- Prachi Singh |
In the year 2018, Aeffe Group registered sales of 346.6 million euros (391 million dollars), with a 11.2 percent increase at constant exchange and 10.9 percent at current exchange rates. Due to improvement in operating profit, in 2018 the company’s profit before taxes amounted to 28.8 million euros (32.5 million dollars), with a 9.9 million euros or 52 percent increase, while net profit of the group was equal to 16.7 million euros (18.8 million dollars), a 5.2 million euros or 46 percent improvement over 2017.
Commenting on the results, Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a statement: “Thanks to the efficiency of the business model, we are pleased to confirm a satisfactory progression of margins, more than proportional to the growth in turnover. For the current year we hope for a path of further development for our brands, also in the accessories segment, along with the optimization of our presence in high-potential markets, especially in the Far East area.”
Aeffe’s performance across geographies and product segments
Revenues of the prêt-à-porter division amounted to 265.6 million euros (299.7 million dollars), up by 11.2 percent at constant exchange and 10.8 percent at current exchange rates. Revenues of the footwear and leather goods division increased by 9.3 percent to 118.3 million euros (133.4 million dollars) both at constant and current exchange rate.
In 2018, sales in the Italian market rose 10.7 percent to 168.5 million euros (190 million dollars), due to organic growth both in wholesale and in the retail channel. Italian market amounted to 48.6 percent of consolidated sales; that incidence decreased to 37 percent net of the effect of sales to foreign customers made on the national territory. At constant exchange rates, sales in Europe, contributing to 23.2 percent of consolidated sales, increased by 4.6 percent, driven especially by the good performance in UK, Germany and Eastern Europe.
In Asia and in the Rest of the World, the group’s sales totalled 80.1 million euros (90.3 million dollars), amounting to 23.1 percent of consolidated sales, recording an increase of 23.6 percent at constant exchange rates compared to 2017, driven by positive trend in Greater China, which posted a 27.8 percent growth. Sales in Americas, contributing to 5 percent of consolidated sales, posted in the period a decrease of 1.3 percent at constant exchange rates.
By distribution channel, in 2018, wholesale sales rose 13.4 percent at constant exchange, contributing to 71.5 percent of consolidated sales and the sales of directly-operated stores (DOS), representing 25.1 percent of consolidated sales, grew by 4.8 percent at constant exchange rates compared with 2017. Royalty incomes, representing 3.4 percent of consolidated sales, recorded a 15 percent increase compared to 2017.
Financial highlights of Aeffe’s FY18 performance
In 2018 the Group posted a good improvement in margins; consolidated Ebitda was equal to 43.3 million euros (48.8 million dollars), with an incidence of 12.5 percent of consolidated sales, compared to 36.6 million euros in 2017 or 11.7 percent of total sales, with a 6.7 million euros or 18.5 increase.
The improvement in profitability was driven by both divisions. Ebitda of the prêt-à-porter division amounted to 31.6 million euros, representing 11.9 percent of division sales, a 4.8 million euros or 18 percent increase, while ebitda of the footwear and leather goods division amounted to 11.7 million euros, 9.9 percent of division sales, with a 1.9 million euros or 20 percent increase.
Consolidated Ebit was equal to 29.6 million euros (33.4 million dollars), a 6.9 million euros or 31 percent increase.