Brunello Cucinelli S.p.a. · MIL:BC
Brunello Cucinelli — FY2020 Earnings Presentation
25 slides from Brunello Cucinelli's earnings presentation, Mar 12, 2021
Slide 1: FY 20 Results
FY 20 Results March 11th , 2021
Slide 2: Brunello Cucinelli
Brunello Cucinelli “We have just ended the year 2020, which will be a topic for discussion for generations to come, and which will stick to our memory as a painful time for the body and soul, but also as a time of great change for the benefit of humanity and Creation as a whole; in terms of revenues
Slide 3: Our Approach and key operational choices
Our Approach and key operational choices Three major decisions inspiring our approach to the pandemic Guaranteeing employment and maintaining wage levels of all our human resources throughout the world Choosing not to ask for discounts from anyone, aware that during a pandemic everyone had a dut
Slide 4: Our Pillars
Our Pillars The achievement of this result is the result of the extraordinary commitment and great sense of responsibility of all the human resources who work with us, within the company, in artisanal workshops and in all companies that supply us with raw materials and services. More than ever, we b
Slide 5: Revenues by Region
Revenues by Region € mln YoY % YoY % FY 19 FY 20 2H 19 2H 20 Chg Chg Net Revenues 607.8 544.0 -10.5% 316.4 338.9 +7.1% Constant exchange rates FY 20 performance -9.9% North America 204.1 172.8 -15.4% 110.0 115.3 +4.8% Rest of Europe 184.8 181.5 -1.8% 92.4 111.4 +20.6% Italy 89.7 68.3 -23.8% 45.4 39.
Slide 6: Revenues Highlights
Revenues Highlights North America Rest of Europe The North American market returned to The very positive result was driven by the growth in the second half of the year, multibrand channel. Sales in the areas with local demonstrating a great resilience in demand. customers were very interesting, espe
Slide 7: Revenues by Distribution Channel
Revenues by Distribution Channel € mln YoY % YoY % FY 19 FY 20 2H 19 2H 20 Chg Chg Retail 339.4 268.8 -20.8% 189.5 166.3 -12.3% Wholesale 268.3 275.2 +2.6% 126.9 172.6 +36.1% Retail Wholesale 49.4% 50.6% on sales on sales 7
Slide 8: Monobrand Network
Monobrand Network Retail Monobrand Wholesale Monobrand 107 boutiques as of December ‘20 31 boutiques as of December ’20 (106 boutiques as of December ‘19) (30 boutiques as of December ‘19) 8
Slide 9: Distribution Channel
Distribution Channel Retail Channel Wholesale Channel Very positive start in FY 2020, followed by drop in traffic due to pandemic situation; Excellent result, confirming multibrand’s ability to adapt the taste of the brand to the we managed to limit this effect through several actions that will also
Slide 10: Brunello Cucinelli for Humanity
Brunello Cucinelli for Humanity Project in support of Mankind “It seems to me that this project - that we all define as "intense" - in some way raises the dignity of mankind and pays tribute to all those who have taken part in the manufacturing of these garments. It will go hand in hand We consider
Slide 11: Income Statement
Income Statement FY 2019 FY 2020 Net Revenues 607,8 544,0 Other operating income 0,8 2,8 Revenues 608,6 546,8 First Margin 416,9 372,1 % 68,5% 68,0% SG&A -247,3 -282,6 % 40,6% 51,7% FY 2019 * FY 2020 ** EBITDA 169,6 89,5 EBITDA Adjusted 106,1 41,8 % 27,9% 16,4% % 17,4% 7,7% D&A -86,3 -104,3 % 14,2%
Slide 12: Income Statement Reconciliation
Income Statement Reconciliation Inventory Rents / Other Amortization / Financial Taxation write-down IFRS 16 Revenues / IFRS 16 Charges / IFRS Impact IFRS 16 Impact Impact 16 Impact EBITDA EBITDA Adjusted as of 31.12.2020 89,5 31,7 -78,5 -0,9 - - - 41,8 as of 31.12.2019 169,6 - -63,7 +0,2 - - - 106,
