Piquadro: net profit increases in H1
Piquadro, the Italian brand that primarily specializes in bags and high-tech travel accessories, has finished off an excellent first half. In the first six months of its 2014-15 financial year ending on September 30, it posted a net profit of 2.25 million euros, recording growth of 14.2% as compared to the same period one year earlier, it said in a statement.
The company generated a turnover of 32.35 million euros, up 8.2% as compared with the same period one year earlier, particularly thanks to an increase in Italian sales, which jumped 14.7%. Its domestic market still accounts for the majority of the company’s business, making up 75.3% of total sales.
In Europe, on the other hand, Piquadro saw its sales fall 3.9% in the first six months of its fiscal year, heavily penalized by the crisis in Russia and Ukraine.
For the rest of the world—i.e. 19 non-European countries where the brand is present—sales plunged by 17.5%. This significant decrease is primarily due to the closure of 7 directly managed stores in China and Hong Kong, whose "performances did not align with management’s expectations," stated the company.
Regarding the company’s profitability, its EBITDA amounted to 4.96 million euros as compared with 4.58 million for the same period a year earlier (+ 8.3%), while its EBIT rose by 7.1% to 3.63 million.
Its net financial debt amounted to 16.1 million euros in the September 30 as compared with 10.2 million in March 31, due to major investments. "We have increased our investment in marketing, and appreciation of our brand and products in our core markets is very high, which allows us to pursue our strategy and be positive about results for the coming quarters," said CEO Marco Palmieri.
The company is looking forward to continued growth for the rest of the year, bolstered by the initial fruit born from the company’s "international growth project and repositioning toward a glamorous brand image."
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