Press Releases
Bulgari: growth continues in the first nine months of the year
- Turnover: +24%
- Operating Profit: +1%
- Net Profit: +1%
Rome, 14 November 2001 - Bulgari, the Italian contemporary jeweler announced today in Rome its consolidated results of the first nine months of 2001, showing an increase in turnover of 24% to Euro 540.3 million compared to Euro 436.7 million of the same period of 2000. The increase at constant exchange rates was 23%. During these first nine months the Bulgari Group posted a consolidated operating profit of Euro 77.3 million, compared to Euro 76.6 million of January - September 2000, and a net profit of Euro 56.2 million, against Euro 55.5 million of the same period in 2000.
Turnover in the first nine months of 2001 increased in all markets with the only exception of the Americas (-8%). A particularly strong growth was registered in the Middle East (+63%), in Italy (+41%) and in Europe (+37%). Japan posted, despite its difficult economic situation, an increase of 23% and the Far East an increase of 24%. All product categories are growing. A particularly strong increase was registered for accessories (+61%) as well as for jewels (+39%) and perfume (+39%) thanks to new products launched during the year. Watches, which grew aggressively during the past two years, posted a 6% increase, suffering from the slow-down of sales to the indirect distribution channels, also due to the recent tragic events.
In the third quarter 2001, sales increased by 10% reaching Euro 181.5 million (Euro 164.6 million in 2000), while profits where penalized by a strong slow-down of sales - vs.the expectations - in September and by concurrent strong promotional investments due to the launches of the new jewelry line Lucea and of the new perfume BLV pour Homme. In fact, investments in promotional activities in the third quarter increased from Euro 16.7 million in 2000 to Euro 25.1 million in 2001 (+50%). Referring, again, to the third quarter only, sales increased in Europe (+41%), in the Middle East (+32%), in Italy (+21%), in Japan (+13%) and in the Far East (+9%). The Americas posted a strong decrease
Francesco Trapani, Chief Executive Officer of the Bulgari Group commented: "The tragic events of September 11th changed - at least in the short term - the scenario and impacted negatively on the clientele's mood, determining a slow-down in luxury goods purchases. The sales of the up-coming Christmas season will be really important. Obviously, the Bulgari Group has already defined a program of efficiency improvement as well as cost control, that will produce its effects already within the next months. I am, though, convinced that after this difficult moment, customers will resume their usual spending habits and that we should see, again, a significant increase of the business that will certainly reward the most prestigious brands."
BULGARI GROUP
BREAKDOWN BY GEOGRAPHIC AREA
| 30/09/01 | 30/09/00 | |
|---|---|---|
| ITALY | 14% | 12% |
| EUROPE (EXC. ITALY) | 26% | 23% |
| AMERICA | 16% | 22% |
| JAPAN | 22% | 22% |
| FAR EAST | 16% | 16% |
| MIDDLE EAST / OTHERS | 6% | 5% |
| TOTAL | 100% | 100% |
Source: Bulgari SpA
BULGARI GROUPBREAKDOWN BY PRODUCT CATEGORY
| 30/09/01 | 30/09/00 | |
|---|---|---|
| JEWELLERY | 36% | 33% |
| WATCHES | 41% | 47% |
| PERFUME | 16% | 14% |
| ACCESSORIES | 5% | 4% |
| ROYALTIES & OTHERS | 2% | 2% |
| TOTAL | 100% | 100% |
Source: Bulgari SpA
Non audited results
For further information: Renata Casaro +39-06.688 10467; renata.casaro@bulgari.com