«Based estimates, investments also in Miu Miu»- Corriere.it

The Prada group – among the top five in global luxury – runs and beats the medium-term objectives of the plan. The targets were announced on the capital market day of November 2021 and promised to exceed 4 billion in 2024, but times have shortened and the results have already been achieved in the year just ended. The group headed by Miuccia Prada and Patrizio Bertelli closed 2022 with net revenues of 4.2 billion, up 21% compared to 2021, and retail sales of 3.7 billion, which recorded an increase of 24%. With a boost coming from all product categories: leather goods (+18%), clothing (+27%), footwear (+29%).

And the growth in sales with the Prada and Miu Miu brands, among others, was also accompanied by financial performance, with a gross margin of 78.8% of revenues, equal to 3.3 billion, an adjusted EBITDA of 20.1 %, equal to 845 million, and a positive net financial position of 535 million. Group net income was 465 million, up 58%. With a net operating cash flow of 696 million. And this despite the slight deceleration of the Chinese market. Sales in Europe recorded +68% and +22% in the Americas, numbers which more than compensated those of the Asian market. In an uncertain scenario for the economies – under the pressure of inflation, the rise in interest rates and the conflict in Ukraine – the group has accelerated investments, especially in retail, which in 2022 rose to 276 million from the previous 217. The board I will propose to the shareholders’ meeting a dividend of 0.11 euro per share.

The generational passage

They are the first accounts of the group for which the family has set up a generational handover with the arrival at the end of January as CEO of Andrea Guerra and Patrizio Bertelli, who leaves the position of managing director and is indicated as president, Miuccia Prada creative director together to Raf Simons of Prada and creative director of Miu Miu. But the 2022 accounts are all children of his work on the front lines. The new governance design will be approved by the group’s assembly on 27 April which will confirm the significant changes in governance, with a view to continuous evolution, explains the group. The recent changes to the governance structure mark a fundamental evolution for the Group. In 2022 we strengthened our positioning and our structure, and in the current year – explained Bertelli – we intend to accelerate the execution of the strategy. The goal is to continue along a path of stable and sustainable growth, which will lead us to fully exploit the great potential of our brands.

Investments

Precisely the historic brands Prada and Miu Miu are at the center of the strategy and investments. The Prada Group achieved excellent results in 2022, thanks to the strength of our brands, the strengthening of our customer relationships and the careful execution of the strategy, added Bertelli —. The Retail channel drove the development, with strong and widespread organic growth of both Prada and Miu Miu which recorded excellent performances in all product categories and in all geographical areas, offsetting the results of China still penalized by the pandemic.

Change

I joined the Prada group at a time of great change, said Andrea Guerra -, finding a lot of energy. The group has ample growth potential that derives from an extraordinary creative vision and industrial strength. We will continue to invest in the desirability of our brands, in the renewal of the sales network and in manufacturing excellence. The punctual execution of the strategy will be decisive in the coming years, and in particular it will be fundamental to aim for excellence in the Retail channel, to strengthen the relationship with customers and offer increasingly frequent moments of interaction. For 2023, the group expects solid growth above the market average. China has once again become an engine of growth; however, given the ever-changing global environment, Guerra stressed — we must remain vigilant and maintain a disciplined approach to costs and capital allocation. For 2023, we expect solid growth above the market average. China has once again become an engine of growth; however, given the ever-changing global environment, we must remain vigilant and maintain a disciplined approach to costs and capital allocation. And for 2023, Guerra expects new growth: China has once again become an engine of growth

Esg Strategies

The conference call with analysts and investors was attended by Lorenzo Bertelli, eldest son of Bertelli and Prada, 34 years old, currently head of social responsibility for the fashion group and who within a few years will assume the operational leadership of the group, a passing of the baton to create the which the family called Guerra. We continue to implement our ESG strategy and invest to reduce the impact of our activities on the environment.