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Press Releases

30 Jan 2003

Bulgari: strong revenue* growth in the fourth quarter 2002 (+13% at current exchange rates, +17% at comparable exchange rates)

Rome, January 30, 2003 - The Bulgari Group's fourth quarter 2002 revenues were equal to Euro 255 million compared to Euro 226 million of the same quarter of 2001.
Revenues increased by 13% at current exchange rates and about 17% at comparable exchange rates. Consolidated revenues for the year 2002 reached, therefore, Euro 773 million, with an increase of 1% at current exchange rates (+3% comparable exchange rates), against Euro 766 million of 2001.

Concerning fourth quarter 2002, revenues by geographic area increased significantly - despite the penalizing exchange rates - in all markets with the only exception of Europe (excluding Italy). The good performance of Christmas sales within Bulgari stores and retailers contributed to this positive result.
Japan increased significantly (current exchange rates +27%, comparable exchange rates +39%), also thanks to the enlargement of the Ginza store and to the good performance of fragrance sales. Sales in the Americas (current exchange rates +21%; comparable exchange rates +32%) showed a strong recovery compared to the same period last year. The Middle East/others (current exchange rates +19%) continued their strong expansion despite the high comparison base (the fourth quarter of the previous year had already increased by 52%) . Sales strongly increased also in Italy (+15%) and also in the Far East (+12% at current exchange rates). In Europe (excluding Italy) sales showed a slight decrease (-5%) penalised by a negative trend of the German market and by a general slowdown in tourism.
Revenues for the entire year of 2002 witnessed a very strong increase in the Middle East/others (+24% at current exchange rates). This area is strongly expanding, doubling its business volume in only two years also thanks to the positive performance of the Australian market. Japan registered a good performance (+7%, at current exchange rates, +15% at comparable exchange rates), as well as Italy (+3%), which was, though, penalised by the decrease of tourism. Revenues in the Americas (-2% at current exchange rates, +1% at comparable exchange rates) and in Europe (-3%) remained stable, penalised by a certain weakness of perfume sales compared to the previous year.

As far as sales per product categories are concerned, the fourth quarter was characterised by the extraordinary positive trend of watch sales (+28% at current exchange rates) basically reaching the exceptional sales volumes of 2000. Accessories increased significantly (+13%) despite the crisis of the travel retail channel and the brilliant base of the same period in 2001 (+26%). Also jewellery registered a good performance (+9% at current exchange rates) with a further expansion compared to the same period of the previous year (+5%). Revenues of the perfume category remained unchanged, penalised by a slowdown of the business in Europe (excluding Italy) and the Americas, and by the definitely high base of 2001 (+34%).
Despite the negative exchange rate effect, turnover of all product categories increased in 2002, with the only exception of watches (-1%).
Perfume increased by 5% (against a growth base of +37% in 2001), accessories by +4% (against an increase of 48% in 2001) and jewellery by +2% (against an increase of 26% during the same period of 2001). Watch revenues (-1% at current exchange rates) increased if expressed at comparable exchange rates, showing a strong recovery throughout the year.

Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented. "I believe that the results of the fourth quarter 2002 show that the Bvlgari brand has, despite an uncertain political environment and unfavorable economic conditions of worldwide financial markets, once again proven its vitality and its growth potential. The strong increase of sales allow us to close the year 2002 with an increase in revenues of 1% which will certainly bring about a growth in profits compared to the previous year. I would like to underline that 2002 revenues witnessed an increase in volumes of 17% compared to 2000, year which - thanks to the very favorable market conditions - had registered record sales.
Furthermore, I believe that both, the good performance of sales growth and the good balance of the different distribution channels are to be considered very positive elements, which lead me - with due caution because of the present economic and political situation - to be confident on Bulgar's results in the medium term"

* preliminary results

BULGARI GROUP 2002
REVENUES GROWTH BY GEOGRAPHICAL AREA

	2002 ME	2002 % gth	2002 % weight	Q4 2002 ME	Q4 2002 % gth
ITALY	107.082	2,6%	13,9%	35.826	15,4%
EUROPE (EXCL. ITALY)	191.316	-3,4%	24,7%	56.687	-5,2%
AMERICAS	115.861	-2,1%	15,0%	37.890	20,7%
JAPAN	164.874	7,3%	21,3%	60.746	26,9%
FAR EAST	132.652	-6,6%	17,2%	43.592	11,9%
MIDDLE EAST - OTH	61.470	23,6%	7,9%	19.951	18,8%
TOTAL	773.255	0,9%	100%	254.692	12,8%

BULGARI GROUP 2002
REVENUES GROWTH BY PRODUCT CATEGORY

	2002 ME	2002 % gth	2002 % weight	Q4 2002 ME	Q4 2002 % gth
JEWELS	293.770	2,1%	38,0%	98.743	8,7%
WATCHES	292.873	-1,0%	37,8%	98.550	27,9%
PERFUMES	132.661	4,8%	17,2%	40.040	-0,4%
ACCESSORIES	39.922	3,7%	5,2%	13.821	12,6%
ROYALTIES AND OTH	14.029	-19,8%	1,8%	3.538	-35,1%
TOTAL	773.255	0,9%	100%	254.692	12,8%