Aeffe returns to profit in 2014
Aeffe returned to profit in 2014 thanks to choices implemented last year in the "renewal of the stylistic offering, in organization and management efficiency." The Italian fashion group, which owns the brands Alberta Ferretti, Moschino and Pollini among others, managed to generate a net profit of 4 million euros last year as compared to a loss of 1.9 million in 2013, it announced along with the publication of its results.
The company’s focus on streamlining and improving efficiency also allowed it to record an Ebitda up 24.7% to 25.7 million euros in 2014, making up 10.2% of sales, while its Ebit doubled from 6 million in 2013 to 12 million one year later.
For its 2014 fiscal year, Aeffe’s turnover remained stable (+0.2%) at 251.5 million euros, in line with that of 2013 (251.1 million), as announced by the group in February during the release of its preliminary results. The company’s strong performance in Italy, which continues to make up 45.1% of its total revenue, is noteworthy with sales rising 8.7% last year to 113.5 million euros.
On a comparable basis, excluding the end of licenses for Jean Paul Gaultier and Cacharel as well as the new licensing partnership with Ungaro, and excluding the changes in distribution in Japan, growth in 2014 was 7.6% at constant exchange rates, according to the group.
"2014 was a crucial year for the Group, which has pursued a strategy conceived to enhance the portfolio’s brands," said Aeffe’s executive chairman, Massimo Ferretti.
The transitional period was marked by the end of licenses for Jean Paul Gaultier and Cacharel, as well as the development of new licenses for Emanuel Ungaro (by Fausto Puglisi) and Cedric Charlier. Meanwhile, Jeremy Scott has taken over as creative director Moschino, injecting new energy into the brand. Aeffe also expects a great deal from the arrival of Lorenzo Serafini as creative director of Philosophy, Alberta Feretti’s secondary line.
The company's decisions "have already given good results, and will be fully operational in the coming years. In particular, the return to profit of the Group is definitely a confirmation and a further motivation to look to the future with optimism," stressed the company’s president.
On December 31, the group had a net financial debt of 83.5 million euros as compared with 88.6 million in late 2013.
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