PRADA(HK:01913)2024-03-07 12:35Financial Performance - Prada Group reported a net revenue of €4,726.4 million, an increase of 17.2% compared to 2022 at constant exchange rates[2]. - Retail sales net revenue increased by 17.2% at constant exchange rates compared to 2022[2]. - Retail sales net revenue for the Prada and Miu Miu brands increased by 12.1% and 58.2% respectively at constant exchange rates[2]. - EBIT was €1,061.7 million, representing 22.5% of net revenue, an increase of 36.8% from €776 million (18.5% of net revenue) in 2022[2]. - Net income for the group was €671 million, a 44.2% increase compared to 2022[2]. - The group's net revenue increased to €4,726,411 thousand for the year ending December 31, 2023, representing a growth of 12.5% compared to €4,200,674 thousand in 2022[10]. - Adjusted EBIT rose to €1,061,692 thousand, with a margin of 22.5%, up from €845,176 thousand and a margin of 20.1% in the previous year[10]. - Net sales for the year ended December 31, 2023, reached €4,622,882 thousand, representing a 12.1% increase from €4,124,592 thousand in the previous year[17]. - Adjusted EBIT for the same period was €1,061,692 thousand, reflecting a 25.6% increase compared to €845,176 thousand in 2022[17]. - The company reported a net income of €671,026 thousand for the year, a significant increase of 44.2% from €465,193 thousand in 2022[17]. - The total equity attributable to the owners of the group as of December 31, 2023, was €3,853,795 thousand, an increase from €3,482,217 thousand as of December 31, 2022, representing a growth of 10.7%[21]. Regional Performance - Significant double-digit growth was recorded in the following regions at constant exchange rates: Japan +43.8%, Asia Pacific +24%, Europe +14%, and Middle East +10.5%; growth in the Americas was flat at +0.3%[2]. - The Asia-Pacific region contributed €1,446,146,000 in retail sales, a 17.4% increase from €1,231,659,000[24]. - The Americas saw retail sales of €767,365,000, a slight decrease of 1.8% from €781,825,000[24]. Sustainability Initiatives - The group achieved a 58% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline[15]. - The group has signed an ambitious collective procurement agreement for renewable energy, promoting its use in Europe alongside 11 other brands[15]. - The group has invested in acquiring sustainable aviation fuel (SAF) credits to accelerate decarbonization in the aviation sector[15]. Capital Expenditures and Investments - As of December 31, 2023, the net financial position was positive at €196.9 million, reflecting capital cash expenditures of €759.2 million, including strategic real estate investments[2]. - The group completed approximately 130 renovation and reset projects in its retail network, opening 26 new stores and closing 32, resulting in a total of 606 directly operated stores by year-end[13]. - Capital expenditures for the year included significant investments in property, plant, and equipment totaling €681,453,000, with notable investments in strategic locations such as a property on 5th Avenue, New York[37][38]. Shareholder Returns - The company proposed a dividend of €0.137 per share[2]. - The company paid dividends of €281,471 thousand to shareholders in 2023, compared to €179,118 thousand in 2022, marking an increase of 57.3%[20]. - The board proposed a final dividend of €350,558,888 for the fiscal year 2023, equating to €0.137 per share, compared to €281,470,640 or €0.11 per share for the previous year[27]. Organizational Changes - The new Chief Human Resources Officer was appointed in September 2023, contributing to a stronger organizational structure[15]. - The company has undergone organizational changes, including the appointment of a new CEO in January 2023, to enhance brand performance and resource allocation[40]. - The organization has updated its reporting system to provide regular brand performance reports to senior management[40]. Financial Stability - The total assets as of December 31, 2023, amounted to €7,615,051 thousand, an increase from €7,377,578 thousand in the previous year[18]. - Total liabilities decreased to €3,738,242 thousand from €3,876,556 thousand, reflecting improved financial stability[18]. - The net financial position showed a positive net amount of €196.9 million as of December 31, 2023, compared to a negative net amount of €534.9 million in 2022[69]. - The company maintained full compliance with all financial covenants as of December 31, 2023[71]. Tax and Compliance - The group reported a total tax expense of €298,071,000, which is 6.3% of net revenue, compared to €241,820,000 or 5.8% in the prior year[23]. - The company has appealed against tax notifications from the Italian tax authority, which questioned the deductibility of payments made to Prada Asia Pacific Ltd, amounting to approximately €10.8 million for the 2016 fiscal year[57]. - The company has maintained compliance with corporate governance standards, ensuring transparency and protection of shareholder rights[74]. Future Outlook - The company aims to enhance brand appeal and retail performance in 2024, despite geopolitical and macroeconomic uncertainties[73]. - The business plan for Prada extends for five years starting from the 2024 budget, while Miu Miu's projections extend to 2031[44]. - The company plans to invest in retail property renovations and new store openings as part of its future strategy[44].