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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Brunello Cucinelli S.p.A.    BC   IT0004764699

BRUNELLO CUCINELLI S.P.A.

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27 Thursday 05:27 PM The Board of Directors has approved the 2020 Half Year Financial Report

08/27/2020 | 12:07pm EST

Press Release

BRUNELLO CUCINELLI: The Board of Directors has approved the Half-Yearly Financial Report 2020

  • Slight decrease in revenues expected around 10% for 2020, supported by the solidity of the business and the collection Spring Summer 2021 order intake, with an estimated positive performance for both the third and fourth quarters of 2020;
  • First quarter strongly influenced by the closure of a significant number of boutiques around the world due to the pandemic;
  • Net revenues at 30 June 2020 equal to €205.1 million, -29.6% at current exchange rates (-29.8% at constant exchange rates) compared to €291.4 million at 30 June 2019;
  • Normalized EBITDA 1 €-14.1 million, with a margin on revenues of -6.8%;
  • Normalized EBIT €-29.8 million, with a margin on revenues of -14.5%;
  • Normalized net profit €-25.8 million, with a margin on revenues of -12.5%;
  • Investments of €22.4 million with Net Financial Debt of €136.5 million.

Brunello Cucinelli, Executive Chairman of the Company, commented:

«Following this half-year - strongly impacted by the pandemic -, we are now moving towards a significant trend reversal. Since July 1 we have been looking at the company with a fresh new eye, considering this to be a year of "transition" between a "past time" and a "new time"».

«Having reached the end of August, we can envisage that this trend should result in rising sales compared to last year for both the third and the fourth quarter, therefore 2020 should feature a slight decrease in turnover of around 10%».

«The Spring Summer 21 collections have been met with much success and the ensuing sizeable order intake prompts us to envisage a good 2021 with revenues increasing by around 15%; in addition, the above leads us to view 2021 as the "year of rebalancing"».

1 The normalization of the data as at 30 June 2020 sterilizes the accounting effects of the application of IFRS 16 and the extraordinary provision of €30.0 million relating to the new "Brunello Cucinelli for Humanity" project for the allocation of surplus garments generated by the emergency situation caused by Covid-19 and the consequent temporary interruption of sales. Including the accounting effects of the application of IFRS 16 and the extraordinary provision of €30.0 million, EBITDA is equal to €-3.4 million, EBIT is €-53.3 million and Net Profit is €-47.7 million.

1

Solomeo, 27 August 2020 - The Board of Directors of Brunello Cucinelli S.p.A. - an Italian maison operating in the luxury goods sector and listed on the Borsa Italiana Electronic Stock Exchange - today examined and approved the Half-yearly Financial Report 2020 (data subjected to limited review).

***

Sales Performance

Sales in the first half of the year are equal to €205.1 million, with a performance at current exchange rates of -29.6%(-29.8% at constant exchange rates) compared to €291.4 million at 30 June 2019.

Revenues from sales and services, including other operating revenues, reached €206.5 million, a decrease of -29.2% compared to €291.8 million on 30 June of last year.

Revenues by Geographical Area

Italian Market -revenues equal to €28.9 million (14.1% of overall revenues), with a performance of -34.7% compared to €44.3 million at 30 June 2019.

In view of the highly positive initial sales results, the first half of the year was very strongly influenced by the closure of our retail spaces. The positive trend in order collections for the Fall-Winter2020 season is confirmed, with interesting signs of recovery in sales thanks to the gradual reopening of retail spaces.

European Market -revenues equal to €70.1 million (34.2% of overall revenues), with a performance of -24.1% compared to €92.4 million at 30 June 2019.

The closure of boutiques all over Europe strongly influenced the results of the first half of the year. Following the reopening of boutiques and multibrand stores, we have perceived a renewed interest in the Fall-Winter2020 collections, with the confirmation of previously collected orders and purchases made by local clients, who represent our main target of reference.

North American Market -sales equal to €57.5 million (28.0% of overall revenues), with a performance of -38.9% compared to €94.1 million at 30 June 2019.

