BASICNET: Strong Q1 2018 for BasicNet Marketplace with Royalties and sourcing commissions of Euro 13.3 million, +9.6% on Q1 2017 (+16,1% at like-for-like exchange rates).  Consolidated turnover, which amount to Euro 53,7 million, grows 7.5% (+9,1% at like-for-like exchange rates).

Turin, April 24, 2018. The Board of Directors of BasicNet S.p.A., in a meeting today chaired by Marco Boglione reviewed the Group Q1 2018 commercial performance, which presents:

• aggregate sales of Group products by the Global licensee Network of Euro 208 million, up 4.7% on 2017 (+13.1% at like-for-like exchange rates) - as follows:

• commercial licensees of Euro 154.6 million, Euro 146.1 million in 2017, +5.8% at current exchange rates, +12.1% at like-for-like exchange rates; 

• productive licensees of Euro 53.5 million, Euro 52.6 million in 2017, +1.7% at current exchange rates, +16.1% at like-for-like exchange rates; 

• continued US market expansion for the commercial licensees (+7.8%); European market up 6.5% on the previous year; 

• solid sales recovery for the Superga^® brand, growing 7.2% on Q1 2017 (12.9% at like-for-like exchange rates);

• Kappa^® and Robe di Kappa^® brand revenues up 1.9% on first quarter of previous year (+9.5% at like-for-like exchange rates). The new Kappa^® Kontroll Label and the range of co-branding initiatives achieved good success on the market, including those with the Argentinian designer Marcelo Burlon, the Italian designer Danilo Paura and the French brand Faith Connexion, in addition to leading stores such as Opening Ceremony (USA) and 10Corsocomo;

• K-Way^® brand overall commercial growth of 6.4% (7.2% at like-for-like exchange rates). The brand’s European market performance was particularly strong, driven by France and Italy and also as a result of retail development, with 42 mono-brand stores now open, of which 29 in Italy (9 brand outlets) and 11 in France; 

• for the Sebago^® brand, with the Business System now fully operational, commercial development with the signing of licensing agreements for the United States, Norway and the Balkan countries.  The new collection will be presented to licensees at the seasonal meeting to be held on May 24; 

• royalties and sourcing commissions from aggregate sales of the commercial and productive licensees of Euro 13.3 million, up 9.6% on Euro 12.2 million in 2017 (+16.1% at like-for-like exchange rates);

• direct sales, almost entirely from the Italian licensee BasicItalia S.p.A. and its subsidiary BasicRetail S.r.l., of Euro 40.4 million (+6.9%) compared to Euro 37.8 million in the first quarter of 2017; 

• consolidated revenues, including royalties, sourcing commissions and sales of the Italian licensee BasicItalia S.p.A. and its subsidiary BasicRetail S.r.l., for Q1 2018 amounted to Euro 53.7 million (+7.5% on Euro 49.9 million for Q1 2017, +9.1% at like-for-like exchange rates).

H1 2018 Outlook

The available information indicates business growth for the entirety of the first half of the year. This forecast however remains subject to sector seasonality and developments on the main currency markets.

As communicated on April 17, the Chief Executive Officer Gianni Crespi will present to the market the Q1 2018 commercial results during a video conference to be held this afternoon at 5.30 PM.  To join the video conference call (to be held in English), click on:

Join Skype Meeting

or telephone: +390200624808

(ID conference: 89523018 and PIN conference: 40804)

the presentation may be downloaded from the website www.BasicNet.com, from the section: “financial data/other information and presentations� shortly before the video conference, at the following link:

www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g&language=IT

 

In relation to the “alternative performance indicators�, as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the indicators used in the present Interim Directors’ Report, as well as their reconciliation with the condensed half-year financial statement items:

The Executive Officer for Financial Reporting, Mr. Paolo Cafasso, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries.