Press Releases
Bulgari Group: 2006 revenues over 1 billion Euro
- Full year 2006 revenues: 1,010.4 million Euro
(+12% at comparable exchange rates) - Fourth quarter 2006 revenues: 323.6 million Euro
(+8% at comparable exchange rates)
Rome, January 30th 2007 – The revenues of the Bulgari Group in the full year 2006 were 1,010.4 million Euro, compared to 918.5 million Euro in 2005, with a 12.0% increase at comparable exchange rates (+10.0% at current exchange rates). In the fourth quarter 2006 sales were 323.6 million Euro compared to 311.2 million Euro posted in the same quarter 2005 (+7.5% at comparable exchange rates and +4.0% at current exchange rates) despite the high comparison base of the previous year (+12.6% at comparable exchange rates).
All the variations reported below, unless noted otherwise, are expressed at comparable exchange rates.
Revenues by product category
The full year 2006 ended with excellent sales results for the Group: all product categories, in fact, benefited from the constant research and innovation activities carried out by the Company and from the new product launches made during the year (Parentesi for jewellery, BVLGARI BVLGARI for watches and Bulgari pour Femme and Bulgari pour Homme for perfumes). The jewellery segment, core business of the Company, registered once again a brilliant performance (+11.1%) as well as watches (+10.3%), also thanks to the outstanding results of the Daniel Roth and Gérald Genta brands. As a result of the important investments made, perfumes (+11.8%) and accessories (+18.9%) registered a robust growth in line with Company’s expectations and all the more relevant in consideration of the remarkable increase registered last year (+18.5% and +24.2% respectively). At the end of September a new Bulgari Resort was inaugurated in Bali as a further step of the Bulgari Hotels & Resorts project. In the fourth quarter 2006 the outstanding performance of jewellery and accessories must be underlined (+12.8% and +23.1% respectively), together with the positive result of perfumes (+6.2%), while the watch segment (-3.4%) suffered from the difficult comparison base with the third quarter of last year (+16.2%), when this category benefited from the important launch of Assioma. It is worth underlining that in the quarter Bulgari’s owned stores sales registered a double-digit growth with the contribution of all product categories.
Revenues by geographical area
In the full year 2006 Europe excluding Italy and the United States led the revenues increase (+17.2% and +16.2% respectively) despite the strong comparison bases in 2005. Sales in Japan increased by 13.6% compared to +17.4% of last year and Far East confirmed the turnaround already registered during the year as evidence of consumers’ approval of the new products and of the success of the stricter distribution policies. Middle East/Other (+6.9% at current exchange rates) showed an increase as well, while the performance in Italy (+1.2%) was substantially stable in the year, compared to the challenging base of 2005 (+15.4%). The sales performance of the Bulgari’s owned stores in Italy showed a strong growth in 2006, in line with the growth in the rest of Europe, while the results of the third parties distribution have been less brilliant after the more selective policy carried out by the Company.
As far as the fourth quarter 2006 is concerned, Far East (+25.5%) and the United States (+15.0%) posted outstanding results, while the positive performance of Europe (+6.7%) must be compared to the very high base in the corresponding quarter of last year (+33.0%). Italy showed a positive trend as well (+5.7%), while Japan - as already anticipated in November and in line with Company’s expectations – confirmed the slowdown of the market (-1.0%). Middle East/Other, finally, registered a decrease (-15.2% at current exchange rates).
The total number of Bulgari monobrand stores as of 31st December 2006 was 228, including the ones dedicated to accessories like the new Via Tornabuoni shop opened in Florence last December.
Expected earnings for 2006 and outlook for 2007
In line with the previous indications, in 2006 the Bulgari Group will post a record economic result with an increase versus the previous year for operating as well as net profit. Specifically, given an increase in revenues of 10% at current exchange rates and of 12% at comparable exchange rates, the Company is expecting an increase of net profit above 12%. As for the outlook for 2007, the year will be marked for Bulgari by a further acceleration of the investments for the development of the retail network and for the promotional and advertising activities: therefore in a stable macro-economic scenario and despite the forecasted persistent weakness in the Japanese market and currency the expectation of the Company is to achieve a further increase in sales (at comparable exchange rates) and in net profit in a range between 8% and 12%.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: “The important goal of one billion Euro exceeded by the 2006 turnover confirms that the Group is going in the right direction and the adopted strategies are winning. The constant commitment for creativity and the highest quality in all Bulgari products, together with the investments to enlarge and upgrade the retail network, the greater vertical integration in production and distribution and the successful recent diversification in the accessories and hotel businesses, are clearly positioning Bulgari as one of the worldwide most prestigious brands in the luxury sector. Finally, in the light of the authoritative position that Bulgari acquired in the perfume business, the Company is going to launch a women’ skincare line whose distribution will start in Italy next fall. I am convinced that also this latest challenge marked by research and innovation will result in a success and will allow the Bulgari Group to achieve new and ambitious goals”.
BULGARI GROUP – REVENUES BY PRODUCT CATEGORY – FY 2006 AND Q4 2006
| 2006 | Q4 2006 | Variation % 2006/2005 FULL YEAR |
Variation % 2006/2005 FOURTH QUARTER |
|||
|---|---|---|---|---|---|---|
| M. Euro | Reported | At comparable exchange rates |
Reported | At comparable exchange rates |
||
| JEWELS | 401.7 | 129.6 | 9.1% | 11.1% | 9.0% | 12.8% |
| WATCHES | 289.1 | 89.2 | 7.9% | 10.3% | -7.3% | -3.4% |
| PERFUMES | 201.6 | 69.9 | 10.5% | 11.8% | 3.9% | 6.2% |
| ACCESSORIES | 88.8 | 26.3 | 15.5% | 18.9% | 17.6% | 23.1% |
| ROYALTIES/OTHER | 29.2 | 8.6 | 26.4% | N.A. | 33.1% | N.A. |
| Total | 1,010.4 | 323.6 | 10.0% | 12.0% | 4.0% | 7.5% |
BULGARI GROUP – REVENUES BY GEOGRAPHICAL AREA – FY 2006 AND Q4 2006
| 2006 | Q4 2006 | Variation % 2006/2005 FULL YEAR |
Variation % 2006/2005 FOURTH QUARTER |
|||
|---|---|---|---|---|---|---|
| M. Euro | Reported | At comparable exchange rates |
Reported | At comparable exchange rates |
||
| ITALY | 131.4 | 46.5 | 1.2% | - | 5.7% | - |
| EUROPE ex IT | 256.3 | 83.7 | 17.2% | - | 6.7% | - |
| AMERICAS | 159.1 | 51.4 | 15.1% | 16.2% | 9.6% | 15.0% |
| JAPAN | 256.7 | 76.7 | 7.5% | 13.6% | -8.3% | -1.0% |
| FAR EAST | 149.9 | 51.5 | 7.4% | 6.6% | 22.7% | 25.5% |
| M.EAST/OTHER | 57.1 | 13.9 | 6.9% | N.A. | -15.2% | N.A. |
| Total | 1,010.4 | 323.6 | 10.0% | 12.0% | 4.0% | 7.5% |
Source: Bulgari S.p.A. – Not audited preliminary results.
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 |