This market has shown a significant rise in revenues until the first half of March, with a strong impact on sales following the closure of boutiques and multibrand stores, which continued throughout almost all of the second quarter.

We have collected interesting feedback concerning the presence of and purchases made by local clients and have received confirmation of the orders collected for the Fall-Winter2020 campaign, as well as highly positive comments from our partners concerning the potential recovery of the business connected to our brand.

China -revenues equal to €22.9 million (11.1% of overall revenues), with a performance of - 20.6% compared to €28.8 million at 30 June 2019.

Since the end of the lockdown, the sales trend has improved and progressively consolidated, with sales in the retail channel rising solidly compared to last year.

We imagine that the taste, allure and exclusivity represented by our brand, as well as the values of human dignity we have always tried to support, fuel the extremely high potential we have in this market, both in relation to the monobrand and multibrand channel, with customers being

2

increasingly interested in a sophisticated, extremely high-end offer that respects all of Nature's creations.

Rest of the World -revenues equal to €25.8 million (12.6% of overall revenues), with a performance of -19.1% compared to €31.8 million at 30 June 2019.

The result is influenced by store closures worldwide, which, at different times depending on the geographic area, continued throughout most of the second quarter of 2020.

Revenues by Distribution Channel

Monobrand Retail Channel -revenues equal to €102.5 million (50.0% of overall revenues), with a performance of -31.6% compared to €149.9 million at 30 June 2019.

After a first part of the year where this channel showed very positive results and LFL, the retail channel was strongly impacted by the closure of a significant number of boutiques. This characterized the entire second quarter of the year.

Very interesting signals regard the performance of spaces that reopened after the lockdown period, which show a progressive increase in trust and return to purchasing on behalf of local clients.

At 30 June 2020, the network includes 107 boutiques (106 boutiques at 31 December 2019), due to the opening at the beginning of the year of the new boutique in New York, in the trendy Meatpacking District.

Monobrand Wholesale Channel -revenues equal to €13.6 million (6.6% of overall revenues), with a performance of -25.3% compared to €18.2 million at 30 June 2019. At 30 June 2020, the network counts 30 boutiques, a number which remains unchanged compared to 31/12/2019.

Multibrand Wholesale Channel -revenues equal to €89.0 million (43.4% of overall revenues), with a performance of -27.8% compared to €123.3 million at 30 June 2019.

In view of the circumstances that impacted the result of this half of the year, the Spring Summer 2020 collections showed positive results and sell-out data until the lockdown of all activities due to the health emergency. From the second half of March, in fact, all corporate operations related to production were temporarily suspended, including deliveries to both multibrand and monobrand wholesale channels. From 4 May, these operations were resumed, with a total recovery of the Fall-Winterproduction in July.

The order collection for the Fall-Winter2020 season had already shown a significant increase, and we maintain great confidence in the role that exclusive multibrand "Specialty Stores" and "Luxury Department Stores" play in promoting our collection offer as they contribute to maintaining it contemporary and chic.

This is why we are very satisfied to announce the confirmation of orders for the Fall-Winter2020 collections, which will be delivered about 1 month later than planned to meet the new demands in terms of re-balancingseasons inside retail spaces and launching collections, which we consider to be structural both for the Fall-Winter collections and for the upcoming Spring- Summer collections.

3

Analysis of Results

After a very positive start, both from the financial point of view and from the point of view of the brand's image, the results of the first half of 2020 were strongly influenced by the pandemic and consequent lockdown, which led to the closure of a significant number of boutiques around the world.

Over the past months, we have maintained an unchanged and strongly solid corporate structure, which we have accompanied by a healthy cost control to be ready in the best possible way to resume our growth project already from the second half of 2020.

Production costs amounted to €67.9 million at 30 June 2020, compared to €97.6 million at 30 June 2019, with the respective incidence on revenues decreasing from 33.4% last year to 32.9% and a slight improvement on First Margin.

