OTB returns to pre-pandemic turnover levels
Only the Brave (OTB) has returned to pre-pandemic turnover levels and improved profits, revealing its results for the financial year that ended 31 December 2021 saw an increase of 16.2% turnover at £1.26 billion.
The company reported net sales of £1.23 billion (€1.46 billion), up 18% from 2020, driven by its luxury businesses Marni, Maison Margiela, Jil Sander and Viktor&Rolf. It reached an EBITDA of £298 million (€354 million) and a net profit of £120 million (€142 million), a slight increase compared to 2020 (£119 million) and 2019 (£118 million).
OTB's luxury businesses outperformed pre-pandemic levels with improvements of 49% compared to 2020 and 55% against 2019. It also opened 38 new stores and strengthened its e-commerce channel, with Diesel, Maison Margiela and Marni restyling their online stores, which positive influenced direct online sales that increased by 6% compared with 2020 and 34% compared with 2019.
The report also highlighted that the Jil Sander brand reached break-even nine months after it was acquired by OTB.
Capital expenditure increased compared to both 2019 and 2020 to £40 million (€47 million), with a focus on the development of the retail network, digital innovation and logistics. The group's net financial position improved by more than £169 million (€200 million) against 2020 to reach £323 million (€383 million).
OTB also highlighted its investment in digital innovation during the year. It formed a new business Brave Virtual Xperience (BVX) with a focus on projects, products and experiences designed for the metaverse, and joined the Aura Blockchain Consortium as a founder member alongside LVMH, Prada Group and Cartier and Richemont.
OTB CEO, Ubaldo Minelli, commented: “2021 was a richly satisfying year during which we reached – and in some cases beat – all our targets in particularly challenging economic and social conditions. As a result of the work of the last few years, the Group is in a stronger position to take the next steps in its ambitious strategic plan from now to 2024. Our production and distribution platforms, cornerstones of our industrial model, will certainly be one of the bases of our development.
"In 2021 we also decided to re-organise the governance of the supply chain, which is now fully under our responsibility, and completed the acquisition of Jil Sander, which, thanks to the “OTB recipe”, achieved break-even in 9 months. These are strategic decisions designed to boost our positioning in the luxury sector, support our growth in digital and direct channels, and raise OTB’s profile on key markets like the USA, or with important growth potential like the entire Asia Pacific region, China in primis."
"We are determined that, increasingly, growth will be zero impact, and in July we shall be presenting our first sustainability report to illustrate the results achieved in the year since the launch of the “Be Responsible. Be Brave.” strategy. It will also lay out the route towards attainment of all the targets we have set in terms of the safeguard of the planet, the attention to products and our social impact on the community."
OTB Chairman, Renzo Rosso, added: “We are following the most significant developments in the virtual worlds and the metaverse, so that once again we can be pioneers in a completely new dimension in which we strongly believe. Indeed, we were the first to invest in the start-up of a newco (BVX) that could transport the entire Group towards innovative new business horizons. We want to go on strengthening our position as an international player in unconventional fashion and luxury, the Brave & Alternative Luxury Group, and also open up to other brands that embrace our philosophy."
