Brunello Cucinelli S.p.a. · MIL:BC
Brunello Cucinelli — FY2022 Earnings Presentation
37 slides from Brunello Cucinelli's earnings presentation, Mar 17, 2023
Slide 1: FY 22 Results
FY 22 Results March 15 2023
Slide 2: Brunello Cucinelli
Brunello Cucinelli “The year 2022 was for our Casa di Moda a year that we define as one of high inspiration, of consistent growth, but above all of striking recognition of our brand for its identity in style, craftsmanship, exclusivity and in the way it presents itself with respect to Creation. We v
Slide 3: Highlights
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Slide 4: 2018 – 2022: excellent quantitative and qualitative growth
2018 – 2022: excellent quantitative and qualitative growth FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Human Privacy Time for Spirit, time "From here on, I would like "Nature is a gentle, "The eyes are the for Harmony to resume the journey prudent and just guide." interpreters of the soul." towards Univ
Slide 5: FY 2022 Financials Highlights
FY 2022 Financials Highlights REVENUES EBITDA NET PROFIT €919.7 mln €266.4 mln €87.2 mln +29.1% +37.8% +54.9% +24.8% cost. curr 29.0% on sales 9.5% on sales EUROPE AMERICAS ASIA +20.8% +40.5% +28.1% 39.8% on sales 36.4% on sales 23.8% on sales RETAIL WHOLESALE +36.6% +18.5% 62.3% on sales 37.7% on s
Slide 6: FY 2022 Highlights
FY 2022 Highlights Balanced contribution of the channels (62% and 38% of total sales, respectively) Balanced contribution of the geographies (Europe 40%, Americas 36%, Asia 24%) Balances contribution of women's and men's collections (parity in volume and still a slight prevalence of women in value)
Slide 7: Outlook
Outlook € mln “We are very satisfied with this first part of 2023, with the sell-outs of the Spring Summer 2023 collections fully confirming the favourable feedback gathered during the presentations of the collections, both from multi-brand partners and the specialised press. We also feel that our b
Slide 8: Business Update
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Slide 9: Revenues by Region
Revenues by Region € mln € mln FY 21 FY 22 YoY % Chg Net Revenues 712.2 919.7 +29.1% Constant exchange rates +24.8% Italy 84.2 102.8 +22.0% Europe (excl. Italy) 219.2 263.8 +20.4% Total Europe 303.4 366.6 +20.8% Americas 238.2 334.7 +40.5% Asia 170.6 218.4 +28.1% FY 2021 FY 2022 Europe Europe Americ
Slide 10: Region Highlights
Region Highlights ITALY AMERICAS Excellent results in Italy, with DOS growth throughout the year went as High-luxury demand showed "structural" characteristics well as positive contribution of multi-brand partners Positive contribution from store openings and boutique expansions September's Milan Fa
Slide 11: Revenues by category
Revenues by category FY 2021 FY 2022 MEN 39.8% MEN 44,0% WOMEN WOMEN 56,0% 60.2% ACCESSORIES ACCESSORIES READY READY 15.9% 15.6% TO TO WEAR WEAR 84.1% 84.4% 11
Slide 12: Revenues by Channel
Revenues by Channel € mln € mln FY 21 FY 22 YoY % Chg Net Revenues 712.2 919.7 +29.1% Retail Channel 419.8 573.3 +36.6% Wholesale Channel 292.4 346.4 +18.5% FY 2021 FY 2022 Wholesale Wholesale Channel Channel 37.7% 41.1% Retail Channel Retail 58.9% Channel 62.3% 12
Slide 13: Channel Highlights
Channel Highlights RETAIL CHANNEL Like-for-like growth, with very good sell-out figures for both the Spring Summer and Fall Winter 2022 collections Significant contribution to the growth of new spaces: prestigious flagship openings, expansions and finally conversions to direct management of spaces w
Slide 14: Monobrand Network
Monobrad Network RETAIL MONOBRAND WHOLESALE MONOBRAND 119 boutiques as of December ’22 30 boutiques as of December ’22 114 boutiques as of December ‘21 30 boutiques as of December ‘21 107 boutiques as of December ‘20 31 boutiques as of December ‘20 14
Slide 15: Our Idea of a “Contemporary License”
Our Idea of a “Contemporary License” Contemporary Licence: Eyewear Contemporary eyewear licence with EssilorLuxottica, a natural extension of the collaboration with Oliver Peoples New agreement will come into effect on January 1, 2023 and run until December 31, 2032; first collection will be introdu
Slide 16: Brand image and gratitude for awards received
Brand image and gratitude for awards received 16
Slide 17: Style and Recognition
Style and Recognition Along with the exclusivity that we believe our offering represents, we would also like our products to be recognizable by their style NEIMAN MARCUS FASHION DESIGNER OF THE YEAR WARD AWARD Prestigious "Neiman Marcus In September 2021, Brunello Fashion Award for Distinguished Cuc
Slide 18: Neiman Marcus Fashion Award
Neiman Marcus Fashion Award Brunello Cucinelli, among the greatest in world fashion Very important recognition awarding for decades great personalities, celebrities and style icons such as Coco Chanel, Christian Dior, Valentino, Giorgio Armani, Miuccia Prada and Karl LagerfeldBrunello Cucinelli comm
Slide 19: Humanistic Capitalism and Human Sustainability
Humanistic Capitalism and Human Sustainability 19
Slide 20: Moral and economic dignity of work: great value of craftsmanship
