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Salvatore Ferragamo Investor Presentation 2021
4432_er_2021-09-07_bed6c800-5733-4b73-baa0-5bcc7ae7ee67.pdf
Investor Presentation
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1H 2021 Results Update
Analyst Presentation
September 7, 2021 - 6.00 PM CET
This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company.
The actual results may differ materially from those expressed in any forward-looking statement and the Company does not assume any liability with respect thereto.
This document has been prepared solely for this presentation and does not constitute any offer or invitation to sell or any solicitation to purchase any share in the Company.
The Manager in Charge of preparing the Company financial reports hereby certifies pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.
1H 2021 Financial Review
Salvatore Ferragamo FW 21 Advertising Campaign
1H 2021 Revenue By Distribution Channel
| June YTD | |||||||
|---|---|---|---|---|---|---|---|
| (Euro MM) | 2021 | 2020 | Δ % | Const FX |
Weight on Tot 2021 |
Weight on Tot 2020 |
|
| Retail | 381.4 | 260.6 | 46.3% | 49.4% | 72.8% | 71.7% | |
| Wholesale | 138.1 | 97.9 | 41.1% | 40.5% | 26.4% | 26.9% | |
| Licences & Other Rev. |
3.2 | 3.8 | -14.2% | -14.2% | 0.6% | 1.0% | |
| Rental income | 1.1 | 1.1 | 1.0% | 10.5% | 0.2% | 0.3% | |
| Total | 523.8 | 363.4 | 44.2% | 46.2% | 100.0% | 100.0% |
- Total Revenues in 1H'21 at 524M Euros, up 44.2% (+46.2% at const. FX), with 2Q +91.3% (+90.5% at const. FX) vs. 2Q'20, despite the permanence, in some countries, of lock-downs and restriction on international traffic.
- RTL up 46.3% (+49.4% at const. FX) in 1H'21, with 2Q +81.4% (+82.9% at const. FX) vs. 2Q'20, with Greater China, North America, Latin America and Korea exceeding the pre-Covid levels.
- WHL up 41.1% (+40.5% at const. FX) in 1H'21, with 2Q +134% (+122% at const. FX) vs. 2Q'20, despite the still challenging Travel Retail channel penalized by restrictions to international travel.
Group's store network at 639 POS, of which 398 DOS and 241 TPOS.
June YTD
Europe 96.1 78.6 22.2% 20.5% 18.4% 21.6%
North America 137.0 67.6 102.6% 122.2% 26.1% 18.6%
Japan 41.0 36.2 13.4% 18.2% 7.8% 10.0%
Asia Pacific 222.3 164.4 35.2% 34.0% 42.4% 45.2%
Latin America 27.4 16.6 65.6% 73.7% 5.2% 4.6%
Total 523.8 363.4 44.2% 46.2% 100.0% 100.0%
Δ % Const
FX
Weight on
Weight on
Tot 2020
Tot 2021
| | APAC, representing over 42% of sales, up 34.0% at const. FX in 1H'21, RTL in China up 47.4% at const. FX 1H'20 and up 21.9% in Korea. |
total with vs. |
|---|---|---|
| | Japan up 18.2% at const. FX vs. 1H'20, bringing the Asian Continent to over on total sales. |
50% |
EMEA up 20.5% at const. FX vs. 1H'20, still penalized by lock-downs and lack of tourists' flows.
North America strongly up 122% at const. FX vs. 1H'20.
LatAm up 73.7% at const. FX vs. 1H'20.
To be noted that all performance measures are reported excluding the Fragrance business both from the data relating to 2021 and from 2020 comparative data, as the licensing of the Fragrance business is reclassified in the "Non-current Assets Held for Sale and Discontinued Operations", in accordance with IFRS 5.
