BREAKING NEWS – 07.03.2024

In the press release dated March 5th, 2024, Promotica SpA – a loyalty agency specialized in the creation of marketing solutions aimed at increasing sales, loyalty and brand advocacy, listed on Euronext Growth Milan – communicated the data relating to unaudited preliminary revenues for 2023, as well as the main KPIs. In 2023, the Group generated a turnover of between € 84.00 million and € 85.00 million, marking a slight decrease compared to the equivalent figure recorded at the end of 2022, equal to € 89.86 million. This trend can be attributed to the postponement to the early months of 2024 of some of the deliveries of prizes related to a significant campaign, which is due to the shift in consumer preferences towards a greater number of product categories. To confirm such dynamic, the Group has reported that Promotica SpA alone witnessed, during the first two months of 2024, an increase in turnover exceeding 230.0% on an annual basis. The KPIs inherent to the performance of the Group’s activities highlight the positive progress of the business development plan. Specifically, the number of customers has grown substantially: by the end of 2023, Promotica boasts a customer base of 169 (compared to 129 in 2022). Moreover, the Group benefits from the collaboration with 150 suppliers, 10 of whom are bound to Promotica by exclusive contracts. Regarding promotional activities, over the course of 2023, the Group was able to manage a total of 318 campaigns, marking an increase from the 272 launched in 2022, with an average value of about € 0.18 million and awards distributed totaling 13.20 million pieces. In addition, in the press release of March 4th, 2024, the Group announced the launch of two new short collections: one for Unicoop Firenze and the other for Coop Alleanza 3.0, with a total value of €9.00 mln. These agreements mark the establishment of the partnership between Promotica and Bugatti, an Italian company that, for over a century, has been active in the design and production of tableware and kitchen accessories. This positive collaboration is aimed at creating loyalty campaigns targeting both domestic and foreign markets. The promotional campaigns for Unicoop Firenze and Coop Alleanza 3.0 will conclude on April 3rd, 2024, and May 12th, 2024, respectively, and will offer a variety of prizes, including sets of mugs, cups, glass cups with saucers, jars, filter teapots, and other fine kitchen appliances, all characterized by a modern and minimalist design. Finally, the Board of Directors of Promotica has adopted a framework resolution pursuant to Article 7 of the Procedure for Transactions with Related Parties of Promotica SpA in force between the Company and the related party IVV Italia Srl.  The resolution concerns the supply by IVV Italia of a variety of glass tableware products and similar, kitchen utensils and household items, as well as gift items and home decor accessories, for a total maximum value of €4.00 million (excluding VAT) over 12 months, effective from March 6th, 2024, to March 5th, 2025.  Promotica plans to use these “IVV” branded products, for which it holds the usage license, for its promotional initiatives, customer retention and loyalty programs, intending for the products to be developed for the Group’s needs and defined in quantity, prices, and delivery times according to written agreements for each campaign or program. What Promotica has communicated about recent business developments, along with the announcement of the launch of new promotional campaigns, further reinforces our positive view on the Group.  With the press release in mind, while waiting to meet with management and evaluate the 2023 fiscal results, we confirm our estimates: target price € 7.00, BUY rating and risk Medium.

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