Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
PRADA
HKEx Stock Code : 01913 
 
Corporate Profile
PRADA S.p.A. (the ˇ§Companyˇ¨), together with its subsidiaries (jointly the ˇ§Groupˇ¨), is a leading global luxury group in the design, production and distribution of high-end leather goods, handbags, footwear, apparel, accessories, eyewear and fragrances. Through its directly-operated-stores network (ˇ§DOSˇ¨) and a selected number of wholesalers, the Group operates in all major international markets.

Business Review - For the year ended January 31, 2013

During the year 2012 the PRADA Group consolidated its position at the head of the worldwide luxury goods market. Despite the challenging global economic environment, with some major concerns in Europe, the Group has made further important progress along its path of growth leveraging on the strength of its brands and on a relentless commitment to innovation and quality. The actions undertaken in the course of 2012 have always been consistent with the long-term business expansion strategy implemented in recent years. The Group went on investing massive resources in strengthening the retail channel while maintaining a unique and powerful brand image: many new DOS were unveiled in 2012, including the first ever stores in Brazil, Mexico, Morocco, Kuwait and Ukraine and prestigious sponsorships and projects in fields other than Prada's core business successfully took place. At the same time, the Group strove tightly to control unit margins over the supply chain so as to benefit from economies of scale resulting from the expansion without compromising the Group's reputation for craftsmanship and quality cultivated throughout its hundred-year long history. These strategies delivered significant revenue growth and improved operating results for the twelve months ended January 31, 2013.

The Group's net revenue for the twelve months ended January 31, 2013, totaled Euro 3,297.2 million, 29% more than in 2011, one of the highest growth rates in the industry. The boost in sales, coupled with a further improvement in profitability, was mainly achieved thanks to the performance of the retail channel. In fact, the Group's EBITDA for the twelve months ended January 31, 2013, totaled Euro 1,052.5 million, 38.6% up on 2011, while reaching a record high of 31.9% as a percentage of net revenues. The Group's net profit was Euro 625.7 million, up by 44.9% compared to 2011 and standing at 19% of net revenues.

The capital expenditure incurred during the year amounted to Euro 351.1 million and was mainly focused on the enlargement and renovation of the DOS network. The investment program led to the opening of 78 new DOS, most of them completed in the second half of the year.

Free cash flows of the year enabled the Group to accumulate total of cash and cash equivalents of some Euro 572 million and a positive net financial position of Euro 312.6 million at January 31, 2013.

At January 31, 2013, the Group operated 461 DOS worldwide, employed more than 10,000 people and had a market capitalization of some Euro 17 billion based on the Hong Kong Stock exchange share price at the reporting date.

Business Outlook - For the year ended January 31, 2013

The Group remains confident that the strategy which has been coherently deployed in recent years with regard to brand positioning and retail expansion will again be a key success factor for the forthcoming fiscal year, even in a general economic environment that remains challenging.


Source: PRADA (01913) Annual Results Announcement
Chairman N/A Issued Capital (shares) 2,559M
Par Value EUR 0.1 Market Capitalisation (HKD) 179,374M
 
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