(Euro MM) 2021 2020 Δ %
1H 2021 Revenue By Product
| June YTD | ||||||
|---|---|---|---|---|---|---|
| Δ % | Weight on | Weight on | ||||
| (Euro MM) | 2021 | 2020 | Δ % | Const FX | Tot 2021 | Tot 2020 |
| Shoes | 223.2 | 159.5 40.0% | 44.4% | 42.6% | 43.9% | |
| Leather goods & handbags |
235.4 | 158.6 48.5% | 47.8% | 44.9% | 43.6% | |
| RTW | 29.2 | 19.1 52.9% | 56.6% | 5.6% | 5.3% | |
| Silk & other access. |
29.7 | 20.3 46.2% | 49.3% | 5.7% | 5.6% | |
| Fragrances* | 1.9 | 1.0 85.0% | 90.0% | 0.4% | 0.3% | |
| Licences & Other Rev. |
3.2 | 3.8 -14.2% | -14.2% | 0.6% | 1.0% | |
| Rental income | 1.1 | 1.1 | 1.0% | 10.5% | 0.2% | 0.3% |
| Total | 523.8 | 363.4 | 44.2% | 46.2% | 100.0% | 100.0% |
All main product categories reported an increase in 1H'21 vs. the same period of last year, with Shoes and Leather categories representing respectively 43% and 45% of the turnover.
* Revenues generated in DOS
1H 2021 P&L
| E-MARKET SDIR |
|
|---|---|
| CERTIFIED | |
| June YTD | |||||
|---|---|---|---|---|---|
| (Euro MM) | 2021 | % | 2020 | % | Δ % |
| Total revenue | 523.8 | 100.0% | 363.4 | 100.0% | 44.2% |
| Cost of goods sold | (162.9) | -31.1% | (141.6) | -39.0% | 15.0% |
| Gross profit | 361.0 | 68.9% | 221.7 | 61.0% | 62.8% |
| Total operating costs | (295.0) | -56.3% | (293.4) | -80.7% | 0.6% |
| EBIT | 65.9 | 12.6% | (71.6) | -19.7% | nm |
| Financial income (expenses) | (3.4) | -0.7% | (10.4) | -2.9% | -67.0% |
| Fiancial ROU | (6.5) | -1.2% | (8.4) | -2.3% | -23.3% |
| EBT | 56.0 | 10.7% | (90.5) | -24.9% | nm |
| Taxes | (18.7) | -3.6% | 7.0 | 1.9% | nm |
| Net profit(loss) from discontinued operations, net of taxes |
(3.9) | -0.7% | (2.9) | -0.8% | 31.2% |
| Net income | 33.4 | 6.4% | (86.4) | -23.8% | nm |
| Group net income | 30.7 | 5.9% | (81.9) | -22.5% | nm |
| Income to minorities | 2.7 | 0.5% | (4.5) | -1.2% | nm |
| EBITDA | 144.3 | 27.5% | 31.9 | 8.8% | nm |
- Gross Profit +62.8% to 361M Euros, with incidence on Revenues +790 bps to 68.9%, mainly thanks to higher full-price sales, a more positive geographic, channel and product mix, and lower provisions for obsolescence.
- Opex stable (+4.0% at const. FX) vs. 1H'20, with +13% in 2Q'21 due to higher variable costs, "back-to-normal" expenses and lower contribution from positive extraordinary components, such as the Government subsidies and rents relief.
- EBIT positive for 66M Euros vs. 62M Euros negative (net of the effect of the impairment test) in 1H'20
- Net Profit positive for 33M Euros vs. 86M Euros negative in 1H'20
1H 2021 Balance Sheet
| (Euro MM) | June 21 YTD | June 20 YTD | % |
|---|---|---|---|
| Tangible assets | 204.212 | 259.613 | -21.3% |
| Intangible assets | 41.413 | 48.491 | -14.6% |
| Right of Use | 469.553 | 520.291 | -9.8% |
| Financial assets | – | – | |
| Fixed assets | 715.177 | 828.395 | -13.7% |
| Inventory | 316.570 | 394.793 | -19.8% |
| Trade receivables | 109.884 | 95.845 | 14.6% |
| Trade payables | (127.999) | (133.661) | -4.2% |
| Operating working capital | 298.454 | 356.976 | -16.4% |
| Other assets (liabilities) | 103.487 | 98.827 | 4.7% |
| Net Asset held for Sales | 18.305 | – | |
| Employee Benefit Liabilities | (10.026) | (12.381) | -19.0% |
| Provisions for risks and charges | (13.143) | (13.770) | -4.6% |
| Net invested capital | 1,112.255 | 1,258.048 | -11.6% |
| Shareholders' equity (A) | 754.785 | 695.931 | 8.5% |
| Group equity | 734.684 | 674.395 | 8.9% |
| Minority interest | 20.101 | 21.535 | -6.7% |
| Current financial liabilities | (159.095) | (318.662) | -50.1% |
| Non current financial liabilities | (568.809) | (508.163) | 11.9% |
| Cash & Cash equivalents | 370.434 | 264.708 | 39.9% |
| Net debt (B) | (357.470) (562.117) |
-36.4% | |
| Financial sources (A-B) | 1,112.255 | 1,258.048 | -11.6% |
| Net debt (B) | (357.470) | (562.117) | -36.4% |
| Non Current Lease Liabilities | 459.885 | 508.163 | -9.5% |
| Current Lease Liabilities | 102.359 | 112.075 | -8.7% |
| Lease Liabilities | 562.244 | 620.239 | -9.4% |
| Net debt Adjusted | 204.775 | 58.121 | >100% |
- Net Working Capital down 16.4%, with continuing efficiency in Inventory, decreasing by 19.8% (-21.6% at const. FX, -15.3% at const. FX excluding Fragrances) thanks to an improvement in operational effciency.
