are not checked by the auditing firm.
| (In thousands of Euro) | FY 21 | FY 20 |
|---|---|---|
| OPENING BALANCE | 39,828 | 28,390 |
| Profit before taxes | 6,318 | (27,587) |
| Amortizations, provisions and depreciations | 26,176 | 29,059 |
| Accruals (availments) of long term provisions and post employment benefits | (207) | (598) |
| Taxes | (1,447) | (2,592) |
| Financial incomes and financial charges | 2,850 | 3,022 |
| Change in operating assets and liabilities | 14,964 | 8,963 |
| NET CASH FLOW FROM OPERATING ASSETS | 48,654 | 10,267 |
| Increase / (decrease) in intangible fixed assets | (396) | (880) |
| Increase / (decrease) in tangible fixed assets | (1,927) | (4,504) |
| Increase / (decrease) in right-of-use assets | (1,678) | (6,648) |
| Investments and Write-downs (-)/Disinvestments and Revaluations (+) | 102 | |
| CASH FLOW GENERATED (ABSORBED) BY INVESTING ACTIVITIES | (3,899) | (12,032) |
| Other changes in reserves and profit carried-forward to shareholders'equity | (70, 722) | (1,080) |
| Proceeds / (repayment) of financial payments | 32,005 | 24,129 |
| Proceeds / (repayment) of lease payments | (12, 535) | (7,596) |
| Increase / (decrease) financial receivables | 826 | 772 |
| Financial incomes and financial charges | (2,850) | (3,022) |
| CASH FLOW GENERATED (ABSORBED) BY FINANCING ACTIVITIES | (53, 276) | 13,203 |
| CLOSING BALANCE | 31,307 | 39,828 |
| (In thousands of Euro) | FY 21 | % | FY 20 | % | Change % |
|---|---|---|---|---|---|
| Revenues from sales and services | 114, 173 | 100.0% | 114,379 | 100.0% | (0.2%) |
| Other revenues and income | 7,767 | 6.8% | 7,728 | 6.8% | 0.5% |
| Total Revenues | 121,940 | 106.8% | 122,107 | 106.8% | $(0.1\%)$ |
| Changes in inventory | (1, 551) | (1.4%) | 1,926 | 1.7% | (180.5%) |
| Costs of raw materials, cons. and goods for resale | (47, 111) | (41.3%) | (49, 489) | (43.3%) | (4.8%) |
| Costs of services | (35,866) | (31.4%) | (41, 841) | (36.6%) | (14.3%) |
| Costs for use of third parties assets | (8, 375) | (7.3%) | (8, 126) | $(7.1\%)$ | 3.1% |
| Labour costs | (28, 112) | (24.6%) | (27, 496) | (24.0%) | $2.2\%$ |
| Other operating expenses | (1,253) | $(1.1\%)$ | (1, 957) | (1.7%) | $(36.0\%)$ |
| Total operating costs | (122, 268) | (107.1%) | (126, 983) | (111.0%) | (3.7%) |
| EBITDA | (328) | (0.3%) | (4, 877) | (4.3%) | (93.3%) |
| Total Amortization and Write-downs | (16, 786) | (14.7%) | (17, 885) | (15.6%) | $(6.1\%)$ |
| EBIT | (17, 114) | $(15.0\%)$ | (22, 761) | (19.9%) | (24.8%) |
| Total Financial Income /(expenses) | (1,200) | $(1.1\%)$ | (643) | $(0.6\%)$ | 86.6% |
| Profit/(loss) before taxes | (18, 314) | $(16.0\%)$ | (23, 405) | (20.5%) | (21.8%) |
| Taxes | 2,393 | 2.1% | 2,377 | 2.1% | 0.7% |
| Net Profit/(loss) | (15, 920) | $(13.9\%)$ | (21, 028) | $(18.4\%)$ | (24.3%) |
(3) EBITDA is represented by the operating profit before provisions, depreciation and amortization. EBITDA as defined above is a parameter used by the management of the Company to monitor and assess its operating performance; however it is not identified as an accounting measure in the context of ITA GAAP or IFRS and, as such, is not checked by the auditing firm.
