PRESS RELEASE 2014 RESULTS APPROVED ITALIA INDEPENDENT GROUP CONTINUES TO GROW

Transcription

1 PRESS RELEASE 2014 RESULTS APPROVED ITALIA INDEPENDENT GROUP CONTINUES TO GROW - Net revenue %, equal to 32.9 million euro (24.9 million euro for the year ended 31 December 2013) - Gross margin %, equal to 22.9 million euro (17,2 million euro for the year ended 31 December 2013) - EBITDA %, equal to 5.6 million euro (4.7 million euro for the year ended 31 December 2013) - Group s net profit % equal to 0.6 million euro (0.5 million euro for the year ended 31 December 2013) - Net financial position negative by 10.2 million euro (3.9 million euro at 31 December 2013) Turin, 26 March 2015 Italia Independent Group S.p.A. is pleased to announce that its Board of Directors, during its meeting today, examined and approved the Group s consolidated financial statements and the Company s draft financial statements at 31 December Andrea Tessitore, Italia Independent Group s co-founder and CEO, declared: 2014 was a year of strong growth for the Group which improved its positioning abroad and consolidated its foothold in the domestic market, expanding and strengthening its organizational structure. We are very optimistic about the business in Indeed, the new projects underway will further boost a business model which proved solid, scalable and extremely up-to-date considering the intense changes which currently affect the eyewear sector. Consolidated highlights for 2014 The Group remained in a strong growth phase, with consolidated net revenue up 32.1% on Specifically, consolidated net revenue of million euro was achieved owing primarily to growth in the eyewear sector which, in 2014, accounted for 79.4% of total consolidated revenue (compared to 76.2% in 2013). The following is a breakdown of consolidated net revenue for 2014 by business line (with 2013 corresponding figures). 1

2 The eyewear sector in particular showed an increase in revenue both in Italy (+13.6% with million euro in 2014 compared to million euro in 2013) and abroad, with significant growth in France, Spain and Germany (+81.5% with 6.20 million euro in 2014 compared to 3.41 million euro in 2013), and in the rest of the world (+59.4% with 5,26 million euro in 2013 compared to 3.30 million euro in 2013, America excluded). The US branch also grew significantly in 2014 up to 1.98 million euro (compared to 1.09 million euro in 2013, +81.1%). Two aspects should be noted: on the one hand, the Group s ongoing internationalization (in 2014, foreign markets accounted for 51.4% compared to 41.1% in 2013) and, on the other hand, the increase in the Retail BU s revenue (+169% with 1.39 million euro in 2014 compared to 0.51 in 2013) following the opening and acquisition of new singlebrand shops (specifically, the flagship shops in the Paris St. Germain and the New York Soho districts) and the increase in revenue from existing shops. The following is a breakdown of 2014 revenue by region for the eyewear sector only (with 2013 corresponding figures). With respect to distribution, in 2014, the Italia Independent brand reached approximately 2,400 customers in Italy and about 1,600 customers in foreign markets (mainly France, Spain, Greece, Switzerland and Germany) and roughly 500 customers in the US. In the rest of the world, the brand is 2

