- Revenues of €960.1 million, up 6% from H1 2023 (+8% at
constant currency and -2.7% organic1)
- Profit of €31.3 million (3.3% profit margin) compared
to €52.1 million in H1 2023 (5.8% profit margin)
- Gross profit margin of 66.4% up 220bps from 64.2% in H1
2023
- Adjusted EBIT1 of €80.9 million with an Adjusted EBIT
Margin of 8.4% (13.3% in H1 2023)
- Important investments to further strengthen Group’s brands
concentrated in H1 2024
Ermenegildo Zegna N.V. (NYSE:ZGN) (the “Company” and, together
with its consolidated subsidiaries, the “Ermenegildo Zegna Group”
or “the Group”) today announced profit of €31.3 million in H1 2024
compared to €52.1 million in H1 2023. In H1 2024, Adjusted EBIT was
equal to €80.9 million compared to €119.9 million in H1 2023.
Ermenegildo “Gildo” Zegna, Group Chairman and CEO, said: “The
first half of 2024 was marked by important investments in all three
of our brands to further strengthen and foster ongoing value
creation for each of them. We continued to double down on the
successful ZEGNA One Brand Strategy, recently exemplified by the
VILLA ZEGNA event in New York. We have taken decisive actions to
reinforce the Thom Browne organization both at HQ and in key
regions. And, at TOM FORD FASHION, we recently announced Haider
Ackermann as the new TOM FORD Creative Director – a pairing that we
are confident will take the brand to new heights.
I believe these steps are what is needed for our Group as the
luxury industry goes through an important normalization phase and
continues to face macroeconomic and geopolitical uncertainties
around the world. Our first half operating results – with Adjusted
EBIT Margin at 8.4% vs. 13.3% in H1 2023 – were also affected by
our decision to continue investing in key projects, some of which
were concentrated in the first six months of the year. Along with
these investments, we have also implemented cost controls while
continuing to operate with appropriate caution. Even though the
overall environment is expected to remain even more challenging, I
am confident that our projects and actions are the right ones to
unleash the untapped long-term potential of all three of our
brands.”
________________________________________
1 Revenues on organic growth basis
(organic or organic growth) and on a constant currency basis
(constant currency), are non-IFRS financial measures. Constant
currency growth is calculated excluding foreign exchange. Organic
growth is calculated excluding (a) foreign exchange, (b)
acquisitions & disposals, (c) changes in license agreements
where the Group operates as a licensee. See the non-IFRS financial
measures section starting on page 8 of this press release for the
definition and reconciliation of non-IFRS financial measures.
Results of
Operations
For the six months ended June
30,
(€ thousands, except percentages)
2024
Percentage of revenues
2023
Percentage of revenues
Revenues
960,122
100.0
%
903,059
100.0
%
Costs of sales
(322,678
)
(33.6
%)
(323,228
)
(35.8
%)
Gross profit
637,444
66.4
%
579,831
64.2
%
Selling, general and administrative
expenses
(497,612
)
(51.8
%)
(415,792
)
(46.0
%)
Marketing expenses
(66,751
)
(7.0
%)
(47,530
)
(5.3
%)
Operating profit
73,081
7.6
%
116,509
12.9
%
Financial income
12,106
1.3
%
15,601
1.7
%
Financial expenses
(29,267
)
(3.0
%)
(44,592
)
(4.9
%)
Foreign exchange losses
(7,684
)
(0.8
%)
(7,003
)
(0.8
%)
Result from investments accounted for
using the equity method
314
—
%
(2,237
)
(0.2
%)
Profit before taxes
48,550
5.1
%
78,278
8.7
%
Income taxes
(17,218
)
(1.8
%)
(26,162
)
(2.9
%)
Profit
31,332
3.3
%
52,116
5.8
%
Half Year 2024 Key Financial Highlights
Revenues
In H1 2024 the Group recorded revenues of €960.1 million, +6.3%
YoY and -2.7% organic. The ZEGNA brand recorded €566.1 million,
+4.6% YoY and +5.9% organic growth. Thom Browne revenues were
€166.7 million, -19.4% YoY and -26.7% organic. TOM FORD FASHION
recorded €148.5 million of revenues, +132.0% YoY and +4.7% organic
growth while Textile revenues were €71.8 million (-1.7% YoY and
-0.6% organic).
Gross Profit, Operating Profit and Profit
Gross profit in H1 2024 reached €637.4 million compared to
€579.8 million in H1 2023 with a gross profit margin of 66.4%
compared to 64.2% in H1 2023. This improvement was driven by two
main factors: first, channel mix, given the increasing proportion
of direct-to-consumer (“DTC”) revenues which rose from 72% in H1
2023 to 76% in H1 2024 of branded group revenues (excluding Textile
and Other businesses), and second, better inventory management.
Selling, general, and administrative (SG&A) expenses were
€497.6 million (51.8% of revenues) in H1 2024, compared to €415.8
million (46.0% of revenues) in H1 2023. The SG&A higher
incidence on revenues largely reflects investments made in talents
to support the future growth of all the Group’s brands, as well as
to develop the store network, and the consolidation of Tom Ford
Fashion segment results for the entire six months (compared to
approximately two months in H1 2023).
Marketing expenses in H1 2024 were €66.8 million (7.0% of
revenues) compared to €47.5 million (5.3% of revenues) in H1 2023.
The increase in incidence of the marketing expenses is largely due
to a higher number of events concentrated in the first part of the
year compared to H1 2023.
As a result of the above, the Group reported an operating profit
of €73.1 million compared to €116.5 million in H1 2023 and a profit
of €31.3 million, with a 3.3% profit margin, compared to €52.1
million in H1 2023 (5.8% profit margin).
Adjusted EBIT and Adjusted EBIT Margin
The table below shows the reconciliation of Profit to Adjusted
EBIT and the calculation of the profit margin and the Adjusted EBIT
Margin in H1 2024 and 2023. Adjusted EBIT is the main performance
metric used by the Group’s management at the consolidated and
reporting segment level.
