Revenues by product category4All product categories, with the sole exception of Ready to Wear, delivered an increase in Revenues in FY 2013, both at current and constant exchange rates. It is especially worth highlighting the increase of footwear (+8%), handbags and leather accessories (+18%), which together represent over 76% of Group total turnover, and fragrances (+14%).
Gross Profit
In FY 2013 the Gross Profit reached 799 million Euros, recording a 8% growth. Its incidence on revenues was 63.5%, from 64.4% registered in FY 2012, mainly due to the unfavourable trend of the exchange rates and the channel mix.
The Board of Directors of Salvatore Ferragamo S.p.A., parent company of the Salvatore Ferragamo Group, one of the global leaders in the luxury sector,#
Operating Costs
In FY 2013 Operating Costs grew by 6%. Their incidence on revenues decreased from 47.5% to 46.1%, due to the improvement in the operating leverage.
In 4Q 2013 Operating Costs grew by 10% and their incidence on Revenues reached 47.7%, from 46.5% in 4Q 2012, mainly due to the increase in Marketing and Communication costs (+32% vs. 4Q 2012). In fact, in October Salvatore Ferragamo sponsored a global event in Los Angeles at the Wallis Annenberg Center in Beverly Hills. Excluding Marketing and Communication costs, the incidence on Revenues in 4Q 2013 remained stable at 40.9% vs. 4Q 2012.
Gross Operating Profit (EBITDA)
Gross Operating Profit (EBITDA) increased by 14% in FY 2013, from 228 million Euros to 260 million Euros with an incidence on revenues increasing from 19.8% to 20.7%.
In 4Q 2013 the EBITDA was 68 million Euros from 71 million Euros, down by 4% vs. 4Q 2012, which had registered a 39% increase vs. 4Q 2011. The decrease of 3 million Euros was mainly due to the increase in Marketing and Communication spending (+6 million Euros in 4Q 2013) due to a different timing, throughout the quarters, vs. FY 2012. The incidence on revenues went from 18.0% in 4Q 2011, to 22.3% in 4Q 2012 and 19.9% in 4Q 2013.
Operating Profit (EBIT)
Operating Profit (EBIT) grew from 194 million Euros to 219 million Euros, registering an increase of 13%, above the increase of Revenues and with an incidence rising to 17.4% from 16.9% in FY 2012.
Profit before taxes
The Profit before taxes over the period, including the ca. 12 million Euros capital gain deriving from the disposal of the participation in ZeFer, increased by 17% from 188 million Euros in FY 2012 to 221 million Euros and with an incidence on revenues increasing from 16.3% to 17.5%.
Net Profit for the Period
The Net Profit for the Period (including the Minority Interest Profit of 10 million Euros) is 160 million Euros, as compared to 125 million Euros in FY 2012, marking an increase of 28%.
The Group Net Profit reached 150 million Euros, as compared to 106 million Euros in FY 2012, marking a 43% increase. The improvement also benefited from the significant reduction in the Minority Interest, as a consequence of the buy-back of the stakes in the distribution companies in Greater China.
Salvatore Ferragamo