PRADA(01913)2024-03-27 08:38Financial Performance - Prada Group achieved revenue of €4.7 billion, representing a growth of +17% at constant exchange rates[12]. - Retail sales amounted to €4.2 billion, also reflecting a +17% increase at constant exchange rates[12]. - EBIT reached €1.062 billion with an EBIT margin of 22.5%, showing a +37% increase at current exchange rates[12]. - Net income for the group was €671 million, marking a +44% growth at current exchange rates[12]. - The company reported a net operating cash flow of €726 million[12]. - Prada Group's net sales reached €4,726,411 thousand for the year ending December 31, 2023, representing a 12.5% increase from €4,200,674 thousand in 2022[70]. - The adjusted EBIT for the year was €1,061,692 thousand, accounting for 22.5% of net sales, up from 20.1% in the previous year[72]. - The net income attributable to the group was €671,026 thousand, a 44.2% increase from €465,193 thousand in 2022[70]. - The company reported a significant increase in operating cash flow, with a net amount of €725,596 thousand compared to €695,527 thousand in the previous year[72]. - The group’s gross profit margin improved to 80.4%, compared to 78.8% in the previous year, reflecting effective cost management[70]. - The company achieved continuous retail growth for 12 consecutive quarters, driven by full-price and year-on-year sales increases[74]. Retail and Market Expansion - The group operates 606 directly operated stores across over 70 countries[15]. - Prada's retail sales for the brand increased by +12%, while Miu Miu saw a significant growth of +58%[8]. - The company opened 26 new stores and closed 32 stores, ending the year with a total of 606 directly operated stores[76]. - The Asia-Pacific region saw retail sales net amount rise by 17.4% to €1,446,146 thousand, up from €1,231,659 thousand[79]. - Retail sales in the Asia-Pacific region increased by 24%, with Japan showing the highest growth at 43.8%[85]. - The company completed approximately 130 renovation and reset projects in its retail network during the year[76]. Sustainability and Ethical Practices - Sustainability remains a core part of the company's strategy, aiming to be a "driver of change" in various business aspects[10]. - The sustainability strategy is built on three pillars: Earth, People, and Culture, aiming to reduce environmental impact and promote diversity[55]. - The company has set greenhouse gas reduction targets recognized by the Science Based Targets initiative (SBTi) for scopes 1, 2, and 3[55]. - Prada Group's mission is to drive change for the planet, people, and culture, integrating sustainability into its core business strategy[20]. - The group has adopted a zero-fur policy across all brands and joined the Fashion Pact, reinforcing its commitment to ethical practices[34]. - In 2023, Prada launched its first jewelry collection made from 100% certified recycled gold, emphasizing its focus on sustainability[35]. - The company has made significant progress in environmental sustainability, reducing Scope 1 and 2 greenhouse gas emissions by 58% compared to the 2019 baseline[77]. - The company has invested in sustainable aviation fuel (SAF) credits to accelerate decarbonization in the aviation sector[77]. Corporate Governance and Leadership - Prada Group's board of directors includes Patrizio Bertelli as Chairman and CEO, alongside other executive members, ensuring strong leadership and governance[65]. - The board of directors consists of eleven members, including six executive directors and five independent non-executive directors[128]. - The board is committed to maintaining a strong governance structure with a mix of experienced executives and independent directors[128]. - The company emphasizes the importance of cultural and sporting interests in its brand identity and business strategy[128]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity[194]. - The company has established a comprehensive audit plan and sustainability report for the fiscal year 2023[198]. Strategic Initiatives and Future Outlook - Future strategies will focus on expanding the retail network and enhancing operational excellence[9]. - The company continues to explore opportunities for growth through potential mergers and acquisitions in the luxury sector[60]. - Prada Group's strategic focus includes enhancing its brand presence through new product development and market expansion initiatives[60]. - The company aims to enhance brand appeal and retail performance in 2024, despite geopolitical and macroeconomic uncertainties[126]. - Future product development and technological advancements are key priorities for the company to maintain competitive advantage[138]. Employee and Talent Management - The company has a total of 14,876 employees as of December 31, 2023, with 40% located in Italy and 63% of the workforce being female[155]. - Prada Group's significant investment in employee training and development aims to preserve craftsmanship and foster new talent[56]. - The company emphasizes talent retention and development through training programs and performance management processes to ensure operational quality[103]. Financial Management and Risk - The company manages credit risk through monitoring customer creditworthiness and debt repayment ability, and has implemented various preventive measures to enhance cash management efficiency[111]. - The company faces liquidity risk, which is managed by the board and the finance director, ensuring that financial resources are optimized to meet financial obligations[112]. - The company has implemented a risk management system to address various risks, including those related to the rapidly changing luxury goods industry and brand appeal[100]. - The company has established a tax risk management system that includes ongoing dialogue with tax authorities in the countries where it operates, aiming to minimize potential uncertainties related to tax risks[114]. Shareholder and Financial Structure - The group proposed a final dividend of €350,558,888 for the fiscal year 2023, equating to €0.137 per share, subject to shareholder approval[159]. - As of December 31, 2023, the distributable reserves available for shareholders amount to €1,951.7 million[159]. - The company has no current plans for the purchase, sale, or redemption of its listed securities during the fiscal year 2023[159]. - The company’s total lease liabilities amounted to €2,110.9 million, slightly increasing from €2,107.6 million in 2022[94].