Return to revenue and margin growth
Positive performance across all markets and product categories
Patrizio Bertelli “A new phase of progress has begun in which Prada Group can deliver its full potential”
Patrizio Bertelli, CEO
“Prada Group achieved very satisfactory results in the first half of 2018 with revenue growth across brands, markets and products, along with margin progression, despite continued investment in product quality and innovation, visibility of the brands and the digital evolution.
We are always working to reshape the Prada Group to adapt to the rapid changes in society and to interpret the spirit of new generations without losing our brand integrity. Today the results of this transformation are visible and supported by many positive signs from the market, confirming the soundness of our strategic choices.
We will continue our path of sustainable growth, based on the creative leadership of our brands and the attractiveness of our retail network, where we see great potential to be unlocked through integration with digital technologies.
I am confident that this new phase of growth will be translated into value creation for all Group stakeholders.”
Results for first half 2018
Milan, 1 August 2018 – The Board of Directors of Prada S.p.A met today and approved the Consolidated Financial Results for the first semester of 2018, ended 30th June 2018. The 2017 financial data reported in this release is the 6-month pro-forma data from January to June, to allow transparency and performance comparison.
Net revenues – at €1,535.3m, a 3% increase at current FX compared to €1,486m in H1 2017 (+9% at constant FX).
The Retail Channel saw significant growth, 10% at constant FX (3% at current FX); Wholesale also registered a positive performance with 8% growth at constant FX (5% at current FX).
Sales by geographies
Positive trend across all markets:
Financial results – Continued sales growth, despite unfavourable exchange rates fluctuations, led to higher margins:
EBITDA amounted to €271m, with margins of 17.6% (EBITDA margin of 16.9% in H1 2017)
EBIT amounted to €159m, with margins of 10.4% (EBIT margin of 9.2% in H1 2017)
Net income amounted to €106m, with margins of 6.9% (Net income margin of 6.4% H1 2017)
During the period, the Group generated operating cash flow of €180m, which fully financed investments of €126m.
Net financial position, at 30 June 2018 was at -€240m, following a €186m dividend payment during the period.