Brunello Cucinelli S.p.a. · MIL:BC
Brunello Cucinelli — FY2023 Earnings Presentation
45 slides from Brunello Cucinelli's earnings presentation, Mar 14, 2024
Slide 1: FY 23 Results
FY 23 Results March 14 2024
Slide 2: Brunello Cucinelli
Brunello Cucinelli Brunello Cucinelli, Executive Chairman and Creative Director of the Fashion House, commented: "Gentle luxury, a symbol of beauty within measure“ A particularly noble and fine year for our Fashion House has come to an end: we delivered a 23.9% increase in turnover and a 42% rise in
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY 2023 Financials Highlights
FY 2023 Financials Highlights REVENUES EBIT NET PROFIT €1,139.4 mln €187.4 mln €123.8 mln +23.9% +39.4% +42.0% +26.0% cost. curr 16.4% on sales 10.9% on sales EUROPE AMERICAS ASIA +16.8% +20.8% +40.4% 37.6% on sales 35.5% on sales 26.9% on sales RETAIL WHOLESALE +30.3% +13.3% 65.5% on sales 34.5% on
Slide 5: Excellent quantitative and qualitative growth
Excellent quantitative and qualitative growth FY 2020 FY 2021 FY 2022 FY 2023 "From here on, I would like "Nature is a gentle, "The eyes are the “Virtues are to resume the journey prudent and just guide." interpreters of the soul." necessary to cities“ towards Universal Montaigne Cicero Aristotele H
Slide 6: Extremely grateful for the great results achieved in 2023
Extremely grateful for the great results achieved in 2023 FY 23 results well beyond our initial expectations Maintaining the project of growth and new openings unchanged, benefiting from structural factors that characterized the sector in recent years ➢ clients’ desire and search for exclusivity, wi
Slide 7: Outlook
Outlook The beginning of 2024 has been very good, with significant sell-outs of the Spring-Summer 2024 collections that fully value the great feedback gathered during the presentations of the collections, from both multi-brand partners and the specialist press. As for the new Fall-Winter 2024 Collec
Slide 8: Business Update
Business Update 8
Slide 9: Revenues by Region
Revenues by Region € mln FY 22 FY 23 YoY % Chg Net Revenues 919.7 1,139.4 +23.9% Constant exchange rates +26.0% Italy 102.8 128.8 +25.4% Europe (excl. Italy) 263.8 299.4 +13.5% Total Europe 366.6 428.2 +16.8% Americas 334.7 404.5 +20.8% Asia 218.4 306.7 +40.4% FY 2022 FY 2023 Europe Europe 37.6% 39.
Slide 10: Region Highlights
Region Highlights EUROPE AMERICAS ASIA Very positive for the entire European area, US market great solidity, with very strong demand Great interest, both in terms of the results starting from a challenging comparison base in all major cities on both the eastern and western achieved and the growth po
Slide 11: Revenues by category
Revenues by category FY 2022 FY 2023 MEN MEN 44,0% 44.8% WOMEN WOMEN 56,0% 55.2% ACCESSORIES ACCESSORIES 15.6% 15.8% READY READY TO TO WEAR WEAR 84.4% 84.2% 11
Slide 12: Revenues by Channel
Revenues by Channel € mln FY 22 FY 23 YoY % Chg Net Revenues 919.7 1,139.4 +23.9% Retail Channel 573.3 746.8 +30.3% Wholesale Channel 346.4 392.6 +13.3% FY 2022 FY 2023 Wholesale Wholesale Channel Channel 34.5% 37.7% Retail Retail Channel Channel 62.3% 65.5% 12
Slide 13: Channel Highlights
Channel Highlights RETAIL CHANNEL Significant increase, thanks to the excellent results on a like-for-like basis and the very positive sell-outs of the collections Prestigious boutique openings, together with our expansions and renovations, have made a healthy contribution to growth Centrality of ph
Slide 14: Monobrand Network
Monobrad Network RETAIL MONOBRAND WHOLESALE MONOBRAND 125 boutiques as of December ‘23 27 boutiques as of December ‘23 124 boutiques* as of June ’23 27 boutiques as of June 23 119 boutiques as of December ‘22 30 boutiques as of December ‘22 * Including 2 conversions from wholesale monobrand channel
Slide 15: Brand image, Awards, Lifestyle and the Gentle Luxury
Brand image, Awards, Lifestyle and the “Gentle” Luxury 15
Slide 16: Style and Recognition: the brand and the philosophy
Style and Recognition: the brand and the philosophy DESIGNER OF THE YEAR NEIMAN MARCUS FASHION AWARD AWARD In September 2021, Brunello Prestigious "Neiman Marcus Cucinelli received the very Fashion Award" that honors the important 'Designer of the Year' figures in the world who have award from Briti
Slide 17: GQ Designer of the Year 2023: very important award in China
GQ DESIGNER OF THE YEAR 2023: VERY IMPORTANT AWARD IN CHINA Brunello Cucinelli, among the greatest in world fashion Brunello Cucinelli commented as follows: This authoritative award was presented to Brunello Cucinelli by the men’s fashion magazine GQ China “for standing out as a trendsetter in "I wa
Slide 18: Contemporary licenses further enhance brand lifestyle