For the six months ended June
30,
(€ thousands, except percentages)
2024
2023
Profit
31,332
52,116
Income taxes
17,218
26,162
Financial income
(12,106)
(15,601)
Financial expenses
29,267
44,592
Foreign exchange losses
7,684
7,003
Result from investments accounted for
using the equity method
(314)
2,237
Operating profit
73,081
116,509
Adjustments:
Net impairment of leased and owned
stores
4,979
—
Severance indemnities and provisions for
severance expenses
1,436
738
Legal costs for trademark dispute
1,388
649
Transaction costs related to
acquisitions
26
4,975
Costs related to the Business
Combination
—
1,059
Special donations for social
responsibility
—
100
Net income related to lease agreements
—
(4,126)
Adjusted EBIT
80,910
119,904
Revenues
960,122
903,059
Profit margin (Profit /
Revenues)
3.3%
5.8%
Adjusted EBIT Margin (Adjusted EBIT /
Revenues)
8.4%
13.3%
Analysis by Segment
In H1 2024, Adjusted EBIT for the Zegna segment was €84.7
million from €99.7 million in H1 2023. Adjusted EBIT for the Thom
Browne segment was €20.2 million, from €31.5 million in H1 2023.
The Tom Ford Fashion segment reported an Adjusted EBIT of negative
€11.9 million, versus positive €4.3 million in H1 2023. The latter
comparison, however, is not meaningful since H1 2023 consists of
approximately just two months of TOM FORD FASHION results
(consolidated since April 29, 2023).
For the six months ended June
30,
Change
(€ thousands, except percentages)
2024
2023
2024 vs 2023
%
Revenues
Zegna
660,538
644,310
16,228
2.5%
Thom Browne
166,935
207,959
(41,024)
(19.7%)
Tom Ford Fashion
148,493
64,027
84,466
131.9%
Eliminations
(15,844)
(13,237)
(2,607)
n.m. (*)
Total revenues
960,122
903,059
57,063
6.3%
________________________________________
(*) Throughout this document “n.m.” means
not meaningful.
For the six months ended June
30,
Change
(€ thousands, except percentages)
2024
2023
2024 vs 2023
%
Adjusted
EBIT
Zegna
84,695
99,718
(15,023)
(15.1%)
Thom Browne
20,186
31,521
(11,335)
(36.0%)
Tom Ford Fashion
(11,913)
4,303
(16,216)
n.m.
Corporate
(11,965)
(15,626)
3,661
23.4%
Eliminations
(93)
(12)
(81)
n.m.
Total
80,910
119,904
(38,994)
(32.5%)
Adjusted EBIT
Margin
Zegna
12.8%
15.5%
Thom Browne
12.1%
15.2%
Tom Ford Fashion
(8.0%)
6.7%
Zegna segment
In H1 2023, the Zegna segment (which includes ZEGNA brand,
Textile and Third Party Brands) generated revenues of €660.5
million2, +2.5% YoY (+3.5% organic growth).
Adjusted EBIT for the Zegna segment was €84.7 million in H1 2024
with an Adjusted EBIT Margin of 12.8% compared to 15.5% in H1 2023.
This performance was primarily driven by the increase in marketing
expenses, due to a higher concentration of events and projects in
the first half of 2024 compared to the first six months of the
prior year, investments in talents and on the stores network
expansions.
Thom Browne segment
In H1 2024, the Thom Browne segment generated revenues of €166.9
million, -19.7% YoY (-27.0% organic).
Adjusted EBIT for the Thom Browne segment was €20.2 million in
H1 2024, with an Adjusted EBIT Margin of 12.1% compared to 15.2% in
H1 2023. The decrease was led by a lower operating leverage due to
the decline in revenues.
Tom Ford Fashion segment
In H1 2024, the Tom Ford Fashion (“TFF”) segment generated
revenues of €148.5 million, +131.9% YoY and +4.7% organic growth.
Adjusted EBIT for this segment in H1 2024 was negative €11.9
million, compared to positive €4.3 million in H1 2023. Given that
the Tom Ford Fashion segment was consolidated for only
approximately two months in H1 2023, the comparison between H1 2024
and H1 2023 results is not meaningful.
Additionally, since the acquisition, the Group has started to
strengthen the TFF organization – investing in talent, store
networks, marketing and in IT systems – to support its future
growth, which also explain the increase in costs in H1 2024.
Corporate costs
Corporate costs amounted to €12.0 million in H1 2024 compared to
€15.6 million in H1 2023. The decrease is largely due to a lower
impact of incentive plans.
________________________________________
2 Before inter-segment eliminations.
Capital Expenditure, Trade Working
Capital, Net Financial Indebtedness/(Cash Surplus) and Free Cash
Flow
Capital expenditure
For the six months ended June
30,
(€ thousands)
2024
2023
Payments for property, plant and
equipment
47,926
25,699
Payments for intangible assets
12,151
8,801
Capital expenditure
60,077
34,500
Capital expenditure (capex) in H1 2024 achieved €60.1 million
compared to €34.5 million in H1 2023. This increase is mainly
attributable to the first part of investments for the new footwear
production plant in Parma (Italy) and the expansion in the DTC
channel mainly for ZEGNA and Tom Ford Fashion.
Trade Working Capital
(€ thousands)
At June 30, 2024
At December 31, 2023
At June 30, 2023
Trade Working Capital
475,642
448,909
465,419
of which trade receivables
216,670
240,457
217,208
of which inventories
540,791
522,589
545,176
of which trade payables and customer
advances
(281,819)
(314,137)
(296,965)
Trade Working Capital was €475.6 million at June 30, 2024, 2.2%
higher compared to €465.4 million at June 30, 2023. The increase is
mainly attributable to a lower level of trade payable (-5.1% vs.
June 30, 2023) partially counterbalanced by a better management of
inventories and stable receivables.
Net Financial Indebtedness/(Cash
Surplus)
(€ thousands)
At June 30, 2024
At December 31, 2023
At June 30, 2023
Net Financial Indebtedness/(Cash
Surplus)
65,509
10,810
17,033
Net Financial Indebtedness was €65.5 million at June 30, 2024,
compared to €17.0 million at June 30, 2023, reflecting the net cash
outflows mainly related to capex and investments in controlled
entities.
