Milan, November 7th 2016 - The Board of Directors of Moleskine S.p.A. ("Moleskine" or with its controlled companies the "Group" or the "Company") today approved the Financial Statements for the first nine months of 2016.
(Thousands Euro) | 9M 16 | 9M 15 | % Growth at Current FX | % Growth at Constant FX(*) |
Net Revenues | 95.897 | 86.374 | +11,0% | +12,2% |
EBITDA | 25.314 | 26.403 | -4,1% | +1,9% |
Net Income | 14.478 | 15.201 | -4,8% | +7,1% |
(*) Source: Management Accounts. EBITDA and Net Income at constant FX and before realized / unrealized exchange rate income / losses
1 Revenues are reported on an adjusted basis and are defined as revenues net of revenues from display and other revenues
2 Adjusted EBITDA and adjusted net income relate to measures net of extraordinary and special items;
Arrigo Berni, Chief Executive Officer of Moleskine, commented:"We have delivered another set of solid results driven by continued growth across all channels, geographies and product categories, with sales momentum seen in the first half of the year perpetuating. While the quarterly progression of our sales pattern has evolved year-on-year, today's results give me confidence in reaffirming our guidance at the low end of the range. This is underpinned by an exciting pipeline of projects planned for the fourth quarter, including the global roll-out of the Smart Writing Set.
Our sustainable growth trajectory relies on our relentless focus on delivering new, innovative concepts and products to our loyal customers. The enthusiasm around the recently opened Moleskine Café is testament to that drive and of the continued traction of the Moleskine brand among the creative class."
Net Revenues by channelMoleskine sells its products (i) directly and indirectly through a network of 83 distributors (''Wholesale'') which serve bookstores, department stores, specialty stores, stationery stores and museums ("Retailers"); (ii) through a mixed model, direct and indirect, to business customers (''B2B''), (iii) through website sales (''e-Commerce'') and (iv) through a growing network of Directly Operated Stores ("Retail" or "DOS").
(Thousands Euro) | 9M 16 | 9M 15 | % Growth at Current FX | % Growth at Constant FX(*) |
Wholesale | 60.241 | 57.917 | +4,0% | +4,9% |
B2B | 17.054 | 16.283 | +4,7% | +5,6% |
Ecommerce | 5.047 | 3.559 | +41,8% | +42,7% |
Retail | 13.555 | 8.615 | +57,3% | +60,8% |
Net Revenues | 95.897 | 86.374 | +11,0% | +12,2% |
(*) Source: Internal Management Accounts
Net revenues in the Wholesale channel reached €60,2 million (+4,9% at constant exchange rates vs. first nine months of 2015) in line with full year targets. In particular:
EMEA (+5,3% at constant exchange rates vs. first nine months of 2015) reflected growth throughout the region, particularly in Germany, Italy and Spain while the uncertain economic climate in the UK made sales levels broadly unchanged vs. the first nine months of 2015.
Americas (+5,0% at constant exchange rates vs. first nine months of 2015) accelerated growth sequentially, with positive results at key retailers coupled with new customer roll- outs.
APAC (+2,8% at constant exchange rates vs. first nine months of 2015) reflects second half weighted sales calendarization in 2015 due to changes to the distributor network in Japan and Australia.
Net revenues in the B2B channel reached €17,1 million (+5,6% at constant exchange rates vs. first nine months of 2015). In particular, EMEA performance (-3,4% at constant exchange rates vs. first nine months of 2015) reflected an overall slowdown in UK corporate marketing spending, as well as an unfavourable base of comparison due to a large project occurred in the third quarter of 2015 in Germany. Strong double digit growth in Americas (+21,1% at constant exchange rates vs. first nine months of 2015) benefited from the transition to a more
effective consignment model at our US distributor. There were also positive results within the LATAM region, particularly Mexico and Brazil. Finally, broadly flat sales growth in APAC vs. first nine months of 2015 (-0,4% at constant exchange rates vs. first nine months of 2015) reflected mixed country dynamics: strong growth in Korea linked to the Starbucks project was partially offset by softer performances in Japan and Australia where new distributors were activated in 2015.
Net revenues in e-Commerce reached €5,0 million (+42,7% at constant exchange rates vs. first nine months of 2015) reflecting strong fundamentals as well as a continued positive market response to the Smart Writing Set and our M+ Collection. Main KPI's grew thanks to better established operating platforms on a global scale, and the benefit of a more integrated marketing plan to support product launches.