3 present through distribution agreements. Overall, in 2014, the Italia Independent brand was distributed in 80 countries. The Group was also extremely active with respect to business development, forging several relationships which, inter alia, led to the market launch of an interior design mirror, developed with Meritalia, which reminds of the shape of Italia Independent iconic 090 sunglasses, an important partnership with adidas Originals for a shoes and accessory capsule collection which was welcomed both in Italy and abroad, and apparel with several brands, including MC2 and Colmar. With respect to communication, the agency Independent Ideas confirmed a satisfactory growth, further improving margins and strengthening its consultancy role with its most long-standing customers. The team s quality remains the Group s core asset, considering, in particular, Independent Ideas coordinating role in the communication and marketing of the Italia Independent brand. Gross margin also increased in both absolute (+33.0%, equal to million euro compared to million euro in 2013) and in percentage terms: gross margin came to 69.7% of revenue, compared to 69.2% in the previous year. This is primarily due to the greater influence of the eyewear sector (which offers higher margins) on the Group s revenue. EBITDA rose in absolute terms (+18.6%, equal to 5.55 million euro compared to 4.68 million euro in 2013), coming to 16.9% of consolidated revenue (slightly down on 2013): the increase in gross margin was offset by a proportional rise in operating costs tied to the expansion of the organization, as well as the expenses related to foreign branches (specifically, the branches set up in France and Brazil in 2014). Employees also increased from 110 to 160 (up 58% on 2013), further confirming the organization s strengthening process which marked Conversely, there was a slight decline in EBIT compared to the previous year: 1.97 million euro in 2014 (compared to 2.14 million euro in 2013) owing to the impact of the amortization of costs tied to the opening of new shops and the Group s new offices, in addition to the increase in accruals to sundry provisions. The Group s net profit for the year rose by 14.0% up to 0.61 million euro, compared to 0.54 million euro in 2013 (0.58 million euro, net of non-controlling interests, compared to 0.46 million euro in the previous year). With respect to the consolidated balance sheet items as at 31 December 2014, net invested capital amounts to million euro (18.97 million euro at 31 December 2013) and comprises net working capital worth million euro, fixed assets worth million euro and provisions and postemployment benefits worth 1.45 million euro. Specifically, the increase in net working capital, in particular trade receivables and payables and inventory is due to the considerable increase in the Group s revenue. This element, together with the investments of the year and the continuation of the retail project, generated an increase in cash requirements which were met through the use of part of short-term credit lines and existing liquid funds as well as the new medium/long-term credit lines agreed during the year. This affected the net financial position which went from a negative 3.91 million euro at 31 December 2013 to a negative million euro. 3

4 The parent company Italia Independent Group S.p.A. recorded a net loss for the year of 0.72 million euro. Significant events after the reporting date January 2015 saw the launch of a new eyeglass and sunglass family, EYEYE (registered trademark), based on the digital printing technology with a price to the public of approximately 80 euro. This product family was also the object of a partnership with the Kodak Lens brand (Essilor Group) aimed at offering consumers a frame with graduated lenses (prescription or sun) starting from 98 euro. Furthermore, two important collaborations were launched: the first is a three-year collaboration with Hublot, the luxury watch brand (a big preview of Baselworld 2015), while the second is a new partnership with adidas Originals for an eyewear project lunched at the last edition of MIDO Milano. Calling of the ordinary shareholders meeting and relevant documentation The Board of Directors has decided to call the shareholders in an ordinary meeting on 30 April 2015 on first call and, if necessary, on 4 May 2015, on second call, to approve the financial statements at 31 December 2014 and to resolve on the allocation of the net financial result for the year. The notice calling the meeting will be posted on the Company s website ( and the daily La Stampa. The documentation required by ruling legislation applicable to the above issues, along with the 2014 consolidated financial statements, will be filed with the Company s registered office and will be available on the Company s website ( within the Investor Relations section in accordance with the law and the regulation. The following accounting statements are provided below (figures in euro 000): - Consolidated income statement as at 31 December Consolidated balance sheet as at 31 December Consolidated net financial position as at 31 December Consolidated cash flow statement as at 31 December

5 Consolidated income statement 31 December December 2013 Revenue Sales revenue % 27, % Returns and allowances (4.665) -14.2% (3,772) -15.1% Total revenue % 24, % Other income - royalties % % Total value of production % 24, % Cost of sales (9.974) -30.3% (7,678) -30,8% Gross profit/margin % 17, % Operating costs Sales and distribution costs (6.165) -18.7% (5,329) -21.4% Travel costs (583) -1.8% (421) -1.7% Leases (1.385) -4.2% (547) -2.2% Personnel expenses (6.891) -20.9% (4,624) -18.6% General and administrative costs (1.884) -5.7% (1,219) -4.9% Other operating costs (483) -1.5% (423) -1.7% Total operating costs (17.391) -52.8% (12,563) -50.4% EBITDA % 4, % Depreciation and amortization (2.481) -7.5% (1,788) -7.2% Provisions and write-downs (1.106) -3.4% (758) -3.0% EBIT % 2, % Financial expense, net (441) -1.3% (291) -1.2% Extraordinary expense, net (87) -0.3% (225) -0.9% Euro rounding differences (2) EBT % 1, % Taxes (822) -2.5% (1,081) -4.3% Net profit for the year % % 5

