Barcelona fashion company Desigual increased profit by 70% in 2013
The Barcelona-based fashion enterprise announced that the French investment group Eurazeo will join the Catalan company after a €285 million injection. For this operation, Desigual will issue a share offer that will increase its capital by 10%, which will be entirely covered by Eurazeo. In 2013 Desigual posted a net profit of €129 million, which represents a 71% growth on the 2012 figures. The Catalan retail company's turnover reached €828 million, 18% more than the previous year, according to the Director General of Desigual, Manel Jadraque. On Tuesday, when presenting the company's results for 2013, Jadraque disclosed an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of €242 million, representing 29% of the sales figures.
Barcelona (ACN).- Desigual posted a net profit of €129 million in 2013, which represents a 71% growth on the 2012 figures. The Catalan retail company's turnover reached €828 million, 18% more than the previous year, according to the Director General of Desigual, Manel Jadraque – who took office in July 2012. On Tuesday, presenting the company's results for 2013, Jadraque disclosed an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of €242 million, representing 29% of the sales figures. Furthermore, the Barcelona-based fashion enterprise also announced a capital increase of 10%. This operation will be totally covered by the French investment group Eurazeo, which will join the Catalan company after a €285 million injection. Jadraque stated that the results obtained in 2013 are "extraordinary" taking into account an environment of economic crisis in Spain. However, Desigual's sales in Spain and Portugal only represent 23% of the company's total turnover. In this vein, the brand's Director General predicted that France will become Desigual's main market by 2015. Last June, the brand unveiled its new world headquarters, which are located just next to one of Barcelona’s beaches, between the Barceloneta neighbourhood and the city's main harbour.
French group Eurazeo invests €285 million
In the presentation of the Desigual's results in 2013, Manel Jadraque announced the deal reached with French group Eurazeo, a strategic agreement to increase the Catalan company's capital by 10%. Eurazeo will pay €285 million to cover the entire capital increase. This financial operation will allow Desigual to continue with its international expansion plans without the need to contract any loans. In fact, Desigual currently has zero indebtedness, after it grouped all its debts and paid them back. The entrance of Eurazeo will oblige Desigual to restructure its Board and Jadraque will become the company's CEO. Eurazeo will have 2 representatives on the Board, which will have a maximum of 7 members.
Reaching €1 billion sales in 2014
The entrance of the French group will be used "to accelerate" the Barcelona-based company's growth pace. In the last few years, the enterprise has posted a sustained growth of some 20% per year. Jadraque announced at Tuesday's press conference that Desigual's objective is to reach a €1 billion turnover in the current year.
The Catalan company's investment plan for 2014 reaches €70 million, 16.6% more than in 2013, when it reached €60 million. A share of this year's investment will be allocated to start the construction work of a new logistics centre that will be located in Viladecans, near Barcelona El Prat Airport. It is expected that the construction work will last 3 years, with a total cost of €40 million. However, the centre might allow future expansions. Jadraque explained that once the new logistics centre is finished, Desigual will have a production capacity of 80 million clothing items per year. Currently it has a 30 million production capacity.
Present in 109 countries
In 2013, Desigual opened 89 new shops. It entered into new foreign markets such as Brazil, Hong Kong and Chile. In addition it strengthened its presence in markets which are already mature for the Catalan company, such as France, Italy and Belgium. These results have been achieved after a "continuous" international expansion through 17 distribution channels and with 8 production categories.
By the end of 2013, Desigual was present in 109 countries. The company has 405 retail shops and has a presence in 11,000 multi-brand shops and in 2,500 corners located in shopping centres. In addition, the online shop distributes in 20 different countries.