The Crc Rinascente Group closed the financial year ended 30 September 2017 with a loss of 9.216.846 euros, down from the 7,7 million of the previous year. The group – controlled by the Thai Central Group since 2011 – consolidates the results of the parent company Crc Rinascente spa, 98,7% of the La Rinascente brand department stores and 93% of Illum, a department store in Copenhagen, Denmark.
According to the financial statements consulted by Radiocor, consolidated net revenues amounted to 633 million euros, up from 604,7 million in the previous year. Revenues from retail sales amounted to 619,3 million, up 4,9% from 590,5 million in 2016. The gross margin was 203,8 million, with an incidence of 32,2% revenues (195,6 million and 32,3% the year before).
The gross operating margin (ebitda) fell to 24,1 million from 29,1 million in the previous year, with the ebit down to 6,1 million from 9,5 million, mainly attributable to the result of Illum, whose works restructuring and change in commercial offer had a significant impact on sales volumes and consequently on the company's margins.
Looking at the current year, in the first quarter of the new financial year (October-December 2017) overall sales recorded an increase of 18,1% compared to the same period of the previous year. The parent company Crc Rinascente, on the other hand, closed the year with a profit of 2.599.125 euros, an increase from the 838 thousand euros of 2016. The shareholders have decided to allocate the profit carried forward.
As regards the current year, the consolidated financial statements indicate that "the group demonstrates its commitment to improving the operating result, its business model, with continuous investments, thus also forecasting for the 2018 financial year an increase in sales and a consequent increase in operating margins, confirmed by a growth in sales volumes in the first quarter of 2018 in line with company plans".
Returning to the financial statements closed on 30 September 2017, operating costs rose to 179,6 million from 166,5 million the year before. In detail, as at 30 September 2017, operating costs refer for €69,6 million to personnel costs and for €110 million to commercial, advertising, logistics, rent and other costs. Investments of 57,3 million euro were made during the same period.
In particular, the building of the Turin point of sale was purchased for 34,8 million euro; investments of 13,7 million were made in the new store in via del Tritone in Rome, opened on 12 October 2017; 3,2 million euros were spent on renovations and improvements to the Milano Duomo store, 2,6 million for the same purpose for the Copenhagen store and a further 1,5 million for improvements to the other stores.
In addition, the group has invested 1,5 million for the purchase of IT equipment and software. During the 2016-2017 financial year, the workforce increased from 1.575 to 1.692 employees, with a net increase of 117 units. Above all, the workforce of the Danish department store was strengthened and new managerial figures were added for the opening of the new flagship store in Rome on 12 October 2017.
Finally, the financial statements indicate that on 3 October 2017, following a tax audit by the Guardia di Finanza, "a report of findings was issued limited to the tax period 2012 October 30-2013 September 30". In light of the fact that "the group's legal advisors believe that there are valid arguments to oppose the findings" made by the Fiamme Gialle, "the directors believe that it is not necessary to allocate any provision for risks in this regard in the financial statements as at 2017 September XNUMX".