Free Cash Flow
For the six months ended June
30,
(€ thousands)
2024
2023
Net cash flows from operating
activities
120,448
107,583
Payments for property, plant and
equipment
(47,926)
(25,699)
Payments for intangible assets
(12,151)
(8,801)
Payments of lease liabilities
(66,950)
(59,115)
Free Cash Flow
(6,579)
13,968
In H1 2024 the Group generated negative Free Cash Flow of €6.6
million compared to positive €14.0 million in H1 2023, primarily
driven by the increase in capex.
Conference Call
As previously announced, today, at 8a.m. ET (2p.m. CET), the
Group will host a live webcast and conference call. To access the
webcast please visit our website
(https://ir.zegnagroup.com/financial-calendar/events/). To
participate in the call, please dial:
Italy: +39 06 9450 1060 United States: +1 646
787 9445 United Kingdom: +44 20 3936 2999
Access Code: 594212
Webcast link:
https://events.q4inc.com/attendee/321182422
An online archive of the broadcast will be available on the
website shortly after the live call and will be available for
twelve months.
Upcoming Announcements
The Ermenegildo Zegna Group’s next scheduled announcement is
October 22, 2024 Q3 2024 Revenues (*)
________________________________________
(*) Unaudited figures
To receive email alerts of the timing of future financial news
releases, as well as future announcements, please register at
https://ir.zegnagroup.com.
About Ermenegildo Zegna
Group
Founded in 1910 in Trivero, Italy, the Ermenegildo Zegna Group
(NYSE:ZGN) is a global luxury company with a leading position in
the high-end menswear business. Through its three complementary
brands, the Group reaches a wide range of communities and market
segments across the high-end fashion industry, from ZEGNA’s
timeless luxury to the modern tailoring of Thom Browne, to luxury
glamour with TOM FORD FASHION. The Ermenegildo Zegna Group is
internationally recognized for its unique Filiera, owned and
controlled by the Group, which is made up of the finest Italian
textile producers fully integrated with unique luxury manufacturing
capabilities, to ensure superior excellence, quality and innovation
capacity. The Ermenegildo Zegna Group has more than 7,000 employees
and recorded revenues of €1.9 billion in 2023.
Forward Looking
Statements
This communication contains forward-looking statements that are
based on beliefs and assumptions and on information currently
available to the Company. In particular, statements regarding
future financial performance and the Group’s expectations as to the
achievement of certain targeted metrics at any future date or for
any future period are forward-looking statements. In some cases,
you can identify forward-looking statements by the following words:
“may,” “will,” “could,” “would,” “should,” “expect,” “intend,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,”
“potential,” “continue,” “ongoing,” “target,” “seek”, “aspire,”
“goal,” “outlook,” “guidance,” “forecast,” “prospect” or the
negative or plural of these words, or other similar expressions
that are predictions or indicate future events or prospects,
although not all forward-looking statements contain these words.
Any statements that refer to expectations, projections or other
characterizations of future events or circumstances, including
strategies or plans, are also forward-looking statements. These
statements involve risks, uncertainties and other factors that may
cause actual results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements, and, as
such, undue reliance should not be placed on them. Actual results
may differ materially from those expressed in forward-looking
statements as a result of a variety of factors, including: the
recognition, integrity and reputation of our brands; our ability to
anticipate trends and to identify and respond to new and changing
consumer preference; the COVID-19 pandemic or similar public health
crises; international business, regulatory, social and political
risks; the conflict in Ukraine and sanctions imposed onto Russia;
the occurrence of acts of terrorism or similar events, conflicts,
civil unrest or situations of political instability; developments
in Greater China and other growth and emerging markets; our ability
to implement our strategy; recent and potential future
acquisitions; disruption to our manufacturing and logistics
facilities; risks related to the sale of our products through our
direct-to-consumer channel, as well as through points of sale
operated by third parties; our dependence on our local partners to
sell our products in certain markets; fluctuations in the price or
quality of, or disruptions in the availability of, raw materials;
our ability to negotiate, maintain or renew our license or
co-branding agreements with high end third party brands; tourist
traffic and demand; our dependence on certain key senior personnel
as well as skilled personnel; our ability to protect our
intellectual property rights; disruption in our information
technology, including as a result of cybercrime; the theft or
unauthorized use of personal information of our customers,
employees or other parties; fluctuations in currency exchange rates
or interest rates; the level of competition in the industry in
which we operate; global economic conditions and macro events,
including inflation; failures to comply with applicable laws and
regulations; climate change and other environmental impacts and our
ability to meet our customers’ and other stakeholders’ expectations
on environment, social and governance matters; the enactment of tax
reforms or other changes in tax laws and regulations; and other
risks and uncertainties, including those described in our filings
with the SEC.
Most of these factors are outside the Company’s control and are
difficult to predict. In light of the significant uncertainties in
these forward-looking statements, you should not regard these
statements as a representation or warranty by the Company and its
directors, officers or employees or any other person that the
Company will achieve its objectives and plans in any specified time
frame, or at all. The forward-looking statements in this
communication represent the views of the Company as of the date of
this communication. Subsequent events and developments may cause
that view to change. However, while the Company may elect to update
these forward-looking statements at some point in the future, the
Company disclaims any obligation to update or revise publicly
forward-looking statements. You should, therefore, not rely on
these forward-looking statements as representing the views of the
Company as of any date subsequent to the date of this
communication.
First Half 2024 - Group Revenues
Tables
Revenues by Segment (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023 (1)
%
Organic
2024
2023 (1)
%
Organic
Zegna
660,538
644,310
2.5%
3.5%
335,638
324,986
3.3%
2.7%
Thom Browne
166,935
207,959
(19.7%)
(27.0%)
87,869
94,708
(7.2%)
(17.8%)
Tom Ford Fashion
148,493
64,027
131.9%
4.7%
83,473
64,027
30.4%
4.7%
Eliminations
(15,844)
(13,237)
n.m.
n.m.
(10,015)
(8,974)
n.m.
n.m.
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
________________________________________
(1)
Revenues from Pelletteria Tizeta, a
manufacturing company of the Group, which were allocated to the
Zegna segment in H1 2023, are now presented within the Tom Ford
Fashion segment in H1 2024. As a result, the related revenues in H1
2023 have been reclassified from the Zegna segment to the Tom Ford
Fashion segment to conform to the current period presentation.
