Brunello Cucinelli S.p.a. · MIL:BC
Brunello Cucinelli — H1 2020 Earnings Presentation
23 slides from Brunello Cucinelli's earnings presentation, Aug 27, 2020
Slide 1: 1H 20 Results
1H 20 Results August 27th , 2020
Slide 2: Brunello Cucinelli
Brunello Cucinelli «Following this half-year - strongly impacted by the pandemic -, we are now moving towards a significant trend reversal. Since July 1 we have been looking at the company with a fresh new eye, considering this to be a year of "transition" between a "past time" and a "new time".» «H
Slide 3: Financial Highlights
Financial Highlights Net Revenues EBITDA Adjusted* NET PROFIT Adjusted* €205.1 mln - €14.1 mln - €25.8 mln -29.6% at current exchange rates EBIT Adjusted* -29.8% at constant exchange rates - €29.8 mln Italian Rest of Europe China market -24.1% sales -20.6% sales -34.7% North America RoW sales -38.9%
Slide 4: Revenues by Region
Revenues by Region € mln 1H 19 1H 20 YoY % Chg Net Revenues 291.4 205.1 -29.6% Constant exchange rates -29.8% Italy 44.3 28.9 -34.7% Rest of Europe 92.4 70.1 -24.1% North America 94.1 57.5 -38.9% China 28.8 22.9 -20.6% RoW 31.8 25.8 -19.1% Other Internat. Mkt. 23.7% Europe 48.3% North America 28.0%
Slide 5: Revenues Highlights
Revenues Highlights Italy Rest of Europe Positive initial sales results, with 1H 20 The closure of boutiques all over Europe strongly performance very strongly influenced by the closure influenced the results of the first half of the year. of retail spaces. Confirmation of previously collected order
Slide 6: Revenues by Distribution Channel
Revenues by Distribution Channel € mln Retail Wholesale Monobrand Wholesale Multibrand 50.0% 6.6% 43.4% on sales on sales on sales 1H 19 149.9 1H 19 18.2 1H 19 123.3 -31.6% -25.3% -27.8% 1H 20 102.5 1H 20 13.6 1H 20 89.0 6
Slide 7: Retail & Wholesale Monobrand
Retail & Wholesale Monobrand Retail Wholesale Monobrand 107 boutiques as of June ‘20 30 boutiques as of June ’20 (106 boutiques as of December ‘19) (30 boutiques as of December ‘19) 7
Slide 8: Wholesale Multibrand
Wholesale Multibrand Spring Summer 2020 collections showed From 4 May, these operations were resumed, Fall-Winter 2020 collections deliveries positive results and sell-out data until the with a total recovery of the Fall-Winter about 1 month later than planned to meet the lockdown, when corporate op
Slide 9: Income Statement
Income Statement 1H 2019 1H 2020 Net Revenues 291,4 205,1 Other operating income 0,4 1,3 Revenues 291,8 206,5 First Margin 194,2 138,6 % 66,6% 67,1% SG&A -115,0 -142,0 * ** % 39,4% 68,8% 1H 2019 1H 2020 EBITDA 79,2 -3,4 EBITDA Adjusted 49,9 -14,1 % 27,1% -1,7% % 17,1% -6,8% D&A -40,1 -49,9 % 13,7% 2
Slide 10: Income Statement Reconciliation
Income Statement Reconciliation Inventory Rents / Other Revenues / Amortization / Financial Charges / Taxation write-down IFRS 16 Impact IFRS 16 Impact IFRS 16 Impact IFRS 16 Impact EBITDA EBITDA Adjusted as of 30.06.2020 -3,4 +30,0 -40,0 -0,7 - - - -14,1 as of 30.06.2019 79,2 - -29,5 +0,2 - - - 49,
Slide 11: Income Statement Highlights
Income Statement Highlights Production Costs Operating Costs Production costs amounted to 67.9 million euros at 30 June 2020, compared to The dynamics of operating costs correlated to the initiatives in progress, which 97.6 million euros at 30 June 2019, with an incidence on turnover that fell from
Slide 12: Income Statement highlights
Income Statement highlights € mln Personnel cost Investments in Communication Rent cost 5.6% % on sales 6.5% 53.8 57.5 10.3 4.7 39.8 44.7 16.2 13.3 1H 19 1H 20 1H 19 1H 20 1H 19 1H 20 1H 19 excl. 1H 20 excl. IFRS 16 IFRS 16 DOS Network D&A Average FTE - Workforce Analysis from 30/06/19 to 30/06/20 2
Slide 13: Net Working Capital
€ mln Net Working Capital 1H 2019 1H 2020 delta FY 19 Trade Receivables 79,9 72,4 -7,5 58,6 Inventories 179,8 218,1 38,3 204,9 Trade Payables -79,7 -74,1 5,7 -89,5 Strict Net Working Capital 180,1 216,5 36,4 174,0 Incidence on 12 months rolling Net Revenues 31,3% 41,5% 28,6% Other Credits/(Debts) -1
Slide 14: Investments
Investments € mln 22.4 CAPEX 18.8 CAPEX including 6.4 Production/ including Logistics/IT/Digital 5.9 Production/ Logistics/IT/ Digital 16.0 Commercial Commercial 12.9 1H 19 1H 20 We are continuing to work to achieve our long-term plan with the support of strategic investment plans to protect brand
Slide 15: Net Financial Position
Net Financial Position € mln 136.5 46.6 NFP NFP as of 30.06.19 as of 30.06.20 Characteristic Net Financial Position (excluding lease liabilities arisen from the adoption of the IFRS 16 accounting principle) increase driven by dynamics related to Covid-19 pandemic New credit lines provided by lea
Slide 16: Outlook
Outlook Since 1 July, we have been seeing the company with new and fresh eyes without being too influenced by the past semester, and have tried to consider this moment as a year of 'transition' between a 'past time' and a 'new time'. Today, we can say that we have steered the company into 'safer wat
Slide 17: Outlook
Outlook Considering our true and good multibrand clients, we would like to express a highly positive assessment of the kind of new redesign cycle they are implementing as they try to figure out with which reliable companies they can develop their projects on a 3 to 5 year basis. We are therefore hig
Slide 18: 1H 20 Annex
BRUNELLO CUCINELLI 1H 20 Annex
Slide 19: Detailed Income Statement
€ mln Detailed Income Statement 1H 2019 1H 2020 Net Revenues 291,4 205,1 Other operating income 0,4 1,3 Revenues 291,8 206,5 Consumption Costs (39,6) (10,7) Raw Material Cost (56,0) (55,8) Inventories Change 16,5 45,2 Outsourced Manufacturing (58,0) (57,3) First Margin 194,2 138,6 Services Costs (ex
Slide 20: Detailed Balance Sheet & Cash Flow Statement
€ mln Detailed Balance Sheet & Cash Flow Statement 1H 2019 1H 2020 1H 2019 1H 2020 Trade receivables 79,9 72,4 Net Income 25,0 (47,7) D&A 40,1 49,9 Inventories 179,8 218,1 Ch. In NWC and other (33,4) (56,0) Trade payables (-) (79,7) (74,1) Cash flow from operations 31,7 (53,8) Other current assets/(
Slide 21: 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) 10.0% Luca Lisandroni C.E.O. Invesco LTD 4.2% Other 34.8% Camilla Cucinelli Directo
Slide 22: 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
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