Slide 13: Income Statement highlights
Income Statement highlights Operating Costs Production Costs Operating costs went from €247.3 million (40.6%) to €282.6 million (51.7%), an Production costs amounted to €174.7 million compared to €191.6 million last increase mainly due to the development of the network of single-brand stores year, w
Slide 14: Income Statement highlights
Income Statement highlights € mln Personnel cost Investments in Communication Rent cost 18.4% % on sales 21.9% 14.1% % on sales 17.7% 5.8% % on sales 5.9% 112.2 119.6 3.6% % on sales 3.3% 21.8 17.9 85.6 96.4 35.5 32.1 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 FY 19 excl. FY 20 excl. IFRS 16 IFRS 16 DOS Ne
Slide 15: Net Working Capital
€ mln Net Working Capital FY 2019 FY 2020 delta Trade Receivables 58,6 78,9 20,3 Inventories 204,9 208,3 3,5 Trade Payables -89,5 -91,4 -2,0 Strict Net Working Capital 174,0 195,8 21,8 Incidence on 12 months rolling Net Revenues 28,6% 36,0% Other Credits/(Debts) -18,9 -9,1 9,9 Net Working Capital 15
Slide 16: Investments
Investments € mln 52.6 51.6 including Production/ 14.9 Logistics/IT/ Digital 12.0 37.7 Commercial 39.6 FY 19 FY 20 Once again in 2020 we devoted a great deal of attention to investments in the belief that continuous innovation is a decisive factor in keeping the company modern and maintaining sust
Slide 17: Net Financial Position (ex- IFRS 16)
Net Financial Position (ex- IFRS 16) € mln 136.5 93.5 30.1 NFP as of NFP as of NFP as of 12/31/19 06/30/20 12/31/20 The net financial position was impacted by the effects of the pandemic on 2020 results, however the end-of-year data already show significant improvement compared to the €136.5 milli
Slide 18: Outlook
Outlook We approach 2021 in the belief that 2020, which we consider a “year of transition”, has made us even stronger and better prepared to face all the challenges of the coming years We believe that our planning and growth expectations are based on solid foundations, which make our development pro
Slide 19: Outlook
Outlook We look very positively to 2021, which we consider a "year of rebalancing”, and we expect great growth in sales – between +15% and +20% compared to 2020 and between 3% and 7% compared to 2019 – knowing that the end of the pandemic is near. We believe our estimate to be very solid, and well s
Slide 20: Annex
BRUNELLO CUCINELLI FY 20 Annex
Slide 21: Detailed Income Statement
€ mln Detailed Income Statement FY 2019 FY 2020 Net Revenues 607,8 544,0 Other operating income 0,8 2,8 Revenues 608,6 546,8 Consumption Costs (72,3) (53,7) Raw Material Cost (112,4) (98,0) Inventories Change 40,1 44,3 Outsourced Manufacturing (119,4) (121,0) First Margin 416,9 372,1 Services Costs
Slide 22: Detailed Balance Sheet & Cash Flow Statement
€ mln Detailed Balance Sheet & Cash Flow Statement FY 2019 FY 2020 FY 2019 FY 2020 Trade receivables 58,6 78,9 Net Income 53,1 (32,1) Inventories 204,9 208,3 D&A 86,3 104,3 Trade payables (-) (89,5) (91,4) Ch. In NWC and other (24,2) (35,8) Other current assets/(liabilities) (18,9) (9,1) Cash flow f
Slide 23: Investor Relations
Investor Relations Board of Directors Significant Shareholdings* Brunello Cucinelli Excutive Chairman and Creative Director Trust Brunello Cucinelli (Fedone s.r.l.) 51.0% Riccardo Stefanelli C.E.O. FMR LLC (Fidelity) 9.5% Luca Lisandroni C.E.O. Invesco LTD 4.2% Other 35.3% Camilla Cucinelli Director
Slide 24: 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
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