| (In thousands of Euro) | 31 December 31 December | |
|---|---|---|
| 2021 | 2020 | |
| Trade receivables | 37,216 | 44,101 |
| Stock and inventories | 29,328 | 30,916 |
| Trade payables | (71, 146) | (63, 513) |
| Operating net working capital | (4, 602) | 11,504 |
| Other receivables | 17,716 | 19,405 |
| Other liabilities | (9, 517) | (8, 203) |
| Net working capital | 3,597 | 22,706 |
| Tangible fixed assets | 41,817 | 42,441 |
| Intangible fixed assets | 3,286 | 3,440 |
| Right-of-use assets | 12,012 | 13,139 |
| Investments | 202,299 | 135,943 |
| Other long term receivables | 978 | 2,346 |
| Fixed assets | 260,392 | 197,309 |
| Post employment benefits | (3,077) | (3,238) |
| Long term provisions | (5,506) | (1,005) |
| Other long term liabilities | (207) | (380) |
| Deferred tax assets | 2,757 | 5,667 |
| Deferred tax liabilities | (6,801) | (7, 735) |
| NET CAPITAL INVESTED | 251,155 | 213,323 |
| Capital issued | 24,917 | 25,044 |
| Other reserves | 105,238 | 127,274 |
| Profits/(Losses) carried-forward | 2,348 | 2,348 |
| Profit/(Loss) for the period | (15, 920) | (21, 029) |
| Shareholders' equity | 116,583 | 133,637 |
| Liquid assets | (3,992) | (6, 240) |
| Long term financial payables | 100,049 | 24,702 |
| Short term financial payables | 24,684 | 46,282 |
| NET FINANCIAL POSITION WITHOUT IFRS 16 EFFECTS | 120,741 | 64,744 |
| Short term lease liabilities | 1,794 | 1,626 |
| Long term lease liabilities | 12,036 | 13,316 |
| NET FINANCIAL POSITION | 134,571 | 79,686 |
| SHAREHOLDERS' EQUITY AND NET FINANCIAL INDEBTEDNESS | 251,155 | 213,323 |
(4) The reclassified balance sheet reflects the aggregations used by management to evaluate the financial performance of the Company. These are parameters generally adopted in financial communications that are directly traceable to the reported data; however, they are not identified as accounting measurements in the context of IFRS and, as such, are not checked by the auditing firm.
| (In thousands of Euro) | FY 21 | FY 20 |
|---|---|---|
| OPENING BALANCE | 6,240 | 6,946 |
| Profit before taxes | (18, 314) | (23, 405) |
| Amortizations, provisions and depreciations | 16,786 | 17,885 |
| Accruals (availments) of long term provisions and post employment benefits | 1,597 | (147) |
| Taxes | 4,121 | (342) |
| Financial incomes and financial charges | 1,200 | 643 |
| Change in operating assets and liabilities | 18,478 | (1,735) |
| NET CASH FLOW FROM OPERATING ASSETS | 23,868 | (7, 101) |
| Increase / (decrease) in intangible fixed assets | (351) | (324) |
| Increase / (decrease) in tangible fixed assets | (682) | (425) |
| Increase / (decrease) in right-of-use assets | (745) | (540) |
| Investments and Write-downs (-)/Disinvestments and Revaluations (+) | (76,009) | (5,468) |
| CASH FLOW GENERATED (ABSORBED) BY INVESTING ACTIVITIES | (77, 787) | (6,757) |
| Other changes in reserves and profit carried-forward to shareholders'equity | (1, 134) | (907) |
| Proceeds / (repayment) of financial payments | 53,749 | 15,322 |
| Proceeds / (repayment) of lease payments | (1, 112) | (1,240) |
| Increase / (decrease) financial receivables | 1,368 | 620 |
| Financial incomes and financial charges | (1,200) | (643) |
| CASH FLOW GENERATED (ABSORBED) BY FINANCING ACTIVITIES | 51,671 | 13, 152 |
| CLOSING BALANCE | 3,992 | 6,240 |
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