Missoni is getting ready for the next step, with all preparations made for a possible sale. Rothschild has been called upon as an adviser, and Bain & co has created a detailed dossier. The balance sheet for 2023 is well and healthy, with revenues of 125 million euros (a 10% increase from 2022) and an ebitda already recovered from last year’s losses. Thanks to Maurizio Tamagnini’s Fsi fund, which purchased 41.2% of the shares five years ago (while the founding family retains 58.8%), as well as the reorganization efforts undertaken during Covid-19, the company is running efficiently. «The machine is capable of doubling its turnover and ebit over the next five years with the appropriate financial support».
Ceo Livio Proli outlined the company’s plans to MFF, stating that rumors about its future are unfounded. Proli affirmed that «Missoni will only be sold to a major industrial partner, and that the shareholders have been clear on this point». The company’s phase 2 includes two options: sale or continued standalone growth, with no immediate rush to make a decision. In the upcoming period, it will sign the acquisition of a renowned supply chain partner, inaugurate a new boutique on Via Verri, Milan, in January 2024, and expand overseas with a focus on Asia and the Middle East. Additionally, the company will continue developing its real estate project at five construction sites globally.
2023 was a significant year for Missoni as it marked the celebration of the company’s 70th anniversary and the consolidation of its new creative direction. Can you provide insight into the financial year’s projected closing? Is a return to profit expected?
Until September, we observed favorable growth, but like many businesses, growth slowed down in October and November, although we remained positive, with a 2-3% increase compared to the initial nine months’ growth of +27/32%. We expect to achieve a turnover of 125 million euros, which is a 10% increase from last year’s 115 million euros. Our margins were positive during the previous year, earning 150,000 euros after being in the red for several years. We are confident that this year, we will see further improvements and increase our earnings by a few million. The brand has undergone a refreshing transformation, which is partly due to the creative collaboration between Alberto Caliri, who contributed to home wear, and Filippo Grazioli, who was responsible for ready-to-wear. Our women’s wear products generate around 50-60 million euros, while our men’s wear generates 12 million euros. The estate generates 30 million euros, primarily from real estate projects, which have significantly boosted its reputation. The remaining income is derived from royalties.
Where these results come from?
These results are a result of our complete restructuring during the Covid-19 period. We seized the opportunity presented by the stagnant market conditions and revamped our entire company, from strategy to business model.
During the MFGS-Milan Fashion Global Summit, you mentioned that the machine was undergoing further fine-tuning to increase its aggressive strategies. What did you mean?
We have established the necessary conditions for the company to excel. We have expanded our operations by creating a new digital marketing department, integrating e-commerce in the first half of 2021, and restructuring our retail and industrial chains. We are also in the process of acquiring one of our main knitwear suppliers. This acquisition will enable us to further strengthen our position in the market. Additionally, we have invested in new trades and purchased two exclusive looms for our production processes. There is still a company with a 40-year history of exclusive work with Missoni, and our purchase will be finalized shortly.
How crucial is to invest in the supply chain?
Missoni’s unique dna lies in its recognizability and distinctiveness that stem from its raw materials and knitwear. Construction techniques tied to exclusive looms enable maintaining exclusivity. The acquisition of the manufacturer, which has been an integral part of Missoni for the past 40 years, is vital to our enterprise. We have completed the supply chain and internalized the industrial skills in Sumirago.
What are the plans for 2024?
The vehicle is now assembled, the team is well-prepared, and the speed for next year will depend on the amount of fuel we put in the tank.
What will boost it?
We see two possible scenarios. Firstly, assuming a stand-alone strategy and confirmed governance, we estimate single-digit revenue growth. Secondly, we plan to improve ebitda by streamlining performance. Additionally, we have opened a subsidiary in China and restructured the one in the US, followed by a sale. The shareholders have stated that the company will only be sold to a large industrial group, with no intention of selling out. This is because merging the company with a larger entity will result in exponential expansion. Rothschild has been appointed as the advisor to oversee the potential sale, while Bain & co produced the dossier. The brand has great potential as it has maintained its cleanliness and integrity without any missteps that could compromise its strength. It has never rushed or made mistakes that could weaken its position.
Potential names?
Potential investors, such as Renzo Rosso’s Otb-Only the brave, Richemont, and Kering, are currently being considered. There has been significant interest in this initial stage. It is similar to selling a house: having many visitors is crucial.
How is the relationship between the shareholders?
The company’s strength lies in the excellent rapport between the majority and minority shareholders, who have endured challenging times such as the Covid-19 pandemic. The bipartite relationship has been soundly established. Tamagnini, a composed and cautious individual, has always exhibited a prudent approach devoid of speculation. I must say that the composure of the family has helped strengthen our working relationship, as it is important for managers to remain level-headed. The family has remained committed to their values, and we recently celebrated the birthday of the founder, Rosita Missoni. This collaborative atmosphere is a valuable asset for buyers.
How will 2024 open?
We will shed light on numerous real estate projects. Following Missoni Baia in Miami (2016), Urban Oasis in Dubai (2020), and Marea Interiors by Missoni in Marbella (2023) and Sao Paulo (2023), it will now be time for Toronto to experience the Missoni Sky. This project will be launched in 2024 and delivered by 2026. This latter project is valued at 1.3 billion. We will blend the design of the investor, creating a fusion between the two aesthetic visions. There will be men’s and women’s fashion shows and Salone del mobile Milano. The inauguration of the shop on Via Verri in Milan during Milano moda uomo in January is significant. We will reveal a new concept that represents Missoni’s image. We have already begun implementing this concept in other shops around the world.
How are the markets performing?
Our weaknesses can be considered strengths. The Asian division has significant room for growth as it currently has limited assets. We currently operate a store in Shanghai and plan to launch a one-year popup in Skp mall, Beijing. In the second half of 2024, we will discontinue our partnership with current distributors in Japan and Korea and adopt new ones. Our brand is new, popular, and highly sought-after by numerous franchisees. We are aggressively expanding in the Middle East with the valuable support of our partner Al Tayer.
What is the potential of Missoni?
In the next five years, with the right support and a certain budget, the brand can go much further than doubling in a healthy way with a progression of turnover and ebit. For example, menswear can grow a lot. Missoni is an attractive brand because it has real content. Our archive, which is an asset worth more than 15 million, has 70 years of history. It is a business made by Luca Missoni. We want to preserve the artisan approach of the company and present ourselves to the market in this way. (All rights reserved)
Orario di pubblicazione: 21/11/2023 10:36
Ultimo aggiornamento: 21/11/2023 10:46