The dynamics of operating costs are connected to the initiatives underway, which support the future growth projects and keep the company structure solid. In this context, we would like to point out activities related to the development of the sales network, digital activities, and the consolidation of all the new projects introduced last year, including the natural extension of the collection offer to kidswear and the proposal "Sartoria Solomeo".

Within operating costs, personnel costs amounted to €57.5 million compared to €53.8 million as of 30 June 2019, as a result of the decision to maintain and guarantee the employment and salary levels of all employees, and confirm the projects related to the expansion of the boutique network, strengthen central structures, develop new initiatives, and further digital growth.

Investments in communication, dedicated to safeguarding the brand, customization of customer relations and online development, amounted to €13.3 million, compared to €16.2 million at 30 June 2019, with an increase in digital communication, which we believe to be increasingly strategic and important.

The cost of rents, relating to contracts with variable consideration, is equal to €4.7 million, compared to €10.3 million as at 30 June 2019, with a reduction that is related to the trend in turnover in the first half of 2020.

The effects related to the scope of application of IFRS 16 on rental costs are equal to €40.0 million at 30 June 2020 compared to €29.5 million at 30 June 2019. If we sterilize these effects, rents at 30 June 2020 would therefore amount to €44.7 million Euros, compared to €39.8 million at 30 June 2019, with an increase that can be attributed to new openings and to the increase in sales space of some important boutiques.

EBITDA amounted to -3.4 million Euro (margin of -1.7%), compared to 79.2 million Euro at 30 June 2019 (margin of 27.1%).

Normalized EBITDA amounted to -14.1 million Euro (margin of -6.8%), compared to 49.9 million Euro at 30 June 2019 (margin of 17.1%).

Normalized EBITDA at 30 June 2020 sterilizes the accounting effects of the application of IFRS 16 (equal to Euro 39,982 thousand referable to "cost of rents" and equal to Euro 665 thousand referable to the item "Other revenues") and the extraordinary provision amounting to Euro 30.0 million related to the new "Brunello Cucinelli for Humanity" project for the destination of the excess clothing generated due to the emergency situation caused by Covid-19 and the consequent temporary interruption of sales.

4

Depreciation and amortization amounted to €49.9 million at 30 June 2020, compared to €40.1 million at 30 June 2019, with an increase related to the rise in investments.

Sterilizing the effects related to the application of IFRS 16, depreciation and amortization would amount to €15.7 million at 30 June 2020, compared to €13.9 million at 30 June 2019.

EBIT as at 30 June 2020 is equal to -53.3 million Euro (margin of -25.8%), compared to €39.1 million last year (margin of 13.4%).

Normalized EBIT 2 as at 30 June 2020 is equal to -29.8 million Euro (margin of -14.5%), compared to €35.9 million last year (margin of 12.3%).

In relation to financial management, net financial charges at 30 June 2020 amounted to €11.0 million, compared to €6.5 million last year. The impact of financial charges relating to leasing contracts in application of IFRS 16 went from € 3.6 million at 30 June 2019 to € 6.8 million at 30 June 2020. Excluding this impact, financial charges therefore went from € 2.9 million last year to the current € 4.2 million.

Net profit at 30 June 2020 was negative by -47.7 million Euro, compared to 25.0 million Euro at 30 June 2019, which included tax benefits deriving from the so-called "Patent Box" for an amount of 2.5 million Euro, with a positive tax rate of 25.9% compared to -23.5% at 30 June 2019 (- 31.1% excluding the tax benefit of the "Patent Box").

Normalized Net Profit at 30 June 2020 was -25.8 million Euro, sterilizing the accounting effects of the extraordinary provision relating to inventories and the accounting effects relating to the application of IFRS 16, compared to 22.8 million Euro at 30 June 2019 (a value that excludes the accounting effects relating to the application of IFRS 16 and the tax benefits of the "Patent Box", which ended on 31 December 2019).

