2007 RESULTS EXCEED LATEST GUIDANCE
Operating margin: 13.1%
SOLID GROWTH PROSPECTS
• Full-year results exceed latest
guidance
In 2007, the Group registered another year of sustained growth
with consolidated sales of €242.1 million, up 12% at current
exchange rates and 15% at constant exchange rates in an environment
affected by further strengthening of the euro against the dollar.
|
| IFRS - Millions of euros |
2006 |
2007 |
07/06 |
|
| Burberry |
143.3 |
152.9 |
+7% |
|
| Lanvin |
34.4 |
33.3
|
-3% |
|
| Paul Smith |
17.7
|
18.0
|
+2% |
|
| Van Cleef & Arpels |
- |
11.9 |
na |
|
| S.T. Dupont |
10.1 |
11.1 |
+10% |
|
| Roxy |
- |
- |
na |
|
| Christian Lacroix |
4.1 |
3.9 |
-5% |
|
| Nickel |
4.1 |
3.3 |
-19% |
|
| Other |
2.6 |
1.1 |
ns |
|
| Total |
216.2 |
242.1 |
+12% |
|
The negative currency effect was considerably limited by growth
in the last quarter that slightly exceeded expectations combined
with the success in containing costs. As a result, Group operating
profit for 2007 increased 9% over the equivalent prior-year period
for an operating margin of 13.1% (13.5% excluding the impairment
of Nickel goodwill), outperforming the latest guidance.
Net income of the period exceeded €20 million with a net
margin of 8.3%, a particularly high level in the perfumes and
cosmetics industry.
These results once again illustrate the effectiveness of the
Group's business model focused on achieving a balance between
growth in volume and profitability.
• An extremely sound balance sheet
With shareholders' equity of €134 million and net cash
of 16 million at December 31, 2007, the company has maintained
a very solid balance sheet with significant borrowing capacity,
enabling it to take advantage of major new acquisition opportunities.
A significant improvement in working capital that benefited
notably from progress in receivables management contributed
to operating cash flow of €24.6 million (+32%).
• New dividend increase and bonus share issue
The Board of Directors will ask the shareholders' meeting of
April 25, 2008 to approve:
- A dividend of €0.38 per share representing an increase
of 11.4% (1) over the prior year, payable May 6, 2008 ;
- A bonus share issue for the ninth consecutive year of one
new share for every ten shares held in early June 2008.
• Prospects for accelerated growth
Despite the recent strengthening of the euro, the Group maintains
targets for sales of €260 million for 2008 on the basis
of:
- A high-quality launch plan notably for Burberry, Lanvin, Van
Cleef & Arpels and Quiksilver brands
- Positive early-2008 year trends in most markets;
- A balanced geographical sales mix;
- Expanding positions in new growth markets, particularly in
Russia or China.
The Group expects margins to remain at current levels in 2008,
despite an ambitious program of marketing and advertising investments.
Paris, March 10, 2008
(1) Taking into account the bonus share issue in 2007
Upcoming events
|
Publication of 2008 first-quarter sales |
April 24,
2008
(after the close of trading) |
| 2008 Annual
Shareholders' Meeting |
April 24, 2008
(14h - Pavillon Gabriel - Paris) |
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ISIN FR0004024222-ITP
Reuters IPAR.PA
Bloomberg ITP
Indices CAC Small 90, SBF 250
Shareholder information +33 1 53 77 00 99
www.inter-parfums.fr
