Earnings Release • Nov 26, 2021
Earnings Release
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| Informazione Regolamentata n. 0955-139-2021 |
Data/Ora Ricezione 26 Novembre 2021 11:21:32 |
Euronext Milan | |
|---|---|---|---|
| Societa' | : | PIQUADRO | |
| Identificativo Informazione Regolamentata |
: | 154604 | |
| Nome utilizzatore | : | PIQUADRON01 - Trotta | |
| Tipologia | : | 1.2 | |
| Data/Ora Ricezione | : | 26 Novembre 2021 11:21:32 | |
| Data/Ora Inizio Diffusione presunta |
: | 26 Novembre 2021 11:21:33 | |
| Oggetto | : | Report as of September 30, 2021 | Board of Directors approved of Piquadro S.p.A. the Consolidated Halfyear Financial |
| Testo del comunicato |
Vedi allegato.
Silla di Gaggio Montano (BO), November 26, 2021 – Piquadro S.p.A., the parent company that operates in the leather goods market and designs, manufactures and markets goods under its own brand names Piquadro, The Bridge and Lancel today approved its Consolidated Half-Year Financial Report as of September 30, 2021.
For the first semester 2021/2022 ended 30 September 2021, the Piquadro Group reported revenues of 63.7 million Euro with a 31.2% increase compared to the 48.5 million Euro reported in first semester 2020/2120 ended September 30, 2020.
The table below reports the breakdown of consolidated revenues from sales by brand, expressed in thousands of Euro, for the semestral ended September, 30, 2021 and compared to the semester ended September, 30, 2020:
| Brand | Net Sales H1 | %(*) | Net Sales H1 | %(*) | Var. % 21-22 |
|---|---|---|---|---|---|
| (Euro thousands) | 2021-22 | 2020-21 | vs 20-21 | ||
| PIQUADRO | 28,230 | 44.3% | 22,372 | 46.1% | 26.2% |
| THE BRIDGE | 11,127 | 17.5% | 8,314 | 17.1% | 33.8% |
| LANCEL | 24,333 | 38.2% | 17,868 | 36.8% | 36.2% |
| Total | 63,690 | 100.0% | 48,554 | 100.0% | 31.2% |
(*) Percentage impact compared to revenues from sales
1 With the introduction of the accounting standard IFRS 16, starting from April 1st, 2019, a new accounting treatment of leases is introduced, which generates a significant effect on EBITDA, EBIT, net invested capital, net financial position, and cash flow generated from operational activity. For this reason, in this press release the "adjusted" balances of the amounts are also reported to make the figures for September 30th, 2021, comparable with those of previous periods.
With reference to the Piquadro brand, for the first semester 2021/2022, ended 30 September 2021, sales amounted to Euro 28.2 million and recorded a 26.2% increase compared to first semester 2020/2120 ended September 30, 2020; this increase was mainly driven by all channels. Wholesale channel recorded an increase equal to 19.8%, DOS channel recorded an increase of 44.5%, and the e-commerce channel recorded an increase of 9.4% compared to the same period ended September 30, 2020.
With reference to The Bridge brand, for the first semester 2021/2022, ended 30 September 2021, sales amounted to Euro 11.1 million and recorded a 33.8% increase compared to first semester 2020/2120 ended September 30, 2020; this increase was mainly driven by all channels. Wholesale channel recorded an increase equal to 31.8%, DOS channel recorded an increase of 49.3%, and the e-commerce channel recorded an increase of 13.3% compared to the same period ended September 30, 2020.
With reference to the Lancel brand, for the first semester 2021/2022, ended 30 September 2021, sales amounted to Euro 24.3 million and recorded a 36.2% increase compared to first semester 2020/2021 ended September 30, 2020. This increase was driven by all channels. Wholesale channel recorded an increase equal to 64.3%, DOS channel recorded an increase of 23.9%, and the e-commerce channel recorded an increase of 79.7% compared to the same period ended September 30, 2020.
The table below reports the breakdown of net revenues by geographical area in thousands of Euro:
| Geographical Area | Net Sales H1 | %(*) | Net Sales H1 | %(*) | Var. % 21-22 vs | |
|---|---|---|---|---|---|---|
| (Euro thousands) | 2021-22 | 2020-21 | 20-21 | |||
| Italy | 30,124 | 47.3% | 24,383 | 50.2% | 23.5% | |
| Europe | 31,247 | 49.1% | 22,421 | 46.2% | 39.4% | |
| Rest of the world | 2,319 | 3.6% | 1,750 | 3.6% | 32.5% | |
| Total | 63,690 | 100.0% | 48,554 | 100.0% | 31.2% |
(*) Percentage impact compared to revenues from sales
Under a geographic point of view, as of September 30, 2021, the Group's revenues on the Italian market amounted to Euro 30.1 million which absorbs a percentage of the Group's total turnover equal to 47.3% (50.2% of consolidated sales on September 30, 2020) and highlighted a 23.5% increase compared to the same period ended on September 30, 2020.
