The Italian fashion group Aeffe SpA announced its interim quarterly results as of March 31, 2022 on Monday. According to the report, the luxury group, which owns the brands Alberta Ferretti, Philosophy di Lorenzo Serafini, Pollini and Moschino, more than doubled its net profit in the first quarter of 2022, while profit margin increased by 45 percent and sales by 26.5 percent.
The Group achieved total sales of EUR 101.6 million, compared to EUR 80.1 million for the same period in 2021, an increase of 26.5 percent at constant exchange rates (26.8 percent at current exchange rates). Of this, EUR 67.7 million (an increase of 28 percent) was attributable to ready-to-wear and EUR 46.2 million to shoes and leather goods (up 28.8 percent). With the exception of the Middle East, all regions recorded an increase, especially the USA with 88.3 percent and Europe with 37.5 percent.
“The first quarter of 2022 confirmed the trends of the 2021 financial year with significant sales growth and a disproportionate increase in profitability. These results have been achieved thanks to the good performance of all our brands and the benefits deriving from the structural efficiency of the business model implemented over the past two years,” commented Massimo Ferretti, President of the Board of Aeffe SpA.
The deficit before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects grew from EUR 14.1 million in the previous year to EUR 20.4 million or 20 percent of sales, which corresponds to an increase of 45 percent. The Group’s net profit increased from EUR 3.7 million in 2021 to EUR 8.9 million in 2022.
Net financial debt including the impact of IFRS 16 was €172.2 million, an increase from debt of €142.7 million at the end of March 2021. Financial debt as of March 31, 2022 excluding the effect of IFRS 16 is €100 million ( compared to 57.3 million euros as of March 31, 2021).
“Excluding the extraordinary acquisition of the minority stake in Moschino SpA, the net financial position after deducting the effect of IFRS 16 would have improved by €27.5 million,” the company noted.
The backlog of orders for the Fall/Winter 2022-23 collections reached an increase of 9 percent compared to the corresponding season last year.
“Despite the uncertainties related to the geopolitical tensions surrounding the ongoing conflict in Ukraine, the 9 percent increase in orders for collections is a testament to our customers’ appreciation of the Group’s brands. Finally, the renewed strategic orientation will continue regularly with the new course for the Moschino brand and the project to directly manage sales on the Chinese market, which will be implemented in the next quarter,” concluded Ferretti.