Press Releases
Bulgari Group transition to IFRS for FY 2004 and H1 2004 Consolidated Financial Statements
- negligible impact on Profit and Loss
- very limited impact on Total Net Equity and Net Indebtness
Rome, July 7th 2005 - The Bulgari Group restates its consolidated financial statements for the first semester 2004 (as of June 30th 2004) and the full year 2004 (as of December 31st 2004) under International Financial Reporting Standards (IFRS).
The Bulgari Group will adopt IFRS consolidated financial statements starting from the first semester 2005, i.e. for the accounting period ending June 30th 2005.
On the other hand, the parent company Bulgari S.p.A. will adopt IFRS for statutory financial statements starting from January 2006.
Effects of IFRS
The main differences between Italian GAAP and IFRS relative to the Bulgari Group first semester 2004 and full year 2004 consolidated financial results are highlighted below:
Consolidated Profit and Loss Statement
- Stock options are now accounted as personnel costs;
- Goodwill amortization reported under Italian GAAP is not applicable under IFRS – an annual impairment test is introduced;
- Exceptional gain/loss (extraordinary items) reported under Italian GAAP as non-operating items are now reclassified as operating items.
Consolidated Balance Sheet
- Deferred taxes are now calculated on undistributed profit of subsidiaries (taxes on future dividend distributions due to parent company);
- Foreign exchange rate impact on goodwill related to acquisitions is now revalued at the foreign exchange rate of the closing period reporting date.
The impacts on the full fiscal 2004 and the first semester 2004 consolidated financial statements deriving from the application of the IFRS are very limited and can be summarized as follows:
- Consolidated Profit and Loss Statement:
The impact of the IFRS application on the Profit and Loss accounts is negligible. Net profit after taxes both for the first semester 2004 and the full fiscal year 2004 increases by Eur 0.4m.
| H1 2004 Eur millions |
Italian GAAP | Variance* | IFRS* |
|---|---|---|---|
| Revenues | 352.8 | +0.5 | 353.3 |
| Operating Profit | 42.3 | -0.8 | 41.5 |
| Net Profit after taxes | 33.7 | +0.4 | 34.1 |
| FY 2004 Eur millions |
Italian GAAP | Variance* | IFRS* |
|---|---|---|---|
| Revenues | 827.7 | +3.9 | 831.6 |
| Operating Profit | 134.2 | -3.3 | 130.9 |
| Net Profit after taxes | 108.3 | +0.4 | 108.7 |
- Consolidated Balance Sheet:
As a result of the IFRS application, Total Net Equity decreases by Eur 19.1m as of 30.06.2004 and roughly by the same amount (Eur 19.4m) for the full fiscal year 2004.
Net Indebtness increases by Eur 0.9m as of 30.06.2004 and by Eur 2.8m for the full fiscal year 2004.
| As of 30.06.2004 Eur millions |
Italian GAAP | Variance* | IFRS* |
|---|---|---|---|
| Invested capital | 657.9 | -18.2 | 639.7 |
| Total Net Equity | 593.2 | -19.1 | 574.1 |
| Net Indebtness | 64.7 | 0.9 | 65.6 |
| As of 31.12.2004 Eur millions |
Italian GAAP | Variance* | IFRS* |
|---|---|---|---|
| Invested capital | 673.1 | -16.6 | 656.5 |
| Total Net Equity | 662.9 | -19.4 | 643.5 |
| Net Indebtness | 10.2 | 2.8 | 13.0 |
Selected options and notes
The Bulgari Group has chosen to present comparative information that does not comply with IAS 32 and IAS 39 in its first year of transition (2004), according to IFRS 1 (§36A).
International Financial Reporting Standards are subject to ongoing amendments by the International Accounting Standards Board. Further development of the interpretation of these standards could result in changes in the basis in accounting or presentation of certain items and accordingly this financial information is subject to possible change.
The presented accounting treatments and their impacts are under review by the Bulgari Group’s auditors and will be audited with the first application of the IFRS standards in occasion of the first semester 2005 results (for the accounting period ending June 30th 2005).
This press release has only information purposes.
Details
Management will illustrate the restatement of the fiscal full year 2004 and first semester 2004 consolidated financial statements during a conference call at 6:00pm CET today. The conference call can be accessed by dialling +39 071 286 18 48. This document, together with a detailed annex, will be available on the IR Group’s website at http://ir.bulgari.com shortly before the conference call. A recording of the conference call will be available on the same web site a few hours later.
Timetable for future releases
The Bulgari Group will report its
- H1 2005 Revenues on July 27th 2005under IFRS standards.
- H1 2005 Results on September 26th 2005
Bulgari is one of the global players on the luxury market. In 2004 the Group posted a turnover of 832 million Euro, a net profit of 109 million Euro (IFRS restated). With a market capitalization of about 2,785 million Euro (as of 07.06.2005), Bulgari relies on a distribution network of 194 stores in the most exclusive shopping areas in the world and on selected distributors. Bulgari has a product portfolio that ranges from jewels and watches to accessories and perfumes. The Group is controlled by the Bulgari family, holding about 52.0% of the share capital. The remaining 48.0% is floating on the Milan Stock Exchange.
For further information
| Media relations | Analysts / investors relations |
| Paolo Piantella | Renata Casaro |
| Corporate Financial Press Office Director | Investor Relations Director |
| tel. +39 06 68 810 593 | tel. +39 06 68 810 467 |
| e-mail paolo.piantella@bulgari.com | e-mail renata.casaro@bulgari.com |
| www.bulgari.com | http://ir.bulgari.com |
1 Please note that the date for the H1 2005 Results release and conference call has been changed from Sep. 13th 2005 to September 26th in order to have enough time to prepare the H1 2005 Financial Statements IFRS compliant and for the auditors, to complete the audit – please refer to http://production.investis.com/bulgari/calendar for the updated calendar.
