Prada Denmark Aps

Management commentary

Financial reviewIn 2022, the Company's revenue amounted to DKK 55,666 thousand against DKK 35,176 thousand of last year registering a sharp increase of 58%, and a significant doubling +111% on 2019 year, not hit from the pandemic.The development in sales has been possible thanks to a strong recovery and development of retail channel, which almost doubled (+90%) from 2021 already good levels, while e-commerce channel reports a physiologic decrease on 2021 sales (-12%) because of a general overcoming of pandemic restrictions. Pop-up initiatives also determined an increase in net sales of +25%, on the specific temporary sales.The split between the two channels gives evidence of the rebalancing effect in post-pandemic scenario: retail channel rose to 83.1% (last year 72.3%), while e-commerce settled down to 16.9% (last year 27.7%)In terms of customers’ nationality, as per 2022 figures, the Company’s ratio can be split into 73% local customers and 27% travelers, thus denoting some partial recovery in the tourism flows due to overcoming of pandemic restrictive measures to travels in the last two years.Coming to cost-saving and efficiency measures, this is the first full year of recovery from Covid shock, therefore operating expenses were no more reduced from rent discounts and wage supplements obtained.On the contrary, the company reported an increase of +51% on operating expenses mainly attributable to the retail developments achieved.For instance, the whole set of pop-up installation costs, but also higher level of merchandise products imports driving its consequences on accessorial expenses such as packaging, windows, technical and retail consultancies, transports.Other factors were higher variable costs ensuing from higher sales, greater communication activities, higher personnel and other general and administrative expenses.The income statement for 2022 shows a profit of DKK 579 thousand against a profit of DKK 419 thousand last year, and the balance sheet at 31 December 2022 shows an equity of DKK 27,945 thousand.The directors are convinced that continuous investments in people, products and relationships with all stakeholders will deliver resilience and will allow further growth in the future.