GENEVA, 05 JULY 2019
– Growth of adjusted* revenue by 12.8% to CHF 502.7m
– Increase of adjusted operating profit before exceptional items by 31.4% to CHF 57.0m
– Net profit Group share up 15.7% to CHF 31.8m
The Group’s overall activity improved during the period, growing compared with the first half of 2017, benefiting in particular from a positive market environment. Moreover, the business benefited from recruitment efforts of specialised resellers to reinforce the Group’s presence in a number of regions.
Against this backdrop, the Group’s adjusted consolidated revenue for the first six months reached CHF 502.7m compared with CHF 445.7m in the first half of 2018, a rise of 12.8% at current exchange rates. Adjusted revenue from the apparel business rose 11.0% to CHF 485.5m while the accessories business was up 21.4% to CHF 17.2m.
The Group’s performance in the first half of 2019 helped generate a substantial increase in its direct contribution, up by nearly CHF 23m, however impacted by an increase in
exceptional costs. Thus adjusted operating profit before exceptional items was CHF 57.0m against CHF 43.4m in the first half of 2018, a rise of 31.4% at current exchange rates, for an operating margin of 11.3%. Exceptional costs represented CHF 7.3m against CHF 1.8m during the previous period.
*with proportionate consolidation method for joint ventures (“Adjusted”)
Reported revenue and operating profit
The Group reported consolidated revenue (IFRS) of CHF 459.8m against CHF 411.4m in the first half of 2018, up 11.8%.
Reported operating profit for the period was up 11.7% in current currencies, to CHF 41.5m compared with CHF 37.2m in the first half of 2018.
The financial result represented a net expense of CHF 2.3m in the first half of 2019 against CHF 4.7m for the previous period. Net financial result mainly included interest expense on bank borrowings and bonds, net of interest income from the investment of short-term cash as well as net foreign exchange differences due to exchange rate fluctuations.
The share in the results of associates and joint ventures was CHF 6.5m against CHF 3.2m in the first half of 2018, a rise of 102.7%, thanks to the Group’s good performance in Japan.
Consolidated net profit was CHF 33.9m compared with CHF 28.6m in the first half of 2018 with a Group share of CHF 31.8m against CHF 27.4m in 2018, an increase of 15.7%.
The Group maintained its focus on a sound balance sheet with a strong capital position while keeping a low level of intangible assets and a strong net cash position. Consolidated equity amounted to CHF 425.9m at 30 June 2019 with an adjusted cash of CHF 209.5m, including Group share of net cash held by joint ventures.
At 30 June 2019, consolidated equity stood at CHF 395.2m (31 December 2018: CHF 398.4m) of which CHF 378.7m was attributable to shareholders of the parent (31 December 2018: CHF 382.9m). Total adjusted cash, including financial assets at fair
value, net of financial debt, was CHF 125.0m at 30 June 2019 against CHF 137.9m at 31 December 2018.
In the second half, the Group will remain focused on external and organic growth opportunities in order to further enhance its product portfolio, against a backdrop of advanced consolidation in the industry around two global players, namely Kering and LVMH.
Alessandra Meoli, Press Secretary
ADRIEN MARAZZI FASHION GROUP
+41 (0)22 544 38 31