Moral and economic dignity of work: great value of craftsmanship FY 2022: important milestone in terms of the Human Resources, reaching The 'just profit' also presupposes the just recognition of the central value of over 2,300 direct employees; about half of our Human Resources work in the people di
Slide 21: Our 10 years in the stock exchange market
Our 10 years in the stock exchange market First ten years since our 2012 listing on the stock exchange marks an important milestone: at the heart of the listing project idea that the company could 'live into the next centuries' by pursuing gentle growth and healthy profitability We feel, therefore,
Slide 22: Financials
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Slide 23: Income Statement
Income Statement € mln FY 2021 FY 2022 Ch. % FY 2021 FY 2022 Ch. % Revenues 712.2 919.7 + 29.1% First Margin 479.0 658.0 + 37.4% % 67.3% 71.5% + 420 b.p. SG&A -285.7 -391.6 + 37.1% % 40.1% 42.6% + 250 b.p. EBITDA 193.3 266.4 + 37.8% EBITDA ex-IFRS 16 110.0 172.4 + 56.7% % 27.1% 29.0% + 190 b.p. % 15
Slide 24: Income Statement Highlights
Income Statement Highlights Complete rebalancing of our margins, thanks to the +29.1% growth in sales, which made it possible to completely reabsorb the transitory effects of the pandemic on the main cost lines Strong increase in sales was favored by the major decisions taken in the hardest year of
Slide 25: Income Statement Highlights
Income Statement Highlights Retail Channel Development of the retail channel: - new openings (119 DOS compared with 114 previous year) - significant boutiques expansions - contribution from conversions to the direct management of spaces within Luxury Department Stores in the last 2 years (42 hard sh
Slide 26: Income Statement Highlights
Income Statement Highlights € mln Personnel cost Rent cost 17.9% % on sales 18.7% 14.5% % on sales 16.2% 164.7 133.6 132.9 4.2% 4.3% 115.3 30.6 38.6 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 Pre IFRS 16 Pre IFRS 16 Investments in Communication D&A 14.3% 16.3% 5.7% % on sales 131.9 5.0% % on sales 5.1% 116
Slide 27: Income Statement Highlights
Income Statement Highlights Total FTE 2,308 2,160 2,045 1,890 82 75 69 Managers & 64 Middle Mgmt. 542 601 532 Manual 513 Average FTE – Workers Workforce 1,625 Analysis Store 1,543 Employees & 1,313 1,444 Office Staff Dec. ‘19 Dec. ‘20 Dec. ‘21 Dec. ‘22 119 114 DOS Network 106 107 from 31/12/19 to 31
Slide 28: Net Working Capital
Net Working Capital FY 2021 FY 2022 delta TRADE NET WORKING CAPITAL Trade Receivables 72.8 76.6 3.8 Trade net working capital was €182.4 million (19.8% incidence), Inventories 199.3 242.8 43.6 compared to €169.4 million last year (23.8% incidence) Trade Payables -102.7 -137.0 -34.4 Trade Net Working
Slide 29: Investments
Investments € mln 15.0 72.5 61.6 Purchase price for 43% 25.9 stake in Lanificio Cariaggi Others, including Production/ 15.7 Logistics/IT/ Digital 46.6 Commercial 45.9 15.05 FY 21 FY 22 FY 22 The important multi-year investment project remained unchanged in the pandemic years, accompanying our proces
Slide 30: Acquisition of 43% of the prestigious Lanificio Cariaggi Cashmere
Acquisition of 43% of the prestigious Lanificio Cariaggi Cashmere Brunello Cucinelli in March 2022 acquired from the Cariaggi family a 43% stake in the share capital of Cariaggi Lanificio S.p.A., with headquarters in Cagli (Pesaro and Urbino). The purchase price of the shareholding was €15.05 millio
Slide 31: Acquisition of a large 8 hectare area
Acquisition of a large 8 hectare area Acquisition of a large 8 hectare area on the outskirts of Solomeo, where an industrial complex built in the 1970s operated until about thirty years ago This area will be completely redeveloped and work has already begun, followed by the building conversion plan
Slide 32: Characteristic Financial Indebtedness
Characteristic Financial Indebtedness € mln 23.0 Characteristic Financial Indebtedness 7.1 Pre IFRS 16 FY 21 FY 22 Cash generation from operating activities and the sound management of net working capital allow for sustained investments and the distribution of a dividend of EUR 0.65 per share, with
Slide 33: ANNEX
BRUNELLO CUCINELLI ANNEX
Slide 34: Detailed Income Statement
Detailed Income Statement € mln FY 2021 FY 2022 Revenues 712,2 919,7 Consumption Costs (113,6) (95,5) Raw Material Cost (96,0) (137,6) Inventories Change (17,6) 42,0 Outsourced Manufacturing (119,6) (166,2) First Margin 479,0 658,0 Services Costs (excl. Out. Manuf.) (151,5) (206,0) Personnel costs (
Slide 35: Total Net Financial Expense details
Total Net Financial Expense details € mln FY 2021 FY 2022 FY 2021 FY 2022 Trade receivables 72,8 76,6 Net Income 56.3 87.2 Inventories 199,3 242,8 D&A 116.3 131.9 Trade payables (-) (102,7) (137,0) Ch. In NWC and other 35.6 (3.2) Other current assets/(liabilities) (27,3) (41,6) Cash flow from operat
Slide 36: Investor Relations
Investor Relations € mln Board of Directors Excutive Chairman and Creative Brunello Cucinelli Director Riccardo Stefanelli C.E.O. Luca Lisandroni C.E.O. Camilla Cucinelli Director Giovanna Manfredi Director Carolina Cucinelli Director Andrea Pontremoli Independent Director Investor Relations & Corpo
Slide 37: This presentation may contain forward looking statements
This presentation may contain forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potenti