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ER - BasicNet – h1 2025: Consolidated revenues of Euro 172.6 million. Positive net financial position with banks improved by Euro 117.1 million

Company: Basic Net SpA Date: 2025-07-31 Language: English Register to download
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# **PRESS RELEASE**

## **BASICNET – H1 2025: CONSOLIDATED REVENUES OF EURO 172.6 MILLION. POSITIVE NET FINANCIAL POSITION WITH BANKS IMPROVED BY EURO 117.1 MILLION.**

Turin, July 31, 2025 - The Board of Directors of BasicNet S.p.A. has reviewed the Group performance for H1 2025:

- **aggregate sales** of Group brands products by the Global Network of Euro 567.1 million, up 4.3%, as follows:
	- − commercial licensees and direct sales: Euro 392.7 million (Euro 390.3 million in H1 2024, +0.6%),
	- − productive licensees sales: Euro 174.4 million (Euro 153.4 million in H1 2024, +13.7%).

Commercial licensees and direct sales up 5.2% in Europe, a region accounting for 79.7% of aggregate sales. Sales in all other regions saw a decline: Asia and Oceania by 3.6%, the Middle East and Africa by 5.8%, and the Americas by 33.3%.

- **consolidated revenues** of Euro 172.6 million (Euro 173.9 million in H1 2024, -0.7%), as follows:
	- − royalties from commercial and productive licensees of Euro 34.6 million (Euro 29.7 million in H1 2024, +16.6%);
	- − direct sales: Euro 137.3 million (Euro 143.4 million in 2024, -4.2%). The decrease stems from the conversion of a number of distribution contracts into licensing agreements.

In order to provide a more accurate representation of the Group's operating performance during the period, the indicators below have been prepared on the basis of pro-forma consolidated financial statements, which exclude the income statement impacts of non-recurring charges related to the conclusion of commercial relationships or the settlement of various disputes (for approximately Euro 2.3 million), in addition to the extraordinary income statement impacts of the divestment, completed on February 28, of approximately 40% of the stake held in K-Way S.p.A. and in particular the related costs (amounting to Euro 18.3 million). The gain from the sale, provisionally amounting to Euro 140.1 million, is only recognisable in the separate financial statements of BasicNet S.p.A.

- **EBITDA\*:** Euro 15.1 million (Euro 17.6 million in H1 2024);
- **EBIT\*:** Euro 4.4 million (Euro 8.7 million in H1 2024), after amortisation and depreciation of Euro 4.9 million and depreciation of right-of-use for Euro 5.7 million, increasing due to the new openings (8 direct sales points), as part of retail segment development;
- **net profit\*:** Euro 0.8 million (Euro 2.8 million in H1 2024);
- **net financial position with banks,** including the effects of the sale of the stake in K-Way S.p.A., is positive for Euro 26.3 million (Euro -90.8 million at December 31, 2024). The **net financial position** improved from Euro -142.0 million at December 31, 2024 to Euro -32.6 million at June 30, 2025. Dividends of Euro 7.4 million were paid and treasury shares acquired for Euro 7.9 million, while the property loan undertaken by BasicVillage was settled early. The Debt/Equity Ratio improved significantly, from 0.83 in December 2024 to 0.11 at June 30, 2025.

\* pro-forma net of a number of extraordinary and non-recurring costs, including the extraordinary effects from the sale of approximately 40% interest in K-Way S.p.A.

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## **OUTLOOK**

Against an uncertain geopolitical and macroeconomic backdrop, the Group remains focused on sustainable growth and brands enhancement over the medium to long term through a flexible and responsive approach.

Group CFO Marco Enrico will present the H1 2025 results during a video conference to be held today, in English, at 6PM.