Contemporary licenses further enhance brand lifestyle CONTEMPORARY LICENSES EYEWEAR FRAGRANCES New way to approach and developing Initial successful collaboration with Oliver People Process that lasted over 2 years the “license” Agreement since January 1st , 2023 and run until April FY23: starting d
Slide 19: The Gentle Luxury
The “Gentle” Luxury “Gentle luxury is a friend who welcomes you with a sincere smile, it is someone who reaches out to you, it is creativity and genius that do not cross the line, it means finding beauty in simplicity. It is welcoming to all, it pursues fairness and is always appreciated, as it know
Slide 20: The strength of our artisanal manufacturing structure
The strength of our artisanal manufacturing structure 20
Slide 21: The strength of our artisanal manufacturing structure
The strength of our artisanal manufacturing structure Artisanal manufacturing made in Agreement with Chanel New factory in Penne Factory extension in Solomeo Italy New factory to be established Further step in Cariaggi partnership, Purchase of 8 hectares areas Creativity in house with a minority sta
Slide 22: Humanistic Capitalism and Human Sustainability
Humanistic Capitalism and Human Sustainability 22
Slide 23: Sustainable growth since the IPO in FY12, entering FTSE MIB
Sustainable growth since the IPO in FY12, entering in FTSE MIB in December 2023 Sustainable growth, remaining faithful to what Brunello Cucinelli said, in his IPO speech entitled "For fair and gracious growth". My life's dream was just that: to make man's work more humane and to try to price this en
Slide 24: The Forms of Sustainability
The “Forms” of Sustainability 24
Slide 25: The Forms of Sustainability
The “Forms” of Sustainability Environmental Economic Technological Cultural Spiritual Moral Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Greenhouse gas Fair and Gracious Use of technology with Culture available for all Respect and Fair profit and healthy
Slide 26: Greenhouse gas emission reduction
Greenhouse gas emission reduction Decarbonisation strategy: in-depth analysis initiated in 2019 Plan to reduce greenhouse gas emissions validated by Science Based Targets Initiative (SBTi) Targets for the reduction of climate-changing emissions - 70% reduction in GHG Scopes 1 and 2 emissions by 2028
Slide 27: The Greenhouse Gas Emission Reduction Plan
The Greenhouse Gas Emission Reduction Plan Greenhouse gas emission FY 2019 Reduction GHG Emission Greenhouse gas Greenhouse gas emission by by 2028 compared to 2019 emission by 2028e 2028e without reduction actions SCOPE 3 -22.5% reduction in GHG Scope 3 SCOPE 2 -70% reduction SCOPE 1 in GHG Scope 1
Slide 28: Great Works and estimated social return on investment (SROI)
“Great Works” and estimated social return on investment (SROI) Human Sustainability is reflected in the social and cultural initiatives that that have always been carried - social wellbeing - enhancement of the natural landscape - protection of the historical-artistic heritage Social benefits for th
Slide 29: Great Works and estimated social return on investment (SROI)
Great Works and estimated social return on investment (SROI) € mln SOLOMEO SROI Restoration and redevelopment of the Restoration of 51 buildings constructed between 1300 and the 2000s Hamlet Planting project Planting of 230 thousand plants on an area 200 hectares Creation of 3 Parks on an area of 10
Slide 30: Financials
Financials 30
Slide 31: Income Statement
Income Statement € mln FY 2022 FY 2023 Ch. % FY 2022 FY 2023 Ch. % Revenues 919.7 1,139.4 + 23.9% First Margin 658.0 825.8 + 25.5% % 71.5% 72.5% +100 b.p. SG&A -391.6 -499.5 + 27.5% % 42.6% 43.8% +120 b.p. EBITDA 266.4 326.3 + 22.5% EBITDA ex-IFRS 16 172.4 230.3 + 33.6% % 29.0% 28.6% -40 b.p. % 18.7
Slide 32: Income Statement Highlights
Income Statement Highlights EBIT margin increased from 14.6% to 16.4%, with a balanced cost structure and the complete absorption of the transitory effects of the pandemic that had characterized previous years; 123.8 € mio NET PROFIT, wiith a healthy margin of 10.9%. First Margin Improvement in the
Slide 33: Income Statement Highlights
Income Statement Highlights Retail Channel Development of the retail channel: - Selective new openings (125 DOS compared with 119 previous year, including 2 conversions from wholesale monobrand channel to Retail channel) - Exclusive boutiques expansions - Contribution from direct management of space
Slide 34: Income Statement Highlights
Income Statement Highlights € mln Personnel cost Rent cost % on sales 17.1% 17.9% 13.6% % on sales 14.5% 195.0 155.0 164.7 4.4% 4.2% 133.6 38.6 50.6 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Pre IFRS 16 Pre IFRS 16 Investments in Communication D&A 12.2% 14.3% % on sales 138.8 6.9% % on sales 5.7% 131.9 5.
