PRADA(01913)2024-03-27 08:47Financial Performance - The net revenue for the year ended December 31, 2023, was €2,552 million, an increase of 1.7% compared to €2,509 million in the previous year[13]. - Gross profit margin increased to 67.9%, up from 67.0% in the previous year, reflecting a growth of €53 million[14]. - EBIT decreased to €850 million, representing 33.3% of net revenue, down from 38.6% in the previous year due to increased operating expenses[14]. - Operating expenses rose to €882 million, accounting for 34.6% of net revenue, primarily due to increased marketing activities and personnel costs[14]. - The company reported a net income distribution of €350,558,888.00 as a final dividend, equating to €0.137 per share, and €216,181,596.21 retained in earnings for the year ending December 31, 2023[39]. - Net income for the year was €566,740,484, down from €571,683,175 in 2022, representing a decrease of about 0.8%[95]. - The company paid dividends totaling €281,471,000 in 2023, an increase from €179,118,000 in 2022, reflecting a commitment to returning value to shareholders[96]. Strategic Initiatives - The company reported significant progress in strategy, organization, and digital development, reflecting the resilience of the luxury goods sector[9]. - Prada's strategic initiatives are aimed at enhancing customer experience and expanding market presence through unique offerings and collaborations[9]. - The company continues to focus on digital transformation initiatives to support operational and revenue growth, including omnichannel capabilities and ERP integration[12]. - The company has established a risk management system to manage, forecast, and mitigate risk exposures, ensuring long-term sustainable business development[25]. - The company is committed to maintaining high standards of corporate governance to create long-term sustainable value for stakeholders[41]. Sustainability Efforts - The company achieved a 58% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline[12]. - The company is actively promoting a culture of sustainability through internal and external initiatives, such as Sea Beyond and Forestami Academy[33]. - The company has established a clear roadmap for its sustainability strategy, focusing on greenhouse gas reduction and the use of low-impact materials[1]. - The company is focusing on mid-term goals and internal KPIs to monitor progress, particularly in reducing carbon emissions and transitioning to environmentally friendly materials[33]. Corporate Governance - The board consists of 11 directors, with 6 executive and 5 independent non-executive directors, and approximately 36% of the board members are women[44]. - The company has established written procedures regulating securities trading by directors and employees with insider information, ensuring compliance with standard codes[43]. - The board held six meetings in 2023 to discuss corporate strategy, evaluate financial performance, and approve major investments, with an average attendance rate of 83.33%[48]. - The company emphasizes the importance of corporate culture as a foundation for long-term business success and sustainable growth[52]. - The board's composition includes family relationships, with Miuccia Prada Bianchi and Patrizio Bertelli being spouses, and their son Lorenzo Bertelli also serving as an executive director[57]. Risk Management - The company faces risks related to employee health and safety, product quality, and environmental regulations, which could impact financial status and reputation[1]. - The company manages credit risk through monitoring customer creditworthiness and implementing insurance contracts[34]. - The company employs derivatives like interest rate swaps to mitigate interest rate risks affecting future cash flows[35]. - The company has established credit risk management strategies to monitor and verify customer reliability and repayment capacity[166]. Investments and Acquisitions - The company acquired a minority stake in Italian family business Luigi Fedeli e Figlio S.r.l., known for high-quality knitwear, demonstrating commitment to protecting Italian craftsmanship[12]. - The company invested €390 million in Prada USA Corp for the acquisition of a strategically valuable real estate asset located at 724, 5th Avenue, New York, which currently houses a Prada store[19]. - The company completed several mergers in 2023, including the integration of Church's brands into Prada entities, enhancing operational synergies[135]. - Investments in subsidiaries and associates rose to €1,312,798,000 as of December 31, 2023, compared to €793,436,000 in the previous year, indicating significant growth in investment value[198]. Financial Position - The company’s total equity as of December 31, 2023, was €2,842 million, an increase from €2,563 million in the previous year[16]. - The company’s net financial position showed a surplus of €65.7 million, down from €389.8 million in the previous year[16]. - The debt-to-equity ratio improved to -2.1% from -15.5% in the previous year, indicating a stronger financial position[16]. - As of December 31, 2023, total assets increased to €4,746,880,745, up from €4,631,226,949 in the previous year, representing a growth of approximately 2.5%[92]. Operational Highlights - The company emphasized strict execution and optimized organization as key factors in maintaining brand appeal and global visibility[9]. - The balanced product category mix contributed to growth and stability, driven by successful fashion shows and collections[9]. - The company invested €113,447,000 in property, plant, and equipment in 2023, compared to €88,904,000 in 2022, indicating an increase in capital expenditures[96]. - The company has established specific teams to manage real estate activities, ensuring strategic retail locations are secured and maintained[29]. Market and Customer Engagement - Prada successfully launched exclusive collaborations, including the "Adidas Football for Prada" collection and a partnership with Axiom Space for NASA's Artemis III mission[9]. - The brand hosted a series of impactful events, such as Prada Extends in Bangkok and the Pradasphere II exhibition in Shanghai, enhancing global brand experience[9]. - Prada's innovative approach and ability to interpret contemporary trends have been pivotal in driving sales and customer engagement[9]. - The company invests in regular store renovations and employee training programs to improve customer experience and brand image[28].