Press Releases
Bulgari: strong revenues growth in 2007
- Full year 2007 turnover: 1,093.3 million Euro (+14% at comparable exchange rates)
- Fourth quarter 2007 turnover: 347.7 million Euro (+13% at comparable exchange rates)
Rome, January 31st 2008 – The revenues of the Bulgari Group in the full year 2007 were 1,093.3 million Euro compared to 1,010.4 million Euro in 2006 with a 13.7% increase at comparable exchange rates (+8.2% at current exchange rates).
In the fourth quarter 2007 sales were 347.7 million euro compared to 323.6 million Euro posted in the same quarter 2006 (+13.1% at comparable exchange rates and +7.4% at current exchange rates).
All the variations reported below are expressed at comparable exchange rates unless noted otherwise.
Revenues by product categories
The full year 2007 ended with outstanding 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. Jewellery, core business of the Company, registered once again an excellent sales performance (+20.1%); watches reported a positive performance (+8.2%) despite the shortages in sourcing some technical components, which resulted in losses of production volume in some periods of the year. The Bulgari Group is determined to invest in the vertical integration for this product category: in the fourth quarter, in fact, the acquisition of the Swiss company Finger, specialized in the production of sophisticated watch cases, was finalized, together with the acquisition of machineries and intellectual properties from the Swiss company Leschot with the aim of significantly reinforcing the internal production of mouvements de manufacture. Accessories registered an increase in line with Company’s expectations and limited to 1.2%, essentially due to the very high comparison base in the last year (+19% in 2006) and to the weakness of the Japanese market, the most important area of reference for this product category. However, it is worth underlining that accessories sales in the directly owned stores registered a strong double-digit growth in the year with a further acceleration during the holiday season. Perfumes, finally, posted a 15.5% growth, driven by the continuous success of all the Bulgari fragrances.
In the fourth quarter 2007 the outstanding performance of jewels (+20.4%) and perfumes (+15.2%) must be highlighted. Watches registered a positive sales trend: although penalized by the already mentioned shortage in sourcing components, the performance has been supported by the excellent sales of the model for women Assioma D. Accessories segment (-2.3%), despite the brilliant sales performance in the directly owned stores, was affected by the challenging comparison base in the same quarter of last year (+22.9%).
Revenues by geographical area
In the full year 2007 the strong sales growth in the United States (+21.0%) was very satisfying despite the strong comparison base in 2006 (+16.2%). Sales performance in Europe (+10.3%) was very positive – to be compared to the high base of last year (+11.3%) - with a good performance in Italy (+7.6%). Asia registered a 14.9% rise: Japan ended the year substantially stable (-0.9%) and was counterbalanced by the rest of Asia, which showed an exuberant growth (+41.2%). Middle East/Other, finally, registered a 1.6% growth at current exchange rates.
With regard to the fourth quarter 2007, Asia posted an outstanding performance (+12.9%): Japan, confirming the turnaround already shown in the third quarter of this year, registered a 4.5% sales increase also thanks to the opening of the new flagship stores in Tokyo at the end of October (Omotesando) and at the end of November (Ginza Tower); the rest of Asia registered a 25.4% increase to be compared to a similar +25.5% in the same quarter of last year. Sales registered a positive trend in the United States (+13.5% to be compared to the 15.0% increase posted in the same quarter of last year), in Europe (+10.5%) and a substantially stable performance in Italy (-0.8%). Middle East/Other, finally, registered a 22.4% increase at current exchange rates.
Revenues by sales channel
As of December 31st 2007 the total number of Bulgari Group stores was 245 of which 149 were directly owned stores.
In the full year 2007 revenues in the directly owned stores showed a very aggressive increase, much higher than the one posted through third party distributors. This performance is particularly remarkable considering that the new store openings were concentrated in the last part of the year, thus contributing only marginally to the overall sales increase.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: "The brilliant sales results posted by the Bulgari Group also in 2007 in all product categories and geographical areas are very satisfactory and I am very confident about the achievement of the net profit target already given for the year just ended. Moreover, I would like to emphasize how the important projects the Company has carried out and is implementing in the production platform and in the distribution network are generating the expected results, thus making the Group more integrated, diversified and balanced in the geographical areas where it is present and therefore even more solid and able to tackle the uncertainties, which currently characterize the world markets. The unfolding of these strategic projects will also continue in 2008.
All these things considered, our long-term strategy for a double-digit growth (at comparable exchange rates) in turnover and net profits is confirmed. In light of the current phase of uncertainty in the macroeconomic environment and of financial markets volatility we will refine our 2008 guidance on March 11th when the financial results for the full year 2007 will be released. Finally, it is worth underlining that the sales trend was very positive not only in the last months of 2007 but also in January."
