BasicNet, the Italian parent of Kappa, Robe di Kappa, K-Way, Superga, Sebago and other brands, expressed some concern about a “general slowdown in (consumer) consumption” when reporting H1 results.
Ebitda declined by 22 percent in H1 to €17.6 million as Ebit slipped by 40 percent to €8.7 million. H1 net income was off by 62 percent year-over-year to €2.8 million.
Consolidated revenues fell 3.4 percent year-over-year to €173.9 million, with direct sales declining by 2.2 percent to €143.4 million and royalties from licensees falling by 9.2 percent to €29.7 million. For the six months ended June 30, aggregate sales of the group’s brands hit €543.7 million. H1 commercial licensee and direct sales dipped by 1.5 percent to €390.3 million, while productive licensee sales slipped by 5.4 percent to €153.4 million.
Geographically, European commercial licensee and direct sales improved by 6.5 percent to an implied €297.8 million. Meanwhile, America’s revenues tumbled by 34 percent due to difficulties with a U.S. licensee and a challenging economy in Argentina. Among other regions, Asia/Oceania sales fell by 23 percent and rose by 4.5 percent in the Middle East/Africa region.
The group, forecasting H2 results to be flat year over year, ended the first six months of the FY with a negative financial position of -€93.1 million, a 4 percent improvement from -€97 million a year earlier.