In the European market, the Group's revenues recorded a turnover of Euro 31.2 million, equal to 49.1% of consolidated sales (46.2% on September 30, 2020), with a 39.4% increase compared to the same period ended on September 30, 2020. This increase was due to increased sales under the three brands particularly in Russia and Germany
In the non-European geographical area (named "Rest of the World") the Group recorded a turnover of Euro 2.3 million equal to 3.6% of consolidated sales (3.6% on September 30, 2020), with a 32.5% increase compared the same period ended on September 30, 2020.This increase was due primarily to Lancel brand in the Asian market, where Cina is the most important market for the Group.
Piquadro Group recorded an EBITDA of around € 8.5 million in the half-year ending September 30, 2021, with an increase of about € 3.7 million compared to the first half 2020/21 ended 30 September 2020.
The Adjusted EBITDA1 of Piquadro Group, defined as EBITDA excluded the impacts deriving from the application of IFRS 16, is positive and equal to € 1.7 million compared to the negative amount € (1.8) million recorded in the same period of 2020/21. To emphasize Adjusted EBITDA1 for the half year on September 30, 2021, is up 74,8% compared to Adjusted EBITDA1 recorded on September 30, 2019, period not yet influenced by pandemic crisis generated by Covid 19.
The Adjusted EBITDA1 of the Piquadro brand for the half year on September 30, 2021, is equal to € 2.5 million (compared € 1.3 million recorded on September 30, 2020); Adjusted EBITDA1 of The Bridge for the half year on September 30, 2021, is positive and equal to € 1.3 million (compared to the positive amount € 80 thousand recorded on September 30, 2020); Adjusted EBITDA1 of the Lancel Maison for the half year ended September 30, 2021 is negative and equal to € (2.0) million compared to the amount € (3.1) million recorded in the same period of 2020/21.
Piquadro Group recorded an EBIT of around € 0.4 million, in the six months ended September 30, 2021, with an increase of € 3.5 million, compared to the negative amount of € (3.1) million recorded on the first half of 2020/21.
Adjusted EBIT1 , defined as EBIT excluded the impacts deriving from the application of IFRS 16, is negative and equal to € (0.2) million, with an increase of € 3.2 million compared to the Adjusted EBIT1 figure of approximately € (3.4) million recorded on September 30, 2020.
Piquadro Group recorded a Consolidated Net Result of approximately € (1.5) million in the six months ended September 30, 2021, with an increase of € 2.7 million compared to the Consolidated Net Result recorded on September 30, 2020.
The half-year Net Financial Position of the Piquadro Group was negative and equal to €45.5 million. The impact of the application of the new accounting standard IFRS 16 was negative and equal to approximately € 51.7 million.
The Adjusted Net Financial Position1 of the Piquadro Group was positive and equal to approximately € 6.3 million, with an increase of € 1.4 million compared to the Group's positive figure of approximately € 4.9 million recorded on September 30, 2020. The variation in the Adjusted Net Financial Position1 of the Piquadro Group at September 30, 2021, compared to the Adjusted Net Financial Position1 recorded in the same period of the previous year, is explained by investments of € 1.5 million in fixed, intangible and financial assets in the reference period, by € 2.1 million for purchase of treasury shares and by € 5.0 million positive Group operating cash flow.
"The first six months of the year close with very satisfactory results for all the three Group's brands" says Marco Palmieri, President and CEO of the Piquadro Group. "In addition to a consolidated turnover that records an increase by 31.2% compared to last year, we report an important growth in net profitability with a sharply increasing adjusted EBITDA1 , even by 74% compared to the first half of 2019.At the same time, the cash generation and a positive Adjusted Net Financial Position1 confirm the Group's equity and financial soundness. The Retail trend also shows excellent performance with a like for like of DOS, in the last period, close to or equal, in the case of Lancel, to pre-Covid levels. Given the uncertainty about the evolution of the pandemic, the indicators as a whole describe a situation that evolves towards a return to normal".
