Press Releases
Bulgari: strong revenue growth in 2005 (+11% at comparable exchange rates)
- Full year 2005 turnover: 919 million Euro
- Fourth quarter 2005 turnover: 311 million Euro (+13% at comparable exchange rates)
- Sales growth for the watch segment: +4% at comparable exchange rates in the full year 2005 +16% at comparable exchange rates in the fourth quarter 2005
Rome, January 31st 2006 – The revenues of the Bulgari Group in the full year 2005 were 918.7 million Euro compared to 831.6 million Euro in 2004, with an increase of 10.6% at comparable exchange rates (+10.5% at current exchange rates).
In the fourth quarter 2005 sales were 311.4 million Euro compared to 275.0 million Euro posted in the same quarter 2004 (+12.7% at comparable exchange rates and +13.2% at current exchange rates) despite the high comparison base of the previous year (+14%).
The full year 2005 ended with positive sales results for the Group, which were in line with the company's expectations. In fact, all product categories benefited from the new launches and the related investments made during the year: at comparable exchange rates, jewellery sales increased by 7.5%, watches by 4.5%, perfumes by 18.5% and accessories by 24.1%, also thanks to the excellent sales results during the holiday season.
As far as geographical areas are concerned, the brilliant sales performance in Japan (+17.4% at comparable exchange rates and despite the challenging base of +27.2% at comparable exchange rates in 2004) and in United States (+12.5% at comparable exchange rates in comparison with +22.4% at comparable exchange rates in 2004) must be underlined once again, while Far East (-6.5% at comparable exchange rates) and Middle East (-0.4% at current exchange rates) were penalised by a general weakness of the local market and by the stricter distribution policies carried out by the company towards third parties. Signs of recovery must be pointed out for Europe (+15.4%) and Italy (+15.0%), which reached satisfactory sales results thanks both to the positive performance with the local clientele and to an upturn in tourist flows.
In the fourth quarter 2005 , turnover showed an increase of 12.7% at comparable exchange rates and all product categories continued to rise: at comparable exchange rates, watch sales increased by 16.5%, jewellery by 8.2% (to be compared with the base of +13.3% in the same quarter of the previous year), perfumes by 14.8% and accessories by 11.7%.
As for geographical areas, Japan registered an outstanding performance (+19.7% at comparable exchange rates despite the high comparison base of +29.7% in the previous year), as well as Europe (+33.6% at current exchange rates) and Middle East (+22.2% at current exchange rates). United States registered a growth of 1.1% at comparable exchange rates that should be compared with the very challenging base of +21% posted in the fourth quarter of the two previous years, while Italy increased by 8.4% thus confirming the positive trend already registered in the past quarters. Far East registered a decrease of 14.0% also following the stricter distribution policies already mentioned.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: "I am satisfied with the sales results reached by the Group in 2005, which are consistent with our expectations: turnover registered a growth of 11%, with an even more robust increase both globally and for each product category, when only considering the distribution network of the Bulgari monobrand stores. The watch segment, in particular, showed a positive trend also thanks to the success of the new collection Assioma, thus marking a strong reversal of trend in the last quarter in comparison with the previous quarters. Once again, the Bulgari brand has confirmed its strength and prestige all over the world and these bases make me optimistic for an outlook of growth and development also in 2006" .
| 2005 | Q4 2005 | Variation % 2005/2004 FULL YEAR |
Variation % 2005/2004 FOURTH QUARTER |
|||
|---|---|---|---|---|---|---|
| M. Euro | At current exchange rates REPORTED | At comparable exchange rates | At current exchange rates REPORTED | At comparable exchange rates | ||
| Jewels | 368.1 | 118.8 | +7.4% | +7.5% | +8.9% | +8.2% |
| Watches | 268.0 | 96.3 | +4.5% | +4.5% | +17.7% | +16.5% |
| Perfumes | 182.4 | 67.3 | +18.3% | +18.5% | +14.5% | +14.8% |
| Accessories | 76.9 | 22.3 | +23.8% | +24.1% | +11.9% | +11.7% |
| Royalties/Other | 23.4 | 6.8 | +43.8% | n.a. | +25.5% | n.a. |
| Total | 918.7 | 311.4 | +10.5% | +10.6% | +13.2% | +12.7% |
| 2005 | Q4 2005 | Variation % 2005/2004 FULL YEAR |
Variation % 2005/2004 FOURTH QUARTER |
|||
|---|---|---|---|---|---|---|
| M. Euro | At current exchange rates REPORTED | At comparable exchange rates | At current exchange rates REPORTED | At comparable exchange rates | ||
| ITALY | 129.5 | 43.6 | +15.0% | - | +8.4% | - |
| EUROPE ex IT | 218.9 | 78.8 | +15.4% | - | +33.6% | - |
| AMERICAS | 138.2 | 46.9 | +12.6% | +12.5% | +4.9% | +1.1% |
| JAPAN | 238.9 | 83.6 | +15.7% | +17.4% | +17.9% | +19.7% |
| FAR EAST | 139.7 | 42.1 | -4.6% | -6.5% | -10.0% | -14.0% |
| M.EAST/OTHER | 53.4 | 16.4 | -0.4% | n.a. | +22.2% | n.a. |
| Total | 918.7 | 311.4 | +10.5% | +10.6% | +13.2% | +12.7% |
Source: Bulgari S.p.A. – Not audited results IAS/IFRS restated
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 |