Revenues by Brand and Product Line (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
%
Organic
2024
2023
%
Organic
ZEGNA brand
566,067
541,319
4.6%
5.9%
283,197
269,430
5.1%
5.0%
Thom Browne
166,721
206,951
(19.4%)
(26.7%)
87,514
94,399
(7.3%)
(17.9%)
TOM FORD FASHION
148,493
64,015
132.0%
4.7%
83,473
64,015
30.4%
4.7%
Textile
71,836
73,072
(1.7%)
(0.6%)
38,593
39,254
(1.7%)
(0.5%)
Other (1)
7,005
17,702
(60.4%)
(32.9%)
4,188
7,649
(45.2%)
(23.0%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
________________________________________
(1)
Other mainly includes revenues from
agreements with third party brands.
Revenues by Distribution Channel (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
%
Organic
2024
2023
%
Organic
Direct to
Consumer (DTC)
ZEGNA brand
486,561
465,710
4.5%
5.1%
246,946
236,114
4.6%
4.0%
Thom Browne
89,976
82,924
8.5%
(12.8%)
45,257
40,075
12.9%
(11.6%)
TOM FORD FASHION
93,062
34,751
167.8%
1.3%
49,361
34,751
42.0%
1.3%
Total Direct to Consumer (DTC)
669,599
583,385
14.8%
2.4%
341,564
310,940
9.8%
1.7%
As a percentage of branded products
(1)
76 %
72 %
75 %
73 %
Wholesale
branded
ZEGNA brand
79,506
75,609
5.2%
10.4%
36,251
33,316
8.8%
11.8%
Thom Browne
76,745
124,027
(38.1%)
(36.0%)
42,257
54,324
(22.2%)
(22.4%)
TOM FORD FASHION
55,431
29,264
89.4%
8.7%
34,112
29,264
16.6%
8.7%
Total Wholesale branded
211,682
228,900
(7.5%)
(14.9%)
112,620
116,904
(3.7%)
(5.0%)
As a percentage of branded products
24 %
28 %
25 %
27 %
Textile
71,836
73,072
(1.7%)
(0.6%)
38,593
39,254
(1.7%)
(0.5%)
Other (2)
7,005
17,702
(60.4%)
(32.9%)
4,188
7,649
(45.2%)
(23.0%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
________________________________________
(1)
Branded products refer to the products
sold under the three brands that the Group operates, through the
DTC or wholesale branded distribution channels.
(2)
Other mainly includes revenues from
agreements with third party brands.
Revenues by Geographical Area (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
%
Organic
2024
2023
%
Organic
EMEA (1)
336,591
322,680
4.3%
(1.5%)
180,029
172,572
4.3%
2.8%
Americas (2)
246,046
190,112
29.4%
6.7%
131,869
117,705
12.0%
4.5%
Greater China Region
266,324
306,835
(13.2%)
(11.7%)
126,925
142,309
(10.8%)
(10.0%)
Rest of APAC (3)
109,990
82,190
33.8%
5.4%
57,556
41,463
38.8%
5.9%
Other (4)
1,171
1,242
(5.7%)
(17.5%)
586
698
(16.0%)
(21.2%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
________________________________________
(1)
EMEA includes Europe, the Middle East and
Africa.
(2)
Americas includes the United States of
America, Canada, Mexico, Brazil and other Central and South
American countries.
(3)
Rest of APAC includes Japan, South Korea,
Singapore, Thailand, Malaysia, Vietnam, Indonesia, Philippines,
Australia, New Zealand, India and other Southeast Asian
countries.
(4)
Other revenues mainly include
royalties.
Group Monobrand (1) Store Network at June 30, 2024
At June 30, 2024
At December 31, 2023
At June 30, 2023
Stores
ZEGNA
Thom Browne
TOM FORD FASHION
Group
ZEGNA
Thom Browne
TOM FORD FASHION
Group
ZEGNA
Thom Browne
TOM FORD FASHION
Group
EMEA (2)
75
9
7
91
71
9
4
84
69
10
4
83
Americas
64
20
12
96
59
7
12
78
55
7
11
73
Greater China Region
82
35
11
128
79
33
10
122
79
32
11
122
Rest of APAC
58
38
26
122
44
37
25
106
43
17
25
85
Total Direct to Consumer (DTC)
279
102
56
437
253
86
51
390
246
66
51
363
EMEA (2)
46
7
16
69
55
7
14
76
59
7
12
78
Americas
67
3
50
120
63
3
50
116
63
3
51
117
Greater China Region
13
10
—
23
13
10
—
23
13
11
—
24
Rest of APAC
4
4
5
13
20
5
6
31
22
22
7
51
Total Wholesale
130
24
71
225
151
25
70
246
157
43
70
270
Total
409
126
127
662
404
111
121
636
403
109
121
633
________________________________________
(1)
Monobrand store count includes our DOSs
(which are divided into boutiques and outlets) and our Wholesale
monobrand stores (including also monobrand franchisees).
(2)
Does not include any stores in Russia at
June 30, 2024, December 31, 2023 or at June 30, 2023. Although some
stores may still be operating at June 30, 2024, they have not been
supplied by the Group since February 2022 and have therefore been
excluded from the Group’s store count.
Ermenegildo Zegna N.V.
SEMI-ANNUAL CONDENSED
CONSOLIDATED STATEMENT OF PROFIT
for the six months ended June
30, 2024 and 2023
(Unaudited)
For the six months ended June
30,
(€ thousands)
2024
2023
Revenues
960,122
903,059
Cost of sales
(322,678)
(323,228)
Gross profit
637,444
579,831
Selling, general and administrative
expenses
(497,612)
(415,792)
Marketing expenses
(66,751)
(47,530)
Operating profit
73,081
116,509
Financial income
12,106
15,601
Financial expenses
(29,267)
(44,592)
Foreign exchange losses
(7,684)
(7,003)
Result from investments accounted for
using the equity method
314
(2,237)
Profit before taxes
48,550
78,278
Income taxes
(17,218)
(26,162)
Profit
31,332
52,116
Attributable to:
Shareholders of the Parent Company
25,085
45,967
Non-controlling interests
6,247
6,149
Basic earnings per share in €
0.10
0.19
Diluted earnings per share in €
0.10
0.19
Ermenegildo Zegna N.V.