#### **Participate via computer or mobile app or remote device**

**[Participate at the meeting now](https://eur03.safelinks.protection.outlook.com/ap/t-59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fl%2Fmeetup-join%2F19%253ameeting_MTA0MjZhZTctODFmYS00ZDk0LTlhNDItMmIzZTM5NTlkMzk1%2540thread.v2%2F0%3Fcontext%3D%257b%2522Tid%2522%253a%25228a2b8c75-f101-46ef-a1f4-84ddbe06d3bd%2522%252c%2522Oid%2522%253a%2522ca92410e-34de-4d26-8a3d-c516459ee47d%2522%257d&data=05%7C02%7Cmonterin%40basic.net%7Ccd6c36c7242a4b6145e108ddc60daae2%7C8a2b8c75f10146efa1f484ddbe06d3bd%7C0%7C0%7C638884484183912671%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Z84AHPhrfHnXbkspbryfJcaFZAroik0wAl9W0i%2Fl6B4%3D&reserved=0)** Meeting ID: 388 797 307 359 4 / Passcode: 6GP2pE6T

#### **Alternatively, attend by calling (only audio)**

[+39 02 0062 4808,,662684602#](tel:+390200624808,,662684602) Italy, Milan - Conference Call ID: 662 684 602#

The presentation may be downloaded from the website www.BasicNet.com, from the section: "financial data/other information and presentations" shortly before the video conference, at the following link:

www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g&language=IT

In relation to the "alternative performance measures", as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the measures used in this press release:

| Commercial licensees or licensees                  | independent business owners, granted licenses to distribute Group brands products in<br>their respective regions.                                                                        |
|----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Productive licensees or sourcing centers           | third-party firms to the Group. Their function is to manufacture and market products and<br>are located in various countries worldwide, depending on what type of goods they<br>produce. |
| Commercial licensees and direct aggregate<br>sales | sales by commercial licensees, recognised by the BasicNet Group to the royalties account<br>and the sales by the Group companies.                                                        |
| Productive licensees aggregate sales               | sales by productive licensees, recognised by the BasicNet Group to the "royalties and<br>sourcing commissions" account of the income statement.                                          |
| Brands aggregate sales                             | is the sum of "Commercial licensees and direct aggregate sales" and "Aggregate sales of<br>productive licensees"                                                                         |
| Consolidated revenues                              | the sum of royalties, sourcing commissions and sales of the BasicNet Group companies<br>and real estate revenues from third parties.                                                     |
| EBITDA                                             | "operating result" before "amortisation and depreciation".                                                                                                                               |
| EBIT                                               | "operating result".                                                                                                                                                                      |
| Contribution margin on direct sales                | "gross margin".                                                                                                                                                                          |
| Net financial position                             | total of current and medium/long-term financial payables, less cash and cash equivalents<br>and other current financial assets.                                                          |
| Net financial position with banks                  | the Net financial position, net of payables for rights-of-use and payables for the<br>acquisition of company shares.                                                                     |
| Debt/equity ratio                                  | this is an indicator of the financial structure of the balance sheet and is calculated as the<br>ratio of financial debt to shareholders' equity.                                        |

\*\*\*

The Executive Officer for Financial Reporting, Marco Enrico, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries.

*The financial statements are attached.*

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#### **FINANCIAL STATEMENTS**

#### **BasicNet Group Key Financial Highlights**

| (Euro thousands)                              | H1 2025  | H1 2025<br>Pro forma | H1 2024 | Changes<br>Vs. Pro forma | %       |
|-----------------------------------------------|----------|----------------------|---------|--------------------------|---------|
| Brand aggregate sales **                      | 567,074  | (*)<br>567,074       | 543,664 | 23,409                   | 4.3%    |
| Royalties and sourcing commissions            | 34,623   | 34,623               | 29,684  | 4,939                    | 16.6%   |
| Consolidated direct sales                     | 137,335  | 137,335              | 143,373 | (6,038)                  | (4.2%)  |
| Contribution margin on direct sales           | 61,257   | 61,257               | 59,910  | 1,347                    | 2.2%    |
| EBITDA                                        | (5,468)  | 15,102               | 17,611  | (2,509)                  | (14.2%) |
| EBIT                                          | (16,167) | 4,404                | 8,667   | (4,263)                  | (49.2%) |
| Group Net Profit/(loss)                       | (19,014) | 835                  | 2,820   | (1,984)                  | (70.4%) |
| Basic earnings/(loss) per ordinary share**    | (0.4079) | 0.0181               | 0.0572  | (0.0392)                 | (68.4%) |
| Diluted earnings/(loss) per ordinary share ** | (0.4072) | 0.0179               | 0.0572  | (0.0393)                 | (68.8%) |

\* pro-forma net of a number of extraordinary and non-recurring costs, including the extraordinary effects from the sale of approximately 40% of the company's stake in K-Way S.p.A.

