The Board of Directors of Salvatore Ferragamo S.p.A. approves the Half Year Financial Report as of 30 June 2022
Salvatore Ferragamo Group 1H 2022 Revenue increases 20.3% vs. 1H 2021
EBIT at 95 million Euros, increasing by 44.7%, and Net Profit at 62 million Euros, increasing by 85.2% vs. 1H 2021
- Revenues: 630 million Euros (+20.3% vs. 524 million Euros at 30 June 2021, +17.0% at constant exchange rates2)
- Gross Operating Profit (EBITDA[1]): 180 million Euros (+24.4% vs. 144 million Euros at 30 June 2021)
- Operating Profit (EBIT): 95 million Euros (+44.7% vs. 66 million Euros at 30 June 2021)
- Net Profit: 62 million Euros (+85.2% vs. 33 million Euros at 30 June 2021)
- Net Financial Position5: positive for 309 million Euros (vs. 205 million Euros positive at 30 June 2021)
Marco Gobbetti, Chief Executive Officer and General Manager of Salvatore Ferragamo S.p.A commented:
“We are pleased with the continued growth of revenues and profitability in the second quarter, despite the enduring impact of the pandemic in China. All other geographies have shown positive performances.
We made excellent progress on our strategic priorities and will accelerate our investment in the second half of the year, as planned, to build strength in platforms and regions to support our growth agenda, whilst remaining mindful of the more volatile and challenging macroeconomic backdrop.
Our recently announced partnership with Farfetch provides us with a strong platform of technical capabilities and target audience to fuel our digital growth ambition“.
Florence, 6 September 2022 – The Board of Directors of Salvatore Ferragamo S.p.A. (EXM: SFER), parent company of the Salvatore Ferragamo Group, in a meeting chaired by Leonardo Ferragamo, examined and approved the Half Year Financial Report as of 30 June 2022, drafted according to IAS/IFRS international accounting principles (Limited Audit).
Notes to the Income Statement for 1H 2022
Consolidated Revenue figures
As of 30 June 2022, the Salvatore Ferragamo Group reported Total Revenues of 630 million Euros up 20.3% at current exchange rates (+17.0% at constant exchange rates2) vs. the 524 million Euros recorded in 1H 2021.
Net Sales by distribution channel3
As of 30 June 2022, the Retail distribution channel posted consolidated Net Sales up 16.5% (+9.4% at constant exchange rates2) vs. 1H 2021.
The Wholesale channel registered an increase in Net Sales of 40.9% (+36.2% at constant exchange rates2) vs. 1H 2021.
Net Sales by geographical area3
The Asia Pacific registered Net Sales down by 1.5% (-7.8% at constant exchange rates2) vs. 1H 2021.
The slowdown is mainly due to the effects deriving from the resilience of the pandemic Covid-19, in particular in China.
The Japanese market in 1H 2022 registered a 28.0% increase in Net Sales (+32.4% at constant exchange rates2) vs. 1H 2021.
EMEA posted an increase in Net Sales of 45.8% (+45.7% at constant exchange rates2) vs. 1H 2021.
North America in 1H 2022 recorded a Net Sales increase of 41.6% (+29.7% at constant exchange rates2) vs. 1H 2021.
Net Sales in the Central and South America in 1H 2022 were up 44.2%, (+31.2% at constant exchange rates2) vs. 1H 2021.
Net Sales by product category3
All main product categories reported a significant increase in 1H 2022 vs. the same period of last year, with shoes and leather categories representing 87% of Net sales in the first half.
Gross Profit
In 1H 2022 the Gross Profit increased by 25.4% vs. 1H 2021, to 453 million Euros. Its incidence on Revenues was up 290 basis points, moving to 71.8%, from 68.9% of 1H 2021, driven by the improvement of the full/off price ratio.
Operating Costs
In 1H 2022 Operating Costs amounted to 357 million Euros, +21.1% at current exchange rate vs. 1H 2021 (+16.0% at constant exchange rates2).
Gross Operating Profit (EBITDA1)
The Gross Operating Profit (EBITDA1) amounted to 180 million Euros, from 144 million Euros of 1H 2021, with an incidence on Revenues of 28.5% from 27.5% in 1H 2021.
