Salvatore Ferragamo Group: another year of growth in turnover and profitability

The Board of Directors of Salvatore Ferragamo S.p.A. (MTA: SPHERES), parent company of the Salvatore Ferragamo Group, which met under the chairmanship of Ferruccio Ferragamo, has reviewed and approved the Draft Financial Statements 2014 and the Consolidated Financial Statements 31 December 2014, prepared in accordance with IAS / IFRS.
In the exercise 2014, Salvatore Ferragamo Group has realized Consolidated Revenues 1.332 millions of euro, increase in 5,9% at current exchange rates (+9,3% in the fourth quarter 2014), compared to 1.258 million euro recorded in the twelve months of the year 2013. At constant exchange rates the growth in revenues amounted to 6,5% (+7,7% in the fourth quarter 2014). Following the trend of revenues is commented at constant exchange rates, if not stated otherwise.
Revenues by geographic area
The Asia Pacific reconfirms the first market in terms of revenues for the Group, with sales accounting for 37% of total, growing by more than 5% (+7% in the fourth quarter), despite the stress experienced in the latter part of the year in Hong Kong. Especially important contribution of direct stores in China that have registered, in the twelve months of the year 2014, growth rates 18%, compared to 2013. The area Europe reported during 2014 an increase in revenues of 9% (+14% in the fourth quarter), despite being penalized by international tensions, which negatively affected the tourist flow, and the continuing difficult economic situation. The area of ​​North America has increased by 5% compared to 2013 (+2% in the fourth quarter 2014 that, however, had a difficult comparison base, +11% in 4Q 2013). The Japanese market has shown an increase of 4% (+6% in the fourth quarter 2014), However, registering a decrease of 4% at current exchange rates due to the unfavorable currency. The area of ​​Central and South America has seen, During the twelve months of 2014, a solid growth of 14% (+17% in the fourth quarter). To the 31 December 2014, the distribution channel Group retail Salvatore Ferragamo could count on 373 direct outlets (DOS), and the Wholesale channel and Travel Retail on 270 flagship stores operated by third parties (TPOS), and on the presence in the main Department Store and Specialty Store multibrand high level. The distribution channel Retail recorded at 31 December 2014
Consolidated Revenues increased by about 5% (+6% in the fourth quarter) compared to 2013. A rate and perimeter basis (like-for-like) growth, respectively for the full year 2014 and for the fourth quarter, was approximately 2% and 4%. The Wholesale channel has increased by 10% compared to 2013 (+12% in the fourth quarter), mainly due to the contribution of Travel Retail channel.
Among the product categories are reported, particularly, increases in sales of handbags and leather accessories (+13%) and footwear (+5%), which together represented 78% of consolidated revenue. Sales of perfumes, thanks waiting acceleration recorded in the fourth quarter (+23%), mark for the full year 2014 an increase of over 5%.
Gross margin for the year 2014 is equal to 848 million euro, an increase of 6%. The percentage of sales increased from 63,5% to the 63,7% year 2014 and 64,3% to the 65,3% in the fourth quarter. Operating costs for the year 2014 recorded an increase of 4%. The ratio of annual operating costs to revenues therefore decreased from 46,1% a 45,3%, and 47,7% to the 44,9% in the fourth quarter.
The Gross Operating Result (EBITDA) increased 13% year 2014, passing the 260 million euro in 293 millions of euro, with a percentage of revenue growth from 20,7% to the 22,0%. In the fourth quarter EBITDA increased from 68 million euro in 90 millions of euro, increase in 32% over the same period 2013, with a margin of 23,9%, compared to 19,9% del fourth quarter 2013.
The Operating Result (EBIT) increased from 219 million euro in 245 millions of euro, showing an increase of 12% and a margin of 18,4%, from 17,4% year 2013.
Profit before tax in the year 2014 rose to 238 million euro from 221 million euro in the same period of 2013, which included approximately 13 million euro for the gain on the sale of the stake in the company Zefer; Excluding this gain the profit before tax was up 14%.
Net Profit for the Period, including the results of third parties 7 millions of euro, amounts to 164 millions of euro, showing an increase of 2%, but up 11% excluding the gain on the sale of the stake in the company from the result Zefer 2013. Net profit attributable to the Group's results 157 million compared to EUR 150 million recorded in the year 2013, showing an increase of 4%, but up 13% excluding the gain on the sale of the stake in the company Zefer.