Cucinelli H1 core profit up 6 pct as retail network grows
today Aug 25, 2016
Italian luxury goods maker Brunello Cucinelli on Thursday posted a 6.3 percent rise in first-half core profit as robust sales growth offset rising costs for retail expansion and a one-off hit due to the exit of a senior manager.
Cucinelli said earnings before interest, tax, depreciation and amortisation (EBITDA) totalled 35.5 million euros ($40 million), or 16.1 percent of sales. That compares with an EBITDA margin of 16.6 percent in the first half of 2015.
The EBITDA margin was 16.7 percent in January-June 2016 when excluding the one-off payment of 1.29 million euros to Fabio Gnocchi, who stepped down as co-head of the group's commercial division in the period.
"At this point practically two-thirds into the year, we can safely predict healthy revenue and profits growth for 2016," Chief Executive and Chairman Brunello Cucinelli said in a statement, also welcoming a positive outlook for the Italian market.
Cucinelli reported in July a 10 percent rise in revenues for the first half, helped by growth in all its markets and the opening of five new directly-owned shops this year. ($1 = 0.8868 euros)
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