PRADA(HK:01913)2023-09-14 10:10Financial Performance - Prada Group reported a revenue increase of 20% year-over-year, reaching €1.5 billion for the first half of 2023[16]. - The company’s net profit rose to €300 million, reflecting a 25% increase compared to the same period last year[16]. - For the six months ended June 30, 2023, Prada Group reported a net revenue of €2,232,379 thousand, representing a 17.4% increase from €1,900,942 thousand in the same period of 2022[18]. - Total net revenue for the first half of 2023 reached €2,232.4 million, a 17.4% increase from €1,900.9 million in the same period of 2022[28]. - The net income attributable to the group for the first half of 2023 was €305,168 thousand, a 62.1% increase from €188,264 thousand in the same period of 2022[18]. - The net income for the period was €306.6 million, accounting for 13.7% of net revenue, compared to €189.4 million (10%) in the same period of 2022[32]. - The company reported a decrease in other current liabilities net amount to €94.4 million, down €198.6 million from December 31, 2022, mainly due to reduced current tax liabilities[36]. - The company reported a total of €1.94 billion in distributable reserves as of June 30, 2023[180]. Sales and Market Growth - User data indicated a 15% growth in active customers, totaling 2 million new customers acquired in the first half of 2023[16]. - Retail sales for the Prada brand increased by 17.7% in the first half of 2023, with a second-quarter growth rate of 14.7%, down from 21.1% in the first quarter[21]. - Miu Miu's retail sales net revenue grew by 50.1% in the first half of 2023, with second-quarter growth accelerating to 57.3%[21]. - Retail sales net revenue for Prada increased by 17.7% in the first half of 2023, with a second-quarter growth rate of +14.7% compared to +21.1% in the first quarter[27]. - Retail sales net amounted to €1,974.7 million, representing a growth of 21.1%, driven by an increase in both average prices and sales volume[25]. - The Asia-Pacific region contributed €715.7 million to retail sales, a growth of 21.2% compared to the previous year[24]. - Retail sales in Europe grew by 24.2%, supported by strong local demand and high levels of tourism[29]. - The Americas experienced a slight decline in retail sales by 1%, although the North American customer base showed resilience throughout the period[29]. Strategic Initiatives - Prada Group anticipates a revenue growth of 10-12% for the full year 2023, driven by strong demand in Asia and North America[16]. - The company is investing €100 million in new product development and technology enhancements to improve customer experience[16]. - Prada Group plans to expand its retail footprint by opening 30 new stores globally by the end of 2023[16]. - The company is exploring strategic partnerships to enhance its supply chain efficiency and reduce costs[16]. - The company plans to recruit 400 talents by the end of the year as part of a major hiring initiative focused on Tuscany, Umbria, and Marche regions[23]. - The company is exploring strategic acquisitions to enhance its product portfolio and market reach[194]. Sustainability and Corporate Responsibility - Sustainability initiatives are a focus, with a commitment to reduce carbon emissions by 30% by 2025[16]. - The company emphasized its commitment to sustainability through initiatives like the SEA BEYOND project and partnerships with UNESCO[23]. - The group has identified significant ESG risks, including climate change and human rights, and is enhancing its control systems to integrate ESG considerations into its business strategy[55]. - The company has implemented an insurance plan to cover business interruptions related to property losses from extreme weather events and network attacks[45]. Financial Position and Investments - The net financial position remains strong, providing ample funding for future strategic initiatives[21]. - Operating cash flow for the first half of 2023 was €181,753 thousand, compared to €158,202 thousand in the same period of 2022[19]. - The total operating expenses amounted to €1,301,976 thousand, a 13.5% increase from €1,146,689 thousand in the previous year[18]. - The company reported a total of €850,000 in retirement, healthcare, and TFR contributions for the board of directors as of June 30, 2023[184]. - The company reported a significant increase in the value of lease liabilities, totaling €207,520,000 as of June 30, 2023[187]. Governance and Compliance - The Audit and Risk Committee held four meetings during the review period with an attendance rate of 91.67% to review significant internal and external audit results and financial matters[69]. - The company established an "Organismo di Vigilanza" to ensure compliance with the Italian Legislative Decree No. 231/2001[75]. - The group faces compliance risks related to legal and regulatory requirements in various jurisdictions, with measures in place to ensure adherence to evolving regulations[53]. - The company actively protects its intellectual property through legal registrations and systematic measures against counterfeiting and infringement[44]. Employee and Operational Metrics - Total employee count increased to 13,855 as of June 30, 2023, compared to 12,985 for the same period in 2022, marking a rise of 6.7%[177]. - The average number of employees in sales increased to 8,283 in the first half of 2023, up from 7,856 in the same period of 2022, a growth of 5.4%[177]. - Total employee compensation for the six months ended June 30, 2023, was €480.67 million, an increase from €432.94 million in the same period of 2022, representing an increase of 11.0%[178]. Risks and Challenges - The company faces various risks, including strategic risks related to brand image and awareness, economic risks, operational risks, and compliance risks[42]. - The performance of the luxury goods market is affected by consumer preferences and overall economic conditions, which may impact the company's financial and operational performance[44]. - Credit risk primarily involves accounts receivable from wholesale channels, with the group managing this risk through credit control systems and monitoring customer creditworthiness[50]. - The group faces health and safety risks related to employee injuries and occupational diseases, with regular safety training and risk assessments implemented to mitigate these risks[50].