2 minutes
Brunello Cucinelli's net income up by over 10% in first half of the year
Brunello Cucinelli still has the wind in its sails, once more posting a "steady" double-digit growth. For the first six months of 2017, the Italian label specialised in high-end cashmere has confirmed the positive trend it anticipated last July, when its preliminary results were published, and has reported a net income of €19.9 million.
Normalized net income growth, i.e. net of extraordinary expenses and compared to the €17.9 million reported for the first half of 2016, was 10.6%. The label underlined how, if the yardstick was the €16 million reported in the original financial statement for the first six months of 2016, growth would actually be 23.9%.
EBITDA followed the same trend, reaching €41.6 million and growing 13.1% over normalized EBITDA for the first half of 2016. In its final press release for the first half of the year, Cucinelli stated EBITDA was equivalent to 17% of revenue.
It also underlined how operating costs, amounting to €117.1 million in the period, were consistent with the growth rate of the brand's business, having increased by 11.1% compared to the same period a year earlier. Cucinelli underlined how it has invested extensively in marketing communications and digital tools, in addition to the regular expenditure relating to its direct retail organisation.
At the start of 2017, Brunello Cucinelli committed itself to a new three-year investment plan, which translated into a €22.2 million outlay between January and June 2017. This included investments in logistics, to deploy the label's new digital strategy, and the expenditure linked to the make-over of stores which Cucinelli has taken direct control of.
The Italian label now manages its e-commerce operations internally, and does the same for four stores in Moscow and five shop-in-shops within Canadian department store chain Holt Renfrew.
Also, on 20th July Cucinelli finalised the purchase of a minority share in Brunello Cucinelli (Sichuan) Fashion Co. Ltd, with a view to acquiring a 100% stake in the company.
The group's net financial debt has lessened considerably, from €79.7 million in the first half of 2016 down to €59.4 million as of 30th June 2017.
As the group wrote in July, in the first six months of the year Cucinelli recorded revenues for €243.3 million, equivalent to a 10.7% rise over the same period a year earlier. Sales have progressed in all markets: North America (+9.3%), Europe (+9.9%), Greater China (+34.6%), and in the rest of the world (+11.4%).
These results are regarded as "highly satisfactory" by the luxury label's founder and CEO Brunello Cucinelli, and enable him to look ahead with optimism, forecasting "a year 2017 featuring double-digit growth in terms of sales and profits." A highly positive position for the group to be in, five years after its stock exchange listing.
Copyright © 2024 FashionNetwork.com All rights reserved.