SEMI-ANNUAL CONDENSED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at June 30, 2024 and at
December 31, 2023
(Unaudited)
(€ thousands)
At June 30, 2024
At December 31, 2023
Assets
Non-current assets
Intangible assets
594,936
572,274
Property, plant and equipment
176,094
159,608
Right-of-use assets
561,176
533,952
Investments accounted for using the equity
method
19,066
18,765
Deferred tax assets
165,254
160,878
Other non-current financial assets
36,121
33,898
Total non-current assets
1,552,647
1,479,375
Current assets
Inventories
540,791
522,589
Trade receivables
216,670
240,457
Derivative financial instruments
4,345
11,110
Tax receivables
36,112
31,024
Other current financial assets
99,451
90,917
Other current assets
105,967
95,260
Cash and cash equivalents
225,316
296,279
Total current assets
1,228,652
1,287,636
Total assets
2,781,299
2,767,011
Liabilities and Equity
Equity attributable to shareholders of the
Parent Company
852,678
840,294
Equity attributable to non-controlling
interests
61,527
60,602
Total equity
914,205
900,896
Non-current liabilities
Non-current borrowings
218,132
113,285
Other non-current financial
liabilities
141,239
136,556
Non-current lease liabilities
497,543
471,083
Non-current provisions for risks and
charges
20,323
19,849
Employee benefits
35,727
29,645
Deferred tax liabilities
77,843
73,885
Other non-current liabilities
4,758
9,689
Total non-current liabilities
995,565
853,992
Current liabilities
Current borrowings
167,963
289,337
Other current financial liabilities
—
22,102
Current lease liabilities
133,554
122,642
Derivative financial instruments
2,741
897
Current provisions for risks and
charges
13,111
16,019
Trade payables and customer advances
281,819
314,137
Tax liabilities
41,957
41,976
Other current liabilities
230,384
205,013
Total current liabilities
871,529
1,012,123
Total equity and liabilities
2,781,299
2,767,011
Ermenegildo Zegna N.V.
SEMI-ANNUAL CONDENSED
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended June
30, 2024 and 2023
(Unaudited)
For the six months ended June
30,
(€ thousands)
2024
2023
Operating activities
Profit
31,332
52,116
Income taxes
17,218
26,162
Depreciation, amortization and impairment
of assets
113,527
86,983
Financial income
(12,106)
(15,601)
Financial expenses
29,267
44,592
Foreign exchange losses
7,684
7,003
Write downs and other provisions
1,450
962
Write downs of the provision for obsolete
inventory
7,775
19,292
Result from investments accounted for
using the equity method
(314)
2,237
Other non-cash expenses, net
36,124
18,839
Change in inventories
(21,568)
(79,454)
Change in trade receivables
21,286
(26,851)
Change in trade payables including
customer advances
(28,354)
3,710
Change in other operating assets and
liabilities
(42,268)
2,870
Interest paid
(19,587)
(13,480)
Income taxes paid
(21,018)
(21,797)
Net cash flows from operating
activities
120,448
107,583
Investing activities
Payments for property, plant and
equipment
(47,926)
(25,699)
Payments for intangible assets
(12,151)
(8,801)
Payments for purchases of non-current
financial assets
(1,319)
(585)
Proceeds from disposals of current
financial assets and derivative instruments
15,707
221,869
Payments for acquisitions of current
financial assets and derivative instruments
(21,444)
(6,023)
Business combinations, net of cash
acquired
(14,608)
(108,575)
Acquisition of investments accounted for
using the equity method
—
(11,228)
Net cash flows (used in)/from investing
activities
(81,741)
60,958
Financing activities
Proceeds from borrowings
154,713
65,000
Repayments of borrowings
(174,223)
(173,407)
Payments of lease liabilities
(66,950)
(59,115)
Payments for acquisition of
non-controlling interests
(23,502)
—
Proceeds from the exercise of warrants
—
4,409
Sales of shares held in treasury
—
3,654
Dividends paid to non-controlling
interests
(1,444)
(6,068)
Net cash flows used in financing
activities
(111,406)
(165,527)
Effects of exchange rate changes on cash
and cash equivalents
1,736
(2,295)
Net (decrease)/increase in cash and
cash equivalents
(70,963)
719
Cash and cash equivalents at the
beginning of the period
296,279
254,321
Cash and cash equivalents at the end of
the period
225,316
255,040
Non-IFRS Financial Measures
The Group’s management monitors and evaluates operating and
financial performance using several non-IFRS financial measures
including: adjusted earnings before interest and taxes (“Adjusted
EBIT”), Adjusted EBIT Margin, Net Financial Indebtedness/(Cash
Surplus), Trade Working Capital, Free Cash Flow, revenues on a
constant currency basis (constant currency) and revenues on an
organic growth basis (organic or organic growth). The Group’s
management believes that these non-IFRS financial measures provide
useful and relevant information regarding the Group’s financial
performance and financial condition, and improve the ability of
management and investors to assess and compare the financial
performance and financial position of the Group with those of other
companies. They also provide comparable measures that facilitate
management’s ability to identify operational trends, as well as
make decisions regarding future spending, resource allocations and
other strategic and operational decisions. While similar measures
are widely used in the industry in which the Group operates, the
financial measures that the Group uses may not be comparable to
other similarly named measures used by other companies nor are they
intended to be substitutes for measures of financial performance or
financial position as prepared in accordance with IFRS. A
definition, explanation of relevance and a reconciliation of each
non-IFRS financial measure to the most directly comparable measure
calculated and presented in accordance with IFRS are set out
below.
Adjusted EBIT and Adjusted EBIT Margin
Adjusted EBIT is defined as profit or loss before income taxes
plus financial income, financial expenses, foreign exchange losses
and the result from investments accounted for using the equity
method, adjusted for income and costs which are significant in
nature and that management considers not reflective of underlying
operating activities, including, for one or all of the periods
presented and as further described below, net impairment of leased
and owned stores, severance indemnities and provisions for
severance expenses, legal costs for trademark dispute, transaction
costs related to acquisitions, costs related to the Business
Combination, special donations for social responsibility and net
income related to lease agreements.
Adjusted EBIT Margin is defined as Adjusted EBIT divided by
revenues of the applicable period.