Balance Sheet

Net working capital, including "Other net assets/liabilities" 3 , amounted to €195.0 million, compared to €162.4 million last year, with an increase of €32.6 million.

Inventories amounted to €218.1 million as at 30 June 2020, compared to €179.8 million as at 30 June 2019.

The dynamics of the Inventories, which shows an increase of €38.3 million, were strongly impacted by the effects of the lockdown, with deliveries of the Fall Winter 2020 collections being delayed for an amount of time equal to the duration of the lockdown. This delay was efficiently recovered by implementing a program of intense work, which has made it possible in July/August to make up for lost time in delivering goods to all customers.

In addition to the effects of the pandemic, the value of Inventories is increasing organically due to business development, including the expansion of the sales network, which includes 5 new directly operated boutiques in the last 12 months, 2 hard shops and important expansions of sales space, the development of the new KIDS collections and the "Sartoria Solomeo" project, as well as the boost of the digital channel.

  1. Normalized EBIT at 30 June 2020, in addition to the accounting effects indicated for the purpose of normalizing EBITDA, sterilizes the accounting effects of the application of IFRS 16, (on the line "Depreciation and Amortization" for an amount equal to Euro 34,126 thousand.
  2. "Other net assets/liabilities" are negative by €21.4 million as at 30 June 2020, compared to €17.6 million as at 30 June 2019, with dynamics substantially related to the assessment of the fair value on derivatives to hedge exchange risks.

5

Trade receivables amounted to €72.4 million compared to €79.9 million at 30 June 2019, a decrease of €7.5 million, mainly reflecting 4 the trend in sales during the lockdown period.

Trade payables amounted to €74.1 million compared to €79.7 million at 30 June 2019, a reduction of €5.7 million, in the absence of any change in payment terms to our suppliers, collaborators and consultants.

Capex and Net Financial Position

The strategic premise to direct the path of sustainable growth of the company is the great attention that we have always dedicated to investments, in the awareness of their importance to keep the company modern, safeguarding the allure of the brand.

Even in these first 6 months of the year we considered it a priority to maintain the strategic investment plan to support the brand, its production and exclusive market presence.

In the first 6 months of 2020 investments therefore amounted to €22.4 million, an increase compared to the €18.8 million invested at 30 June 2019.

In detail, commercial investments amounted to €16.0 million, and are aimed at opening exclusive boutiques, making prestigious extensions, renewing our existing showrooms and increasing sales space, also supporting development initiatives in the wholesale channel and expanding dedicated surfaces in Luxury Department Stores.

Other investments include those related to production, logistics and IT and digital services, which support the brand's presence in the digital world and the continuous renewal of production facilities, as well as provide the appropriate logistic structures to manage all operations.

Net financial debt 5was €136.5 million at 30 June 2020, compared to €46.6 million at 30 June 2019.

Business Outlook

Since 1 July, we have been seeing the company with new and fresh eyes without being too influenced by the past semester, and have tried to consider this moment as a year of 'transition' between a 'past time' and a 'new time'.

Today, we can say that we have steered the company into 'safer waters' and given our esteemed employees physical security in what they do as well as the security of being employed.

The entire company has acquired an even stronger awareness about the fact that they need to be fast, flexible, concrete, and brave as they have realized that we have to coexist with this virus which can still evolve every day.

  1. The dynamics of trade receivables also reflects the concession of certain extensions in payment terms granted to our consolidated and high-qualitymulti-brand customers. We believe that this commercial policy of great closeness and collaboration has always allowed us to strengthen commercial relationships and business opportunities, as has been the case on some occasions in the past, when we had managed credits with the same availability and elasticity, quickly returning to normal conditions without jeopardizing business opportunities.
  2. Including financial payables for leasing, as required by IFRS 16, Net Financial Debt was €621.9 million at 30 June 2020, compared to €436.4 million at 30 June 2019.
    The trend of net financial debt have been affected by the Covid-19 pandemic, resulting in the need for additional financing, which were all provided by leading Italian banks since March for an amount of €116.5 million.

