PRADA(01913)2025-04-02 09:16Financial Performance - Prada Group achieved a net revenue increase of 17% to €5.4 billion, marking the fourth consecutive year of double-digit growth[11]. - Net sales for the year ended December 31, 2024, reached €5,310,026 thousand, representing a 14.9% increase from €4,622,882 thousand in 2023[113]. - Operating income (EBIT) increased by 20.5% to €1,279,550 thousand, compared to €1,061,692 thousand in the previous year[113]. - Net income for the year was €843,400 thousand, a 25.2% increase from €673,392 thousand in 2023[113]. - The gross profit margin decreased slightly to 79.8% from 80.4% in the previous year, despite an increase in gross profit of €534,921 thousand[113]. - Retail sales net revenue increased by 15.7% to €4,849,208 thousand, with Miu Miu showing a remarkable growth of 93.2%[121]. - The operating cash flow for 2024 was €1,212,784 thousand, significantly higher than €725,596 thousand in 2023[121]. - The company's equity attributable to shareholders rose to €4,399,365 thousand from €3,853,795 thousand in the previous year[121]. - The net financial surplus increased to €599,602 thousand, compared to €196,908 thousand in 2023[121]. - The company reported a net revenue of €843.4 million for the year ending December 31, 2024, representing a 15.5% increase compared to €673.4 million in the previous year[181]. Retail and Market Expansion - Retail sales grew by 18% year-over-year, driven by strong performance in full-price sales[11]. - The company has completed approximately 90 renovation and reset projects in its retail network during the year, enhancing customer experience[118]. - The number of stores operated by the group reached 609 after opening 38 new stores and closing 35 during the year[122]. - Prada operates 609 directly operated stores globally, with a significant presence in Europe, Asia-Pacific, and the Americas[14]. - The Asia-Pacific region accounted for 33.1% of retail sales net revenue, totaling €1,604,413 thousand, with a growth of 10.9%[121]. - The Group is expanding its market presence with the opening of the first Prada Caffè in London, enhancing its brand experience[60]. Strategic Investments and Development - The company has deployed nearly €500 million in strategic investments across retail, industrial plans, and technology[11]. - The Group's new knitting factory in Torgiano (Umbria) is part of its strategy to enhance production capabilities[57]. - The Torgiano center expansion is set to open in May 2024, reflecting the company's commitment to innovative and efficient operations[119]. - Prada Group aims for sustainable growth above market levels despite ongoing industry complexities, focusing on investments in retail, industrial strength, and technology[190]. Sustainability and Ethical Practices - Prada Group has committed to sustainability by implementing a zero-fur policy across all brands and launching a collection made from recycled nylon[51]. - The sustainable development strategy is built on three pillars: Earth, People, and Culture, aiming to reduce environmental impact and promote inclusivity[83]. - The company emphasizes the importance of employee well-being and diversity, fostering an inclusive culture[85]. - The company has established a sustainability strategy focusing on greenhouse gas reduction and the use of environmentally friendly materials[166]. - Prada Group's commitment to sustainability includes science-based greenhouse gas reduction targets and the use of low-impact materials[84]. Leadership and Governance - The Group's leadership transition includes Andrea Guerra as CEO, implementing a new ethical code and human rights policy across the organization[53]. - Patrizio Bertelli has been appointed as the Chairman of the Board since April 24, 2024, and previously served as Co-CEO until January 26, 2023[195]. - Miuccia Prada has been re-elected as Executive Director on April 24, 2024, and has played a significant role in establishing Prada as a leading luxury brand[197]. - Paolo Zannoni has been serving as Executive Vice Chairman since May 11, 2023, and has extensive experience in investment banking and corporate governance[200]. Innovation and Cultural Engagement - Prada's strategic vision emphasizes cultural engagement and the creation of a continuously evolving language to interpret contemporary fashion[12]. - The Group's brands continue to focus on increasing brand value and attractiveness in the luxury market[63]. - Prada Group's Luna Rossa sailing team won the Prada Cup for the second time, showcasing the brand's commitment to sports and innovation[55]. - The company has streamlined its distribution network, focusing on high-quality partnerships and targeted strategies[79]. - Prada Group has been supporting the Prada Foundation's interdisciplinary activities since 1993, focusing on cultural and artistic initiatives[92]. Risk Management - The company actively combats counterfeiting through legal actions and preventive measures, including global brand registration and RFID technology for product authenticity[149]. - The company faces various risks that could disrupt operations, including geopolitical tensions and extreme weather events, potentially leading to economic losses such as decreased sales and increased labor costs[162]. - Credit risk is primarily associated with trade receivables from wholesale channels and business partners, managed through diversification and monitoring of counterparties[168]. - The company has established a tax risk management system to enhance its tax control framework, allowing it to join the Italian tax authority's compliance regime[175].