The Group’s management uses Adjusted EBIT and Adjusted EBIT
Margin for internal reporting to assess performance and as part of
the forecasting, budgeting and decision-making processes as they
provide additional transparency regarding the Group’s underlying
operating performance. The Group’s management believes these
non-IFRS financial measures are useful because they exclude items
that management believes are not indicative of the Group’s
underlying operating performance and allow management to view
operating trends, perform analytical comparisons and benchmark
performance between periods and among segments. The Group’s
management also believes that Adjusted EBIT and Adjusted EBIT
Margin are useful for investors and analysts to better understand
how management assesses the Group’s underlying operating
performance on a consistent basis and to compare the Group’s
performance with that of other companies. Accordingly, management
believes that Adjusted EBIT and Adjusted EBIT Margin provide useful
information to third party stakeholders in understanding and
evaluating the Group’s operating results.
The following table presents a reconciliation of Profit to
Adjusted EBIT and the calculation of the profit margin and the
Adjusted EBIT Margin for the six months ended June 30, 2024 and
2023:
For the six months ended June
30,
(€ thousands, except percentages)
2024
2023
Profit
31,332
52,116
Income taxes
17,218
26,162
Financial income
(12,106)
(15,601)
Financial expenses
29,267
44,592
Foreign exchange losses
7,684
7,003
Result from investments accounted for
using the equity method
(314)
2,237
Operating profit
73,081
116,509
Adjustments:
Net impairment of leased and owned stores
(1)
4,979
—
Severance indemnities and provisions for
severance expenses (2)
1,436
738
Legal costs for trademark dispute (3)
1,388
649
Transaction costs related to acquisitions
(4)
26
4,975
Costs related to the Business Combination
(5)
—
1,059
Special donations for social
responsibility (6)
—
100
Net income related to lease agreements
(7)
—
(4,126)
Adjusted EBIT
80,910
119,904
Revenues
960,122
903,059
Profit margin (Profit /
Revenues)
3.3%
5.8%
Adjusted EBIT Margin (Adjusted EBIT /
Revenues)
8.4%
13.3%
________________________________________
(1)
Net impairment of leased and owned stores
of €4,979 thousand for the six months ended June 30, 2024 includes
(i) impairment of €3,036 thousand related to right-of-use assets,
and (ii) impairment of €1,943 thousand related to property, plant
and equipment.
(2)
Relates to severance indemnities of €1,436
thousand and €738 thousand for the six months ended June 30, 2024
and 2023, respectively.
(3)
Relates to legal costs of €1,388 thousand
and €649 thousand for the six months ended June 30, 2024 and 2023,
respectively, in connection with a legal dispute between Adidas AG
(“adidas”) and Thom Browne, primarily in relation to the use of
trademarks.
(4)
Relates to transaction costs of €26
thousand and €4,975 thousand, for the six months ended June 30,
2024 and 2023, respectively, primarily for consultancy and legal
fees related to the acquisition of the ZEGNA business in South
Korea and for 2023 only, to the TFI Acquisition and the acquisition
of a 25% interest in Norda.
(5)
Costs related to the Business Combination
of €1,059 thousand for the six months ended June 30, 2023 relate to
the grant of equity awards to management in 2021 with vesting
subject to the public listing of the Company’s shares and certain
other performance and/or service conditions.
(6)
Relates to donations to support
initiatives related to humanitarian emergencies in Turkey of €100
thousand for the six months ended June 30, 2023.
(7)
Net income related to lease agreements of
€4,126 thousand for the six months ended June 30, 2023 relates to
the derecognition of lease liabilities following a change in terms
of a lease agreement in Hong Kong.
Net Financial Indebtedness/(Cash Surplus)
Net Financial Indebtedness/(Cash Surplus) is defined as the sum
of financial borrowings (current and non-current) and derivative
financial instrument liabilities, net of cash and cash equivalents,
derivative financial instrument assets, securities (recorded within
other current financial assets in the semi-annual condensed
consolidated statement of financial position).
The Group’s management believes that Net Financial
Indebtedness/(Cash Surplus) is useful to monitor the level of net
liquidity and financial resources available to the Group. The
Group’s management believes this non-IFRS financial measure aids
management, investors and analysts to analyze the Group’s financial
position and financial resources available, and to compare the
Group’s financial position and financial resources available with
that of other companies.
The following table sets forth the calculation of Net Financial
Indebtedness/(Cash Surplus) at June 30, 2024, at December 31, 2023
and June 30, 2023:
(€ thousands)
At June 30, 2024
At December 31, 2023
At June 30, 2023
Non-current borrowings
218,132
113,285
112,747
Current borrowings
167,963
289,337
283,077
Derivative financial instruments —
Liabilities
2,741
897
2,186
Total borrowings, other financial
liabilities and derivatives
388,836
403,519
398,010
Cash and cash equivalents
(225,316)
(296,279)
(255,040)
Derivative financial instruments —
Assets
(4,345)
(11,110)
(17,985)
Other current financial assets (1)
(93,666)
(85,320)
(107,952)
Total cash and cash equivalents, other
current financial assets and derivatives
(323,327)
(392,709)
(380,977)
Net Financial Indebtedness/(Cash
Surplus)
65,509
10,810
17,033
________________________________________
(1)
Includes (i) the Group’s investments in
securities amounting to €105,752 thousand and (ii) a financial
receivable from an associated company of €2,200 thousand at June
30, 2023.
Trade Working Capital
Trade Working Capital is defined as current assets less current
liabilities adjusted for derivative assets and liabilities, tax
receivables and liabilities, cash and cash equivalents, borrowings,
lease liabilities, and certain other current assets and
liabilities.
The Group’s management uses Trade Working Capital to understand
and evaluate the Group’s liquidity generation/absorption. The
Group’s management believes this non-IFRS financial measure is
important supplemental information for investors in evaluating
liquidity in that it provides insight into the availability of net
current resources to fund our ongoing operations. Trade Working
Capital is a measure used by management in internal evaluations of
cash availability and operational performance.
