Damiani accelerates and records strong growth in financial year 21/22

News . November 2, 2022

The shareholders’ meeting of Damiani Spa approved the consolidated financial statements for the 12-month financial year ending on 31 March 2022.

The financial statements registered strong growth figures for the Group, which closed at 31 March 2022 with consolidated revenues of € 238 million, up 69% over the previous year, therefore not only exceeding pre-Covid business levels, but also revealing a strong growth trend for the first few months of the current fiscal year (01/04/22-31/03/23), while still increasing double-digit sales figures.

The Italian leader in the luxury jewelry and watchmaking sector, the Group recorded significant growth in the year 21/22 due to its strategy of investing in its brands and the main distribution channels. Despite the general scenario marked by significant uncertainty, the Group has grown in all the major geographical areas and sales channels, and particular in the retail sector, where it closed the year with an 82% increase in sales.

With an EBITDA of € 41 million, the profitability trend was also very positive. This figure increased sharply compared to the previous year as a result of a significant increase in revenues and the increased weighting of the retail sector on total sales, resulting in higher average profit margins. As a result of these dynamics, the financial year closed with a net profit of € 25 million.

The Group has preferred not to distribute dividends, deciding instead to allocate all profits to reserves in order to support future growth. However, a bonus is to be granted to all employees who are not already part of the Group’s MBO plans.

From a financial point of view, the strong cash generation linked with the Group’s positive performance has improved its net financial position, fully absorbing the significant investments made during the year, including the acquisitions of as many as five prestigious points of sale.

With regard to new openings, during the year four Damiani Boutiques were inaugurated in Asia’s most prestigious department stores, as well as a new Damiani shop-in-shop in Geneva’s famous Globus department store on Rue du Rhône. Turning to the domestic market, the Group’s partnership with major authorised dealers and with Rinascente department store was strengthened. With regards to Rinascente in particular, new spaces dedicated to the Damiani and Salvini brands were inaugurated at the stores in Florence and Rome. These follow in the wake of those in Milan, where the Group virtually operates the entire watch and jewelry sector. Finally, two new multi-brand Rocca 1794 Boutiques were opened at the airports of Milan Linate and Milan Malpensa.

The Group was also particularly active on the acquisitions front, having finalised three major transactions during the year. In September 2021, the DAMIANI Group completed the acquisition of a majority stake in Bruno Maria Zimmitti, a historical jeweller, founded in Syracuse in 1858, which distributes prestigious timepiece and jewelry brands, including Damiani, Salvini, Rolex and Bulgari. In November 2021, with the aim of seizing new growth opportunities complementary to those of its core business, the Group acquired a minority stake in Luisa Via Roma, a leading Florentine company in the high-end e-commerce sector. Finally, in November 2021, the Group acquired 100% of Floris Coroneo, an important Italian retailer whose stores in Cagliari and Porto Cervo have been distributing leading watchmaking brands, including Rolex, Patek Philippe and Cartier, since 1954.

Over the course of the year, the Group has also continued to invest significantly in human resources, taking on and including as many as 162 new resources – 67% of which are women – in training courses such as the Damiani Academy.

As regards sustainability, the Group continues to work towards improving the environmental impact of its business, which has already been reduced to a minimum, and towards raising awareness on the issue of industry ethics.

With regards to the current trend and prospects for the coming months, the Group’s President, Guido Grassi Damiani, has stated that:

“The year 21/22 ended with particularly positive results, and even the first few months of the year 22/23 have revealed further growth for the Damiani Group, confirming the strong appreciation for our products and brands. These results stem from the success of our strategies and, above all, from the commitment of our excellent staff, whom I would like to thank sincerely.

Despite the general situation still conditioned by the effects of the Russian-Ukrainian conflict, these results allow us to look to the future with cautious optimism and continue to invest in our brands and in developing distribution. In this regard, in June 2022 we obtained a concession from the Milan City Council for the use of a store in Piazza Duomo 21, which will be dedicated to a new Salvini Boutique. Moreover, in August 2022 we opened a new branch in Taiwan, and in recent days we have inaugurated our first direct Damiani Boutique at the Regent Galleria in Taipei.

As part of our growth plans, we are currently paying close attention to any external potential growth opportunities that should arise, both with regards to players operating upstream of the supply chain and in terms of further developing and strengthening our distribution channels.”