The extremely positive performance recorded in the first six months of the 2021/2022 financial year reassures the management about the expected recovery dynamics, also due to the investment policy implemented, the innovative capacity as well as the equity and financial strength of the Group. However, the Company is constantly monitoring the evolution of the situation
connected with the spread of Covid-19 despite the very positive sales trends. In such a context, management has maintained safety standards consistent with regulatory indications and is still paying significant attention to containing operating costs and safeguarding liquidity as well as seizing the significant growth opportunities linked to the economic recovery. The 2021/2022 financial year, although continuing to have some uncertainties linked to the pandemic, should see the Group achieve significantly improved margins in line with management expectations
The manager responsible for preparing the Piquadro S.p.A.'s, financial reports, Roberto Trotta, declares – pursuant to paragraph 2 of Article 154-bis of Legislative Decree 58/1998 – that the accounting information contained in this press release corresponds to the documented results, books, and accounting record.
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It should be noted that the Piquadro Group consolidated half-year financial report as of September 30, 2021 approved today by the Board of Directors, and will be deposited and made available in all the following: the registered office, the Company's website www.piquadro.com, in the Section of Investor Relations and at the authorized storage system "eMarket STORAGE", available on the website in accordance with the law.
The Piquadro Group uses the Alternative Performance Indicators (Iap) to effectively transmit information regarding the performance of the profitability of the business in which it operates and to determine its precise asset and financial position. In accordance with the guidelines published on the 5th of October 2015, by the European Securities and Markets Authority (Esma / 2015/1415), and in line with the provisions of the Consob Communication No. 92543 listed on the 3rd of December 2015, the Group provides content and the criterion to determine the Iap used in these financial statements.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is an economic indicator that is not defined in the International Accounting Standards. EBITDA is a measure used by Management to monitor and evaluate the Group's operating performance. Management believes that EBITDA is an important parameter for measuring the Group's performance, as it is not influenced by the volatility regarding the effects of the different criteria that determine taxable income, the amount and characteristics of the capital employed as well as the policies of amortization. EBITDA is defined as the Operating Profit before amortization and depreciation of tangible and intangible assets, financial income and charges and income taxes for the year.
• The Adjusted EBITDA is defined as the EBITDA excluded the impacts deriving from the implementation of IFRS 16.
• EBIT - Earnings Before Interest and Taxes is the operating profit before financial income and charges and income taxes.
• Adjusted EBIT is defined as EBIT excluded the impacts deriving from the application of IFRS 16.
• The Net Financial Position ("NFP"), utilized as a financial indicator of borrowing, is represented as the sum of the following positive and negative components of the Statement of Financial Position, as required by the CONSOB Call for attention notice no. 5/21 of 29 April 2021. Positive components: cash and cash equivalents, liquid securities under current assets, short-term financial receivables. Negative components: payables to banks, payables to other lenders, leasing and factoring Companies, non-current portion of trade payables and other payables. ·
• The Adjusted Net Financial Position ("adjusted NFP") is defined as the Net Financial Position excluded the impacts deriving from the application of IFRS 16.
The Piquadro Group operates in the sector of leather accessories through the Piquadro, The Bridge and Lancel brands. Cornerstones for the three brands is attention to details and the quality of the workmanship as well as the leather but the Piquadro product stands out for its innovative design and technological content, while The Bridge emphasizes the vintage flavor of Tuscan craftsmanship and finally the Lancel collections embody the Parisian allure of a fashion house founded in 1876. The origins of the Group date back to 1987 when Marco Palmieri, now President and Chief Executive Officer, founded his company near Bologna, where it is still headquartered. The distribution network extends over 50 countries around the world and counts 180 outlets including 83 Piquadro boutiques (55 in Italy and 28 abroad; 48 DOS directly operated stores and 35 franchised stores), 12 The Bridge boutiques (12 in Italy; 10 DOS directly operated stores and 2 franchised) and 85 Lancel boutiques (64 in France and 21 abroad; 78 DOS directly operated stores and 7 franchised). The Group's consolidated turnover for the year 2020/21 ended on March 31, 2021, is € 113,5 million. Piquadro S.p.A. has been listed on the Italian Stock Exchange since October 2007.
