Prada could beat medium-term revenue target this year-Bertelli

Prada SpA

09/03/2023 17:12

By Elisa Anzolin and Claudia Cristoferi
       MILAN, March 9 (Reuters) - Prada could exceed 4.5
billion euros ($4.8 billion) in revenues this year, passing its
medium term target ahead of schedule, the luxury fashion group's
leading shareholder Patrizio Bertelli told Reuters on Thursday.
    "The conditions are there... but we need to be cautious,
unpredictable events can always happen" Bertelli said in a phone
interview on the revenue target, adding that the year has
started well.
    Prada set the target in November 2021 as part of its
medium-term goals for the next 3-5 years.
    Last year the group's net sales rose to 4.2 billion euros,
exceeding analysts expectations. 
    At the end of January, Bertelli and his wife Miuccia Prada
handed over the chief executive role to former Luxottica head
Andrea Guerra, in a move to ease a transition to the next
generation of the founding family.
    Bertelli said that the dual listing in Milan remains an
option but there are technical issues to resolve. Prada was
listed in Hong Kong in 2011.
    The group is not interested in big brand acquisitions, but
it wants to focus on its own labels, Bertelli said, leaving the
door open to small acquisitions to preserve the know-how of the
Italian supply chain.
    "The time (of big acquisitions) has passed, it is no longer
the time ... this is the time for consolidation and organic
growth," he added. 
    The luxury group's adjusted operating profit margin improved
to 20.1% of sales last year, achieving its medium term target of
20% of total sales the group gave in late 2021.
    "This target .. was never the cap, there is room for further
growth," he said.
    Bertelli is currently an executive director of the company
and is expected to be appointed chairman at the next shareholder
meeting.
 ($1 = 0.9457 euros)

 (Editing by Keith Weir)
 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))