Leathergoods do well for Mariella Burani
05/05/2009
The Mariella Burani Fashion Group has reported revenues of EUR 700.1 million for 2008, an increase of 3.9% on 2007. Earnings on this total were 5.3% higher than the year before at EUR 87.8 million.
Nevertheless, the company recorded a loss of EUR 65.2 million, compared to a net income of EUR 16.8 million the year before. The main reason for the difference between the two years was the group’s acquisition of the Mandarina Duck brand in May 2008.
The company said the contribution of leathergoods—56.6% of all revenues—had been strong.
Walter Burani, chairman of the board for the company, said: “Notwithstanding the difficult economic environment, the group realised 9.8% growth in operating earnings in 2008, attesting to the strength of our business model and operations. We have initiated a debt restructuring project to ascertain maximum operating flexibility, improve the efficiency of cash management, and to optimise the mix of short- and long-term debt.”
He said the group would further extend its retail network, and continue to develop strategic partnerships in emerging markets.
2008 Financial Highlights
Consolidated revenues of € 700.1 million (+3.9%) vs. € 674.0 million in 2007 benefit from
the capital gains realized on the sale of 49% of APBags to 3i, the sale of AP shares in the
acquisition of Mandarina Duck, the sale of commercial real estate and brands, as well as the
first time consolidation of Mandarina Duck from July 1, 2008, and the full year consolidation
of Dadorosa.
Notwithstanding the difficult economic environment, organic revenues increased by 5.8%,
during the year, primarily reflecting the strong contributions from the Leather Goods and
Digital Fashion divisions. The Apparel Division benefited during the year from the expansion
of the licensed brand portfolio and the 13% growth realized from existing licenses, driven by
Patrizia Pepe children’s wear collections.
Consolidated EBITDA reached € 87.8 million (+5.3%) compared to € 83.4 million generated
during 2007, reflecting a 12,5% Ebitda margin. 2008 Consolidated Ebitda incorporates the
net capital gains realized on the sale of 49% of APBags to 3i, the sale of AP shares in the
acquisition of Mandarina Duck, the sale of commercial real estate and brands, as well as the
first time consolidation of Mandarina Duck from July 1, 2008, and the full year consolidation
of Dadorosa. Ebitda margins also benefited from the Group’s strong sales mix:
• Leather Goods generate 56.6% of consolidated revenues;
• Own brands generate 84.2% of consolidated revenues;
• Export markets generate 62.6% of consolidated revenues, with 33.7% from emerging
luxury markets and US and Japan, together, representing only 5% of total revenues;
• Direct distribution channels generate 58% of consolidated revenues, with 14.2% from
the Group’s own store network.
Consolidated EBIT prior to non recurring impairment charges and write-downs of financial
assets of € 99.6 million, increased by 9.8% from € 66.1 million in 2007 to € 72.6 million,
reflecting a 10.4% EBIT margin.
Pre-tax Income prior to non recurring impairment charges and write-downs of financial
assets, declined by 5.3% from € 37.8 million in 2007 to € 35.8 million, reflecting a Pretax
Income margin of 5.1%
Consolidated Net Loss of € 65.2 million vs Consolidated Net Income of €16.8 million recorded
in 2007.
Net Financial Position Reclassified - Debt of € 256.6 million.
Net Financial Position IAS / IFRS - Debt of € 401.5 million excludes € 10.4 million of pledged
liquidity and € 103.9 million of other financial assets and includes € 30.5 of treasury stock.
Appointments to the Board of Directors
Shareholders approved the 5 members appointed to the Board of Directors. The Board
appointments are effective for the three year period 2009 to 2011, and expire at the
shareholders meeting to be convened to approve the financial statements for the year ended
December 31, 2011. The Board members follow:
Walter Burani – Chairman and Chief Executive Officer
Giovanni Valter Burani – Managing Director
Andrea Burani – Managing Director
Guido Corbetta – Independent Director
Giuliano Tagliavini – Independent Director
The members of the Board were elected from a single list, presented by the majority
shareholder, Mariella Burani Family Holding S.p.A., with no. 22,692,533 ordinary shares with
voting rights, representing 75.88% of the share capital of Mariella Burani Fashion Group
S.p.A.
The Independent Directors, Guido Corbetta and Giuliano Tagliavini meet the independence
requirements stipulated in Article 148, par. 3 of Legislative Decree 58/1998.
Approval of the Share Buyback plan
Shareholders of Mariella Burani Fashion Group S.p.A. agreed to extend the existing share
buy-back plan that provides for the purchase and sale of up to 10% of the Group’s
outstanding common shares. The plan will remain in effect for the three year period 2009 to
2001 and expire at the shareholders meeting to be convened for the approval of the financial
statements for the year ended December 31, 2009. MBFG held 1,586,173 treasury shares, or
5.3% of outstanding shares on April 29, 2009.
Share transactions will be effected in markets regulated by Article 132 of Legislative Decree
No. 58 dated February 24, 1998 and Article 144bis,1.B of Consob Regulation 11971/99 as
modified by the Market Abuse Directive (“MAD”) in conformance with these markets’
operating policies and procedures
The Financial Reporting Officer, Giuseppe Gullo, Group CFO, certifies – pursuant to art. 154-
bis, paragraph 2 of the Uniform Finance Act – that the information contained in this press
release corresponds to the accounting documents, ledgers and entries.
Mariella Burani Fashion Group (MBFG) designs, produces and distributes world wide a diversified and
complementary range of Luxury apparel, footwear, leather accessory and jewellery collections under its own brands and
under license for prestigious international designers. MBFG founded in 1960 by Walter Burani, Chairman and CEO of the
Group listed in the STAR segment of the Italian stock exchange since July, 2000, is today an internationally recognised
public company with an established position in the accessible luxury goods market. The Group’s dynamic revenue
growth is attributable to internal development including product diversification, brand expansion, and new geographic
market penetration as well as strategic acquisitions to capitalise on the know-how and experience developed by niche
players in the Italian apparel, knitwear, textile and leather goods sectors. MBFG manages to provide top quality luxury
goods at accessible prices by capitalising on the strength and flexibility provided by Italy’s industrial districts, world
renown for their excellence in the development of luxury products. The Group’s aim is to become one of the leading
players in the accessible luxury market worldwide by further developing its product offering, its brand portfolio, and its
global distribution network.
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