Brunello Cucinelli posts 9.9 percent rise in 2019 turnover, profit up 7.1 percent

Brunello Cucinelli S.p.A. net revenues for 2019 rose by 9.9 percent at current exchange rates and 8.6 percent at constant exchange rates to 607.8 million euros (686 million dollars), while the company said in a statement that revenue from sales and services, including other operating income, amounted to 608.8 million euros (687.5 million dollars), an increase of 9.8 percent. The company’s EBITDA of 106.1 million euros (119.8 million dollars), increased 11.5 percent and margins grew by 20 basis points, from 17.2 percent last year to 17.4 percent, while normalized net income amounted to 49.3 million euros (55.6 million dollars), growth of 7.1 percent.

Commenting on the results, Brunello Cucinelli, the company’s Chairman and CEO, said: “We have defined the past year, 2019, as an excellent one because of the growth enjoyed by our company both from a financial point of view, with a sound increase in sales and margins, and in terms of brand positioning. We are fully aware that the coming year will call for a very careful reading and we will see it as separate not affecting our 2019-2022 plan and ten year 2019-2028, in which we expect to double our turnover and achieve healthy, balanced and sustainable profits.”

Brunello Cucinelli’s performance across geographies

The company added that Italian market witnessed a growth of 1.7 percent, with revenues of 89.7 million euros (101.3 million dollars), compared to €88.2 million last year. Sales in the European market increased 12.9 percent to 184.8 million euros (208.7 million dollars), while North American market saw growth of 9 percent, with sales of 204.1 million euros (230.4 million dollars). The company further said that turnover in China rose 14.6 percent, with sales reaching 62.9 million euros (71 million dollars), while rest of the world revenues increased 12.4 percent to 66.3 million euros (74.8 million dollars).

The company’s retail monobrand channel reported growth of 14.6 percent with sales of 339.5 million euros (383.4 million dollars), with 4.2 percent like-for-like growth. As at September 30, 2019, the network consisted of 106 boutiques compared to 100 as at December 31, 2018, with three openings in the last quarter of 2019. Wholesale monobrand channel posted growth of 8 percent with revenues of 32.6 million euros (36.8 million dollars). The network has 30 boutiques compared to 27 as at December 31, 2018. Wholesale multibrand channel sales increased 4.1 percent to 235.7 million euros (266.2 million dollars).

Brunello Cucinelli company said that its board of directors will propose the payment of a dividend of 0.35 euros per share to shareholders at their next general meeting, to be held on April 23, 2020, equal to a pay-out of 45.3 percent of the group’s net income for the year compared to 40.2 percent for the previous year.

Picture credit:Brunello Cucinelli website