6 Consolidated balance sheet 31 December December 2013 USES Fixed assets Intangible fixed assets Tangible fixed assets Financial fixed assets Total fixed assets (A) Net working capital Inventories Trade receivables Tax/social-security payables (232) Other receivables Trade payables (11.867) (7.005) Other payables (844) (672) Net working capital (B) Invested capital (A + B) Provisions Provision for staff leaving indemnity (339) (227) Other provisions (1.107) (709) Total provisions ( C ) (1.446) (936) Net invested capital (A + B + C) SOURCES Net equity Net financial position Financial liabilities Shareholder loans (rounding) 0 Cash and cash equivalents (6.141) (4.321) Total net financial position Total sources

7 NET FINANCIAL POSITION 31 December December 2013 A. Cash in hand B. Cash equivalents C. Securities held for trading 0 D. Cash and cash equivalents (A) + (B) + (C) E. Current financial assets 0 F. Short-term bank borrowings (4.078) (3.635) G. Current portion of non-current borrowings (1.772) (803) H. Other current financial liabilities (48) (78) I. Current borrowings (F)+(G)+(H) (5.898) (4.516) J. Current net financial position (I) + (E) + (D) 243 (196) K. Non-current bank borrowings (9.089) (2.253) L. Bonds issued 0 H. Other non-current liabilities (1.445) (1.461) N. Non-current borrowings (K) + (L) + (M) (10.534) (3.714) O. Net financial position (J) + (N) (10.291) (3.910) 7

8 Cash flow statement 31 December December 2013 A. Cash flows from/(used in) operating activities (1.540) (740) Net profit for the year Adjustments for non-monetary costs and revenue Depreciation and amortization Increase in provisions for risks and charges Increase in employee benefit provision Translation differences 500 (96) Changes in net working capital (5.642) (3.364) (Increase in trade receivables) (4.255) (3.417) (Increase in sundry receivables) (2.245) (1.436) Decrease in inventories (3.494) (1.262) (Decrease in trade payables) (Decrease in sundry payables) (510) 978 B. Cash flows used in investing activities (4.864) (5.277) (Purchase of intangible fixed assets) (2.684) (1.556) (Purchase of tangible fixed assets) (2.052) (627) (Purchase of financial fixed assets) (123) (324) Changes in consolidating area (5) (Listing costs) (2.770) C. Cash flows from financing activities Proceeds on the issuance of share capital (Purchase)/sale of equity investments (2) (5.223) Receipt/(Repayment) of loans (Dividends paid) 0 D. Net cash flows from operations (A ± B ± C) E. Opening cash balance F. Closing cash balance (D ± E) ** * ** In this press release, use is made of certain alternative performance indicators not envisaged by the IFRS (EBITDA, EBIT and net financial position), for the meaning of which reference should be made to the 2014 consolidated financial statements. This press release may include forward-looking information, including references which do not relate exclusively to historical figures or current events and which, therefore, because of its nature, is uncertain. Forward-looking information is based on several assumptions. expectations, projections and forecast figures pertaining to future events and are exposed to a number of uncertainties and other factors which go beyond the Company s and/or the Group s control. Many factors can generate results and trends which are considerably different from forward-looking information, in terms of implicit or 8

9 explicit content. Consequently, this information shall not be considered as a reliable indicator of future performance. Italia Independent Group does not undertake to publicly update or review the forward-looking information following the provision of new information due to future events or for other reasons, unless this is required by applicable legislation. The information and the opinions set out in this press release are those available at the date of this document and may be subject to sudden changes. Furthermore, any reference to the Company s or the Group s past performance should not be considered as an indication of future performance. With respect to the accounting figures shown in this press release, neither the legally-required audit nor the checks by the Board of Statutory Auditors have been completed yet. *** Italia Independent Group: Italia Independent Group (IIG AIM Italia/MAC) heads a group active in the eyewear and lifestyle products through its brand Italia Independent and communication through its agency Independent Ideas. The Group also acts as a platform for entrepreneurial and commercial initiatives in the communication, design and style sectors aimed at creating synergies to support the growth of the Italia Independent brand in Italy and abroad, leveraging its cross-border management experience in communication and product development. To this end, the Group participates in entrepreneurial initiatives developed through I-Spirit Vodka, Sound Identity, Care Label and Independent Value Card. Italia Independent Group S.p.A. Investor relations Pietro Peligra tel fax investorrelations@iigroup.it Nomad e Specialista Equita SIM S.p.A. Roberto Borsato Tel: Fax: r.borsato@equitasim.it Ufficio Stampa Corporate Close to Media Luca Manzato (luca.manzato@closetomedia.it; mob ) Adriana Liguori (adriana.liguori@closetomedia.it; mob ) 9