In contrast with some major U.S.-based brand licensors in the sporting goods sector, BasicNet managed to post a small net profit for the 2010 financial year, in spite of the impact from the Covid-19 pandemic, leading the board of directors to propose the distribution of a small annual dividend of €0.06 per share.
Noting that the flexibility of its business model has softened the impact of the lockdowns, the Italian company says it expects a recovery on the sales front in 2021, depending on the duration of the health crisis.
The parent company of Kappa, Robe di Kappa, K-Way, Superga, Sebago and other brands has reported net earnings of €8.6 million for 2020, down from €21.1 million in the previous year. The operating results show Ebitda of €19.8 million, down from €42.5 million in the prior year, and Ebit of €7.6 million, down from €30.6 million. Ebitda improved sharply in the second half, reaching a level of €19.0 million for the period.
Temporary layoffs in Italy, France, Spain and the U.K. led to a drop of €3.9 million in personnel costs. Investments in communication were reduced through the re-negotiation of sponsorship agreements to take account of the pandemic on sports competitions.
Consolidated revenues declined by 15.0 percent to €259.7 million, with a drop of 9.6 percent in the fourth quarter. They consisted of 17.2 percent lower licensing royalties of €46 million and 14.5 percent lower direct sales of €213.8 million. Online sales grew at a double-digit rate.
The licensees’ aggregated sales generated with the group’s brands fell by 20.6 percent to €814.1 million. After a drop of 38.0 percent, the rate of the decline softened to 17.8 percent in the third quarter and 17.0 percent in the fourth one.
Net debt increased slightly to €82.2 million from €78.3 million at the end of 2019, in spite of dividend payments of €6.4 million and big investments such as the re-acquisition of the Kappa brand in Japan for €10.9 million.