\*\* Data not audited

![](_page_3_Picture_0.jpeg)

## **BasicNet Group Condensed Balance Sheet**

| (Euro thousands)                           | June 30, 2025 | December 31, 2024 | June 30, 2024 |
|--------------------------------------------|---------------|-------------------|---------------|
|                                            |               |                   |               |
| Property                                   | 38,919        | 39,781            | 38,341        |
| Brands                                     | 59,235        | 59,174            | 59,169        |
| Non-current assets                         | 139,776       | 81,524            | 82,487        |
| Rights-of-use                              | 50,537        | 41,871            | 42,808        |
| Current assets                             | 300,910       | 245,356           | 242,016       |
| Total assets                               | 589,378       | 467,706           | 464,821       |
| Group shareholders' equity                 | 298,818       | 170,346           | 159,806       |
| Non-current liabilities                    | 68,269        | 95,791            | 103,211       |
| Current liabilities                        | 222,290       | 201,569           | 201,804       |
| Total liabilities and shareholders' equity | 589,378       | 467,706           | 464,821       |

#### **BasicNet Group Summary Net Financial Position**

| (Euro thousands)               | June 30, 2025 | December 31,<br>2024 | June 30, 2024 | Changes vs<br>December 31,<br>2024 | Changes vs<br>June 30, 2024 |
|--------------------------------|---------------|----------------------|---------------|------------------------------------|-----------------------------|
|                                |               |                      |               |                                    |                             |
| Net financial position – Short |               |                      |               |                                    |                             |
| term                           | (21,797)      | (62,585)             | (59,281)      | 40,788                             | 37,484                      |
| Financial investments – Medium |               |                      |               |                                    |                             |
| to long-term                   | 50,100        | -                    | -             | 50,100                             | 50,100                      |
| Financial payables – Medium    |               |                      |               |                                    |                             |
| term                           | (1,753)       | (27,922)             | (33,471)      | 26,169                             | 31,718                      |
| Finance leases                 | (242)         | (284)                | (369)         | 41                                 | 126                         |
| Net financial position with    |               |                      |               |                                    |                             |
| banks                          | 26,308        | (90,791)             | (93,121)      | 117,099                            | 119,428                     |
|                                |               |                      |               |                                    |                             |
| Payables for purchase of       |               |                      |               |                                    |                             |
| investments beyond one year    | (6,432)       | (8,081)              | (8,081)       | 1,649                              | 1,649                       |
| Payables for rights-of-use     | (52,462)      | (43,080)             | (43,633)      | (9,382)                            | (8,828)                     |
| Net Financial Position         | (32,586)      | (141,952)            | (144,835)     | 109,366                            | 112,249                     |
| Debt/equity ratio              | 0.11          | 0.83                 | 0.91          | (0.72)                             | (0.80)                      |

![](_page_4_Picture_0.jpeg)