Operating Profit (EBIT)
The Operating Profit (EBIT) was positive for 95 million Euros, marking an increase of 44.7% vs. 66 million Euros positive in 1H 2021.
Profit before taxes
The Profit before taxes in 1H 2022 was positive for 88 million Euros vs. 56 million Euros positive in 1H 2021.
Net Profit for the Period
The Net Profit for the period, including the Minority Interest, was positive for 62 million Euros, marking and increase of 85.2% vs. 33 million Euros in 1H 2021. The 1H 2022 Group Net Profit was positive for 62 million Euros vs. 31 million Euros in 1H 2021.
Notes to the Consolidated Balance Sheet for 1H 2022
Net Working Capital4
The Net Working Capital as of 30 June 2022 decreased by 16.3% to 250 million Euros, from 298 million Euros as of 30 June 2021. In particular, the inventories were down 4.4%.
Investments (CAPEX)
As of 30 June 2022, Investments (CAPEX) were 18 million Euros vs. 13 million Euros in 1H 2021, mainly due to renovations of the retail network and investments in the digital channel.
Net Financial Position
The Net Financial Position adjusted5 at 30 June 2022 was positive for 309 million Euros (vs. 205 million Euros positive as of 30 June 2021). Including IFRS16 effect, the Net Financial Position at 30 June 2022 is negative for 290 million Euros.
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Notes to the press release
[1] We define EBITDA as operating profit before amortization and depreciation and write-downs of tangible/intangible assets and Right of use assets. EBITDA is an important managerial indicator for measuring the Group’s performance. As EBITDA is not an indicator defined by the accounting principles used by our Group, our method of calculating EBITDA may not be strictly comparable to that used by other companies.
2 Revenues/Operating Costs at “constant exchange rates” are calculated by applying to the Revenue/Operating Costs of the period 2021, not including the “hedging effect”, the average exchange rates of the same period 2022.
3 The variations in Net Sales are calculated at current exchange rates excluding the hedging effect, unless differently indicated.
For a better performance analysis, 1H 2022 Net Sales have been presented excluding the Cash flow hedging effect on revenues and 1H 2021 data have been restated for comparative purposes.
4 Net working capital is calculated (in accordance with CESR Recommendation 05-054/b of February 10, 2005) as inventories, right of return assets and trade receivables net of trade payables and refund liabilities, excluding other current assets and liabilities and other financial assets and liabilities. As net working capital is not an indicator defined by the accounting principles used by our Group, our method of calculating net working capital may not be strictly comparable to that used by other companies.
5 Net Financial Position is referring to Adjusted Net Financial Position: not including the IFRS16 effect. The net Financial Position calculated as the sum of Cash and cash equivalents and Other current financial assets, including the positive fair value of derivatives (non-hedge component) net of Current and non-current interest-bearing loans and borrowings plus Current and non-current Lease Liabilities and Other current and non-current financial liabilities including the negative fair value of derivatives (non-hedge component). Net Financial Position Adjusted is the Net Financial Position excluding Current and non-current Lease Liabilities.
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The manager charged to prepare the corporate accounting documents, Alessandro Corsi, pursuant to article 154-bis, paragraph 2, of Legislative Decree no. 58/1998 (Consolidated Financial Law), hereby declares that the information contained in this Press Release faithfully represents the content of documents, financial books and accounting records.
Furthermore, in addition to the conventional financial indicators required by IFRS, this Press Release includes some alternative performance indicators (such as EBITDA, for example) in order to allow for a better assessment of the performance of the economic and financial management. These indicators have been calculated according to the usual market practices.
This document may contain forecasts, relating to future events and operating results, which by their very nature are uncertain, in that they depend on future events and developments that cannot be predicted with certainty. Actual results may therefore differ with those forecasted, due to a variety of factors.
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The Half Year Financial Report as of 30 June 2022, approved by the Board of Directors on September 6, 2022, will be available to anyone requesting it at the headquarters of the Company in Florence, Via Tornabuoni n. 2, on the authorized web-storage system eMarket STORAGE www.emarketstorage.com, and will also be accessible on the Salvatore Ferragamo Group's website http://group.ferragamo.com in the section “Investor Relations/Financial Documents”, in compliance with the law.