Prada S.p.a. · HKEX:1913
Prada — Prada Spa Ord — FY2023 Earnings Presentation
27 slides from Prada's earnings presentation, Mar 7, 2024
Slide 1: FY-23 Results Presentation
FY-23 Results Presentation Milan, March 7th 2024 1 March 7th 2024
Slide 2: Disclaimer
Disclaimer The information contained in this document is for information purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or service of any kind. This document
Slide 3: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 4: Very positive Q4 ends a year of strong progress and results
Very positive Q4 ends a year of strong progress and results, fully delivering on ambitions Continued profitability Strong and high-quality Very satisfactory, above- improvement coupled Acceleration of capex growth, with consistent market performance at with substantial plan for the growth of deliver
Slide 5: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 6: Prada: Continued to capitalise on strengthened brand desirability
Prada Continued to capitalise on strengthened brand desirability Impactful fashion shows Distinctive brand experiences worldwide: Exclusive collaborations and and campaigns drive interest Pradasphere II, Prada Mode, ground-breaking partnerships Prada Frames, Prada Caffè continue to excite • Continue
Slide 7: Miu Miu: Continued brand evolution
Miu Miu Continued brand evolution Brand resonance Growth fueled by Miu Miu Women’s Tales keeps rising both iconic and viral products project enhanced • Miu Miu sparks: highly acclaimed fashion shows • Introduction of new bags Arcadie and Ivy • Reveal of the new Miu Miu Women’s Tales combined with po
Slide 8: ESG Focus 2023 for Planet
ESG Focus 2023 for PLANET CLIMATE PRESERVE THE ECOSYSTEM 58% reduction of Scope 1 & 2 GHG emissions (vs 2019 • >75% of leather and textile suppliers involved baseline), fully on track to achieve 2026 Science-Based Target in ZDHC program thanks to: • defined new targets on leather and viscose in • -4
Slide 9: ESG Focus 2023 for People for Culture
ESG Focus 2023 for PEOPLE for CULTURE GENDER EQUALITY SEA BEYOND EDUCATIONAL PROGRAM • 63% women in total workforce • Significant increase in funding to support SEA • >50% women across all functions and geographies BEYOND with a dedicated portion of the proceeds • 44% women in top and senior managem
Slide 10: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 11: Prada
Prada • A very important and successful year: strengthened brand desirability, reinforced and evolved organisation and solid execution • Continued affirmation of Prada’s creative codes and cultural relevance in the industry, with remarkable market response to all shows and collections • Another year
Slide 12: Miu Miu
Miu Miu • Remarkable results built on foundations laid in the past few years across brand, product, distribution and organisation • Excellent brand momentum globally, with growing awareness and desirability • Trend-setting creative vision and powerful identity translating into strong commercial resp
Slide 13: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 14: Key Financials
Key Financials Sustained and high-quality growth, continued profitability improvement FY-23 Net Revenues FY-23 EBIT FY-23 Cash Flow from Operations €4,726 mln (+13% vs. FY-22 / +17% at constant fx) €1,062 mln €1,265 mln Retail Sales (€ mln) and growth (%) (1) EBIT / EBIT Adj. (2) (€ mln) and margin
Slide 15: Net Revenues by Channel
Net Revenues by Channel Consistent delivery of high-quality like-for-like Retail growth Royalties € mln FY-23 Q4-23 2% % at constant fx Wholesale FY-22 FY-23 vs. vs. 9% FY-22 Q4-22 Retail 3,737 4,190 +17% +17% Wholesale 388 433 +13% +32% Royalties 76 104 +36% -6% Retail 89% Total 4,201 4,726 +17% +1
Slide 16: Retail Sales by Brand
Retail Sales by Brand Above-market growth at both Prada and Miu Miu € mln FY-23 Q4-23 % at constant fx Church's Other FY-22 FY-23 vs. vs. 1% 1% FY-22 Q4-22 Prada 3,252 3,488 +12% +10% Miu Miu 15% Miu Miu 432 649 +58% +82% Church’s 33 29 -13% +3% Prada Other (1) 20 24 +19% +20% 83% Total 3,737 4,190
Slide 17: Retail Sales by Geography
Retail Sales by Geography Double-digit growth across all regions with Americas flat € mln FY-23 Q4-23 Middle % at constant fx FY-22 FY-23 vs. vs. East 4% FY-22 Q4-22 Asia Pacific 1,232 1,446 +24% +32% Japan 12% Europe 1,187 1,312 +14% +7% APAC 35% Americas 782 767 0% +4% Americas 18% Japan 369 484 +
Slide 18: Profitability
Profitability Continued profitability improvement coupled with substantial investments € mln FY-22 % on Net FY-23 % on Net FY-23 Revenues Revenues vs. FY-22 Gross Margin 3,312 78.8% 3,802 80.4% +15% Selling 1,704 40.6% 1,873 39.6% +10% Advertising and Comm. 359 8.5% 420 8.9% +17% Product Design and
Slide 19: Capex
Capex Accelerated investments including strategic real estate 753 € mln Real Estate Corporate, IT & Industrial 382 Retail 276 155 107 216 169 FY-2 2 FY-2 3 • ~130 renovation and relocation projects, accounting for ~80% of Retail capex • 6 net closures vs. FY-22 (26 openings and 32 closures); 606 DOS
Slide 20: Net Operating Working Capital
Net Operating Working Capital Further improvement over Net Sales 735 € mln 691 Trade Receivables 405 Inventory 332 Trade Payables 760 783 -402 -453 FY-22 FY-23 17% 16% % of Net Sales (1) (1) Net Revenues excluding Royalties 20 March 7th 2024
Slide 21: Net Financial Position
Net Financial Position € mln Opening Net Financial Position Surplus / (Deficit) - 31/12/2022 535 Consolidated Profit / (Loss) before taxation 971 Depreciation and Amortisation 241 Net Working Capital -90 Tax paid -487 Capital Expenditures and Investments -759 Dividends -281 Other 67 Closing Net Fina
Slide 22: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 23: Priorities for FY-24 and Closing Remarks
Priorities for FY-24 and Closing Remarks Ambition to deliver solid, sustainable and above-market growth Very positive performance in FY-23, delivering on our ambitions and marking a further significant evolution for Prada Group FY-24 priority remains fostering the desirability of our brands and cont
Slide 24: Agenda
Agenda Patrizio Bertelli - Chairman and Executive Director Highlights Lorenzo Bertelli - Marketing Director and Head of CSR Key Marketing Initiatives and ESG Update Andrea Guerra - Group CEO Business Update Andrea Bonini - Group CFO FY-23 Financial Review Andrea Guerra - Group CEO Priorities for FY-
Slide 25: Appendix
APPENDIX PRADA Group 25 March 7% 2024
Slide 26: Condensed P&L
Condensed P&L € mln FY-22 FY-23 Net revenues 4,201 100% 4,726 100% COGS -889 -21.2% -925 -19.6% Gross profit 3,312 78.8% 3,802 80.4% Selling -1,704 -40.6% -1,873 -39.6% Advertising and communication -359 -8.5% -420 -8.9% Product design and development -137 -3.3% -151 -3.2% G&A -266 -6.3% -297 -6.3%
Slide 27: Condensed Balance Sheet
Condensed Balance Sheet € mln 31 Dec 2022 31 Dec 2023 Right of use 2,011 2,025 Non current assets (excl deferred tax assets) 2,517 3,007 Net operating working capital 691 735 Other current assets / (liabilities), net -293 -146 Other non current assets / (liabilities), net 148 171 Net invested capita