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30 Aug

Brunello Cucinelli Touts Italian Democratic System, Manufacturing Prowess

MILAN There isn’t any doubt that Italy has a firm supporter in Brunello Cucinelli.

Despite Prime Minister Mario Draghi’s resignation in July, which left the industry concerned and dissatisfied, and yet one more round of political elections scheduled for Sept. 25, on the tail end of Milan Fashion Week, Cucinelli on Tuesday said he was “very positive about Italy and the times to return,” as he commented on a robust set of results of his namesake company in the primary half of the 12 months.

The entrepreneur touted the country’s welfare system, “among the finest on the planet,” and Italy’s production and distribution expertise — largely preserved because of its social safety nets in the course of the pandemic — and explained during a call with analysts at the tip of trading that he, aged 68, was “not apprehensive” concerning the consequence of the elections, which might result in the sixty fourth government within the country after World War II.

“I just like the alternation of governments,” said Cucinelli, once more referencing Ancient Greece and citing Pericles’ comparison of the Athenian empire to a tyranny. “Italy is a really credible country, with a president that has power over the federal government. Politicians are custodians, some are more enlightened, some less, but they’re representative of the best democracy and the utmost freedom of thought.”

He urged analysts and investors to consider in Italy and to avoid listening to those that “pretend they know concerning the future. It is a country manufactured from serious people, beautiful and dedicated manufacturers. If we predict back at April 2020, once we feared the tip of the world was near, we must always marvel at what has been done to this point and where we stand now.”

Cucinelli said he believes “demand exceeds the availability of high-quality products” today, which guarantees further growth for Italian manufacturers, including his own company. Also, “there isn’t a doubt that a robust dollar brings remarkable benefits to exports, and our sector will profit from that.”

Pointing to the “very positive” months of July and August, he reiterated his expectations of 15 percent growth in revenues for 2022 and of 10 percent in 2023. For the second half of 2022, the corporate expects growth of around 30 percent compared with 2019.

As reported, Cucinelli is eyeing sales of 1 billion euros in 2024.

In the primary six months ended June 30, revenues rose 32.4 percent to 415.4 million euros compared with the identical period last 12 months.

Net profit soared to 50.6 million euros from 21.9 million euros in the identical period last 12 months. This included advantages of 9.2 million euros related to deferred tax assets, and a reduced taxation on the financial income of 4.7 million euros related to the valuation of the investment of 15 million euros to accumulate 43 percent of its longtime cashmere supplier Cariaggi Lanificio in March.

Earnings before interest, taxes, depreciation and amortization climbed 48.8 percent to 120 million euros compared with 80.6 million euros last 12 months.

Operating profit greater than doubled to 57.8 million euros compared with 25.3 million euros at the tip of June last 12 months.

The corporate continued to speculate as per its three-year plan, in the quantity of 36.6 million euros in the primary half of the 12 months, compared with 29.9 million euros at the tip of June last 12 months.

In the primary half, retail sales rose 47.1 percent to 243.3 million euros, representing 58.6 percent of total revenues, because of the opening of latest flagships, the conversion to concessions and the expansion of existing stores over the past two years.

There are actually 117 boutiques, compared with 107 at the tip of June 2020, and 42 shops compared with 29 at the tip of June 2020.

Wholesale sales grew 16 percent to 172 million euros.

Sales in Europe amounted to 115.7 million euros, up 20.7 percent, and accounting for nearly 28 percent of revenues.

Sales in Italy rose 19.9 percent to 49.2 million euros.

Revenues within the Americas jumped 52.6 percent to 152.6 million euros, representing 36.8 percent of the overall.

Sales in Asia increased 27.2 percent to 97.8 million euros.

Investments in communication totaled 20.4 million euros compared with 14.4 million euros at the tip of June last 12 months.

As of June 30, net debt stood at 63.8 million euros compared with 96.3 million euros at the tip of June last 12 months.

While declining to supply additional details, Cucinelli said he was to “receive a prize in China for art, culture and fashion” either in December or next March.

He also said he’ll reveal in December plans for an expansion of the corporate’s plant starting in 2025.

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