Progressively improving trends registered in second part of 2017
Recovery in leather goods and growth in RTW accelerating
Patrizio Bertelli “We are starting to see concrete benefits from the numerous strategic initiatives currently under way and we are expecting a return to growth in 2018.”
Patrizio Bertelli, CEO
“I am satisfied with the progress made in 2017: in the second part of the year and in the first months of 2018 sales trends have been progressively improving; thus demonstrating the first significant results from our ongoing strategic initiatives across the Group.
The Group’s investment in the store portfolio, in boosting global brand visibility and in the enriched product offer is enhanced by a fast growing digital presence.
We have successfully improved our leather goods offer with increased newness at all price points, supporting fullprice sales.
The Prada brand has returned to growth across our key geographies.
We are confident that this new chapter, founded on our brands’ cultural heritage and iconic values, will be key to the Group’s success in an increasingly complex market. The launch of our campaign Black Nylon is emblematic of our new path towards the future whilst respecting our identity.
We have seen a promising start to 2018 – I would like to thank all Prada Group colleagues for their deep dedication over recent years aimed at returning the Group to growth. I am confident this is the beginning of a new phase of development.”
Full Year Results 2017
Milan, 9 March 2018 – The Board of Directors of Prada S.p.A met today and approved the Consolidated Financial Results for the year ended 31st December 2017. Year-end has been brought forward to 31st December. The Group’s income statement, prepared in accordance with IFRS, is based on an 11-month period. The financial data reported in this release is the 12-month pro-forma data from January to December, both for 2017 and 2016, to allow transparency and performance comparison.
Net revenues – at €3.056bn, a 2% decrease at constant FX compared to 2016 (-3.6% at current FX)
Sales by geographies
Financial results – The implementation of our rationalization programme to streamline operational and management processes started last year and continued to produce tangible results: despite higher investment in digital and communications, our operating expenses are broadly in line with 2016.
Higher Gross Margins at 73.5% (72% in 2016), boosted by a better quality of sales benefitting from a higher proportion of full price sales.
EBITDA amounted to €588m: 19.2% of revenues (20% in 2016).
EBIT amounted to €360m: 11.8% of revenues (12.8% in 2016).
Net income amounted to €249m: 8.1% of revenues (8.2% in 2016).
During the period (1st February – 31st December) the Group generated strong Operating cash flow of €447m. Net working capital remained broadly in line with 2016.
Capex amounted to €251m and has been devoted, with more than 160 projects, to making the store portfolio more attractive and also to strengthening the supply chain with the aim of further developing the Group’s industrial and operational capabilities.
Net financial position, at 31st December 2017 was -€104m, having distributed €307 million of dividends to shareholders.
The Board has proposed to the Shareholders’ Meeting, called for 27th April, a dividend of 7.5 Euro cents per share, representing a pay-out ratio of 88%.