Brunello Cucinelli S.p.a. · MIL:BC
Brunello Cucinelli — H1 2022 Earnings Presentation
27 slides from Brunello Cucinelli's earnings presentation, Aug 31, 2022
Slide 1: 1H 22 Results
1H 22 Results August 30th , 2022
Slide 2: Brunello Cucinelli
Brunello Cucinelli "The first half of 2022 closed with excellent results in terms of both growth and profits; on the back of these, we envisage a record year 2022 with revenue growth of around +15%". "During the pandemic, companies in our country, thanks to national social safety nets and wise and h
Slide 3: 1H 22 Sales - Overview
1H 22 Sales - Overview The first half of 2022 reports excellent results, with revenue growth of +32.4%; second quarter increased by +46.4% enabling us to achieve our best quarterly performance ever, reaching a turnover of €218.4 million The strong growth in demand in Europe, North America and the Mi
Slide 4: Revenues by Region
Revenues by Region € mln € mln 1H 21 1H 22 YoY % Chg Net Revenues 313.8 415.4 +32.4% Constant exchange rates +28.3% Europe 95.9 115.8 +20.7% Italy 41.0 49.2 +19.9% Americas 100.0 152.6 +52.6% Asia 76.9 97.8 +27.2% Europe 39.7% Americas 36.8% Asia 23.5% 4
Slide 5: Revenues Highlights
Revenues Highlights Europe Very solid growth, with 2Q 22 showing a further improvement despite the continuing restrictions on sales to Russian customers, with the very important contribution of Continental Europe, both in the large cities and in the provinces covered by the wholesale presence; the s
Slide 6: Revenues by Distribution Channel
Revenues by Distribution Channel € mln € mln 1H 21 1H 22 YoY % Chg Net Revenues 313.8 415.4 +32.4% Retail 165.5 243.3 +47.1% Wholesale 148.3 172.0 +16.0% Retail Wholesale 58.6% 41.4% on sales on sales 6
Slide 7: Monobrand Network
Monobrand Network Retail Monobrand Wholesale Monobrand 117 boutiques as of June ’22 30 boutiques as of June ’22 114 boutiques as of December ’21 30 boutiques as of December ’21 112 boutiques as of June ‘21 31 boutiques as of June ‘21 7
Slide 8: Distribution Channel
Distribution Channel Retail Channel The progressive growth in the first 6 months of 2022 is related both to like-for-like sales, with the sell-outs of the collections confirming and further improving the positive trend of the beginning of the year, and to the contribution of sales of new spaces Flag
Slide 9: Hospitality and Boutiques
Hospitality and Boutiques Hospitality The term “hospitality” speaks of the values of sharing and conveys a sense of family. It is an invitation to serenity and offers the joy of moments spent together Hospitality has always been a fundamental value for our Casa di Moda: welcoming our customers and o
Slide 10: Hospitality and Casa Cucinelli
Hospitality and Casa Cucinelli Hospitality and Casa Cucinelli This idea of warm, familiar and relaxed hospitality was the "inspiring principle" in the creation of the Cucinelli Houses, spaces for meeting and fully expressing our idea of lifestyle. The Houses are now present in Solomeo, Milan, Paris,
Slide 11: Income Statement
Income Statement 1H 2019 1H 2021 1H 2022 Revenues 291,4 313,8 415,4 First Margin 194,2 209,4 297,9 % 66,6% 66,8% 71,7% SG&A -115,0 -128,9 -177,9 % 39,5% 41,1% 42,8% 1H 2019 1H 2021 1H 2022 EBITDA 79,2 80,6 120,0 EBITDA ex-IFRS 16 49,9 39,9 75,3 % 27,2% 25,7% 28,9% % 17,1% 12,7% 18,1% D&A -40,1 -55,3
Slide 12: Income Statement Highlights
Income Statement Highlights Complete rebalancing of our margins, with revenue growth allowed us to fully reabsorb the transitory effects of the pandemic on major cost lines, benefiting from the decisions of having preserved the corporate structure and kept investment choices and business planning un
Slide 13: Income Statement Highlights
Income Statement Highlights Rents incidence net of IFRS 16 is 14.8% (17.3% the incidence at 30 June 2021), higher than 13.7% of H1 2019 due to new flagship, boutique extensions and openings of "Casa Cucinelli", physical meeting places where we hope to effectively and immediately convey to guests our