6

To date, the company is fully operating with its 2,024 employees (as it was in February before the pandemic), who are all physically on the workplace with COVID test being performed every 15 days. This project will end when the pandemic is over.

We have concluded all our deliveries for the winter merchandise within the planned deadlines. All stores around the world are stocked exclusively with Fall-Winter2020 merchandise, as usual; this is leading to very positive results both in terms of sell out and in terms of image.

All Spring-Summer 2021 collections have been presented physically in the showrooms of Shanghai, New York, London, Monaco, Milan, Solomeo, within the planned deadlines, as always in July.

We would now like to focus on the following big issue: we may have created the most beautiful collections of our entire history, at least that is what our multibrand customers and managers of our DOS have declared. This is an outstanding result, spurred on by the new trends, which have moved in the direction of our taste.

The order collection of about 60% is very very significant, we would dare say thrilling. All this gives us hope about an important recovery in the second half of the year, as well as an excellent kick-off in 2021.

It is our impression that many multibrand clients are rigorously selecting their suppliers, both according to the taste of their collections and based on the companies' solidity: they are seeking precision in deliveries, special assistance during reassortments, the value of seeing physically produced collections, and the fact of being able to touch the garments live.

Considering our true and good multibrand clients, we would like to express a highly positive assessment of the kind of new redesign cycle they are implementing as they try to figure out with which reliable companies they can develop their projects on a 3 to 5 year basis. We are therefore highly satisfied with this new and very interesting design, and think it is perfectly in line with our retail business which we are investing on very strongly.

This is all accompanied by the excellent performance of our e-commercechannel, which we have invested on so strongly in recent years, both financially and in terms of time and minds, as it is clearly a fundamental source of communication. It has been structured in such a way that it can sustain the important growth of years to come.

We have already given full visibility to the excess stock we had during the first half of the year. However, we would like to add 2 very positive notes, which have somehow frankly moved us. The first is that we have been contacted by so many people around the world who are concerned about supporting and improving humanity. To mention but one example: the, in our view, fascinating and highly humane Sharon Stone.

The second: we have conducted several very important interviews on this delicate and pleasant issue. The last and most recent one appeared yesterday on the highly prestigious New York Times. Maybe it is safe to say that this 'extraordinary' project, "Brunello Cucinelli for Humanity", can be truly considered a 'great resource' in these particular times we are experiencing, both for humanity and for the company.

7

Our important investment project continues, and we confirm that our investment plan remains unchanged for the second half of the year.

Since we have now reached the end of August, we can safely say that on July 1st we saw a significant inversion of the trend, which should take us towards an increase in revenues in the third quarter compared to last year, and a gradual return to healthy margins.

We also expect this trend for the last quarter. Overall, we imagine a 2020 with slightly lower revenues than in 2019, a drop of about 10%.

In 2021, since the order collection for Spring Summer 2021 was so strong, we are confident that we will go back to a rise in revenues, around 15% compared to 2020, and expect to continue our process of generating a healthy profit, confirming the important investment project.

Change of the calendar of Corporate Events for the year 2020

Brunello Cucinelli S.p.A. informs that, in consideration of the willingness to share the business performance with a greater frequency in view of issues related to the health emergency caused by Covid-19 (CoronaVirus), a Board of Directors of the Company is convened for 8 October 2020 in order to examine the preliminary net revenues as at 30 September 2020.

The final figures of net revenues as at 30 September 2020 will be examined during the Company's Board of Directors meeting convened for 19 November and will be followed by a conference call with institutional investors and financial analysts.

***

The manager in charge of preparing the corporate accounting documents, Moreno Ciarapica, declares pursuant to and to the effects of article 154-bis, paragraph 2 of Legislative Decree no. 58 of 1998 that the disclosures included in this press release correspond to the balances on the books of account and the accounting records and entries.

We hereby inform that the Analyst Presentation of results as at 30 June 2020 can be consulted in pdf

format in the section "Presentations" on the corporate website: http://investor.brunellocucinelli.com/ita/presentazioni/.

