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Basic Net SpA Earnings Release 2021
4229_rns_2021-10-28_723eb1fd-523a-4bfa-8ca7-dff7c6ca82fe.pdf
Earnings Release
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9m 2021 Results Conference call
October 28th 2021
Continuous growth of Aggregated sales of licensees at +16,5%. EBITDA at € 33,6m (€ 16,1m in 9m20) reported record performance in Q3 (€ 19,0m). NFP decreased at € 66,0m vs YE2020 (€ 82,2m).
9m aggregated sales amounted to € 692m (+13,7% YoY), led by aggregated sales of licensees (ASL) up 16,5% YoY. Aggregated sales of sourcing centers (ASSC) improved at +6,3% YoY.
Consolidated sales amounted to € 216m (+10,1% YoY). Direct sales of goods (+8,0% YoY) benefitted from a strong contribution from Kappa Europe (+19,9%), while suffering some delay to 4Q due to shipments issues.
EBITDA stood at € 33,6m (€ 16,1m in 9m 2020) driven by higher volumes in all geographies of direct operations. 3Q EBITDA exceeded 3Q 2019 EBITDA (€ 19,0m vs € 17,9m).
Net Financial Position, at € 66,0m, reduced to below pre-Covid indebtedness, thanks to free cash flow of the period exceeding € 23,5m.
€ 216m Consolidated Sales
€ 66,0m NFP
1
AGGREGATED SALES YTD
BY QUARTER
Aggregated Sales of Sourcing Centers (ASSC, € m)
Aggregated Sales of Licensees (ASL, € m)
Q1 Q2 Q3
2
Consolidated sales of goods (€ m)
Royalties income ASSC (€ m)
Royalties income ASL (€ m)
Q1 Q2 Q3
in € million
- Contribution margin: higher contribution margin mainly driven by sales in Italy (+3,1%) and strong growth at Kappa Europe (+19,9%). Margins remain overall stable despite the increase of shipping costs and raw materials.
- Royalties and sourcing: strong increase in both royalties from ASL (€ +5,0m), led by organic growth, and ASSC (+€ 1,8m).
- Labour cost: slightly increased, mostly due to lower temporary layoffs vs last year.
- Sponsorship and media: lower costs of sponsorship agreements, mainly due to re-negotiations to account for the impact of covid-19 in H1 and substitution of sponsored teams.
- Other: mainly re-negotiations of leases for shops closed during the period (€ +0,5m) and lower bad debt provision (€ +1,2m).
9m 2021 Consolidated Net Financial Position
| in € .000 | 30.09.21 | 31.12.20 | 30.09.20 |
|---|---|---|---|
| Net Cash | 2.031 | (6.266) | (20.427) |
| ST portion of MT Loans | (8.620) | (8.412) | (8.124) |
| MT Loans | (38.207) | (44.387) | (30.163) |
| IFRS 16 debt | (21.165) | (23.097) | (21.429) |
| Net Financial Position | (65.959) | (82.162) | (80.143) |
| Equity | 133.285 | 119.276 | 118.025 |
| NFP/Equity | 0,49 | 0,69 | 0,68 |
5
| in € million | 9m 2021 | 9m 2020 | 9m 2019 |
|---|---|---|---|
| Consolidated sales | 216,4 | 196,5 | 235,7 |
| EBITDA | 33,6 | 16,1 | 38,2 |
| EBITDA margin | 14,2% | 7,6% | 15,0% |
| EBIT | 24,3 | 7,4 | 29,4 |
| EBIT margin | 10,3% | 3,5% | 11,5% |
| Free cash flow | 23,5 | 8,3 | (12,8) |
| Trade Working Capital | 59,8 | 67,6 | 104,5 |
9m 2021 NFP Bridge
- Operating activities: positive adjusted net income (€ +25,3 m). Continuous improvement in net working capital optimisation.
- Investing activities: recurring capex (€ 4,4m) and renovation works at BasicVillage Milano (€ 2,0m).
- Financing activities: mainly dividend distribution (€ 3,1m), own shares buy-back (€ 2,6m) and additional IFRS 16 debt for new shops-related leases (€ 1,5m).
Back-Up
3Q 2021 Communication activities
| Adjusted net income | Net result adjusted by Depreciation and amortization |
|---|---|
| Aggregated Sales of Licensees (ASL) | sales by commercial licensees |
| Aggregated Sales of Sourcing Centers (ASSC) |
sales by productive licensees |
| Consolidated sales | the sum of royalties income from ASL, sourcing commissions from ASSC and direct sales of goods |
