La Perla Fashion Holding Nv: Results for the financial year ended December 31, 2020
La Perla Fashion Holding NV
Headquarters: Schiphol Boulevard 127, G4.02, 1118 BG Schiphol, The Netherlands
May 27, 2021
Results for the fiscal year ended December 31, 2020
La Perla Fashion Holding NV (“La Perla” and together with its consolidated subsidiaries, the “Group”), a luxury holding company comprising La Perla, a leading designer, manufacturer and distributor of luxury lingerie , nightwear and swimwear, and La Perla Beauty, announces the results for the year ended December 31, 2020.
Financial overview – La Perla consolidated group
|000 € unless otherwise indicated||La Perla consolidated group
|La Perla consolidated group
|Gross profit||35,684||41 871|
|Gross margin (%)||54%||49%|
|Functionnary costs||(75,900)||(86,132) (1)|
|Operating profit / (loss)||(114,768)||(72,765)|
|Profit / (loss) of the year||(136,366)||(89 041)|
|Earnings (loss) per share in €||(1,2974)||(0.8471)|
|Net cash generated by operating activities(3)||(57,175)||(44,530)|
|Total non-current liabilities||260,729||218,037|
|Total current liabilities||60 936||58,691|
|Cash and cash equivalents||7640||11,443|
|Net financial debt(4)||197,396||121,218|
|Liabilities related to IFRS 16(5)||68,969||99 112|
- Includes a social plan expense of € 7.0 million.
- EBITDA is calculated as operating profit before depreciation and amortization and write-offs
- Lease payments are not included in net cash from operating activities in accordance with IFRS 16
- Net financial debt calculated as long-term borrowings plus short-term borrowings less cash and cash equivalents; excludes finance lease liabilities
- Refers to finance lease debts
The Covd-19 crisis significantly affected results in 2020. The pandemic has disrupted the entire business, from shutting down a majority of physical stores for long periods of time to major supply chain disruptions. .
Revenue fell 22.8%, from 85.8 million euros to 66.2 million euros. By channel:
- Retail revenues fell by 26%
- Boutique and concession sales fell 31%, while point-of-sale sales fell 45%, mostly due to pandemic-related disruptions
- Online sales increased by 32%
- Wholesale revenues increased 5%, boosted by new accounts
- Other sales, which include royalties, decreased mainly due to the transition of the La Perla perfumes business to direct operation
- The turnover of La Perla Beauty was not significant over the year because the company was in the start-up phase.
Gross margin increased from 49% to 54%, benefiting from a reversal of inventory provisions and a greater proportion of full-price sales, partially offset by increased inventory clearance activity, in 2020 compared to 2019.
Operating expenses fell from 86.1 million euros in 2019 to 75.9 million euros in 2020, as a result of the reduction in personnel costs (including social charges), rental income for stores and travel, partially offset by the start-up costs of the beauty business, which will officially begin operations in 2021.
The improvement in operating profit / (loss) results from the above factors.
Continuity, funding and prospects
With the continuing uncertainty over the speed and extent of the recovery from the Covid-19 pandemic and the impact on the Group’s plans, impairment assessments of the carrying amount of non-current assets have been carried out. using market growth indicators, which indicate lower levels of revenue growth than anticipated in the Group’s forward plans. As a result, an impairment for the year of € 53.6 million was recognized.
La Perla has concluded that the going concern principle in the preparation of results for the year ended December 31, 2020 is appropriate, supported by the La Perla financing agreements which include a loan from Tennor Holding BV and La Perla Fashion Finance BV in the total principal amount. up to 300 million euros, which does not expire in the next 12 months. The total outstanding amount of these borrowings amounted to € 204.6 million as of December 31, 2020, including € 24.9 million in accrued interest and € 7 million in accrued liabilities.
Given the current Covid-19 crisis and the uncertainty associated with an additional impact on the economy and consumer spending, the Group cannot adequately determine the future effect on its business. Therefore, La Perla does not currently provide any forward-looking guidance.
Changes in corporate governance
Imran Khan resigned as chief executive on 31st December 2020.
RD Salem resigned from his duties as a member of the Supervisory Board on 26e May 2021 and should be replaced by S. Kindler at the next annual general meeting in June 2021.
Approval and verification of financial statements
The financial statements were approved by the Board of Directors on 27e May 2021 and were reviewed by the auditors who emphasized the uncertainty over the going concern assumption.
The accounts can be viewed in their entirety at the following link: https://laperlafashionholding.com/financial-reports-presentations/
Ask for information
City of seven dials, Simon Kelner / James Devas
Phone: +44 (0) 203 740 7483
Email: [email protected]
About La Perla:
La Perla Fashion Holding NV, a luxury fashion holding company, is the direct shareholder of La Perla Global Management (UK) Limited and its subsidiaries (the “La Perla Operating Group”) and La Perla Beauty (UK) Limited. La Perla, through the La Perla operating group, is a leading designer, manufacturer and retailer of luxury lingerie, sleepwear and swimwear. La Perla Beauty is in the initial phase of operation. The group operates under the brand “La Perla”. Founded in 1954 in Bologna, Italy, the brand is renowned for its heritage and craftsmanship.
This press release may contain forward-looking statements, that is to say statements that do not relate to historical facts or events. By their nature, forward-looking statements involve known and unknown risks and uncertainties, both general and specific. La Perla Fashion Holding NV bases these statements on its current plans, estimates, projections and expectations and they relate to events and are based on current assumptions which may not occur in the future. These forward-looking statements may not be indicative of future performance; the actual result of the financial position and operating results of La Perla Fashion Holding NV and its consolidated subsidiaries, as well as the development of economic conditions, may differ significantly, in particular be more negative, from these conditions expressly or implicitly assumed or described in these statements. Even if the actual results of La Perla Fashion Holding NV or its consolidated subsidiaries, including the financial position, results of operations and economic conditions, evolve in accordance with the forward-looking statements contained in this press release, there can be no assurance that this will be the case in the future.
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