This document contains forward-looking statements on future events and operating results, as well as economic and financial results, regarding the Brunello Cucinelli S.p.A. Group. By their very nature, these statements contain an element of risk and uncertainty as they depend on the occurrence of future events and developments.

The Company announces that the Half-Yearly Financial Report as at 30 June 2020, approved by the Board of Directors on 27 August 2020, will be made available to the public from 28 August 2020 at the Company's registered office in Viale Parco dell'Industria, 5, Solomeo (Perugia), at the storage mechanism managed by Spafid Connect S.p.A. "eMarket Storage" (www.emarketstorage.com) and can also be consulted in the section "Results - Financial Reports" of the Company's website (investor.brunellocucinelli.com).

8

***

Brunello Cucinelli S.p.A. is an Italian maison creating luxury goods. It was founded in 1978 by the fashion designer and entrepreneur of the same name and is listed on the Borsa Italiana Electronic Stock Exchange. The Company has always been rooted in the medieval hamlet of Solomeo and it is considered an authentic expression of the concept of "Humanistic Capitalism" since it can match constant, sound growth with an entrepreneurial philosophy addressing the major issues of Harmony with the Created and Human Sustainability.

Specialized in cashmere, the brand is currently believed to be one of the most exclusive brands in the chic prêt-à-portersector, an expression of everyday lifestyle worldwide. The combination of modernity and craftsmanship, elegance and creativity, passion and human values make Brunello Cucinelli one of the most exclusive and admired ambassadors of Italian style in the world. In fact, the brand authentically expresses the values of tailoring and artisanship that characterize Made in Italy production and the territory of the Umbria region in particular, combined with an eye on innovation and contemporary style.

Through healthy, balanced and sustainable growth, the company's main goal is to gain profits with ethics, morale and dignity, respecting the moral and economic dignity of the over 2,000 directly employed Human Resources and of all the company's collaborators. In 2019, the company reported over €600 million in revenues, a selected presence in the market, with 136 monobrand boutiques and the most prestigious spaces in the leading multibrand stores worldwide.

***

Contacts: Investor Relations & Corporate Planning

Pietro Arnaboldi

Brunello Cucinelli S.p.A.

Tel. 075/69.70.079

Media

Vittoria Mezzanotte

Brunello Cucinelli S.p.A.

Tel. 02/34.93.34.78

Corporate website: www.brunellocucinelli.com

9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2020

(Euro/000)

June 30, 2020

related

parties

Non-current assets

Goodwill

7,045

Right of use

461,607

5,337

Intangible assets

11,990

Property, plant and equipment

144,223

18,629

Investment property

3,923

Non-current financial assets for leases

456

Other non-current financial assets

10,585

32

Deferred tax asset

46,431

Total non-current assets

686,260

Current assets

Inventories

218,131

Trade receivables

72,398

8

Tax receivables

1,219

Other receivables and other current assets

18,181

Current financial assets for leases

237

Other current financial assets

23

Cash and cash equivalents

111,782

Current derivative financial instruments

1,513

Total current assets

423,484

Total assets

1,109,744

(Euro/000)

June 30, 2020

related

parties

S hareholders' equity

S hareholders' equity attributable to parent company shareholders

Share capital

13,600

Share-premium Reserve

57,915

Reserves

227,313

Net income for the period

(47,520)

Total shareholders' equity attributable to owners of the parent

251,308

S hareholders' equity attributable to non-controlling interests

Capital and reserves attributable to non-controlling interests

1,009

Net income for the period attributable to non-controlling interests

(137)

