BREAKING NEWS – 05.08.2024
In the press release on August 1, 2024, FOPE SpA – an Italian luxury jewelry company listed on the Euronext Growth Milan market – reported significant financial results for the first half of 2024.
Consolidated net revenues as of June 30, 2024, amounted to €29.60 million, marking a decrease of 14.5% compared to €34.70 million recorded in the same period of 2023. This decline was mainly attributed to a slowdown in production and order fulfillment in the early months of 2024.
Despite the decrease in revenues, FOPE reported a solid and growing commercial position. As of June 30, 2024, the commercial position, which includes revenue and confirmed order backlog, reached €49.60 million, an 11.0% increase compared to the same period of the previous year. This figure is particularly significant as the commercial position neutralizes the short-term revenue effect, offering a more comprehensive and forward-looking view of the company’s performance. The confirmed order backlog indicates strong future demand, compensating for the temporary contraction in revenues and confirming the forecast for a positive economic result for the Group in 2024.
Market analysis shows a positive response in various geographical areas. The American market was particularly dynamic, with a 27.0% increase in orders, mainly driven by the United States. Southeast Asian countries also recorded significant order growth, highlighting a growing interest in FOPE collections in this region. In Europe and Italy, although growth was more contained compared to other areas, the results were still positive, confirming a steady adherence to the brand’s offerings.
In conclusion, despite a temporary decrease in turnover, FOPE’s commercial position remains robust thanks to the increase in confirmed orders. Prospects for the rest of the year are positive, supported by measures adopted to improve production and the strong response from international markets. FOPE thus confirms the forecast of a positive economic result for the entire 2024 financial year, a sign of an effective business strategy and sustainable growth.
Considering the press release, we confirm our recommendation: Target Price € 40,50, rating BUY e risk MEDIUM.