MILAN — Bolstered by its contract business and its recent acquisitions of Cubo Design, Axolight and Turri, sales of Italian Design Brands rose to 310.8 million euros in 2023, up 16.6 percent compared to 2022, as it posted strong performances across all of its brands.
On Monday, the company said its adjusted net profit for the full year (taking those acquisitions into account) was 25.6 million euros. It posted a reported net loss of 5.93 million euros in 2022.
The first Italian design company to list its shares on the Milan Stock Exchange in May 2023 is home to 11 companies and 14 brands, and counts North America as its second most important market in terms of sales. Italian Design Brands is the parent company of upscale brands Gervasoni, Meridiani, Saba Italia, Gamma Arredamenti International, Turri, Binova and Cubo Design kitchens, and modern lighting brands Davide Groppi, Flexalighting and Axolight.
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“In 2024, we are confident that we can continue to grow,” chief executive officer Andrea Sasso said during the group’s full-year results conference call, adding that despite the persistence of macroeconomic and geopolitical instability the group posted robust sales in both January and February.
Sasso said the company’s initial public offering raised its profile and it is now in talks with many potential acquisitions. “We are working on it and are very strong with regard to our M&A agenda… the stock exchange increased communication with more brands,” Sasso added, noting that they were not ready to reveal anything definitive. Italian Design Brands managing director Giorgio Gobbi stressed, however, that the company is not planning a transformational acquisition in 2024. “We hope that at least one will come on board, but that can occur at the earliest in 2025, not now.”
The company opened its first U.S. flagship in New York City in October that hosts dedicated showrooms for Meridiani and Davide Groppi.
The move is part of the company’s long-term plan to expand in the U.S. and the group continues to scout investors and partners to open doors in cities like Chicago; Miami; Dallas; Washington, D.C., and Boston, which are considered key to the growth of the group.
Its adjusted earnings before interest, taxes, depreciation and amortization was equal to 54.3 million euros, up 10.3 percent compared to 2022. Its luxury contract business achieved a total turnover of 85.2 million euros, up from 71 million euros recorded in 2019. Adjusted figures take into account recent acquisitions.
Italian Design Brands bought 51 percent of Turri, a luxury furniture business founded in 1925 in Carugo on Lake Como, in September. Turri, which works with leading architects such as Daniel Libeskind and China-based designer Frank Jiang, has a strong international presence. Italian Design Brands has also increased its interest in design lamp manufacturer Axolight to a majority stake of 51 percent, after purchasing a minority share in 2021. It acquired Cubo Design in January 2023.
IDB Brands is present in 4,500 multibrand stores in the world, nine directly operated stores and 48 monobrand stores.
