2008 operating profit slightly above forecasts
€34.3 million (+8%)
For another year, growth targets were met in 2008: annual sales
totalled €264.9 million, up 9.4% at current exchange rates over
2007 and 14.2% at constan
Audited figures (€ millions) |
2007 |
2008 |
08/07 |
Sales |
242.1 |
264.9 |
+9% |
Gross margin % of sales |
147.4 60.9% |
152.6 57.6% |
+4% |
Operating profit % of sales |
31.8 13.1% |
34.3 12.9% |
+8% |
Net income % of sales |
20.2 8.3% |
21.1 8.0% |
+5% |
Shareholders' equity Borrowings Cash |
133.9 40.5 56.1 |
155.7 30.1 26.3 |
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The gross margin as a percentage of sales (57.6% in 2008)
remains high despite adverse foreign exchange trends and
provisions for Roxy inventory write-downs.
In line with our medium-term development strategy, the Group
pursued marketing and advertising spending (+5%) while
successfully maintaining tight control of all expenses: operating
profit for the 2008 expanded nearly 8% compared to 2007
resulting in an operating margin approaching 13%.
Growth in net income was limited by two factors:
• Increased financial expenses in connection with the acquisition
of Lanvin trademarks;
• The fair value recognition of financial instruments (US dollar
hedges for 2009 and interest rate swaps on bank debt) for a total
of €1.2 million before tax.
A sound balance sheet
The Group has a very solid financial position with shareholders'
equity of €155 million and limited net financial debt of €4 million at 31 December 2008.
The decline in cash reflects primarily an intentional policy to
maintain high inventory levels making it possible to fill virtually
all orders received.
New dividend increase and bonus share issue
The Board of Directors will ask the shareholders' meeting April
24, 2009 to approve:
• The distribution of a dividend of €0.38 per share representing
an increase of 10.5%(Taking into account the bonus issue in
June 2008) over the prior year, payable on April 30 2009;
• A bonus share issue for the 10th consecutive year of one share
for every 10 shares held in early June 2009.
Paris, March 9, 2009
“We met sales and earnings objectives for 2008 despite the challenging economic conditions of the second half. Information on the market received in the beginning of 2009 is relatively mixed. Nevertheless, despite reduced visibility, based on satisfactory sales for the first quarter, we have not modified annual sales targets of €273 million for 2009. In addition, we will continue to pursue opportunities for external growth in an environment now more favourable for acquisitions”.
“Given the current economic and foreign exchange environment, Inter Parfums delivered good financial performances with among the best margins of the sector. The quality of our business model contributed to a high operating margin of nearly 13% in 2008. The flexibility of this model, the quality of our brand portfolio and our balanced geographical sales mix should permit us to maintain profitability at satisfactory levels in 2009”.
| Upcoming events | Publication of 2009 first-quarter sales April 23, 2009 (after the close of trading) |
2009 Annual Shareholders' Meeting April 24, 2009 (2 p.m. - Pavillon Gabriel - Paris) |
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| Shareholder information Tel.: +33 1 53 77 00 99 |
Investor relations - Inter Parfums SA |
Media relations - RLPV Conseil Cyril Levy-Pey, tel.: +33 1 42 70 31 29 inter-parfums@rlpv.com |
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| www.inter-parfums.fr | Codes: Reuters IPAR.PA - Bloomberg ITP - ISIN FR0004024222-ITP Indices: CAC Small 90 - SBF 250 |
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