## **BASICNET GROUP**

Financial Statements

### **CONSOLIDATED INCOME STATEMENT**

| (Euro thousands)                                                 |                     | H1 2025           |                     | H1 2024           |                  | Changes        |
|------------------------------------------------------------------|---------------------|-------------------|---------------------|-------------------|------------------|----------------|
| Consolidated direct sales<br>Cost of sales                       | 137,335<br>(76,078) | 100.00<br>(55.40) | 143,373<br>(83,463) | 100.00<br>(58.21) | (6,038)<br>7,385 | (4.21)<br>8.85 |
| GROSS MARGIN                                                     | 61,257              | 44.60             | 59,910              | 41.79             | 1,347            | 2.25           |
| Royalties and sourcing commissions                               | 34,623              | 25.21             | 29,684              | 20.70             | 4,939            | 16.64          |
| Other income                                                     | 3,590               | 2.61              | 9,173               | 6.40              | (5,583)          | (60.87)        |
| Sponsorship and media costs                                      | (22,638)            | (16.48)           | (20,383)            | (14.22)           | (2,255)          | (11.06)        |
| Personnel costs                                                  | (27,704)            | (20.17)           | (24,382)            | (17.01)           | (3,322)          | (13.63)        |
| Selling, general and administrative costs,<br>royalties expenses | (54,595)            | (39.75)           | (36,391)            | (25.38)           | (18,204)         | (50.02)        |
| Amortisation & depreciation                                      | (10,698)            | (7.79)            | (8,944)             | (6.24)            | (1,754)          | (19.61)        |
| EBIT                                                             | (16,167)            | (11.77)           | 8,667               | 6.05              | (24,834)         | (286.53)       |
| Net financial income (charges)                                   | (1,514)             | (1.10)            | (2,379)             | (1.66)            | 865              | 36.37          |
| Management of equity investments                                 | (3)                 | (0.00)            | (3)                 | (0.00)            | -                | -              |
| PROFIT /(LOSS) BEFORE TAXES                                      | (17,684)            | (12.88)           | 6,285               | 4.38              | (23,968)         | (381.41)       |
| Income taxes                                                     | (1,330)             | (0.97)            | (3,465)             | (2.42)            | 2,135            | 61.62          |
| NET PROFIT/(LOSS)                                                | (19,014)            | (13.84)           | 2,820               | 1.97              | (21,833)         | (774.35)       |
|                                                                  |                     |                   |                     |                   |                  |                |
| Attributable to:                                                 |                     |                   |                     |                   |                  |                |
| -<br>Shareholders of the company                                 | (16,624)            | (12.10)           | -                   | -                 | (16,624)         | N.A.           |
| -<br>Minority shareholders                                       | (2,390)             | (1.74)            | -                   | -                 | (2,390)          | N.A.           |
| Earnings per share:                                              |                     |                   |                     |                   |                  |                |
| Basic                                                            | (0.4079)            |                   | 0.0572              |                   | (0.465)          | (812.63)       |
| Diluted                                                          | (0.4072)            |                   | 0.0572              |                   | (0.464)          | (811.37)       |

![](_page_5_Picture_0.jpeg)

### **CONSOLIDATED BALANCE SHEET**

| (Euro thousands)                         | June 30, 2025 | December 31, 2024 | June 30, 2024 |
|------------------------------------------|---------------|-------------------|---------------|
| Intangible assets                        | 73,816        | 71,834            | 70,732        |
| Rights-of-use                            | 50,537        | 41,871            | 42,808        |
| Goodwill                                 | 45,732        | 43,719            | 43,687        |
| Property, plant and equipment            | 56,106        | 56,763            | 56,974        |
| Equity invest. & other financial assets  | 55,439        | 1,980             | 1,246         |
| Interests in joint ventures              | 172           | 175               | 185           |
| Deferred tax assets                      | 6,666         | 6,008             | 7,173         |
| Total non-current assets                 | 288,467       | 222,350           | 222,805       |
| Net inventories                          | 142,654       | 108,357           | 123,707       |
| Trade receivables                        | 66,809        | 84,073            | 72,885        |
| Other current assets                     | 56,562        | 10,985            | 14,385        |
| Prepayments                              | 9,373         | 10,645            | 9,900         |
| Cash and cash equivalents                | 25,442        | 28,195            | 19,349        |
| Derivative financial instruments         | 70            | 3,101             | 1,790         |
| Total current assets                     | 300,910       | 245,356           | 242,016       |
|                                          |               |                   |               |
| TOTAL ASSETS                             | 589,378       | 467,706           | 464,821       |
|                                          |               |                   |               |
| (Euro thousands)                         | June 30, 2025 | December 31, 2024 | June 30, 2024 |
| Share capital                            | 31,717        | 31,717            | 31,717        |
| Reserve for treasury shares in portfolio | (38,730)      | (30,861)          | (17,876)      |
| Other reserves                           | 324,845       | 144,226           | 143,145       |
| Net Profit/ (loss) for the period        | (19,014)      | 25,264            | 2,820         |
| TOTAL GROUP SHAREHOLDERS' EQUITY         | 298,818       | 170,346           | 159,806       |
| NON-CONTROLLING INTERESTS                | 36,943        | -                 | -             |
| Provisions for risks and charges         | 2,169         | 2,440             | 4,552         |
| Loans                                    | 1,995         | 28,206            | 33,839        |
| Payables for rights-of-use               | 52,462        | 43,080            | 43,633        |
| Other financial payables                 | -             | 6,432             | 6,432         |
| Employee and Director benefits           | 3,344         | 4,443             | 4,131         |
| Deferred tax liabilities                 | 6,722         | 9,507             | 8,397         |
| Other non-current liabilities            | 1,576         | 1,684             | 2,227         |
| Total non-current liabilities            | 68,269        | 95,791            | 103,211       |
| Bank payables                            | 87,239        | 90,780            | 78,630        |
| Trade payables                           | 96,881        | 82,294            | 96,762        |
| Tax payables                             | 5,701         | 5,254             | 6,181         |
| Other current liabilities                | 21,413        | 14,546            | 13,447        |
| Accrued expenses                         | 3,890         | 8,648             | 6,510         |
| Derivative financial instruments         | 7,166         | 48                | 274           |
| Total current liabilities                | 222,290       | 201,569           | 201,804       |
|                                          |               |                   |               |
| TOTAL LIABILITIES                        | 290,560       | 297,360           | 305,015       |
| TOTAL LIABILITIES AND SHAREHOLDERS'      |               |                   |               |
| EQUITY                                   | 589,378       | 467,706           | 464,821       |

