Brunello Cucinelli posts 11.8 percent jump in FY17 EBITDA

For fiscal year 2017, Brunello Cucinelli S.p.A. reported EBITDA of 87.5 million euros (108.3 million dollars), a rise of 11.8 percent over the normalized figure of 78.2 million euros (96.8 million dollars) for 2016, with an improvement in margin from 17.1percent to 17.3 percent. Net income for the year of 42.1 million euros (52.1 million dollars), rose 13.4 percent excluding Patent Box benefits. The company’s net revenues of 503.6 million euros (623.5 million dollars), were up 10.4 percent at current exchange rates and 10.9 percent at constant exchange rate.

Commenting on the company’s performance, Brunello Cucinelli, Chairman and CEO, said in a statement: “2017 has ended, reporting once again "particularly pleasing" results and showing a growth path that is consistent, moderate but sound - year in year out. This growth is pursued both in the physical and online world in a balanced manner, and it has resulted in our business crossing the 500 million revenues threshold.”

Highlights of Brunello Cucinelli’s results

The company saw Italian market posting a rise of 11.2 percent in revenues at 84.7 million euros (104.9 million dollars). Sales in Europe rose 10.6 percent, with revenues reaching 150.9 million euros (186.9 million dollars). North America witnessed an increase of 6.6 percent, with sales reaching 178.7 million euros (221.3 million dollars). Sales in Greater China jumped 36.2 percent to 42.7 million euros (52.8 million dollars). Rest of the world posted sales growth of 5.2 percent to 46.7 million euros (57.8 million dollars).

Retail channel revenues of 270.6 million euros (335 million dollars), increased of 19.6 percent, with 4.4 percent like-for-like sales rise and the contribution to growth of both the development of the boutique network, which included selected openings and the conversion of certain selling spaces from third party management to direct operations, and the passage to direct operations in Holt Renfrew’s luxury department stores in Canada, where the spaces were previously managed under the wholesale multi-brand formula.

At December 31, 2017 the network consisted of 94 direct boutiques, with four openings in 2017 and the conversion of the four boutiques in Moscow from the wholesale monobrand channel. The company said, positive trend has been maintained in the first part of 2018, with a like-for-like increase of 4 percent between January 1 and February 25, 2018.

Sales through wholesale mono-brand channel of 25.3 million euros (31.3 million dollars), rose 1.5 percent, excluding the passage from third party management to direct operations of online boutique and the four boutiques in Moscow. Reported performance fell by 26 percent. The brand’s presence in the wholesale monobrand channel consists of 30 boutiques. Wholesale multi-brand channel reported 6.2 percent growth, with revenues rising to 207.7 million euros (257.2 million dollars).

The company added that its board of directors will propose a dividend of 0.27 euro (0.33 dollar) per share to shareholders at their next general meeting, to be held on April 19, 2018, equal to a pay-out of 35.9 percent of the group’s net income for the year, compared to 29.9 percent for the previous year.

Picture:Brunello Cucinelli website