Italian shoemaker Geox to invest $125 million in five-year plan
31/12/2024 08:44
Dec 31 (Reuters) - Italian shoemaker Geox GEO.MI plans
to invest about 120 million euros ($125 million) as part of an
industrial plan to 2029 and has signed a five-year deal with a
leading Chinese operator to expand its presence in the country.
The maker of breathable, waterproof footwear said in
November it would end direct operations in the unprofitable
Chinese and U.S. markets after posting a 9.7% yearly drop in
nine-month revenue globally. It said it would continue its
business in the two countries through local partnerships.
In addition to the investments, announced in a statement
late on Monday, the group said it would extend by 24 months the
medium- to long-term debt repayment plans as part of a debt
refinancing agreement with creditor banks including Monte dei
Paschi BMPS.MI and the Italian units of BNP Paribas BNPP.PA
and Credit Agricole CRAP.PA .
Geox controlling shareholder LIR, the family holding of its
chairman and founder Mario Moretti Polegato, will contribute up
to 60 million euros to the industrial plan, the statement said.
The shoemaker expects yearly revenues above 850 million
euros by 2029, compared with 720 millions in 2023, with compound
annual growth rate (CAGR) of 5% in the next five years, and an
EBIT (earnings before interest and taxes) margin over 7% by
2029.
($1 = 0.9610 euros)
(Reporting by Alessandro Parodi and Michela Stasio, editing by
Barbara Lewis)
((Alessandro.Parodi@thomsonreuters.com;
michela.stasio@thomsonreuters.com))