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Basic Net SpA Call Transcript 2021
4229_rns_2021-04-29_d06a32f0-af10-44a8-af10-79850c916756.pdf
Call Transcript
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1Q 2021 Results Conference call
April 29th 2021
1Q 2021 Highlights
All geographic areas reported a YoY increase in aggregated sales on like for like basis. Vaccines and re-openings offer a glimpse of return to normality. 1Q EBITDA up +40,9% YoY.
3m aggregated sales amounted to € 216,7m (unchanged compared to prior year, 4,0% on a like for like basis). Higher sales from commercial licensees offset delayed shipments from productive licensees.
Consolidated sales amounted to € 67,0m (-5,2% YoY), due to closure of directly operated stores in several European countries imposed by anti-Covid measures. Kappa Europe performed positively (+5,8%) despite the critical market situation in UK.
EBITDA at € 9,0m increased by 40,9% YoY with higher margins in all geographic areas, thanks to efficiency in general costs and lower cost of labour.
Net Financial Position at € 78,5m, decreased vs YE2020 (€ 82,2), thanks to a positive free cash flow exceeding € 3,8m.
€ 217m Aggregated Sales
€ 67m Consolidated Sales
€ 9m EBITDA
1
-5,2%
-6,8%
-0,9%
AGGREGATED SALES CONSOLIDATED SALES
54,4
67,0
8,6
in € .000
- Contribution margin: lower sales in Italy (-10,4%), due to the ongoing closure of BasicRetail shops, were partially offset by growth at Kappa Europe (+5,8%) and an overall increase of gross marginality (+1,3 p.p.)
- Royalties and sourcing: increased royalties from ASSC (+0,4 m€) net of higher royalties to third parties
- Labour cost: decreased mostly due to temporary layoffs (- 0,7 m€) and to lower FTEs in the retail activity
- Sponsorship and media: re-negotiation of sponsorship agreements to account for the impact of covid-19 on sports competitions along with reduction in marketing contributions to commercial licensees
- Other: re-negotiations of leases for shops closed during the period
1Q 2021 Consolidated Net Financial Position
| in € .000 | 31.03.21 | 31.12.20 | 31.03.20 |
|---|---|---|---|
| Net Cash | (5.800) | (6.266) | (34.983) |
| ST portion of MT Loans | (8.518) | (8.412) | (8.095) |
| MT Loans | (42.442) | (44.387) | (19.406) |
| IFRS 16 debt | (21.767) | (23.097) | (17.916) |
| Put/call option | - | - | (2.839) |
| Net Financial Position: | (78.527) | (82.162) | (83.238) |
| Equity: | 124.644 | 119.276 | 123.870 |
| NFP/Equity: | 0,63 | 0,69 | 0,67 |
1Q 2021 NFP Bridge
- Operating activities: positive adjusted net result, no significant change in working capital
- Investing activities: recurring capex of € 1,2m and renovations works at BasicVillage Milano
- Financing activities: mainly shares buy-back
Back-Up
1Q 2021 Communication activities
1Q 2021 Communication activities
Glossary
| Aggregated Sales of Licensees (ASL) | sales by commercial licensees | |
|---|---|---|
| Aggregated Sales of Sourcing Centers (ASSC) |
sales by productive licensees | |
| Communication investments | Sponsorship and media costs along with Commercial expenses | |
| Consolidated sales | the sum of royalties income from ASL, sourcing commissions from ASSC and direct sales of goods |
