Press Releases
Bulgari Group: strong growth of first quarter 2004 results
- Turnover 160.3 million Euro (+6% at constant exchange rates)
- Operating profit 18.9 million Euro (+16.7%)
- Net profit 13.5 million Euro (+18.3%)
Rome, May 13 2004 - Bulgari, the Italian contemporary jeweller announced in Rome today its consolidated first quarter results of 2004, posting a turnover of 160.3 million Euro with an increase of 6% - at constant exchange rates - compared to the same period of the previous year. In the first quarter 2004 the Group’s operating profit equaled 18.9 million Euro (+16.7%) and net profit was of 13.5 million Euro, compared to 11.4 million Euro of the same period in 2003 (+18.3%).
The gross margin* was of 100.3 million Euro against the 97.8* million Euro of the same period of the previous year, with an impact on sales increasing from 60.9% in 2003 to 62.5% in 2004 posting a significant increase of 160 base points. Total operating expenses were equal to 81.4 million Euro, essentially unchanged compared to the previous year, despite the strong increase of advertising and promotion investments. These went from 13.9 million Euro in the first quarter 2003 – with an impact on sales on 8.7% - to 15.9 million Euro during the same period of this year with an impact on sales of 9.9% and an increase of 14.1%. The inventory at the end of March 2004 was equal to 463.8 million Euro against 492 million Euro at the end of March 2003. Indebtedness was more than cut into half, decreasing from 159.4 million Euro at the end of March 2003 to 72.9 million Euro at the end of the first quarter of this year. Consequently, the gearing went from 29% to 12%.
Jewelry (+13.8%) and fragrances (+10.1%) continue their extraordinary growth in revenues. Accessories (-2.1%) keep the very good levels of the previous year in which turnover registered an increase of 82%. Watches revenues (+0.5%) confirm their gradual recovery.
The very good sales trend in Japan (+23.1%) has to be stressed especially if compared with its very high base (+28% in the first quarter 2003 compared to the first quarter 2002). Furthermore, the recovery in the US (+21.6%) has to be underlined as well as the positive sales trend in the Far East ex.Japan, (+4.8%) on top of the already strong growth registered during the first quarter of 2003 (+34% in the first quarter 2003 compared to the first quarter 2002). Europe (-5%) is still penalized by the decrease in tourism but witnesses signs of recovery in England and Spain. Italy (-22.7%) is also penalized by the slowdown of tourist flow and by the comparison with the very high growth levels of the previous year (+15.4% in the first quarter 2003 compared to the first quarter 2002). All growth rates are expressed at constant exchange rates.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: “I am very satisfied with the obtained sales results, which are coherent with our growth objectives for the entire year 2004. I am particularly pleased with the recovery of the watch sector, as already confirmed by the significant upturn of sales within our stores, as well as by the very good level of the orders received during the latest Basle fair. Furthermore, profit growth proves, once again, the effectiveness of our efforts to increase the gross margin and to further control of operating expenses. This makes me be confident on the high single digit guidance for sales volumes growth and slightly higher for the profits growth we have given for the entire year.”
| PRODUCT CATEGORIES | Q1 04 M.EUR | % ON TOTAL REVENUES |
DELTA% Q1 04/Q1 03 |
|
|---|---|---|---|---|
| AT CURRENT FX REPORTED | AT CONSTANT FX RATES | |||
| JEWELS | 66,2 | 41,3% | +7,6% | +13,8% |
| WATCHES | 49,4 | 30,8% | -6,1% | +0,5% |
| PERFUMES | 28,4 | 17,7% | +2,9% | +10,1% |
| ACCESSORIES | 13,7 | 8,5% | -7,4% | -2,1% |
| ROYALTIES/OTHERS | 2,6 | 1,7% | -35,8% | N/A |
| Total | 160,3 | 100% | -0,2% | +6,0% |
| GEOGRAFICAL AREAS | Q1 04 M.EUR | % ON TOTAL REVENUES | DELTA% Q1 04/Q1 03 |
|
|---|---|---|---|---|
| AT CURRENT FX REPORTED | AT CONSTANT FX RATES | |||
| ITALY | 17,8 | 11,1% | -22,7% | - |
| EUROPE EX IT. | 38,2 | 23,8% | -5,0% | - |
| AMERICAS | 23,4 | 14,6% | +5,9% | +21,6% |
| JAPAN | 39,9 | 24,9% | +16,7% | +23,1% |
| FAR EAST | 29,8 | 18,6% | -5,0% | +4,8% |
| M.EAST/OTH | 11,2 | 7,0% | +15,2% | N/A |
| Total | 160,3 | 100% | -0,2% | +6,0% |
BULGARI GROUP
| M.EURO | Q1 04 | Q1 03 |
|---|---|---|
| REVENUES | 160,3 | 160,6 |
| OPERATING PROFIT | 18,9 | 16,2 |
| EBIT MARGIN | 11,8% | 10,1% |
| NET PROFIT | 13,5 | 11,4 |
| NET MARGIN | 8,4% | 7,1% |
*re-classified data due to the production costs included in COGS during 2003.