UK Markets closed

Prada could beat medium-term revenue target this year-Bertelli

The logo of Prada is seen in a shop in Paris

By Elisa Anzolin and Claudia Cristoferi

MILAN (Reuters) - Prada could exceed 4.5 billion euros ($4.8 billion) in revenues this year, passing its medium term target ahead of schedule, the luxury fashion group's leading shareholder Patrizio Bertelli told Reuters on Thursday.

"The conditions are there... but we need to be cautious, unpredictable events can always happen" Bertelli said in a phone interview on the revenue target, adding that the year has started well.

Prada set the target in November 2021 as part of its medium-term goals for the next 3-5 years.

Last year the group's net sales rose to 4.2 billion euros, exceeding analysts expectations.

At the end of January, Bertelli and his wife Miuccia Prada handed over the chief executive role to former Luxottica head Andrea Guerra, in a move to ease a transition to the next generation of the founding family.

Bertelli said that the dual listing in Milan remains an option but there are technical issues to resolve. Prada was listed in Hong Kong in 2011.

The group is not interested in big brand acquisitions, but it wants to focus on its own labels, Bertelli said, leaving the door open to small acquisitions to preserve the know-how of the Italian supply chain.

"The time (of big acquisitions) has passed, it is no longer the time ... this is the time for consolidation and organic growth," he added.

The luxury group's adjusted operating profit margin improved to 20.1% of sales last year, achieving its medium term target of 20% of total sales the group gave in late 2021.

"This target .. was never the cap, there is room for further growth," he said.

Bertelli is currently an executive director of the company and is expected to be appointed chairman at the next shareholder meeting. ($1 = 0.9457 euros)

(Editing by Keith Weir)