The Retail channel posted revenues of € 13,6 million (+60,8% at constant exchange rates vs. first nine months of 2015) with a global network of 70 DOS on September, 30th, 2016 (74 DOS to date), fully on track for the full year target of 80 stores. Like-for-like sales growth stood at 8,6% at constant exchange rates, ahead of the full year target of 7%, confirming the effectiveness of initiatives implemented in mid-2015 to increase the productivity of existing stores.
Net Revenues by geographical areaThe Company is a truly global business with presence in approximately 115 countries, and in the first nine months of 2016 all geographies continued to make strong contributions to Moleskine's revenue growth.
(Thousands Euro) | 9M 16 | 9M 15 | % Growth at Current FX | % Growth at Constant FX(*) |
EMEA | 40.708 | 37.249 | +9,3% | +10,8% |
AMERICAS | 38.549 | 34.520 | +11,7% | +12,2% |
APAC | 16.640 | 14.605 | +13,9% | +15,7% |
Net Revenues | 95.897 | 86.374 | +11,0% | +12,2% |
(*) Source: Internal Management Accounts
Net revenues in EMEA reached €40,7 million (+10,8% at constant exchange rates vs. first nine months of 2015) driven by strong performance across all countries. In the UK, an uncertain economic environment led to slowing sales in Wholesale and B2B while continued strength from Retail and e-Commerce also reflected heightened tourist flows owing to the weakness of the pound.
Net revenues in AMERICAS reached €38,5 million (+12,2% at constant exchange rates vs. first nine months of 2015), driven by excellent momentum within direct-to-consumer channels and accelerated growth in Wholesale and B2B.
Net revenues in APAC reached €16,6 million (+15,7% at constant exchange rates vs. first nine months of 2015) driven by strong performance across all channels with the exception of B2B, which was impacted by an unfavourable base of comparison due to the start-up of two important distributors in Japan and Australia in 2015.
Net Revenues by product categoryMulti-channel expansion across all of our geographies, combined with further brand visibility, has driven healthy growth from both established categories in our product portfolio, with revenues from Paper and WTR ("Writing, Travelling & Reading") collections rising respectively by 6,6% and 15,8% at constant exchange rates vs. first nine months of 2015. The Moleskine+ collection, which includes products and services that bridge the gap between the analog and digital dimension, accounted for 6,0% of total net revenues (+276,3% vs. first nine months of 2015 at constant exchange rates) following the continued roll-out of the Smart Writing Set across our distribution channels. Altogether, "non-paper" categories (WTR and M+ collections) accounted for 15,1% of total net revenues.
(Thousands Euro) | 9M 16 | 9M 15 | % Growth at Current FX | % Growth at Constant FX(*) |
Paper Collection | 81.418 | 77.072 | +5,6% | +6,6% |
WTR Collection | 8.748 | 7.761 | +12,7% | +15,8% |
M+ Collection(**) | 5.731 | 1.541 | +271,9% | +276,3% |
Net Revenues | 95.897 | 86.374 | +11,0% | +12,2% |
(*) Source: Internal Management Accounts
(**) M+ category includes Smart Notebooks (e.g. Evernote, Livescribe and Adobe), Smart Pens, Smart Writing Set, Paper Tablet and Timepage
In the first nine months of 2016 the Group continued to innovate, broadening and strengthening the depth of the brand's product offering. Within Paper, the Company launched Toy Story and Games of Thrones Limited Editions. We also launched The Beatles Limited Edition to celebrate the release of the musical fantasy movie, 'Yellow Submarine', whose vibrant and imaginative artwork helped to establish animation as a serious art form. In the WTR category, the Group launched the first line of premium leather bags and wallets, and a collection of travel bags and luggage accessories developed in partnership with Bric's. Both launches reflect ongoing efforts to innovate and expand into new product categories dedicated to travel and mobility.
In the second quarter, the Group launched the Smart Writing Set, a specially designed tablet, smart pen and app working in tandem to digitize notes and sketches instantly, as they are made on paper. Strong sales momentum has been sustained through the third quarter, helping to drive exceptional revenue growth within the Molekine+ Collection.
Finally, during the third quarter the Group opened the first directly operated street-based Moleskine Café, within the Brera design district in Milan. The format provides a contemporary interpretation of the "Café Littéraire" concept, adding Moleskine brand values and products to a unique café experience. The Café, which has met with a very positive reception from consumers and media, is still in its testing phase and will require further validation before the Company considers a global roll-out.
Moleskine S.p.A. published this content on 07 November 2016 and is solely responsible for the information contained herein.
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