PRADA(01913)2025-04-02 09:20Financial Performance - The company reported strong revenue and profit growth driven by brand appeal and strict execution, achieving solid performance and progress in 2024 [11]. - The net revenue for the year ended December 31, 2024, was €2,977 million, an increase of 16.6% from €2,552 million in the previous year [19]. - Gross profit increased by €296 million, representing a growth of 17.1%, with the gross margin rising to 68.2% from 67.9% [19]. - Net income for the year was €850 million, accounting for 28.5% of net revenue, compared to €567 million or 22.2% in the previous year [21]. - The total equity of the company was €3,325 million as of December 31, 2024, compared to €2,843 million in the previous year [25]. - The company received €170.5 million in dividends during the year, a significant increase from €24.6 million in the previous year [23]. - Total revenue for 2024 reached €2,976,971,031, an increase of 16.6% compared to €2,552,340,867 in 2023 [129]. - Net income for 2024 was €849,706,977, up 50% from €566,740,484 in 2023 [129]. - Operating income (EBIT) improved to €1,006,739,864, reflecting a growth of 18.4% from €850,198,747 in the previous year [129]. - Cash and cash equivalents increased significantly to €601,742,739 from €225,027,603, marking a growth of 167% [128]. Sustainability and Corporate Responsibility - The company continues to execute its sustainability strategy, focusing on climate change and investing in green energy [16]. - The company is committed to biodiversity and has expanded its efforts to understand the impact of its procurement on biodiversity [16]. - The company is focusing on sustainable development strategies, including greenhouse gas reduction and the use of low-impact materials in products and packaging [46]. - The company has identified and established mid-term goals and internal key performance indicators (KPIs) to monitor progress, particularly in carbon reduction and material transition [47]. - The company emphasizes compliance with labor laws and ethical standards throughout its supply chain, ensuring adherence through monitoring and inspections [42]. Digital Transformation and Innovation - The company is advancing its digital transformation plan to enhance technical capabilities across various activities [15]. - The company emphasizes continuous innovation through research and development, focusing on new or improved materials and design concepts [59]. - The company participated in the 37th America's Cup and established a groundbreaking partnership with NASA for spacesuit design, showcasing its technical expertise and innovation [11]. Governance and Board Structure - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, with female representation at approximately 45% [72]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity [72]. - The board evaluates operational and financial performance, including annual budgets and quarterly results, during its meetings [74]. - The company has established a code of ethics and governance policies in accordance with Italian law, ensuring adherence to legal and regulatory requirements [90]. - The board confirmed the effectiveness of the internal control and risk management system throughout 2024, with no significant deficiencies found [111]. Risk Management - The company has established a risk management system to manage, forecast, and mitigate risk exposures for long-term sustainable business development [33]. - The company manages credit risk through a control system based on customer reputation and debt repayment ability, with no significant risk identified in current assets [48]. - The company faces foreign exchange risk due to its extensive international presence and manages this risk through derivative contracts to hedge future cash flows [51]. - The company uses derivative instruments to hedge interest rate risk by converting floating-rate debt into fixed-rate debt [52]. Shareholder Communication and Dividends - The company aims to provide sustainable dividends while considering financial performance, cash flow, and operational needs [122]. - The company maintains high transparency in communication with shareholders and the financial community, holding regular briefings and meetings [123]. - The company’s annual general meeting in 2024 was held online, with all resolutions presented to shareholders being formally passed [125]. Financial Compliance and Audit - The independent financial statements are audited by Deloitte & Touche S.p.A., with external auditors appointed every three years [64]. - The total audit fees for Deloitte & Touche S.p.A. for the year ending December 31, 2024, are €550,000, an increase of 7% from €514,000 for the year ending December 31, 2023 [94]. - The company has implemented strict anti-corruption policies and auditor independence measures to support compliance with laws and regulations [109]. Employee and Talent Management - The company emphasizes talent management and retention through training programs and performance management processes [36]. - The company’s compensation policy aims to attract and retain talent, with a focus on competitive remuneration linked to performance and business objectives [97]. - The compensation structure includes fixed, variable, direct, and deferred components, tailored to different roles and regions [98]. Market and Brand Development - The leather goods category saw significant growth, with new products being well-received and classic styles continuing to sell well [11]. - The Miu Miu brand continues to attract audiences with its disruptive aesthetics and has launched exclusive collaborations that resonate widely [12]. - The Church's brand has shown positive growth momentum due to strategic efforts over the past few years [14].