BULGARI GROUP – REVENUES BY PRODUCT CATEGORY – FY 07
| REVENUES BY PRODUCT CATEGORY |
FY 2007 | FY 07/ FY 06 | FY 06/ FY 05 | |||
|---|---|---|---|---|---|---|
| EUR M. | % ON REVENUES |
% REPORTED |
% COMP. FX |
% REPORTED | % COMP. FX | |
| Jewels | 460.0 | 42.1% | 14.4% | 20.1% | 9.1% | 11.2% |
| Watches | 294.9 | 27.0% | 2.0% | 8.2% | 7.8% | 10.2% |
| Accessories | 84.4 | 7.7% | -5.1% | 1.2% | 15.4% | 18.8% |
| Other (incl. FR royalties) | 7.6 | 0.7% | 4.0% | - | 14.5% | - |
| JWA Division | 846.9 | 77.5% | 7.6% | 13.0% | 9.3% | 11.2% |
| PARFUM Division | 223.9 | 20.5% | 11.1% | 15.5% | 10.3% | 11.5% |
| OTHER | 22.5 | 2.0% | 4.3% | - | 36.5% | - |
| TOTALE | 1093.3 | 100% | 8.2% | 13.7% | 10.0% | 12.0% |
BULGARI GROUP – REVENUES BY GEO AREA – FY 07
| REVENUES BY GEO AREA |
FY 2007 | FY 07/ FY 06 | FY 06/ FY 05 | |||
|---|---|---|---|---|---|---|
| EUR M. | % ON REVENUES |
% REPORTED |
% COMP. FX |
% REPORTED | % COMP. FX | |
| EUROPE | 427.6 | 39.1% | 10.3% | - | 11.3% | - |
| of which Italy | 141.4 | 12.9% | 7.6% | - | 1.2% | - |
| AMERICAS | 178.4 | 16.3% | 12.1% | 21.0% | 15.1% | 16.2% |
| ASIA | 429.3 | 39.3% | 5.6% | 14.9% | 7.4% | 10.9% |
| of which Japan | 231.7 | 21.2% | -9.7% | -0.9% | 7.4% | 13.6% |
| of which Rest of Asia | 197.6 | 18.1% | 31.9% | 41.2% | 7.3% | 6.6% |
| MIDDLE EAST/OTHER | 58.0 | 5.3% | 1.6% | - | 7.0% | - |
| TOTALE | 1093.3 | 100% | 8.2% | 13.7% | 10.0% | 12.0% |
BULGARI GROUP – REVENUES BY PRODUCT CATEGORY – Q4 07
| REVENUES BY PRODUCT CATEGORY |
Q4 2007 | Q4 07/ Q4 06 | Q4 06/ Q4 05 | |||
|---|---|---|---|---|---|---|
| EUR M. | % ON REVENUES |
% REPORTED |
% COMP. FX |
% REPORTED | % COMP. FX | |
| Jewels | 148.3 | 42.7% | 14.3% | 20.4% | 9.0% | 12.8% |
| Watches | 91.4 | 26.3% | 2.6% | 8.7% | -7.4% | -3.4% |
| Accessories | 24.3 | 7.0% | -7.6% | -2.3% | 17.5% | 22.9% |
| Other (incl. FR royalties) | 2.1 | 0.6% | -12.4% | - | 11.1% | - |
| JWA Division | 266.1 | 76.6% | 7.5% | 13.2% | 3.2% | 6.8% |
| PARFUM Division | 76.9 | 22.1% | 10.0% | 15.2% | 3.5% | 5.8% |
| OTHER | 4.7 | 1.3% | -24.2% | - | 61.3% | - |
| TOTALE | 347.7 | 100% | 7.4% | 13.1% | 4.0% | 7.5% |
BULGARI GROUP – REVENUES BY GEO AREA – Q4 07
| REVENUES BY GEOGRAPHICAL AREA |
Q4 2007 | Q4 07/ Q4 06 | Q4 06/ Q4 05 | |||
|---|---|---|---|---|---|---|
| EUR M. | % ON REVENUES |
% REPORTED |
% COMP. FX |
% REPORTED | % COMP. FX | |
| EUROPE | 144.0 | 41.4% | 10.5% | - | 6.4% | - |
| Of which Italy | 46.2 | 13.3% | -0.8% | - | 5.7% | - |
| AMERICAS | 52.8 | 15.2% | 2.9% | 13.5% | 9.6% | 15.0% |
| ASIA | 133.9 | 38.5% | 4.5% | 12.9% | 2.0% | 8.0% |
| Of which Japan | 74.5 | 21.4% | -2.9% | 4.5% | -8.4% | -1.2% |
| Of which rest of Asia | 59.4 | 17.1% | 15.5% | 25.4% | 22.7% | 25.5% |
| MIDDLE EAST/OTHER | 17.0 | 4.9% | 22.4% | - | -14.9% | - |
| TOTAL | 347.7 | 100.0% | 7.4% | 13.1% | 4.0% | 7.5% |
Source: Bulgari S.p.A. – Not audited preliminary results.
The manager responsible for preparing the company’s financial reports, Alberto Nathansohn, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release faithfully represent the Company financial results, as well as its books and accounting records.
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 |