Intense days – to put it mildly – for the Armani group and its founder (pictured below), fresh first of all from planetary media exposure thanks to uniforms of Italian athletes participating in the Tokyo Olympics and Paralympics. Uniforms liked by many, criticized by others: anyway, not even Giorgio Armani can please everyone. A few hours earlier the the group’s objectives on reducing the environmental impact, just as the ministers of the most important economies in the world were squabbling about the same issues at the G20 in Naples. Now there are other numbers, those of the 2020 budget and the first ones on the 2021 trend. And these are numbers that bode well (in the photo above, taken on July 7, a moment of the Armani Privé fashion show, the high fashion collection designed by the designer, which is presented in Paris during the days of haute couture).
The numbers of the climate commitment
Futile Olympic controversies aside, the Armani group is almost unassailable on another front, certainly more important than aesthetic taste, which by definition is personal: on Wednesday 21 July the group presented the two new targets for reducing greenhouse gas emissions (Ggh), approved by the Science Based Targets initiative (SBTi), an institution born from the collaboration between Climate Disclosure Project, United Nations Global Compact, World Resources Institute and World Wide Fund for Nature (Wwf) which encourages and certifies public commitment by of companies to reduce greenhouse gas emissions. More ambitious objectives – it should be emphasized – than those on which a downward compromise was reached at the G20 on climate.
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The numbers of the financial statements and the advances on the first half
In 2020 there was a 21% drop in induced turnover (i.e. including licenses) compared to 2019 a 3.3 billion euro, with a positive net result after taxes of 90 million and stable shareholders’ equity over 2 billion. In the first half, however, turnover grew by 34% compared to the same period of 2020 at current exchange rates (+ 38% at constant exchange rates and + 59% in directly managed retail channels, excluding wholesale and licenses), returning to liquidity beyond billion and with the goal of to get closer to the 4 billion turnover generated at the end of 2021.
The detail of the annus horribilis
In 2020, the total revenues of Armani brand products in the world, including license revenues, amounted, as we said, to approximately 3.3 billion, while the group’s consolidated net revenues fell by 25% – in line with the entire fashion system -, reaching 1.6 billion. The decline was strongly concentrated in the first half of the year; already in the second half of 2020 – reads the official note just released – consolidated net revenues show a clear recovery, despite the new waves of infections and the intensification of the state of emergency in Europe that characterized the last quarter of 2020.
Profitability indices
In 2020, the operating result before depreciation (Ebitda) was positive for 263 million, while the Ebit was negative for 29 million. After the contribution of the financial and tax components, the group closed 2020 with a positive consolidated net result of 90 million, based on the IFRS accounting principles adopted for the consolidated financial statements. It also remains the financial position is definitely solid, with net cash and cash equivalents of € 925 million at 31 December 2020, down by 24% compared to the level at 31 December 2019. Consolidated shareholders’ equity at the end of 2020 amounted to € 2.01 billion, essentially in line with the values at the end of 2019 ( 2.025 billion).