Lanvin Group(LANV) - 2023 Q4 - Annual Report

Revenue Performance - Revenue for FY2023 reached €426 million, a 1% increase year-over-year despite macroeconomic challenges[1] - Revenue for FY 2023 was €426,178 thousand, a slight increase from €422,312 thousand in FY 2022, representing a growth of 0.2%[30] - Lanvin's revenues for 2022 reached €119,847 thousand, a 64% increase from 2021, but decreased by 7% to €111,740 thousand in 2023[33] - Wolford's revenues for 2023 were €126,280 thousand, a 1% increase from 2022, with a CAGR of 10% from 2020 to 2023[34] - Sergio Rossi's revenues in 2023 were €59,518 thousand, reflecting a 4% decrease from 2022, despite a significant growth of 116% from 2020 to 2021[35] - Direct-to-Consumer (DTC) sales for Wolford accounted for 69% of total revenues in 2023, totaling €87,352 thousand[34] - Caruso Brand's revenues grew significantly by 30% from €30,819K in 2022 to €40,011K in 2023[37] - The overall revenue for the Lanvin Group increased from €308,822K in 2021 to €422,312K in 2022, showing a compound annual growth rate (CAGR) of 15%[41] Profitability Metrics - Gross profit increased to €251 million, representing a gross margin of 59%, up from 56% in 2022[11] - Contribution profit improved to €24 million, with a margin of 6%, an increase of €11 million from 2022[12] - Contribution profit for FY 2023 was €24,192 thousand, a significant increase from €13,211 thousand in FY 2022, marking a growth of 83.5%[30] - Lanvin's contribution profit improved from -24,096 thousand in 2021 to -11,986 thousand in 2023, indicating a positive trend[33] - Sergio Rossi's gross profit margin increased to 51% in 2023, with gross profit of €30,435 thousand[35] - Caruso Brand's gross profit margin increased from 18% in 2021 to 28% in 2023, reflecting better cost management[37] - St. John Brand's contribution profit rose to €10,679K in 2023, maintaining a contribution margin of 12%[36] Cost Management and Expenses - Adjusted EBITDA loss improved to (15%) of sales, compared to (17%) in 2022[13] - Adjusted EBITDA for FY 2023 was reported at €-64,173 thousand, an improvement from €-71,958 thousand in FY 2022, reflecting a 10.5% reduction in losses[30] - Marketing and selling expenses remained stable at 53% of revenue in FY 2023, consistent with FY 2022[30] - Non-underlying items for FY 2023 resulted in a loss of €3,858 thousand, a significant improvement from a loss of €83,057 thousand in FY 2022[30] - Finance costs increased to €20,431 thousand in FY 2023, up from €14,556 thousand in FY 2022, representing a rise of 40.5%[30] Asset and Liability Management - Non-current assets increased from €451,902 thousand in FY 2022 to €481,313 thousand in FY 2023, reflecting a growth of 6.5%[31] - Current assets decreased from €280,326 thousand in FY 2022 to €206,621 thousand in FY 2023, a decline of 26.3%[31] - Total assets decreased from €732,228 thousand in FY 2022 to €687,934 thousand in FY 2023, a reduction of 6.0%[31] - Net cash used in operating activities improved from -€80,851 thousand in FY 2022 to -€57,891 thousand in FY 2023, a decrease in cash outflow of 28.4%[32] - Cash and cash equivalents at the end of FY 2023 were €27,850 thousand, down from €91,749 thousand in FY 2022, a decrease of 69.7%[32] - Net cash flows generated from financing activities decreased from €104,937 thousand in FY 2022 to €34,131 thousand in FY 2023, a decline of 67.5%[32] - Non-current borrowings increased significantly from €181,115 thousand in FY 2022 to €323,381 thousand in FY 2023, an increase of 78.5%[31] - Total liabilities increased from €431,422 thousand in FY 2022 to €522,306 thousand in FY 2023, an increase of 21.1%[31] Regional Performance - E-Commerce sales grew by 3%, while overall DTC and Wholesale channels remained flat[7] - APAC region showed nearly 8% growth, highlighting steady regional performance[1] - North America revenues grew by 79% from 2021 to 2022, but saw a slight decline of 1% in 2023, totaling €28,210 thousand[33] - EMEA region contributed 46% to Lanvin's total revenues in 2023, amounting to €51,585 thousand[33] - The EMEA region saw a revenue increase of 26% for St. John Brand from €1,224K in 2022 to €1,541K in 2023[36] Strategic Initiatives - The Group plans to achieve cash flow breakeven by 2025, with Caruso reaching breakeven Adjusted EBITDA in 2023[1] - The Group aims to expand its strategic partnerships to facilitate regional growth and improve logistics in 2024[18] - The company anticipates continued growth opportunities despite potential risks, including market competition and economic conditions[25] - Lanvin Group emphasizes the importance of non-IFRS financial measures to provide supplemental information for evaluating projected operating results[26] Store Operations - The Group closed 36 stores but opened 24 new retail locations, including its first in the Middle East[9] - The total number of Directly Operated Stores (DOS) for St. John decreased from 48 in 2022 to 45 in 2023, while the Point of Sales (POS) remained stable[38]