Total shareholders' equity attributable to non-controlling interests

872

Total shareholders' equity

252,180

Non-current liabilities

Employees termination indemnities

3,212

Provisions for risks and charges

930

Non-current payables towards banks

134,799

Financial liabilities for non-current leases

413,936

5,245

Other non-current liabilities

-

Deferred Tax liabilities

3,067

Non-current derivative financial instruments liabilities

257

Total non-current liabilities

556,201

Current liabilities

Trade payables

74,055

291

Current payables towards banks

112,221

Financial liabilities for current leases

71,675

510

Current financial liabilities

838

Income tax payables

5,251

Current derivative financial instruments

445

Other current liabilities

36,878

2,611

Total current liabilities

301,363

Total liabilities

857,564

Total equity and liabilities

1,109,744

December 31, 2019

related

parties

7,045

433,621

5,611

11,463

142,705

19,013

2,814

676

8,767

32

25,436

632,527

204,868

58,622

51

978

21,003

315

9,130

68,932

552

364,400

996,927

December 31, 2019

related

parties

13,600

57,915

173,581

52,553

297,649

1,160

530

1,690

299,339

3,182

1,127

30,474

388,816

5,502

247

2,504

150

426,500

89,453

556

71,987

62,661

509

5,329

3,960

3,871

33,827

2,567

271,088

697,588

996,927

June 30, 2019

related

parties

7,045

371,878

5,888

11,120

131,161

16,399

1,783

834

8,260

32

24,632

556,713

179,848

79,948

6

620

18,640

304

9,045

58,075

40

346,520

903,233

June 30, 2019

related

parties

13,600

57,915

180,193

25,304

277,012

109

(291)

(182)

276,830

3,178

885

38,968

337,957

5,756

135

1,743

318

383,184

79,725

546

73,673

52,166

507

481

11,038

4,929

21,207

104

243,219

626,403

903,233

10

CONSOLIDATED INCOME STATEMENT AT 30 JUNE 2020

(Euro/000)

June 30, 2020

related

June 30, 2019

related

parties

parties

Net revenues

205,143

4

291,413

3

Other operating income

1,347

3

398

23

Revenues

206,490

291,811

Costs of raw materials and consumables

(10,657)

(25)

(39,575)

Costs for services

(107,154)

(1,065)

(116,464)

(1,463)

Payroll costs

(57,483)

(565)

(53,832)

(799)

Other operating (expenses)/revenues, net

(4,294)

(3,384)

Costs capitalized

1,414

1,022

Depreciation and amortization

(49,851)

(40,084)

Impairment of assets and other accruals

(31,740)

(352)

Total operating costs

(259,765)

(252,669)

Operating Income

(53,275)

39,142

Financial expenses

(26,521)

(23,380)

Financial income

15,519

16,916

Income before taxation

(64,277)

32,678

Income taxes

16,620

(7,665)

Net income for the period

(47,657)

25,013

Net income for the period attributable to owners of the parent

(47,520)

25,304

Net income for the period attributable to non-controlling interests

(137)

(291)

Base earnings per share

(0,69882)

0.37212

Diluted earnings per share

(0,69882)

0.37212

CONS OLIDATED S TATEMENTS OF COMPREHENS IVE INCOME

(Euro/000)

June 30

2020

2019

Net profit (loss) for the year (A)

(47,657)

25,013

Other items of comprehensive income:

Other items

of

comprehensive income that will

later

be

1,570

1,159

reclassified on the income statement:

Cash flow hedge

2,277

222

Income taxes

(546)

(53)

Effect of changes in cash flow hedge reserve

1,731

169

Translation differences on foreign financial statements

79

925

Profit / (Losses) on net investment in a foreign operation

(315)

86

Tax effect

75

(21)

Other items

of

comprehensive income that will not later

be

(15)

(89)

reclassified on the income statement:

Remeasurement of defined benefit plans (IAS 19)

(20)

(117)

Tax effect

5

28

Total other comprehensive income net of tax effect (B)

1,555

1,070

Total comprehensive income net of tax (A) + (B)

(46,102)

26,083

Attributable to:

Shareholders of parent company

(45,970)

26,354

Non-controlling interests

(132)

(271)

11

CONSOLIDATED STATEMENT OF CASH FLOWS AT 30 JUNE 2020

(Euro/000)

