PRADA(HK:01913)2023-07-27 11:16Financial Performance - Prada Group reported a net revenue of €2,232.4 million for the six months ended June 30, 2023, representing a 20.5% increase at constant exchange rates compared to the first half of 2022[2]. - Retail sales increased by 21.1% at constant exchange rates compared to the first half of 2022[2]. - Gross margin rose to 80.3% of net revenue, up from 77.7% in the first half of 2022[2]. - EBIT was €491.4 million, equivalent to 22.0% of net revenue, a 61.2% increase compared to €304.8 million (16.0% of net revenue) in the first half of 2022[2]. - The company reported a net income of €306,630 thousand for the first half of 2023, which is a 61.9% increase from €189,417 thousand in the same period of 2022[14]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were €0.119, up from €0.074 in the same period of 2022, reflecting a 60.8% increase[21]. Regional Performance - All regions except the Americas recorded double-digit growth, with Japan up 49.2%, Asia Pacific up 25.3%, Europe up 24.2%, and the Middle East up 13.5%, while the Americas saw a decline of 1%[2]. - Retail sales in the Asia-Pacific region increased by 25.3%, significantly benefiting from the recovery in China[46]. - Retail sales in Europe rose by 24.2%, supported by strong local demand and high levels of tourism[47]. - The Asia-Pacific region contributed €715,724,000 to retail sales, representing a 21.2% increase year-over-year[19]. Operational Highlights - Prada Group operates 603 directly operated stores across 70 countries, with 25 production facilities located in Italy, the UK, France, and Romania[3]. - The group opened 14 new stores and closed 23, resulting in a total of 603 operational stores as of June 30, 2023[46]. - The company completed approximately 70 renovation projects in its retail network during the first half of 2023 to enhance customer experience and productivity[11]. Financial Position - As of June 30, 2023, the net financial position was positive at €282.9 million after paying the 2022 dividend[2]. - The total equity of the group increased to €3,501,416,000 as of June 30, 2023, compared to €3,482,217,000 at the end of 2022[9]. - The company’s total liabilities decreased to €3,701,827 thousand as of June 30, 2023, compared to €3,876,556 thousand at the end of 2022[15]. - The net financial position, including lease liabilities, was €1,906 million as of June 30, 2023, up from €1,573 million at the end of 2022[59]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2023, was €181.8 million, compared to €158.2 million in the same period last year[8]. - Cash flow from operating activities for the six months ended June 30, 2023, was €720,344 thousand, compared to €537,742 thousand in the same period of 2022, indicating a rise of 33.9%[17]. - The company incurred a net cash outflow from investing activities of €148,975 thousand for the six months ended June 30, 2023, compared to €93,067 thousand in the same period of 2022, indicating an increase in investment activity[17]. Sustainability and Corporate Governance - The company is committed to sustainability, with initiatives including a 1% donation from the Prada Re-Nylon collection to educational projects and expanding the SEA BEYOND project[13]. - The board consists of 11 members, including 6 executive directors and 5 independent non-executive directors, ensuring a diverse governance structure[64]. - The Sustainability Committee reported on ESG progress and approved the 2022 sustainability report, holding 2 meetings with a 100% attendance rate[70]. Market Strategy - The company plans to continue expanding its market presence, particularly in the Asia-Pacific region, to capitalize on growth opportunities[19]. - The company aims for sustainable growth that exceeds market levels, focusing on brand investment and retail execution despite challenging comparisons in Q3[60].