![](_page_6_Picture_0.jpeg)

| (Euro thousands) |                                                         | June 30, 2025 | June 30, 2024 |
|------------------|---------------------------------------------------------|---------------|---------------|
|                  | A) OPENING SHORT-TERM NET BANK DEBT                     | (51,371)      | (39,059)      |
|                  | B) CASH FLOW FROM OPERATING ACTIVITIES                  |               |               |
|                  | Net Profit /(loss) for the period                       | (19,014)      | 2,820         |
|                  | Amortisation & depreciation                             | 10,698        | 8,944         |
|                  | Management of equity investments                        | 3             | 3             |
|                  | Changes in working capital:                             |               |               |
|                  | - (increase) decrease of trade receivables              | 17,259        | 3,444         |
|                  | - (increase) decrease of inventories                    | (34,298)      | (11,467)      |
|                  | - (increase) decrease of other receivables              | (3,326)       | 2,930         |
|                  | - increase (decrease) of trade payables                 | 14,542        | 19,804        |
|                  | - increase (decrease) of other payables                 | (4,671)       | (4,328)       |
|                  | Net changes in employee and director benefits           | (1,099)       | 260           |
|                  | Others, net                                             | 200           | 293           |
|                  |                                                         | (19,702)      | 22,703        |
|                  | C) CASH FLOW FROM INVESTING ACTIVITIES                  |               |               |
|                  | Investments in fixed assets:                            |               |               |
|                  | - tangible assets                                       | (1,765)       | (4,271)       |
|                  | - intangible assets                                     | (4,677)       | (4,302)       |
|                  | - financial assets                                      | (3,010)       | -             |
|                  | - Acquisition K-Way France franchisee                   | (1,727)       | -             |
|                  | - Acquisition K-Way France                              | (1,649)       | (1,657)       |
|                  | Realisable value for fixed asset disposals:             |               |               |
|                  | - intangible assets                                     | 115           | 561           |
|                  | - financial assets                                      | -             | (294)         |
|                  |                                                         | (12,713)      | (9,962)       |
| D)               | CASH FLOW FROM FINANCING ACTIVITIES                     |               |               |
|                  | Undertaking of medium/long-term loans                   | 41            | 308           |
|                  | Loan repayments                                         | (32,173)      | (8,169)       |
|                  | Repayment of loans for rights-of-use                    | (5,059)       | (4,403)       |
|                  | Contribution from the sale of the stake in K-Way S.p.A. |               |               |
|                  |                                                         | 170,389       | -             |
|                  | Acquisition of treasury shares                          | (7,869)       | (1,434)       |
|                  | Dividend payments                                       | (7,449)       | (7,421)       |
|                  |                                                         | 117,880       | (21,119)      |
|                  |                                                         |               |               |
| E)               | CASH FLOW IN THE PERIOD                                 | 85,465        | (8,378)       |

## **CONSOLIDATED CASH FLOW STATEMENT OF THE BASICNET GROUP**

**F) CLOSING SHORT-TERM NET BANK DEBT 34,094 (47,437)**