The following table sets forth the calculation of Trade Working
Capital at June 30, 2024, at December 31, 2023 and June 30,
2023:
(€ thousands)
At June 30, 2024
At December 31, 2023
At June 30, 2023
Current assets
1,228,652
1,287,636
1,262,741
Current liabilities
(871,529)
(1,012,123)
(1,021,920)
Working capital
357,123
275,513
240,821
Less:
Derivative financial instruments -
Assets
4,345
11,110
17,985
Tax receivables
36,112
31,024
17,734
Other current financial assets
99,451
90,917
109,918
Other current assets
105,967
95,260
99,680
Cash and cash equivalents
225,316
296,279
255,040
Current borrowings
(167,963)
(289,337)
(283,077)
Current lease liabilities
(133,554)
(122,642)
(121,761)
Derivative financial instruments -
Liabilities
(2,741)
(897)
(2,186)
Other current financial liabilities
—
(22,102)
(23,373)
Current provisions for risks and
charges
(13,111)
(16,019)
(15,458)
Tax liabilities
(41,957)
(41,976)
(46,928)
Other current liabilities
(230,384)
(205,013)
(232,172)
Trade Working Capital
475,642
448,909
465,419
of which trade receivables
216,670
240,457
217,208
of which inventories
540,791
522,589
545,176
of which trade payables and customer
advances
(281,819)
(314,137)
(296,965)
Trade Working Capital increased by €26,733 thousand from
€448,909 thousand at December 31, 2023 to €475,642 thousand at June
30, 2024, primarily related to (i) lower trade payables and
customer advances of €32,318 thousand, and (ii) higher inventories
of €18,202 thousand, partially offset by (iii) lower trade
receivables of €23,787 thousand. The increase in inventories was
driven by ZEGNA and TOM FORD FASHION to support growth of the
business, including the effects of new store openings and the
conversion of ZEGNA stores in South Korea from wholesale to DTC, as
well as foreign exchange impact (mainly the United States Dollar
and the Chinese Renminbi) and a build up of Textile inventories for
the upcoming season, partially offset by a reduction in Thom Browne
driven by improved inventory management. The changes in trade
receivables and in trade payables and customer advances were
primarily driven by seasonality, and the change in trade
receivables also reflects the impact of the conversion of several
stores from wholesale to DTC.
Free Cash Flow
Free Cash Flow is defined as net cash flows from operating
activities less payments for property, plant and equipment (net of
proceeds from disposals), intangible assets and lease
liabilities.
The Group’s management believes that Free Cash Flow is a useful
metric for management, investors and analysts to evaluate and
monitor the Group’s ability to generate cash, including in
comparison to other companies. Free Cash Flow is not representative
of residual cash flows available for discretionary purposes.
The following table sets forth the Free Cash Flow for the six
months ended June 30, 2024, and 2023:
For the six months ended June
30,
(€ thousands)
2024
2023
Net cash flows from operating
activities
120,448
107,583
Payments for property, plant and
equipment
(47,926)
(25,699)
Payments for intangible assets
(12,151)
(8,801)
Payments of lease liabilities
(66,950)
(59,115)
Free Cash Flow
(6,579)
13,968
Revenues on a constant currency basis (constant
currency)
In addition to presenting our revenues on a current currency
basis, we also present certain revenue information on a constant
currency basis (constant currency), which excludes the effects of
foreign currency translation from our subsidiaries with functional
currencies different from the Euro.
We calculate constant currency revenues by applying the current
period average foreign currency exchange rates to translate prior
period revenues of foreign subsidiaries expressed in local
functional currencies different than the Euro.
We use revenues on a constant currency basis to analyze how our
underlying revenues have changed between periods independent of the
effects of foreign currency translation.
Revenues on a constant currency basis are not a substitute for
revenues on a current currency basis or any IFRS-related measures,
however we believe that revenues excluding the impact of foreign
currency translation provide additional useful information to
management and to investors in analyzing and evaluating our
revenues and operating performance.
Revenues on an organic growth basis (organic growth or
organic)
In addition to presenting our revenues on a current currency
basis, we also present certain revenue information on an organic
growth basis (organic growth or organic). Organic growth is
calculated as the change in revenues from period to period,
excluding the effects of (a) foreign exchange, (b) acquisitions and
disposals and (c) changes in license agreements where the Group
operates as a licensee.
In calculating organic growth, the following adjustments are
made to revenues:
(a)
Foreign exchange – Current period average
foreign currency exchange rates are used to translate prior period
revenues of foreign subsidiaries expressed in local functional
currencies different than the Euro.
(b)
Acquisitions and disposals – Revenues
generated by businesses and operations acquired in the current year
are excluded. Revenues generated by businesses and operations
acquired in the prior year are excluded from the current year for
the same period that corresponds to the pre-acquisition period in
the prior year. Additionally, where a business or operation was a
customer prior to an acquisition, the related pre-acquisition
revenues are excluded from the current and prior periods. Revenues
generated by businesses and operations disposed of in the current
year or prior year are excluded from both periods as
applicable.
(c)
Changes in license agreements where the
Group operates as a licensee – Revenues generated from license
agreements where the Group operates as a licensee that are new or
terminated in the current year or prior year are excluded from both
periods (except if the effects are already included in acquisitions
and disposals). Additionally, revenues generated from license
agreements where the Group operates as a licensee that experienced
a structural change in the scope or perimeter in the current year
or prior year are excluded from both periods, including changes to
product categories, distribution channels or geographies of the
underlying license agreements.
We believe the presentation of organic growth is useful to
better understand and analyze the underlying change in the Group’s
revenues from period to period on a consistent perimeter and
constant currency basis.
Revenues on an organic growth basis are not a substitute for
revenues on a current currency basis or any IFRS-related measures,
however we believe that revenues excluding the effects of (a)
foreign exchange, (b) acquisitions and disposals and (c) changes in
license agreements where the Group operates as a licensee provide
additional useful information to management and to investors in
analyzing and evaluating our revenues and operating
performance.
The tables below show a reconciliation of reported revenue
growth to constant currency, excluding the effects of foreign
exchange, and to organic, which excludes also acquisitions and
disposals and changes in license agreements where the Group
operates as a licensee, by segment, by product line, by
distribution channel and by geographic area for the six months
ended June 30, 2024 compared to the six months ended June 30, 2023
(H1 2024 vs H1 2023) and for the three months ended June 30, 2024
compared to the three months ended June 30, 2023 (Q2 2024 vs Q2
2023).
