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Investor Presentation • Jul 29, 2021
4229_rns_2021-07-29_0b21b169-744f-4628-99b8-7211a2037eb0.pdf
Investor Presentation
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1H 2021 Results Conference call
July 29th 2021
1H 2021 Highlights
Strong growth (+28,6%) of aggregated sales of licensees. € 14,5m EBITDA (€ 0,8m in 1H20). Almost stable NFP after dividends and shares buy-back.
1H aggregated sales amounted to € 443,1m (+20,5% compared to prior year), led by aggregated sales of licensees (ASL) up 28,6% YoY, while aggregated sales of sourcing centers (ASSC, +1% YoY) were still affected by delayed sea shipments.
Consolidated sales amounted to € 128,5m (+17,7% YoY), despite the extended closure of directly operated stores in several European countries due to anti-Covid measures. Kappa Europe overperformed (+36,5%) in spite of the critical market situation in UK.
EBITDA stood at € 14,5m (€ 0,8m in H1 2020) driven by higher volumes and higher margins in all geographies of direct operations.
Net Financial Position, at € 84,1m, was substantially stable vs 2020YE (€ 82,2m). Positive free cash flow (€ 4,7m) offset dividend payment and own shares buy back.
€ 129m Consolidated Sales
€ 443m
Aggregated Sales
€ 14,5m EBITDA
€ 84,1m
NFP
1
BY LICENSEE
Aggregated Sales of Sourcing Centers (ASSC, € m)
Aggregated Sales of Licensees (ASL, € m)
BY QUARTER
Q1 Q2
+59,7%
+17,7%
61,5
128,5
67,0
-5,2%
6m2020 6m2021 BY NATURE BY QUARTER 6m2020 6m2021 +17,7% +17,5% 86,8 15,8 109,1 102,6 18,6 128,5 +18,3% 6,5 7,2 +10,7% 38,5 70,6 109,1
Consolidated sales of goods (€ m)
- Royalties income ASSC (€ m)
- Royalties income ASL (€ m)
Q1 Q2
1H 2021 EBITDA Bridge
in € million
- Contribution margin: higher contribution margin mainly driven by sales in Italy (+12,3%), despite anti-Covid measures, and strong growth at Kappa Europe (+36,5%)
- Royalties and sourcing: positive contribution led by ASL (+€ 2,8m) and ASSC (+€ 0,7m) as well as by lower royalties paid to third parties
- Labour cost: slightly increased, mostly due to lower temporary layoffs vs last year
- Sponsorship and media: lower costs of sponsorship agreements (due to the impact of covid-19 on sports competitions) and lower marketing contributions to commercial licensees only partially offset by the costs of the new sponsorship agreements (mostly ACF Fiorentina from sport season 2020/21)
- Others: mainly re-negotiations of leases for shops closed during the period (+€ 0,5m)
1H 2021 Consolidated Net Financial Position
| in € .000 | 30.06.21 | 31.12.20 | 30.06.20 |
|---|---|---|---|
| Net Cash | (12.647) | (6.266) | (30.772) |
| ST portion of MT Loans | (8.522) | (8.412) | (7.972) |
| MT Loans | (40.176) | (44.387) | (19.645) |
| IFRS 16 debt | (22.782) | (23.097) | (20.360) |
| Put/call option | - | - | (2.839) |
| Net Financial Position | (84.126) | (82.162) | (81.588) |
| Equity | 120.889 | 119.276 | 109.691 |
| NFP/Equity | 0,70 | 0,69 | 0,74 |
| in € million | 1H 2021 | 1H2020 | 1H2019 |
|---|---|---|---|
| Consolidated sales | 128,5 | 109,1 | 137,8 |
| Communication investments | 21,5 | 22,7 | 21,3 |
| EBITDA | 14,5 | 0,8 | 20,3 |
| EBITDA margin | 11,3% | 0,7% | 14,7% |
| EBIT | 8,5 | (5,0) | 14,6 |
| EBIT margin | 6,6% | -4,6% | 10,6% |
| Net income | 4,1 | (5,5) | 10,4 |
| Free cash flow | 4,7 | 0,3 | (9,1) |
| Trade Working Capital | 64,2 | 77,4 | 91,2 |
1H 2021 NFP Bridge
- Operating activities: positive adjusted net income (€ +10,1 m), no significant change in net working capital vs. 2020YE
- Investing activities: recurring capex (€ 3,6m) and renovations works at BasicVillage Milano (€ 1,2m)
- Financing activities: mainly dividend distribution (€ 3,1m) and own shares buy-back (€ 1,6m)
Back-Up
| in € .000 | 1H 2021 | 1H 2020 |
|---|---|---|
| Consolidated direct sales | 102.632 | 86.765 |
| Cost of sales | (60.170) | (52.976) |
| GROSS MARGIN | 42.462 | 33.789 |
| Royalties and Sourcing Commissions | 25.847 | 22.382 |
| Other income | 2.951 | 1.884 |
| Sponsorship and media costs | (18.873) | (19.913) |
| Other communication costs | (2.587) | (2.779) |
| Labour cost | (14.490) | (14.018) |
| SG&A | (20.764) | (20.575) |
| EBITDA | 14.546 | 772 |
| Depreciation and Amortisation | (6.011) | (5.742) |
| EBIT | 8.535 | (4.970) |
| Net financial income (charges) | (1.157) | 10 |
| EBT | 7.378 | (4.960) |
| Income taxes | (3.238) | (562) |
| NET RESULT | 4.140 | (5.522) |
INCOME STATEMENT CASH FLOW STATEMENT
| in € .000 | 1H 2021 | 1H 2020 |
|---|---|---|
| Net Financial Position, opening | (82.162) | (78.274) |
| First adoption of IFRS 16 | - | - |
| Net result Depreciation and Amortisation Changes in Operating Working Capital |
4.140 6.010 (691) |
(5.522) 5.742 12.879 |
| Other Operating Cash Flow |
22 9.482 |
495 13.595 |
| Capital expenditures Acquisition of K-Way China Changes in Consolidation Area Disposal of fixed assets Capital expenditures, net |
(3.880) (900) - 13 (4.768) |
(2.901) - (10.466) 50 (13.317) |
| New Debts for Right of Use, net Saving from Covid-19 concessions Acquisition of treasury shares Dividends Financing activities, net |
(2.460) 545 (1.620) (3.144) (6.678) |
(4.151) 564 - - (3.587) |
| Change in Net Financial Position | (1.964) | (3.310) |
| Net Financial Position, closing | (84.126) | (81.584) |
ANKETPP® AM ROBE DI KAPPA
1H 2021 Communication activities
II K-WAY
| 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 |
| 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 |
