The parent company of Kappa, Robe di Kappa, K-Way and Superga is placing its rather successful licensing-based business model at the disposal of Briko, the Italian brand of high-performance helmets and goggles for snow sports and cycling. Basicnet has agreed to become its exclusive global distribution licensee, with an option to buy the brand at some point before June 30, 2019 at a price of around €3 million.
After investing strongly on product development and sports sponsorships, Briko's turnover has doubled to an annual level of nearly €6 million since Carlo Boroli took over the company in 2007. About 60 percent of the revenues are generated in Italy. The other major markets are the U.S., Japan and countries in Northern Europe.
According to Boroli, who will continue to run Briko as brand manager, his company has no financial problems, but Basicnet's business model should help to accelerate its internationalization though licenses, with a longterm sales potential of between €50 million and €100 million a year. After the sale of Briko, the Italian entrepreneur, who comes from a wealthy family involved in wine and publishing, will continue to own LAS Helmets, an Italian brand of cycling helmets made in Italy.
Basicnet is expected to support Briko in part through its operations and new international marketing initiatives. In some cases, Basicnet's own territorial licensees may take on Briko as a complementary brand of hardware with a high reputation. The Protetto system of its Vulcano helmets was approved last autumn by the International Ski Federation (FIS) to be worn by athletes sponsored by the brand.
Some of the licensees may also want to develop further its apparel line, which has come to represent about one-third of its sales, on a par with its helmets and its goggles. Commercial synergies are expected in markets such as Italy, where both companies sell directly to retailers, and in South Korea, where Kappa will act as a sponsor of the national ski federation during the 2018 Winter Olympics. Peter Fill, the first Italian skier to have won the downhill race in the World Cup, was wearing a Kappa suit and a Briko helmet when he won the race on March 10.
As previously reported (SGI Europe vol. 27, n° 7-8 of Feb. 25), Basicnet made strong progress last year, with its aggregated sales rising by 17.2 percent to €731 million, thanks in part to currencies. The Italian company, which was a star on our 2015 global market capitalization chart, has now announced a 34.8 percent increase in net consolidated earnings for the year, reaching €16.8 million.
The company's board of directors is proposing the distribution of a dividend of €0.10 per share, 42.9 percent higher than a year ago, corresponding to a payout ratio of 33.6 percent. The general shareholders' meeting will elect a new board on April 28. As previously indicated, the new board elected by the shareholders is likely to appoint a new chief executive, Gianni Crespi. The outgoing CEO, Franco Spalla, would become executive vice chairman of the group, controlled by Marco Boglione.