Piquadro S.p.A. Piquadro S.p.A. Media Relations Investor relationship Paola Di Giuseppe Roberto Trotta Tel +39 02 37052501 Tel +39 0534 409001 [email protected] [email protected]
| (in thousands of Euro) | September 30, 2021 | March 31, 2021 |
|---|---|---|
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Intangible assets | 1,823 | 2,406 |
| Goodwill | 4,658 | 4,658 |
| Right of use assets | 46,027 | 48,170 |
| Property, plant and equipment | 13,823 | 12,899 |
| Investments | 2 | 27 |
| Receivables from others | 2,652 | 2,583 |
| Deferred tax assets | 4,860 | 6,064 |
| TOTAL NON-CURRENT ASSETS | 73,845 | 76,807 |
| CURRENT ASSETS | ||
| Inventories | 39,371 | 36,206 |
| Trade receivables | 28,988 | 23,166 |
| Others current assets | 7,640 | 6,553 |
| Derivative assets | 31 | 47 |
| Tax receivables | 3,726 | 3,096 |
| Cash and cash equivalents | 44,730 | 57,154 |
| TOTAL CURRENT ASSETS | 124,486 | 126,222 |
| TOTAL ASSETS | 198,331 | 203,029 |
| (in thousands of Euro) | September 30, 2021 | March 31, 2021 |
|---|---|---|
| LIABILITIES | ||
| EQUITY | ||
| Share Capital | 1,000 | 1,000 |
| Share premium reserve | 1,000 | 1,000 |
| Other reserves | 682 | 1,124 |
| Retained earnings | 51,447 | 57,979 |
| Group result for the period | (1,465) | (6,115) |
| Total equity attributable to the Group | 52,664 | 54,988 |
| Capital and reserves attributable to minority interests | 0 | (323) |
| Profit/(loss) for the period attributable to minority interests | 0 | 323 |
| Total share attributable to minority interests | 0 | 0 |
| TOTAL EQUITY | 52,664 | 54,988 |
| NON-CURRENT LIABILITIES | ||
| Borrowings | 26,072 | 30,211 |
| Payables to other lenders for lease agreements | 35,105 | 36,288 |
| Other non current liabilities | 4,598 | 4,599 |
| Provision for employee benefits | 3,778 | 3,839 |
| Provision for risk and chargers | 2,903 | 2,905 |
| TOTAL NON-CURRENT LIABILITIES | 72,456 | 77,842 |
| CURRENT LIABILITIES | ||
| Borrowings | 7,647 | 9,874 |
| Payables to other lenders for lease agreements | 16,621 | 17,202 |
| Derivative liabilities | 82 | 118 |
| Trade Payables | 36,894 | 33,704 |
| Other current liabilities | 10,008 | 8,436 |
| Tax payables | 1,959 | 865 |
| TOTAL CURRENT LIABILITIES | 73,211 | 70,199 |
| TOTAL LIABILITIES | 145,667 | 148,041 |
| TOTAL EQUITY AND LIABILITIES | 198,331 | 203,029 |
| Six months Six months |
Var % | ||||
|---|---|---|---|---|---|
| (in thousands of Euro) | as of September 30, 2021 |
% on Revenue |
as of September 30, 2020 |
% on Revenue |
September 30, 2021, vs September 30, 2020 |
| REVENUES | |||||
| Revenues from sales | 63,690 | 97.9% | 48,554 | 99.5% | 31.2% |
| Other income | 1,379 | 2.1% | 248 | 0.5% | 456.0% |
| TOTAL REVENUES (A) | 65,069 | 100.0% | 48,802 | 100.0% | 33.3% |
| OPERATING COSTS | |||||
| Change in inventories | (3,095) | (4.8)% | (3,580) | (7.3%) | (13.5)% |
| Costs for purchases | 13,321 | 20.5% | 11,311 | 23.2% | 17.8% |
| Costs for services and leases and rental | 28,174 | 43.3% | 22,939 | 47.0% | 22.8% |
| Personnel costs | 17,403 | 26.7% | 12,658 | 25.9% | 37.5% |
| Amortization, depreciation, and write-downs | 8,455 | 13.0% | 8,290 | 17.0% | 2.0% |
| Other operating costs | 403 | 0.6% | 306 | 0.6% | 31.7% |
| TOTAL OPERATING COSTS (B) | 64,661 | 99.4% | 51,924 | 106.4% | 24.5% |
| OPERATING PROFIT (A-B) | 408 | 0.6% | (3,122) | (6.4%) | 113.1% |
| FINANCIAL INCOME AND COSTS | |||||
| Financial income | 445 | 0.7% | 539 | 1.1% | (17.4)% |
| Financial costs | (1,328) | (2.0)% | (1,377) | (2.8%) | 3.6% |
| TOTAL FINANCIAL INCOME AND COSTS | (883) | (1.4)% | (838) | (1.7%) | (5.4)% |
| RESULT BEFORE TAX | (475) | (0.7)% | (3,960) | (8.1%) | 88.0% |
| Income tax | (990) | (1.5)% | (182) | (0.4%) | 445.5% |
| PROFIT FOR THE PERIOD | (1,465) | (2.3)% | (4,142) | (8.5%) | 64.6% |
| attributable to: | |||||
| EQUITY HOLDERS OF THE COMPANY | (1,465) | (4,102) | |||
| MINORITY INTERESTS | 0 | (39) | |||
| (Basic) EARNING PER SHARE | (0.029) | (0.083) | |||
| EBITDA | 8,479 | 13.3% | 4.796 | 9.8% |
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