Press Releases
Bulgari: sales volumes grew in the first semester 2003 (+4% at comparable exchange rates)
Rome, July 30 2003 – In the first semester 2003 the Bulgari Group posted revenues of 330 million Euros with a decrease of 2% (+4% at comparable exchange rates), compared to the same period of the previous year (338 million Euro).
In the first quarter sales (+9% at comparable exchange rates) were negatively influenced by the war in Iraq. The second quarter sales (+1% at comparable exchange rates) were significantly penalized by the Sars, thus worsening an already very negative economic trend.
Turnover in Italy registered an increase of 8% during the first six months of the year despite the strong decline in tourism, thanks to the very good sales trend within the domestic market.
Revenues decreased in the rest of Europe (-11%), penalised by the Sars effect expecially in France and Switzerland, and in Germany by the economic recession.
In the Americas revenues – down by 14% in euro terms - increased by 3% at comparable exchange rates thus confirming a slow process of recovery.
Japan witnessed good sales results (+3% at current exchange rates; +14% at constant exchange rates). The deceleration of the growth rate recorded in Q2 in this market is mainly due to a decrease in perfume sales in the second quarter 2003, compared to the strong level recorded in the same period of 2002.
Despite the Sars epidemics, the remaining Far Eastern region closed the semester with a significant growth in turnover (+11%).
Middle East registered a slight slowdown in revenues (-10%), penalised by the weak dollar and by the difficult geopolitical context.
As far as the product categories are concerned, the very good trend of jewellery sales during the first semester has to be underlined. In the first half jewelry sales posted a further increase of 4% (+9% in the second quarter). This growth is even more impressive if expressed at comparable exchange rates (+13% for the entire semester; +20% in the second quarter).
Watch revenues, on the other hand, registered a decrease of 10% in the first semester
(-19% in the second quarter). Revenues were penalised - besides the strong euro - by the significant downturn of travel and by a general weakness of sales in the industry, more dependent on the male customer higher reactiveness to the present economic environment.
Fragrance revenues witnessed a decrease of -19% (-28% in the second quarter) due to the penalizing exchange rate effect, to the general negative trend of the fragrance business as well as to the very high basis of comparison. The performance was also influenced by the slow-down of orders from perfumeries, waiting for new Omnia fragrance to be on shelf in September.
For the entire fiscal year 2003 sales expectations for fragrances point to a growth in volumes.
Accessories sales continued the strong growth (+65% in the first semester; +48% in the second quarter) despite the difficulties in the travel retail channel.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: “I am very satisfied with the sales results of the this first semester of the year, during which we achieved a further sales growth of 4% - despite the war in Iraq, the Sars epidemics and the great uncertainty of the economic environment. Considering the latest sales results of June and July and should an improvement of the economic environment materialize I am confident that an increase in sales volume and profits for 2003 is still achievable.”
BULGARI GROUP – % GROWTH BY PRODUCT CATEGORY
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| JEWELS | -0.6 | +8.5 | +4.2 |
| WATCHES | +0.9 | -19.2 | -10.4 |
| PERFUMES | -9.1 | -27.8 | -18.9 |
| ACCESSORIES | +82.0 | +48.3 | +64.6 |
| ROYALTIES & OTH. | +10.4 | -15.9 | -3.0 |
| TOTAL | +2.8 | -6.9 | -2.4 |
BULGARI GROUP – % BREAKDOWN BY PRODUCT CATEGORY
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| JEWELS | 38.3 | 44.3 | 41.4 |
| WATCHES | 32.7 | 32.0 | 32.4 |
| PERFUMES | 17.2 | 14.1 | 15.6 |
| ACCESSORIES | 9.2 | 7.6 | 8.4 |
| ROYALTIES & OTH. | 2.6 | 2.0 | 2.2 |
| TOTAL | 100 | 100 | 100 |
BULGARI GROUP – % GROWTH BY GEOGRAPHICAL AREA
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| ITALY | +15.4 | +2.3 | +8.1 |
| EUROPE EX. ITALY | -11.7 | -10.6 | -11.1 |
| AMERICAS | -12.2 | -15.6 | -13.9 |
| JAPAN | +17.1 | -8.0 | +2.7 |
| FAR EAST | +24.6 | -0.4 | +10.7 |
| M. EAST & OTH | -13.0 | -7.5 | -10.0 |
| TOTAL | +2.8 | -6.9 | -2.4 |
BULGARI GROUP – % BREAKDOWN BY GEOGRAPHICAL AREA
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| ITALY | 14.4 | 15.3 | 14.8 |
| EUROPE EX ITALY | 25.0 | 25.7 | 25.4 |
| AMERICAS | 13.8 | 12.1 | 12.9 |
| JAPAN | 21.3 | 21.2 | 21.3 |
| FAR EAST | 19.5 | 18.5 | 19.0 |
| M.EAST & OTH. | 6.0 | 7.2 | 6.6 |
| TOTAL | 100 | 100 | 100 |
Source: Bulgari S.p.A. – preliminary, non-audited figures – the H1 03 release will be approved by the Board of Directors on sep.11 2003.
For additional information: Francesca Zanoni +39.06.68810 594.