Brunello Cucinelli (BC) H1 2024 earnings summary

Executive summary

• Revenues for H1 2024 reached €620.7 million, up 14.1% year-over-year at current exchange rates, with robust growth across all regions and channels.

• EBIT rose 19.3% to €104.6 million, with margin improving to 16.9% from 16.1% last year.

• Net profit was €66.1 million, up 31.1% year-over-year, aided by an extraordinary capital gain from the Cariaggi transaction.

• Major investments of €44.8-50 million supported long-term growth and production capacity expansion.

• Launched a new AI-driven website and received the WWD John B. Fairchild Award, enhancing brand image.

Financial highlights

• Gross margin increased to 74.5% of revenues (vs. 71.5% in H1 2023), driven by favorable sales mix and expanded in-house production.

• EBITDA reached €177.8 million, up 14.8% year-over-year, with a margin of 28.6%.

• Operating and personnel costs rose over 21%, reflecting business and production expansion.

• Net financial debt stood at €68.7 million, up from €38.6 million a year ago, after €44.8-50 million in investments and €66.1 million in dividends.

• Inventory as a percentage of rolling turnover at 28.1%, returning to ordinary levels.

Outlook and guidance

• Revenue growth of approximately 10% is confirmed for both 2024 and 2025, with healthy and sustainable profits expected.

• Long-term plan to double 2023 turnover by 2030, supported by significant investments.

• Price effect in 2025 guidance estimated at 3.5%-4%, with the remainder from volume.

• Tax rate expected to normalize to 29% for the full year.

• EBIT margin expansion of 20-30 basis points targeted for the full year.