Aeffe turns a profit again in 2021
Nicola Mira
AeffeMoschino
In 2021, adjusted net income, taking into account the effects of the first application of the IFRS 16 accounting method, was €2.6 million, compared to the adjusted net loss of €16.3 million recorded a year earlier. Aeffe’s EBIT instead improved from a €24.5 million deficit in 2020 to a €9.1 million surplus a year later.
EBITDA skyrocketed, jumping by 687%, from €4.5 million in 2020 to €35.3 million in 2021, when it was equivalent to 10.9% of revenue. “The increase in profitability was more than proportional to the growth in revenues, not least due to the corrective actions taken to tackle adversities linked to the global Covid-19 emergency, with a further 6% reduction, about €3.5 million, in fixed costs (personnel, rentals, general expenses) compared with 2020,” indicated the group in a press release.
Besides owning Moschino, successfully led by designer Jeremy ScottAlberta FerrettiPollini
Last year, the group’s indebtedness grew, reaching €93.1 million as of December 31 2021, due to, among other reasons, two unprecedented financial operations. Aeffe took complete control of Moschino, buying up the 30% stake still outstanding, for €66.6 million. And it also took over the running of the Love Moschino
In 2022, Aeffe is planning to carry out another acquisition. As it indicated in the press release, the group’s board of directors intends to incorporate Velmar SpA, a wholly-owned subsidiary specialising in the production and distribution of lingerie and beachwear. The operation is “part of [Aeffe’s] corporate rationalization and reorganization process, intended to enhance the operational efficiency and coordination of the group’s activities.”
Executive President Massimo Ferretti commented favourably on the sales rise and the marked improvement in Aeffe’s profitability in 2021, results he said were due to “the good performance of all our brands in their various markets and distribution channels, combined with the benefits generated by the improved structural efficiency of our business model.”
Ferretti concluded by saying that “despite the uncertainties caused by geopolitical tensions (Russia and Ukraine contributed 2.6% of revenue in 2021), we remain focused on the pursuit of medium/long-term initiatives: developing the new strategic direction of Moschino, with the integrated management of all apparel licenses linked to the brand; direct management of our distribution in mainland China; and a significant strengthening of the e-tail channel.”