Segment
H1 2024 vs H1 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
Zegna
2.5%
(1.9%)
4.4%
0.7%
0.2%
3.5%
Thom Browne
(19.7%)
(1.2%)
(18.5%)
8.5%
—%
(27.0%)
Tom Ford Fashion
131.9%
(1.4%)
133.3%
128.6%
—%
4.7%
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
Zegna
3.3%
(1.1%)
4.4%
1.1%
0.6%
2.7%
Thom Browne
(7.2%)
(1.0%)
(6.2%)
11.6%
—%
(17.8%)
Tom Ford Fashion
30.4%
(1.0%)
31.4%
26.7%
—%
4.7%
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Product line
H1 2024 vs H1 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
ZEGNA brand
4.6%
(2.1%)
6.7%
0.8%
—%
5.9%
Thom Browne
(19.4%)
(1.2%)
(18.2%)
8.5%
—%
(26.7%)
TOM FORD FASHION
132.0%
(1.3%)
133.3%
128.6%
—%
4.7%
Textile
(1.7%)
(1.0%)
(0.7%)
(0.1%)
—%
(0.6%)
Other
(60.4%)
(0.2%)
(60.2%)
(0.3%)
(27.0%)
(32.9%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
ZEGNA brand
5.1%
(1.2%)
6.3%
1.3%
—%
5.0%
Thom Browne
(7.3%)
(1.0%)
(6.3%)
11.6%
—%
(17.9%)
TOM FORD FASHION
30.4%
(1.0%)
31.4%
26.7%
—%
4.7%
Textile
(1.7%)
(1.2%)
(0.5%)
—%
—%
(0.5%)
Other
(45.2%)
—%
(45.2%)
—%
(22.2%)
(23.0%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Distribution channel
H1 2024 vs H1 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
Direct to
Consumer (DTC)
ZEGNA brand
4.5%
(2.3%)
6.8%
1.7%
—%
5.1%
Thom Browne
8.5%
(4.2%)
12.7%
25.5%
—%
(12.8%)
TOM FORD FASHION
167.8%
(2.9%)
170.7%
169.4%
—%
1.3%
Total Direct to Consumer (DTC)
14.8%
(2.7%)
17.5%
15.1%
—%
2.4%
Wholesale
branded
ZEGNA brand
5.2%
(0.7%)
5.9%
(4.5%)
—%
10.4%
Thom Browne
(38.1%)
—%
(38.1%)
(2.1%)
—%
(36.0%)
TOM FORD FASHION
89.4%
(0.1%)
89.5%
80.8%
—%
8.7%
Total Wholesale branded
(7.5%)
(0.2%)
(7.3%)
7.6%
—%
(14.9%)
Textile
(1.7%)
(1.0%)
(0.7%)
(0.1%)
—%
(0.6%)
Other
(60.4%)
(0.2%)
(60.2%)
(0.3%)
(27.0%)
(32.9%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
Direct to
Consumer (DTC)
ZEGNA brand
4.6%
(1.3%)
5.9%
1.9%
—%
4.0%
Thom Browne
12.9%
(2.9%)
15.8%
27.4%
—%
(11.6%)
TOM FORD FASHION
42.0%
(1.8%)
43.8%
42.5%
—%
1.3%
Total Direct to Consumer (DTC)
9.8%
(1.6%)
11.4%
9.7%
—%
1.7%
Wholesale
branded
ZEGNA brand
8.8%
(0.3%)
9.1%
(2.7%)
—%
11.8%
Thom Browne
(22.2%)
—%
(22.2%)
0.2%
—%
(22.4%)
TOM FORD FASHION
16.6%
(0.4%)
17.0%
8.3%
—%
8.7%
Total Wholesale branded
(3.7%)
(0.2%)
(3.5%)
1.5%
—%
(5.0%)
Textile
(1.7%)
(1.2%)
(0.5%)
—%
—%
(0.5%)
Other
(45.2%)
—%
(45.2%)
—%
(22.2%)
(23.0%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Geographic area
H1 2024 vs H1 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
EMEA (1)
4.3%
(0.1%)
4.4%
6.9%
(1.0%)
(1.5%)
Americas (2)
29.4%
0.1%
29.3%
24.4%
(1.8%)
6.7%
Greater China Region
(13.2%)
(2.9%)
(10.3%)
1.4%
—%
(11.7%)
Rest of APAC (3)
33.8%
(8.5%)
42.3%
37.8%
(0.9%)
5.4%
Other (4)
(5.7%)
—%
(5.7%)
11.8%
—%
(17.5%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic
EMEA (1)
4.3%
0.3%
4.0%
2.0%
(0.8%)
2.8%
Americas (2)
12.0%
(0.2%)
12.2%
8.4%
(0.7%)
4.5%
Greater China Region
(10.8%)
(1.5%)
(9.3%)
0.8%
(0.1%)
(10.0%)
Rest of APAC (3)
38.8%
(9.7%)
48.5%
42.9%
(0.3%)
5.9%
Other (4)
(16.0%)
(0.1%)
(15.9%)
5.3%
—%
(21.2%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
________________________________________
(1)
EMEA includes Europe, the Middle East and
Africa.
(2)
Americas includes the United States of
America, Canada, Mexico, Brazil and other Central and South
American countries.
(3)
Rest of APAC includes Japan, South Korea,
Singapore, Thailand, Malaysia, Vietnam, Indonesia, Philippines,
Australia, New Zealand, India and other Southeast Asian
countries.
(4)
Other revenues mainly include
royalties.
Capital expenditure
Capital expenditure is defined as the sum of cash outflows that
result in additions to property, plant and equipment and intangible
assets.
The following table shows a breakdown of capital expenditure by
category for the six months ended June 30, 2024 and 2023.
For the six months ended June
30,
(€ thousands)
2024
2023
Payments for property, plant and
equipment
47,926
25,699
Payments for intangible assets
12,151
8,801
Capital expenditure
60,077
34,500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240918607067/en/
Paola Durante, Chief of External Relations Alice Poggioli,
Investor Relations Director Clementina Tito, Head of Corporate
Communication
ir@zegna.com / corporatepress@zegna.com
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