For the first time in eight years, BasicNet will pay a dividend to its shareholders on its 2007 results, set at €0.065 per share, crowning the turnaround of the company. It had last paid a dividend of €0.093 on July 10, 2000.
Based on the final figures, the parent company of Kappa and Robe di Kappa booked a net profit of €12.02 million in 2007. This was down from €26.75 million a year earlier, when its results were bloated by a €27.08 million gain from the sale of the rights to the Kappa and Robe di Kappa brands for the Chinese mainland and Macao.
Excluding such extraordinary items, the operating profit (EBIT) rose by 484.9 percent to €16.8 million. Before amortization and depreciation, the operating results (EBITDA) soared by 174.08 percent to €22.44 million. Total sponsoring and advertising charges increased to €11.3 million, mostly because of a new contract with the Roma football team and to back up the relaunch of the Superga and K-Way brands.
The group and its licensees benefited from the negotiation of new sourcing contracts in 2006 that led to better purchasing conditions with the suppliers. Margins improved by six percentage points for BasicItalia, the fully owned licensee for the Italian market, due also in part to better logistics.
On the other hand, net debt increased to €63.4 million from €44.5 million in the course of the year due to the €24.1 million takeover of the Superga brand last July.
The company says that orders received in the opening months of this year were significantly higher than a year ago. For 2007, the aggregate sales of BasicNet’s network of licensees rose by 15.83 percent to €275.7 million, in line with preliminary results released in February. At constant exchange rates, aggregate sales were up by 18.6 percent. Royalties and sourcing commissions rose by 25.71 percent to €23.85 million and direct net sales went up by 3.49 percent to €88.85 million.
The Kappa and Robe di Kappa brands increased sales by 14.7 percent, while the Superga brand boost turnover by 38.7 percent, especially in Europe and South Africa.The K-Way brand, which has been repositioned toward a higher market level, is experiencing a positive trend in orders.
BasicItalia turned around last year to a profit of €2.1 million on 4.7 percent higher revenues of €88 million, against a loss of €1.7 million in the previous year.
Agrgegate sales in European Union countries increased by 18.59 percent to €206.59 million. In other countries outside the EU they were up by 1.23 percent to €17.24 million. They increased by 0.62 percent to €18.66 million in the Americas and by 6.01 percent to €17.70 million in Asia and Australasia. They jumped by 34.54 percent to €15.46 million in the Middle East, India and Africa. In the Americas sales in terms of euros rose in Brazil, but they fell in the USA and Canada largely due to the depreciation of the dollar.
In February and March, BasicNet opened three Robe di Kappa stores in Italy - in Lucca, Comacchio near Ferrara and Genoa – and three more should follow by the end of June three other Robe di Kappa stores – in Fiume Veneto near Pordenone, Alassio and Cortina D’Ampezzo. There will also be two new Superga shops – at Fiume Veneto and in Genoa.