CONS OLIDATED S TATEMENTS OF CAS H FLOWS

June 30, 2020

June 30, 2019

CAS H FLOW FROM OPERATING ACTIVITIES

Net income for the period

(47,657)

25,013

Adjustments to reconcile net income for the period to the cash flows generated by (used in)

operating activities:

Income tax

(16,620)

7,665

Depreciation and amortization

49,851

40,084

Provisions for employees termination indemnities

40

46

Provisions for risks and charges / inventory obsolescence / doubtful accounts

31,630

373

Change in other non-current liabilities

(252)

(11,919)

(Gain)/Loss on disposal of Fixed assets

110

62

Other non-monetary items IFRS-16

(850)

Interest expense

1,068

771

Interest on lease liabilities

5,491

5,045

Interest income

(17)

(71)

Interest on lease activities

(9)

(11)

Termination indemnities payments

(31)

(35)

Payments of Provisions for risks and charges

(639)

-

Net change in deferred tax assets and liabilities

(21,138)

(2,057)

Change in fair value of financial instruments

(2,001)

354

Changes in operating assets and liabilities:

Change in trade receivables

(14,764)

(18,549)

Change in inventories

(45,130)

(16,614)

Change in trade payables

(15,045)

1,901

Interest expense paid

(1,068)

(673)

Interest on the lease liabilities paid

(5,491)

(5,045)

Interest income cashed

17

71

Interest on lease activities cashed

9

11

Income tax paid

(2,510)

(677)

Change in other current assets and liabilities

31,179

5,977

Net cash provided by/(used in) operating activities

(53,827)

31,722

CAS H FLOW FROM INVES TING ACTIVITIES

Additions to property, plant and equipment

(14,755)

(15,524)

Additions to intangible assets

(4,615)

(2,224)

Additions/(disposals) of financial assets

(1,900)

(195)

Additions to investment property

(1,109)

(864)

Investement/Disinvestments in financial assets held for trading

9,120

(7)

Proceeds from disposal of property, plant and equipment

353

226

Net cash provided by/(used in) investing activities

(12,906)

(18,588)

CAS H FLOW FROM FINANCING ACTIVITIES

M edium/Long-term loans received

151,729

26,950

Repayment of medium/long-term loans

(22,859)

(15,558)

Net change in short-term financial debt

15,793

21,841

Repayment of lease liabilities

(33,811)

(24,949)

Receipts of financial assets for leasing

137

141

Dividends paid

(1,076)

(20,483)

Share capital and reserves increase

23

49

Net cash provided by/(used in) financing activities

109,936

(12,009)

TOTAL CAS H FLOW FOR THE PERIOD

43,203

1,125

Effect of exchange rate changes on cash and cash equivalents

(353)

344

CAS H AND CAS H EQUIVALENTS AT THE BEGINNING OF THE PERIOD

68,932

56,606

CAS H AND CAS H EQUIVALENTS AT THE END OF THE PERIOD

111,782

58,075

12

Disclaimer

Brunello Cucinelli S.p.A. published this content on 27 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2020 16:07:06 UTC


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Sales 2020 542 M 657 M 657 M
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Net Debt 2020 579 M 702 M 702 M
P/E ratio 2020 -85,2x
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EV / Sales 2021 4,77x
Nbr of Employees 2 024
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Brunello Cucinelli S.p.A. Technical Analysis Chart | BC | IT0004764699 | MarketScreener
Technical analysis trends BRUNELLO CUCINELLI S.P.A.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
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Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 10
Average target price 29,91 €
Last Close Price 34,86 €
Spread / Highest target 9,01%
Spread / Average Target -14,2%
Spread / Lowest Target -45,5%
EPS Revisions
Managers and Directors
NameTitle
Brunello Cucinelli Chairman & Chief Executive Officer
Moreno Ciarapica Chief Financial Officer & Executive Director
Giovanna Manfredi Director
Riccardo Stefanelli Executive Director & Chief Commercial Officer
Candice Koo Independent Director
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