Slide 14: Income Statement highlights
Income Statement highlights € mln Personnel cost Rent cost % on sales 14.8% 18.9% 17.3% 19.6% 13.7% 18.5% 3.9% 61.3 61.5 78.4 54.4 53.8 4.1% 39.8 3.5% 12.9 16.1 10.3 1H 19 1H 21 1H 22 1H 19 1H 21 1H 22 1H 19 1H 21 1H 22 Pre IFRS 16 Pre IFRS 16 Pre IFRS 16 Investments in Communication D&A 15.0% 17.6%
Slide 15: Income Statement highlights
Income Statement highlights € mln 2,254 2,127 2,026 Total FTE 1,842 82 68 68 Managers & Middle Mgmt. 64 536 541 583 Manual 498 Average FTE – Workers Workforce Analysis Store 1,589 1,518 Employees & 1,280 1,422 Office Staff 1H 19 1H 20 1H 21 1H 22 117 112 107 DOS Network 102 from 30/06/19 to 30/06/22
Slide 16: Net Working Capital
€ mln Net Working Capital 1H 2021 1H 2022 delta FY 21 Trade Receivables 75.7 75.2 -0.5 72.8 Inventories 208.8 243.1 34.3 199.3 Trade Payables -76.3 -112.9 -36.6 -102.7 Trade Net Working Capital 208.2 205.5 -2.7 169.4 Incidence on 12 months rolling Revenues 31.9% 25.2% 23.8% Other Credits/(Debts) * -
Slide 17: Investments
Investments € mln CAPEX 36.6 including 29.9 Others, including 16.3 Purchase price for Production/ 7.4 43% stake in Logistics/IT/ Digital Lanificio Cariaggi 20.3 15.05 Commercial 22.5 1H 21 1H 22 Commercial investments supported the opening of boutiques and the renovation and expansion of existing bo
Slide 18: Characteristic Financial Indebtedness
Characteristic Financial Indebtedness € mln 96.3 63.8 Characteristic Characteristic Financial Financial Indebtedness Indebtedness as of 06.30.21 as of 06.30.22 - Pre IFRS 16 - - Pre IFRS 16 - Characteristic Financial Indebtedness was EUR 63.8 million as of 30 June 2022, compared to EUR 96.3 millio
Slide 19: Outlook
Outlook The excellent results of the first half of 2022, the business performance in recent weeks, the sales sell-outs of the Fall Winter 2022 collections, which confirm the enthusiasm of the wonderful order collection completed in the first months of the year, enhance the very positive and apprecia
Slide 20: 1H 22 Annex
BRUNELLO CUCINELLI 1H 22 Annex
Slide 21: 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 22: Finalized the purchase of a large 8 hectare area
Finalized the purchase 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 conv
Slide 23: Detailed Income Statement
€ mln Detailed Income Statement 1H 2019 1H 2021 1H 2022 Revenues 291,4 313,8 415,4 Consumption Costs (39,6) (46,9) (33,6) Raw Material Cost (56,0) (43,7) (65,7) Inventories Change 16,5 (3,3) 32,1 Outsourced Manufacturing (58,0) (57,4) (83,9) First Margin 193,8 209,4 297,9 Services Costs (excl. Out.
Slide 24: Total Net Financial Expense details
€ mln Total Net Financial Expense details 1H 21 1H 22 delta FY 20 FY 21 delta Financial charges/(income) from ordinary operations0.8 1.7 0.9 2.2 1.7 -0.6 Subtotal Financial charges/(income) 3.9 -4.7 -8.7 13.1 9.5 -3.7 from lease operations Foreign exchange losses/(gains) 0.7 -5.8 -6.5 0.4 0.5 0.1 Va
Slide 25: Detailed Balance Sheet & Cash Flow Statement
€ mln Detailed Balance Sheet & Cash Flow Statement 1H 2021 1H 2022 FY 2021 1H 2021 1H 2022 FY 2021 Trade receivables 75,7 75,2 72,8 Net Income 21,9 50,6 56,3 Inventories 208,8 243,1 199,3 D&A 55,3 62,2 116,3 Trade payables (-) (76,3) (112,9) (102,7) Ch. In NWC and other (13,4) (34,3) 35,6 Other curr
Slide 26: Investor Relations
Investor Relations Board of Directors Andrea Pontremoli Independent Director Brunello Cucinelli Excutive Chairman and Creative Director Stefano Domenicali Independent Director Riccardo Stefanelli C.E.O. Emanuela Bonadiman Independent Director Luca Lisandroni C.E.O. Independent Director Maria Cecilia
Slide 27: Forward looking statements disclaimer
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