Press Releases
Bulgari: first semester 2003 - growth in sales volumes, operating and net profit
- Turnover: 330.1 million Euro
- Operating profits: 35.1 million Euro
- Net profits: 25.0 million Euro
Rome, September 11, 2003 - The Board of Directors of Bulgari S.p.A. presents today in Rome its interim first semester results of 2003.
Revenues which registered an increase of 4% at comparable exchange rates were of 330.1 million Euro and were negatively impacted by exchange rates, therefore showing a decrease compared to the 338 million Euro of the same period during the previous year.
Operating profits were of 35.1 million Euro against the 33.0 million Euro in the first semester of 2002, posting an increase of 6.4%. Net profits were equal to 25.0 million Euro, compared to 22.6 million Euro of the same period of 2002, thus showing an increase of 10.9%. Obviously, the negative economic conjuncture and the difficult political environment influenced sales in the first semester of this year. Furthermore, the second quarter was strongly penalised by Sars causing a drastic slowdown in tourism.
During this first semester, sales witnessed a particularly good trend in the Far East (+10.7%), in Italy (+8.1%) and in Japan (+2.7%). Sales in Europe (excluding Italy) were still penalized by the Sars effect; while in the Americas, where sales decreased by 14% in Euro, registered a 3% increase at comparable exchange rates, thus confirming a slow recovery.
As far as the product categories are concerned, the very good sales trend at comparable exchange rates - of jewelry (+13%) and of accessories (+76%) has to be underlined. Revenues were weak for watches (-4%) and for perfume (-16%).
The contribution margin increased despite the strong Euro against the Yen and the USD from 60.3%* of the first semester 2002 to 62.4%* during the first semester 2003. This increase proves the efficiency of the optimization activities carried out in the production process.
Total operating expenses were equal to 170.8 million Euro against 171.1 million Euro of the same period of the previous year, notwithstanding the new store openings and the acquisition of Crova.
Net indebtedness of the Group at 30/06/2003 was equal to 157 Euro million against the 268 Euro million at 30/06/2002, thanks to the control of the inventory - equal to 531.4 Euro million at 30/06/2002 which decreased to 482.8 Euro million at 30/06/2003.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: The obtained results testify, despite the difficult environment which was significantly penalized by negative economic and political events, the strength of the Bvlgari brand as well as the success of the new products; especially the jewellery collection Allegra and also the new watch models presented during the last Basle fair.
I am also convinced that the latest launch of the fragrance Omnia will be a great success.
Furthermore, I am very satisfied with the increase of both operating and net profitability, which was registered, despite the low growth rate of sales volumes, thanks to the recovery of efficiency which is being implemented for some time now within our organization.
In case the second half of this year should witness an improvement of the economic and political scenario, in respect to what we have seen in the last months, I am confident that 2003 will register an increase of sales and profits compared to the previous year.
The Board of Directors has also approved the financial statements of the parent company Bulgari S.p.A. closing at 30/06/03 with a net profit of 14.1 Euro million (15.6 Euro million in the first semester of 2002), including dividends from subsidiary companies for 22.0 Euro million. The parent company's total revenues in the first half of 2003, consisting almost entirely of income from royalties from the Bvlgari brand, amounted to 20.8 Euro million, showing a decrease of 1% compared to 21.0 Euro million for the same period of the previous year.
*The value of the operating margin was reclassified for both semesters of reference, in order to include all direct (internal) production expenses.
BULGARI GROUP
Financial Highlights
(in Euro 000)
| 30/6/03 | 30/6/02 | ||
|---|---|---|---|
| CONSOLIDATED NET REVENUES | 330.122 | 338.316 | |
| EBIT | 35.099 | 32.990 | |
| NET PROFIT | 25.032 | 22.563 | |
Bulgari Group - M. Euro by product category
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| JEWELS | 61,529 | 75,070 | 136,599 |
| WATCHES | 52,591 | 54,257 | 106,848 |
| PERFUMES | 27,561 | 23,942 | 51,503 |
| ACCESSORIES | 14,812 | 12,956 | 27,768 |
| ROYALTIES & OTH. | 4,134 | 3,270 | 7,404 |
| TOTAL | 160,627 | 169,495 | 330,122 |
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 - M.Euro by geographical area
| Q1 2003 | Q2 2003 | H1 2003 | |
|---|---|---|---|
| ITALY | 23,072 | 25,909 | 48,981 |
| EUROPE EX ITALY | 40,211 | 43,551 | 83,762 |
| AMERICAS | 22,124 | 20,480 | 42,604 |
| JAPAN | 34,174 | 36,033 | 70,207 |
| FAR EAST | 31,372 | 31,320 | 62,693 |
| M.EAST & OTH. | 9,674 | 12,202 | 21,875 |
| TOTAL | 160,627 | 169,495 | 330,122 |
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 |
| MIDDLE EAST AND OTHERS | -13.0 | -7.5 | -10.0 |
| TOTAL | +2.8 | -6.9 | -2.4 |
Non audited results