Slide 35: Total Net Financial Expense details
Total Net Financial Expense details € mln FY 22 FY 23 delta Financial charges/(income) from ordinary 3.3 5.0 1.6 operations Financial charges/(income) from lease 11.7 12.9 1.2 operations Financial charges/(income) for adjustment 6.1 4.3 -1.8 to the fair value of derivatives Financial charges/(income
Slide 36: Net Working Capital
Net Working Capital TRADE NET WORKING CAPITAL FY 2022 FY 2023 delta Trade net working capital was €199.2 million (17.5% incidence), compared Trade Receivables 76.6 78.2 1.6 to €182.4 million last year (19.8% incidence) Inventories 242.8 287.3 44.4 Trade Payables -137.0 -166.2 -29.2 INVENTORY Trade N
Slide 37: Investments
Investments € mln 15.0 79.1 72.5 Others, including 47.8 Purchase price Production/ 25.9 for 43% stake Logistics/IT/ Digital in Lanificio Cariaggi 46.6 31.3 Commercial 15.05 FY 22 FY 23 “Commercial” investments dedicated to new boutiques, the renovation and expansion of existing ones, and the care of
Slide 38: Characteristic Financial Indebtedness
Characteristic Financial Indebtedness € mln Characteristic Financial Indebtedness 7.1 6.1 Pre IFRS 16* FY 22 FY 23 Solidity of Corporate Structure Positive generation of Cash Flow Sound management of Netl Working Capital Dividend payment in FY 23 equal to €44.2 million The characteristic Net Financi
Slide 39: Annex
BRUNELLO CUCINELLI ANNEX
Slide 40: Detailed Income Statement
Detailed Income Statement € mln FY 2022 FY 2023 Revenues 919.7 1,139.4 Consumption Costs (95.5) (114.3) Raw Material Cost (137.6) (168.4) Inventories Change 42.0 54.0 Outsourced Manufacturing (166.2) (199.3) First Margin 658.0 825.8 Services Costs (excl. Out. Manuf.) (206.0) (276.4) Personnel costs
Slide 41: Total Net Financial Expense details
Total Net Financial Expense details € mln 1H 22 FY 22 1H 23 FY 23 Financial charges/(income) from ordinary 1.7 3.3 2.5 5.0 operations Financial charges/(income) from lease 5.5 11.7 5.9 12.9 operations Financial charges/(income) for adjustment to 1.6 6.1 2.2 4.3 the fair value of derivatives Financia
Slide 42: Detailed Balance Sheet & Cash Flow Statement
Detailed Balance Sheet & Cash Flow Statement € mln FY 2022 FY 2023 FY 2022 FY 2023 Trade receivables 76.6 78.2 Net Income 87.2 123.8 D&A 131.9 138.8 Inventories 242.8 287.3 Ch. In NWC and other (3.2) (53.6) Trade payables (-) (137.0) (166.2) Cash flow from operations 215.9 209.0 Other current assets
Slide 43: The SROI calculation methodology
The “SROI” calculation methodology € mln To understand the social value that the Casa di Moda contributes to the benefit of its local area, the calculation of Social Return on Investment (SROI) was chosen as the methodology of analysis SROI is an analysis methodology that consists of returning an ec
Slide 44: Board of Directors
Board of Directors € mln Brunello Cucinelli Excutive Chairman and Creative Director Riccardo Stefanelli C.E.O. Luca Lisandroni C.E.O. Camilla Cucinelli Director Carolina Cucinelli Director Alessio Piastrelli Director Giovanna Manfredi Director Andrea Pontremoli Director Investor Relations & Corporat
Slide 45: 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