BETA Sec: Folli Follie (OW, TP €26,00) H1 group net up 18% to €114.8m

Folli Follie Group (FFGRP GA, OW, TP EUR26.0)

BETA Sec: Folli Follie (OW, TP €26) H1 group net up 18% to €114.8m (BETAe €111.6m), +12% to €60.9m in Q2 (BETAe €57.8m) on upbeat Asia/JWA ops; earnings beat due to lower taxes

FF Group: H1/Q2 2017a group results (June 30, EURm)
    1H16a 1H17a y-o-y 1H17e vs BETAe 2Q16a 2Q17a y-o-y 2Q17e vs BETAe
Geographic Greece revenue 140.3 142.8 2% 140.3 2% 64.9 71.2 10% 68.7 4%
region    % of total 21.5% 19.8%   19.6%   18.1% 17.6%   17.3%  
International rev. 512.4 580.4 13% 574.8 1% 294.2 334.1 14% 328.5 2%
   % of total 78.5% 80.3%   80.4%   81.9% 82.4%   82.7%  
Asia revenue 447.1 516.0 15% 506.7 2% 261.5 304.3 16% 295.0 3%
   % of total 68.5% 71.4%   70.9%   72.8% 75.1%   74.3%  
Ex-FX moves 403.8 502.7 12% 493.5 2% 221.5 297.3 14% 288.0 3%
Europe revenue 59.4 58.2 -2% 61.1 -5% 29.4 27.3 -7% 30.1 -10%
   % of total 9.1% 8.1%   8.5%   8.2% 6.7%   7.6%  
North America revenue 5.9 6.1 5% 7.0 -12% 3.2 2.5 -22% 3.4 -25%
   % of total 0.9% 0.9%   1.0%   0.9% 0.6%   0.8%  
Business JWA 482.5 547.5 13% 537.0 2% 278.1 321.1 15% 310.6 3%
segment % total 73.9% 75.7% 75.1% 77.5% 79.2% 78.2%
  Ex-FX moves 439.2 534.2 11% 523.7 2% 238.1 314.2 13% 303.7 3%
Retail/Wholesale 87.4 90.4 3% 93.1 -3% 39.5 39.6 0% 42.3 -6%
% total 13.4% 12.5% 13.0% 11.0% 9.8% 10.7%
Department Stores 82.8 85.3 3% 85.0 0% 41.4 44.5 8% 44.2 1%
% total 12.7% 11.8% 11.9% 11.5% 11.0% 11.1%
FF Group Revenue 652.7 723.2 11% 715.1 1% 359.0 405.3 13% 397.2 2%
  Ex-FX moves 609.4 709.9 9% 701.8 1% 319.0 398.3 11% 390.2 2%
COGS (357.6) (397.6) 11% (390.8) 2% (206.4) (234.8) 14% (227.9) 3%
Gross Profit 295.1 325.6 10% 324.3 0% 152.6 170.5 12% 169.3 1%
     Gross margin 45.2% 45.0% 45.4% 42.5% 42.1% 42.6%
Other oper. income 0.1 2.6 2.9 (0.6) (1.1) (0.8)
 
Administrative Exp. (37.0) (37.7) 2% (33.6) 12% (15.5) (18.8) 21% (14.7) 28%
   % of revenue 5.7% 5.2% 4.7% 4.3% 4.6% 3.70%
Selling Expenses (109.2) (122.4) 12% (123.5) -1% (58.4) (64.6) 11% (65.7) -2%
   % of revenue 16.7% 16.9% 17.3% 16.3% 15.9% 16.54%
Total S&A Exp. (146.2) (160.1) 10% (157.1) 2% (73.9) (83.4) 13% (80.4) 4%
   % of revenue 22.4% 22.1% 22.0% 20.6% 20.6% 20.2%
Business JWA 135.2 158.4 17% 156.3 1% 74.0 84.6 14% 82.5 2%
segment     EBITDA Margin 28.0% 28.9% 29.1% 26.60% 26.3% 26.6%
    % total 90.7% 94.2% 91.9% 94.7% 98.3% 93.7%
Retail/Wholesale 5.8 3.4 -42% 6.6 -49% (1.2) (3.0) 0.3
   EBITDA Margin 6.7% 3.7% 7.1% -3.1% -7.5% 0.7%
   % total 3.9% 2.0% 3.9% -1.5% -3.4% 0.3%
Dept Stores 8.0 6.4 -21% 7.3 -12% 5.4 4.4 -17% 5.3 -16%
   EBITDA Margin 9.7% 7.5% 8.5% 12.9% 9.9% 12.0%
   % total 5.4% 3.8% 4.3% 6.9% 5.1% 6.0%
FF Group EBITDA 149.0 168.1 13% 170.2 -1% 78.1 86.0 10% 88.1 -2%
   EBITDA margin 22.83% 23.24%   23.80%   21.8% 21.2%   22.2%  
Depreciation (17.3) (15.1) -13% (18.3) -17% (5.8) (6.1) 5% (9.3) -34%
EBIT 131.7 153.0 16% 151.9 1% 72.3 79.9 11% 78.8 1%
   EBIT margin 20.2% 21.2%   21.2%   20.1% 19.7%   19.9%  
Net Financials (8.3) (17.5) 112% (10.8) 62% (3.7) (12.0) (5.3)
EBT 123.5 135.5 10% 141.1 -4% 68.6 67.9 -1% 73.5 -8%
   EBT margin 18.9% 18.7%   19.7%   19.1% 16.7%   18.5%  
Minorities (1.9) (1.7) -11% (1.6) 6% (1.4) (1.5) 5% (1.4) 7%
EBT after Minorities 121.6 133.8 10% 139.5 -4% 67.2 66.4 -1% 72.1 -8%
Taxation (23.9) (19.0) -21% (27.9) -32% (12.7) (5.4) -57% (14.3) -62%
Effective Tax Rate 19.7% 14.2% 20.0% 18.8% 8.1% 19.8%
Net Profit 97.7 114.8 18% 111.6 3% 54.5 60.9 12% 57.9 5%
   Net Margin 15.0% 15.9%   15.6%   15.2% 15.0%   14.6%  

 

Kind regards,

Spiros Tsangalakis

Senior Equity Analyst

BETA Securities S.A.

29 Alexandras Ave.

GR – 11473

Athens, Greece