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Wednesday, November 29, 2023

Finnish firm Marimekko’s net sales ascend 9% in FY22

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Marimekko, a Helsinki-based fashion and textile company, has reported a 9 per cent increase in net sales for fiscal 2022 (FY22), reaching €166.51 million. The company’s sales were boosted by growing international sales and a favourable trend in retail sales in Finland. However, sales were weakened by a decrease in Finnish wholesale sales due to significantly lower non-recurring promotional deliveries than in the comparable year.

Omnichannel retail sales, including both retail and online sales, grew by 19 per cent in FY22, while wholesale sales were on the previous year’s level, and licensing income increased by 19 per cent.

Marimekko’s net sales in Finland were €98.23 million in FY22, with retail sales increasing by 21 per cent and comparable retail sales growing by 17 per cent. However, wholesale sales in Finland decreased by 13 per cent due to lower non-recurring promotional deliveries, the company said in a press release.

Marimekko has reported a 9 per cent increase in net sales for fiscal 2022, driven by growing international sales. The company’s omnichannel retail sales grew by 19 per cent, while wholesale sales were flat. For the period of 2023-2027, the company is aiming for annual growth in net sales of 15 per cent and a comparable operating profit margin of 20 per cent.

In the Asia-Pacific region, Marimekko’s second-biggest market, net sales increased by 17 per cent in FY22 and were €30.30 million. Wholesale sales in the region grew by 10 per cent, and retail sales increased by 57 per cent, as own stores were not temporarily closed during the year due to the pandemic situation like in the previous year.

Marimekko’s operating profit for FY22 was €30.23 million, with an operating profit margin of 18.2 per cent of net sales. The operating profit was weakened by an increase in fixed costs and a lower relative sales margin. On the other hand, operating profit was supported by increased net sales and lower depreciation than in the comparable year. Furthermore, the company’s comparable EBITDA in FY22 was €40 million, down from €43.1 million in FY22.

In FY22, the company decreased its greenhouse gas emissions of textile materials per kg of sourced textiles by 7 per cent compared to 2019.

Marimekko has revised its long-term financial goals for 2023-2027, aiming for annual growth in net sales of 15 per cent and a comparable operating profit margin of 20 per cent, up from the previous targets of over 10 per cent and 15 per cent, respectively. The ratio of net debt to EBITDA at year-end is expected to remain unchanged, with a maximum of 2, the release added.

Tiina Alahuhta-Kasko, president and CEO, said: “In 2022, we took bold and productive steps in executing our growth strategy in order to bring joy and empower even more people around the world with our prints and colors. After a record year of 2021, we grew our net sales further, by 9 per cent to €166.5 million, even though the market situation became more challenging towards the end of the year especially in our strong home market Finland.

“During the year, we continued our investments in the building blocks for our long-term international growth, while our comparable operating profit remained at a high level and amounted to €30.4 million equalling 18.2 per cent of net sales.

“Our objective during the strategy period of 2018–2022 was to achieve markedly stronger profitable growth than before by speaking to a broader target audience. Our net sales and profitability 

Fibre2Fashion News Desk (DP)


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