- Prachi Singh |
Announcing its first set of 12-month results since moving the company’s financial year end date to March 31, Global Brands Group said that it achieved a solid performance despite a tough business environment. During the reporting period, the group revenue increased by 11.6 percent to 3,891 million dollars. The company’s total margin improved from 33.9 percent to 36.4 percent as a percentage of revenue.
“I am pleased to report that Global Brands delivered solid results for the year ended 31 March 2017. Despite a tough business environment, we achieved one of the strongest levels of topline growth in the industry, alongside continued improvement in our margins and profitability,” commented Bruce Rockowitz, the company’s Chief Executive Officer & Vice Chairman in a media release.
Operating profit rises 64.5 percent
The company added that compared to the same period last year, both core operating profit and net profit attributable to shareholders posted a strong increase of 64.5 percent and 89.4 percent and reached 173 million dollars and 90 million dollars, respectively, while adjusted net profit attributable to shareholders also increased by 49.4 percent to 72 million dollars. The company’s EBITDA increased by 26.3 percent to 380 million dollars.
Global Brands discloses its results in accordance with the group’s four business verticals: kids, men’s and women’s fashion, footwear and accessories, and brand management. For the reporting period, the company said, kids business performed strongly because its characters business continued to deliver consistently, while kids fashion business also performed well on the back of strong growth of brands such as Under Armour. Segment revenue grew by 3.9 percent to 1,603 million dollars, while total margin increased by 9.9 percent to 584 million dollars. Core operating profit increased by 62.2 percent to 76 million dollars.
Revenue from men’s and women’s fashion increased by 31.5 percent to 820 million dollars compared to the same period last year, while total margin increased by 47.8 percent to 353 million dollars due to growth of businesses as well as the addition of new licenses. For the reporting period, core operating profit increased by 78.6 percent to 73 million dollars.
Revenue from footwear and accessories segment increased by 5.6 percent to 1,281 million dollars, while total margin increased by 13.6 percent to 428 million dollars due to new businesses and improved business mix in favour of higher-margin businesses. Footwear and accessories recorded a core operating profit of 8 million dollars for the period under review.
Brand management business saw considerable growth, largely driven by the formation of CAA-GBG, with revenue reaching 188 million dollars and total margin of 50 million dollars. Core operating profit for the reporting period was 17 million dollars.
The geographic split of the group’s revenue was 80 percent North America, 15 percent Europe/Middle East and 5 percent Asia.
Over the course of the past three financial years, our first Three-Year Plan as an independent company, we have made significant strides in establishing a solid foundation for our business and were able to deliver compound annual growth of 5.8 percent in revenue, and 9 percent in core operating profit, and 8.7 percent in EBITDA, while total margin percentage increased by over 500 basis points. As we enter into our new Three-Year Plan (fiscal year 2018 to 2020), we will continue to focus on growth with the goal of reaching 5 billion dollars in revenue by the end of fiscal year 2020, improving our total margin percentage by 150 basis points, and increasing EBITDA by 50 percent,” added Rockowitz.
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