Press Releases
Excellent results for the Bulgari Group in 2000. Turnover +39%, operating profit +71%; net profit +62%
Rome, March 27 2001 - The Board of Directors of Bulgari S.p.A. approved today the consolidated financial statements as of 31 December 2000, showing a consolidated net profit of Euro 95.5 million with an increase of 62% compared to Euro 59 million in 1999. In 2000 the Bulgari Group posted a net consolidated turnover of Euro 676.0 million, up 39% from Euro 485.3 in 1999 (at constant exchange rates and consolidation area about +27%).
Consolidated operating profit was up 71% to Euro 122.8* million from Euro 71.8* million of the previous year. Operating margin increased to 18.2%* in 2000 from 14.8%* in 1999, benefiting from better economies of scale in the production process and a better absorption of fixed costs.
Sales increased in all markets. Growth was particularly strong in the Far East (+61%), in Italy (+43%), in Europe excluding Italy (+38%), in Japan (+36%) and in America (+28%). At the end of 2000 the number of Bvlgari stores had grown to 126, the network of authorized watch retailers had risen to over 600 (almost half of them distribute also jewellery) and perfume doors to over 10,000 units.
All product categories contributed to the increase in turnover: jewels were up +47%, watches +43% and accessories +53%. Many were the products successfully launched in 2000, such as the B.zero1 ring, the Rettangolo collection in the watch segment and new accessories. Perfumes were up by 15%, while Bvlgari's fragrances increased by 33%, mainly thanks to the immediate and world-wide success of the new female scent BLV.
Francesco Trapani, Chief Executive Officer of the Bulgari Group commented: "2000 was a spectacular year for Bulgari with extremely strong increases in turnover and profits. Bulgari definitely benefited of last year's excellent economic trend, but more important the company capitalized on its increasing brand awareness and of particularly well perceived new products - characterized by a strong spirit of innovation. I am therefore confident regarding the rest of this year, even in less positive economic conditions, and we will concentrate all managerial and financial resources on the growth of the Bvlgari brand exploiting the many available opportunities for further development".
During 2000 investments in tangible fixed assets reached Euro 38 million against Euro 23 million in 1999, mainly due to the opening and refurbishing of Bvlgari stores and offices for administrative purposes. During the same year intangible fixed assets amounted to Euro 59 million (against Euro 9 million in 1999) mainly related to the acquisition of Daniel Roth and Gerald Genta, and previously franchised Bvlgari stores together with the purchase and implementation of software procedures.
Net indebtedness of the Group at 31/12/2000 was equal to Euro 198 million compared to the net indebtedness of the previous year which was of Euro 42 million. This increase is mainly due to the above mentioned acquisitions and to the increase of net working capital required to sustain the strong increase in turnover.
The Board of Directors has approved today an agreement with the Ferragamo Group which provides for the termination by mutual consent of the Joint Venture relating to the production and distribution of perfumes under the brand "Ferragamo" and "Ungaro" and the sale to the Ferragamo Group of the shareholding representing 50% of the sharecapital, held by Bulgari NetherlandsBV in Ferragamo Parfums SA and Ungaro Parfums SA, by Bulgari Parfums USA Inc. in Ferragamo Parfums LLC and by Bulgari S.p.A. in Ferragamo Italia S.p.A. In accordance with the agreement, the sale shall be completed in the next weeks. Based on the size that Bulgari Parfums SA has now reached, the synergies on production and distribution which had lead to the signature of the Joint Venture, have now ceased to exist. The resources available as a consequence of the termination of the Joint Venture with the Ferragamo Group, can now be profitably invested in the "Bvlgari" trademark which is the priority goal of the Group's strategy.
The Board of Directors has also approved the financial statements of the parent company Bulgari S.p.A. closing at 31/12/00 with a net profit of Euro 32.4 million (Euro 23.8 million in 1999). Total revenues - consisting almost entirely of royalties paid by subsidiaries and franchisees for the use of the Bvlgari trademark - were up 27% (at constant exchange rates: +20%) to Euro 54 million (in 1999 Euro 42.6 million).
Finally the Board of Directors approved the distribution of a dividend of Euro 0.086 per share compared to Euro 0.0568 of the year before. The accounts will be submitted to the approval of the next Annual General Meeting taking place in Rome on April, 27th 11 am on first call and on May 2nd 11am on second call.
BULGARI GROUP
TURNOVER BREAKDOWN PER GEOGRAPHIC AREA
| 2000 | 1999 | 1998 | |
|---|---|---|---|
| Italy | 13% | 13% | 14% |
| Europe | 24% | 24% | 27% |
| America | 21% | 23% | 24% |
| Japan | 21% | 22% | 18% |
| Far East | 17% | 14% | 12% |
| Middle East/Others | 4% | 4% | 5% |
| Total | 100% | 100% | 100% |
BULGARI GROUP
TURNOVER BREAKDOWN BY PRODUCT CATEGORY
| 2000 | 1999 | 1998 | |
|---|---|---|---|
| JEWELLERY | 34% | 32% | 33% |
| WATCHES | 46% | 45% | 42% |
| PERFUME | 14% | 16% | 19% |
| ACCESSORIES | 4% | 4% | 3% |
| ROYALTIES/OTHERS | 2% | 3% | 3% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP
SUMMARIZED FINANCIAL FIGURES (IN MILLION EURO)
| 2000 | 1999 | |
|---|---|---|
| Turnover | 676.0 | 485.3 |
| Operating profits | 122.8 | 71.8 |
| % operating profits/turnover | 18.2 | 14.8 |
| Net profit | 95.5 | 59.0 |
| % net profit/turnover | 14.1 | 12.2 |
Non audited results
- Operating profit has been reclassified as per GAAP 26 ("operazioni e partite in moneta estera)
| For further information: | ||
| Francesca Zanoni | +39-06-688 10 594 | Francesca.Zanoni@Bulgari.com |
| Renata Casaro | +39.06.68810467 | Renata.Casaro@bulgari.com |