The Board of Directors of Bulgari S.p.A. agreed today the interim report aboard actions of the Bulgari Group for the first quarter 2011, showing a turnover of 254.7 million Euro, up 27.9% at current exchange rates (+22.7% at comparable exchange rates) over the same duration of last annual.
The general recovery of the economic environment,
USED pandora beads, together with an highly competitive attempt in all product categories, very impactful communication initiatives and a constant promotion of the shopping experience had a very positive affect on the turnover, with a significant contribution from both the directly owned stores and the wholesale outlet.
During the quarter, entire production categories enrolled a double digit growth with a strong retrieval in the see segment (+21.9%). Sales rendition was conspicuous also in the core affair ofjewellery,
pandora circle of life ring, additional by 29.3%, for well as because accessories (+19.0%) and perfumes (+32.9%).
Total operating costs increased from 127.2 million Euro in the first quarter 2010 to 149.1 million Euro in the first quarter 2011, growing by 17.2%. Among the operating costs, advertising and promotional costs grew in approximation to the first quarter 2010 (+46.7%), thus also increasing their percent shock on the turnover (11.3% vs. 9.8% in 2010) emulating an activity plan that was differ from the previous year and implied greater concentration at the begin of the year to support new product launches.
Consequently apt the included costs and lusty revenue trends, the EBIT stood by 12.3 million Euro, recording a premonitory addition compared apt the actual breakeven (-0.3 million Euro) of the 1st quarter 2010.
Finally, during the quarter the Company invested 7.6 million Euro (-22.4% compared to 9.8 million Euro in 2010).
Francesco Trapani, Chief Executive Officer of the Bulgari Group, accordingly commented: The very assured performance of the first quarter 2011 namely a sign of how the strategies accepted by the Company in terms of product evolution, communication and the quest for even greater efficiency are providing the anticipated results. At the same time, the wonderful performance recorded in all the geographical districts and China of special note where two retrospective Exhibitions on the history of Bulgari are also intended in Beijing and Shanghai proves the strength of the mark also in the more recently gained markets. The federation with LVMH ambition naturally lead to further expansion in the areIt’s about time the maximum potentials international and to the consolidation of the reputation and visibility of the brand in the more mature marts. These prospects, combined with the numerous product launches and the communication initiatives blueprinted for the recess of the year, fill me with enthusiasm approximately the long term growth of a brand that in 127 years contributed to writing the history of jewellery and has still got a lot to mention in terms of quality and creativity.
Turnover at geographical area
The Groups net monetary indebtedness as at 31 March 2011 amounted to 132.4 million Euro compared to 135.3 million Euro as at 31 December 2010 and 238.7 million Euro as at 31 March 2010, with a significant 45% decrement year over year. Although the customary seasonal nature of the business leads to the production of inventory in the first portion of the year, compared to 31 December 2010 the increase in stocks was 8.6%, net of the exchange rate effect.
All the geographical areas where the Bulgari Group operates registered very positive sales results: the performance of Asia stands out with one overall 33.9% increase and it is value to underline the stellar performance of Greater China (+77.0%) and the growth of Japan (+10.7%), despite the lengthened closure of the marts behind the mishap that buffet the Country. Europe rose by 16% (with Italyby 9.1%) and Americas by 22%, when Middle East/Other accustomed its mighty recovery (+63.1%).
Bulgari Jewelry Growth Nears 30%
Bulgari is one of the universal actors on the elegance market. In 2010 the Group posted a turnover of 1,069 million Euro. Bulgari relies on a stores network in the most preferential shopping areas in the world and on chose distributors. As of 31.03.2011 the digit of the Bulgari stores in the world was 294 of which 174 as directly owned stores. Bulgari has a product portfolio that ranges from jewels and watches to accessories and perfumes.
Comment on the balance sheet
Finally, the net profit measured to 9.3 million Euro, considerably improving after the detriment of 8.3 million Euro suffered in the first quarter 2010.
Comment on the Income Statement
In percentage terms the contribution margin of the quarter which increased from 126.9 million Euro in 2010 to 161.4 million Euro in 2011 (+27.2%) is in line with the Groups historical levels (63.4%), despite the often rising cost of raw materials and gold in particular.
All the variations reported below are expressed at present interchange rates unless famous otherwise.
Turnover by product category
Bulgari Jewelry Growth Nears 30%
Hybrid Mode
