MILAN — Global expansion helped Italia Independent Group S.p.A. report growing revenues in the first half of the year although net profits were dented by amortization costs connected to the group’s initial public offering in June 2013 and by the buy back of minority shares.
In the six months ended June 30, net profit edged down to 898,000 euros, or $1.23 million, from 929,000 euros, or $1.22 million, in the same period last year.
The Italian fashion group posted a 42.5 percent increase in revenues to 18.5 million euros, or $25.3 million, compared with 13 million euros, or $17.03 million.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
Italia Independent’s eyewear division was the driving force, accounting for 82.6 percent of revenues.
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“The outstanding results reached in the last half year, and especially the growth in foreign markets and the retail — which currently acts as a support to wholesale growth — are a confirmation that the road taken may lead to a wide-ranging international development based on a business model that we deem sustainable and scalable,”said Andrea Tessitore, co-founder with Lapo Elkann, and chief executive officer.
Eyewear grew 18.4 percent in Italy, which still accounts for the bulk of the market, representing 52.1 percent of total sales. However, the company is expanding around the world as the domestic market in the first half of 2013 accounted for 65 percent of sales.
The company highlighted significant growth in its eyewear division in France, Spain and Germany, which totaled 3.5 million euros, or $4.8 million, compared with 1.7 million euros, or $2.2 million in the same period last year.
Sales in the rest of the world rose to 2.9 million euros, or $4 million, compared with 1.4 million euros, or $1.8 million, excluding the U.S. Sales in the American market more than doubled, climbing to 920,000 euros, or $1.2 million, compared with 430,000 euros, or $563,300, last year.
Earnings before interest, taxes, depreciation and amortization rose 34.9 percent to 3.3 million euros, or $4.5 million.
Operating profit increased 27.3 percent to 2.3 million euros, or $3.1 million.
Aside from its core business in eyewear, the group — which was founded in 2007 by Elkann, the younger brother of Fiat chairman John Elkann and a scion of Italy’s Agnelli dynasty — has activities in communications and lifestyle products.
At the end of June, net invested capital totaled 22.3 million euros, or $30.5 million, compared with 18.9 million euros, or $24.7 million, at the end of December 2013.
After June 30, the company inked an agreement to establish a new company for the distribution of Italia Independent products in the South American market, headquartered in Sao Paulo. Italia Independent USA Corp will hold a 51 percent stake.