Egm in the X-ray: Promotica sees revenues jump 87% to 60.7 million
The Desenzano del Garda-based company, specialising in marketing and promotional campaigns for large-scale retailers, closed the half-year 2024 well
5' min read
Key points
5' min read
One finds it hard to believe that this is not a benefit or B Corp certified company: there are more reports of EGS-related initiatives than strictly financial ones, and the 2023 report was already the third sustainability report drawn up according to Gri criteria.
Instead, this is not the case. We are talking about Promotica, a loyalty agency based in Desenzano del Garda and active in the realisation of marketing and promotional campaigns mainly on behalf of large-scale distribution. However, the economic results aspect was not neglected and, thanks to the promotional campaigns for which preparatory initiatives were undertaken in 2023, it closed the first half of 2024 with decidedly brilliant results and a return to profit..
The numbers
.As at 30/6/2024, revenues had in fact jumped 82.6% to EUR 60.7 million (+89.6% to EUR 58.9 million for the sale of goods related to the campaigns themselves and -17.6% to EUR 1.8 million for the provision of services) and, given that the business conducted is by definition scalable, with a cost structure not directly proportional to the evolution of revenues, ebitda went from EUR 636.000 to EUR 4.56 million, ebit from EUR 89,000 to EUR 3.86 million, and went from a net loss of EUR 428,000 to a net profit of EUR 2.1 million after net financial charges of EUR 907,000 and a tax rate of 33.1%. Promotica managed to reduce the incidence of costs for the purchase of goods from 80.2% to 54% of the total and thus managed to absorb the strong growth in service costs, which rose from EUR 5.9 million to EUR 12.6 million mainly due to higher logistics and freight costs. Labour costs increased by more than 34% to about EUR 4 million, moreover, with the number of employees rising from 96 to 115.
It is worth mentioning, with regard to product sourcing, that Promotica at the beginning of the year signed a supply agreement for a maximum of 4 million plus VAT, in force until 31 January 2025, with the related party Pozzi Milano, of which Diego Toscani, Promotica's main shareholder, is also a majority shareholder. Pozzi Milano's "Baraonda" porcelain tableware was the protagonist of the campaign that ended on 25 July 2024 at the Polish supermarket chain Stokrotka (meaning "daisy"), Lithuanian-owned and listed on the Warsaw Stock Exchange.
Subsequently, the subsidiary Grani & Partners launched the design and production of toys (produced in China and under a brand name licensed to Forma Italia Srl, also reporting to Diego Toscani) and carried out a loyalty campaign at the Romanian supermarkets Profi Rom Food (the country's third largest retail chain, taken over by the Dutch colossus Ahold Delhaize from the MidEuropa Partners fund at the end of 2023 for EUR 1.3 billion) aimed at children; it is the 'Pisici versus Catei Frenemies' (i.e. 'cats versus dogs, frenemies') and allowed people to collect 24 vinyl stickers and collect points to buy dog and cat soft toys in various versions and two different sizes.
