Fope (FPE) H2 2023 earnings summary

Executive summary

• FY 2023 revenue rose 7.41% to €66.77m; net profit was €10.08m, with 85.06% of revenue generated abroad.

• Sales growth met budget expectations despite a complex global environment and slowing indicators in H2; operating profitability remained in line with FY 2022.

Financial highlights

• Revenue increased €4.61m YoY to €66.77m; EBITDA rose €1.12m to €16.95m and EBIT increased €0.75m to €14.66m.

• Net profit was €10.08m vs €10.83m in FY 2022; the decrease reflected a €1.25m prior-year tax relief under Italian Law Decree 34/2020.

• Operating costs excluding labour rose 6.19%; labour costs increased 24.99%, mainly due to hiring for production. No costs extraordinary to current operations were recorded.

• Operating cash flow was €5.84m; investing cash flow was negative €3.05m and financing cash flow negative €3.06m. Cash and cash equivalents declined €0.27m to €11.26m.

Outlook and guidance

• FY 2024 forecasts call for higher sales volume and a positive operating result; orders in the first months of 2024 supported expectations for adequate profit margins.

• More Shop-in-Shops were scheduled to open in 2024, extending the retailer-corner rollout begun alongside boutique expansion.