PRADA(HK:01913)2023-03-31 08:59Financial Performance - In 2022, Prada Group's net revenue increased by 21.3% at constant exchange rates, with both Prada and Miu Miu achieving double-digit growth[11]. - Net sales for the twelve months ended December 31, 2022, reached €2,433,852 thousand, a 97.0% of total revenue, compared to €1,805,459 thousand (97.3%) in 2021[13]. - Gross profit margin increased to 67.0% for 2022, up from 61.2% in 2021, despite inflationary pressures on production costs[14]. - EBIT for the period was €968,742 thousand, representing 38.6% of net revenue, compared to €460,423 thousand (24.8%) in the previous year[14]. - Net income for the year was €571,683 thousand, a 22.8% increase from €310,650 thousand (16.7%) in 2021[13]. - Total revenue for the year ended December 31, 2022, was €2,509,323,626, an increase from €1,854,692,127 in 2021, representing a growth of approximately 35.2%[76]. - Gross profit for 2022 reached €1,680,092,518, compared to €1,135,490,036 in 2021, resulting in a gross margin improvement[76]. - The total comprehensive income for 2022 was €595,017 thousand, compared to €298,529 thousand in 2021, indicating a significant increase of 99.2%[77]. Investments and Acquisitions - The company acquired a 43.65% stake in Conceria Superior S.p.A., enhancing its vertical integration in the supply chain and improving quality control[12]. - The company acquired a 43.65% stake in Conceria Superior S.p.A., a company specializing in tanning calf leather, in August 2022[114]. - On September 1, 2022, the company established PRADA Norway As to expand its business in Norway[114]. - The company purchased the entire share capital of Caffè Principe S.r.l. on November 18, 2022, which operates the historic Caffè Principe bar in Marmirolo[114]. - In December 2022, the company acquired all retail operations of four Church's stores from its subsidiary Church & Co Ltd, aiming to streamline the group's structure and enhance profitability[114]. Governance and Management - In January 2023, Andrea Guerra was appointed as CEO, representing a significant governance change aimed at further developing the Prada Group[12]. - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, with female representation at approximately 36%[28]. - The board held 5 meetings in 2022, achieving an average attendance rate of 90.9%[29]. - The company established a sustainability committee during the year to enhance its governance structure[29]. - The board's diversity policy emphasizes that diversity should not be limited to gender, reflecting a broader commitment to inclusivity[28]. Financial Position and Liquidity - The total equity of the company as of December 31, 2022, was €2,563,426 thousand, compared to €2,161,802 thousand in 2021[16]. - The debt-to-equity ratio was -15.5% as of December 31, 2022, compared to -6.0% in the previous year[16]. - As of December 31, 2022, the net financial surplus was €390 million, an increase of €248 million compared to the previous reporting date[20]. - Cash flow from operating activities was €726 million, while cash used in investing activities was €54 million[21]. - The total amount of financial receivables and cash and cash equivalents was €926.9 million, up from €822.7 million in the previous year[20]. Risk Management - The company faces financial risks related to currency and interest rate fluctuations due to its international operations[111]. - The company employs hedging contracts to manage risks associated with currency and interest rate fluctuations[111]. - The company has established derivative contracts to hedge against financial risks arising from currency and interest rate fluctuations[127]. - The company has a capital management strategy aimed at ensuring returns for shareholders while complying with loan covenants[137]. Sustainability and Corporate Responsibility - The company launched a new community platform, Prada Crypted, on Discord, allowing users to connect and share ideas across various creative fields[12]. - The Sustainability Committee approved the 2022 sustainability report and supported the industry's roadmap for sustainable operations[54]. - The company adopted a whistleblowing policy in 2022 to provide a reporting channel for employees and contractors regarding potential misconduct[57]. Operational Efficiency - The company continues to focus on customer-centric strategies and retail productivity, optimizing production processes to enhance profitability[11]. - Capital expenditures were primarily related to various technology and digital evolution projects, enhancing supply chain capabilities[18]. - The company aims for robust growth in 2023, focusing on brand enhancement, store network renovation, and industrial and technological infrastructure investments[23]. Employee and Director Compensation - The company’s compensation policy aims to attract, reward, and retain employees, with a focus on maintaining a competitive compensation structure aligned with market standards[48]. - The total remuneration for executive directors includes salary, bonuses, and other benefits, while non-executive directors receive remuneration based on specific circumstances[49]. - The company has established a long-term cash incentive plan for eligible executive directors and senior management, contingent on achieving economic and ESG targets over a three-year period[48]. Financial Reporting and Compliance - The company has prepared a balance sheet that independently classifies current and non-current assets and liabilities[86]. - The company recognizes revenue from the sale of goods when all specified criteria are met, including the transfer of significant risks and rewards to the buyer[106]. - The company has adopted a policy to ensure potential inside information is identified and kept confidential until timely disclosure is made[61].