Press Releases
Bulgari shows good resilience to the crisis
- Turnover: 766 million Euro (+13%)
- Operating profits before promotion and brand support expenses: 204 million Euro (0%)
- Operating profit: 102 million Euro (-17%)
- Net profits: 68.2 million Euro (-29%)
Rome, March 27 2002 – The Board of Directors of Bulgari S.p.A. approved today the consolidated financial statements as of 31 December 2001, showing good results despite the unusual social-economic environment. The first half of the year was characterized by very strong increases in turnover and profits while the second half of the year was significantly influenced by the tragic events of September 11th and by a worsening social-economic situation.
Consolidated turnover was of Euro 766 million, showing an increase of 13% compared to the 676 million of the previous year (the overall net impact of foreign exchange rate variations and perimeter was non material). Sales increased in all geographic areas, with the only exception of the Americas
The only product category that registered a decrease were the watches (-6%), while all other categories are showing an increase in sales: accessories (+48%), perfume (+37%) and jewels (+26%).
In 2001 operating profits were of 102 million Euro against 122.8 million Euro of the previous year (-17%). The operating margin went from 18.2% in 2000 to 13.3% in 2001.
Many important marketing activities were carried out throughout the year, linked to the launches of the Lucea jewelry line and the BLV Homme perfume. Significant were promotions and brand support expenditures which summed up to 102 million Euro, compared to the 82 million Euro of the previous year (+24.3%). The operating profit before promotion and brand support expenses was, therefore, of 204 million Euro, substantially in line with last year’s figures (205 million Euro).
Net profits in 2001 were of 68.2 million Euro compared to 95.5 million Euro in 2000 (-29%). Several extraordinary expenses as well as the increase of the average level of the Group’s taxes had a negative impact on the net profit, penalized by the weight on profits realized in several high-tax countries and by net losses in other markets.
Francesco Trapani, Chief Executive Officer of the Bulgari Group commented: “2001 turned out to be an atypical year. The first half of the year was characterized by excellent sales and profits; while the second half was influenced by the tragic events of September 11th and by a deteriorating social- economic environment and was therefore much more difficult. As the 2000 results were particularly brilliant, we consider the further increase in sales obtained in 2001 as very positive, and they confirm, once again, the great potential of the Bvlgari brand.
I believe that 2002 will be a year of transition, characterized by further increases in sales volumes, even if moderate, which, together with a careful cost control program, will allow us to obtain a significant increase in profits.
I am convinced that the fundamentals of the luxury business remain untouched and that they will keep rewarding the Bulgari strategy with a strong expansion in the future.”
During 2001 investments in tangible fixed assets reached Euro 36 million against Euro 38 million in 2000, 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 12 million (against Euro 59 million in 2000) mainly related to the expenses for software and licenses.
Net indebtedness of the Group at 31/12/2001 was equal to Euro 284 million compared to the net indebtedness of the previous year which was of Euro 198 million. This increase is mainly due to the increase in working capital to sustain the increase in turnover and the launch of new products.
The Board of Directors has also approved the financial statements of the parent company Bulgari S.p.A. closing at 31/12/01 with a net profit of Euro 35.7 million (Euro 32.4 million in 2000). Total revenues - consisting almost entirely of royalties paid by subsidiaries and franchisees for the use of the Bvlgari trademark - were up 2% to 50 million Euro (49 million Euro in 2000).
Finally the Board of Directors approved the distribution of a dividend of Euro 0.062 per share compared to Euro 0.086 of the year before. The accounts will be submitted to the approval of the next Annual General Meeting taking place in Rome on April, 29th 11 am on first call and on April 30th at 11 am on second call.
BULGARI GROUP TURNOVER BREAKDOWN PER GEOGRAPHIC AREA
| 2001 | 2000 | 1999 | |
|---|---|---|---|
| ITALY | 14% | 13% | 13% |
| EUROPE | 26% | 24% | 24% |
| AMERICA | 15% | 21% | 23% |
| JAPAN | 22% | 21% | 22% |
| FAR EAST | 17% | 17% | 14% |
| MIDDLE EAST/OTHERS | 6% | 4% | 4% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP TURNOVER BREAKDOWN BY PRODUCT CATEGORY
| 2001 | 2000 | 1999 | |
|---|---|---|---|
| JEWELLERY | 38% | 34% | 32% |
| WATCHES | 39% | 46% | 45% |
| PERFUME | 16% | 14% | 16% |
| ACCESSORIES | 5% | 4% | 4% |
| ROYALTIES/OTHERS | 2% | 2% | 3% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP SUMMARIZED FINANCIAL FIGURES (IN MILLION EURO)
| 2001 | 2000 | |
|---|---|---|
| TURNOVER | 766.1 | 676.0 |
| OPERATING PROFIT | 102.1 | 122.8 |
| % OP.PROF./TURNOVER | 13.3% | 18.2% |
| NET PROFIT | 68.2 | 95.5 |
| % NET PROF./TURNOVER | 8.9% | 14.1% |
Non audited results
For further information: Francesca Zanoni (+39-06.688 10 594) Francesca.Zanoni@Bulgari.com