- Investments (CAPEX) at 13M Euros, vs. 11M Euros in 1H'21, mainly driven by retail network renovations and investments in the digital channel .
- Net Financial Position adj. (ex. IFRS16 impact) at 30 June 2021 positive for 205M Euros, compared to 58M Euros positive as of 30 June 2020. Including IFRS16 effect, the Net Financial Position at 30 June 2021 is negative for 357M Euros.
Group POS Number by Region @ 30.06.2021
| Act June '21 | Act December '20 | Net Openings in the period |
|||
|---|---|---|---|---|---|
| Europe | 154 | 156 | -2 | ||
| USA | 95 | 96 | -1 | ||
| Latin America | 59 | 62 | -3 | ||
| Asia Pacific | 261 | 262 | -1 | ||
| Japan | 70 | 68 | 2 | ||
| Total POS n. | 639 | 644 | -5 | ||
| DOS | 398 | 395 | 3 | ||
| TPOS | 241 | 249 | -8 |
Appendix – Quarterly 2021 P&L Restated
| 1 Q | 2Q | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Euro MM) | 2021 | % | 2020 | % | Δ % | 2021 | % | 2020 | % | Δ % |
| Total revenue | 234.9 | 100.0% | 212.3 | 100.0% | 10.6% | 288.9 | 100.0% | 151.0 | 100.0% | 91.3% |
| Cost of goods sold | (81.1) | -34.5% | (85.8) | -40.4% | -5.4% | (81.7) | -28.3% | (55.8) | -37.0% | 46.4% |
| Gross profit | 153.8 | 65.5% | 126.6 | 59.6% | 21.5% | 207.2 | 71.7% | 95.2 | 63.0% | 117.7% |
| Total operating costs | (147.1) | -62.6% | (162.4) | -76.5% | -9.4% | (148.0) | -51.2% | (131) | -86.7% | 13.0% |
| EBIT | 6.7 | 2.9% | (35.8) | -16.9% | nm | 59.2 | 20.5% | (35.8) | -23.7% | nm |
| Financial income (expenses) | (1.0) | -0.4% | (7.2) | -3.4% | -85.8% | (2.4) | -0.8% | (3.2) | -2.1% | -25.5% |
| Fiancial ROU | (3.3) | -1.4% | (4.3) | -2.0% | -23.0% | (3.1) | -1.1% | (4.1) | -2.7% | -23.5% |
| EBT | 2.4 | 1.0% | (47.3) | -22.3% | nm | 53.7 | 18.6% | (43.2) | -28.6% | nm |
| Taxes | (3.7) | -1.6% | 6.5 | 3.1% | nm | (15.1) | -5.2% | 0.5 | 0.4% | nm |
| Net profit(loss) from discontinued operations, net of taxes |
0.7 | 0.3% | (0.6) | -0.3% | nm | (4.6) | -1.6% | (2.3) | -1.5% | 95.7% |
| Net income | (0.6) | -0.2% | (41.4) | -19.5% | nm | 34.0 | 11.8% | (44.9) | -29.8% | nm |
| Group net income | (1.2) | -0.5% | (39.1) | -18.4% | nm | 31.9 | 11.1% | (42.8) | -28.4% | nm |
| Income to minorities | 0.7 | 0.3% | (2.4) | -1.1% | nm | 2.1 | 0.7% | (2.1) | -1.4% | nm |
| EBITDA | 46.8 | 19.9% | 11.7 | 5.5% | 298.3% | 97.5 | 33.8% | 20.2 | 13.4% | nm |
1H 2021 Results Update
Q&A
