News While Bulgari’s 2007 results are slightly less flamboyant than those of its competitors, they are excellent nonetheless.
With a turnover of 1,091.0 million euros, up by 8.2% compared to the 1,008.7 million recorded in 2006 (+13.6% at comparable exchange rates), Bulgari ended the year 2007 with an operating profit of 164.5 million (+4.7%) and a net profit of 150.9 million (+12.4%). These results are equal to or greater than those expected by management and are attributable to virtually all sectors of activity and all geographical areas.
Representing 42.2% of sales, with a 2007 turnover up by 14.4% to 459.9 million euros, jewellery remains without a shadow of a doubt the group’s flagship sector, ahead of watchmaking. As a result of certain supply problems in components, the latter sector saw its turnover rise by only 2.0% last year, to 294.8 million (+8.2% at comparable exchange rates). It therefore represents 27.0% of group sales. The perfumes division for its part brought in 221.9 million (+11.0%) and now accounts for 20.3% of Bulgari’s overall turnover. Lastly, the accessories sector was the only one to experience a decline in 2007 with sales of 84.4 million (-5.1%).
In terms of markets, Asia and Europe are neck and neck with turnover of 429.3 (+5.6%) and 427.3 (+10.2%) million euros, representing 39.3% and 39.2% of sales. Of particular note are the diverging paths taken by the group’s two most important markets. Japan saw sales fall by 9.7% to 231.7 million euros, while Italy registered an increase of 7.6% to 141.4 million. Elsewhere, figures point to an excellent performance by the American continent (+12.1% to 176.4 million) and a less impressive performance by the Middle East (+1.5% to 58.0 million). And the fact that the group now has 245 own name stores throughout the world, i.e. 17 more than at the end of December 2006.
Showing genuine satisfaction at his group’s 2007 results, CEO Francesco Trapani expressed confidence in the current year, which should see Bulgari once again achieve increases in operating and net profit of around 10%. Attention will focus in particular on investment policy, both in terms of production and distribution. A new flagship store will also be opened on Avenue George V in Paris. The year 2008, like 2007, should therefore allow the Italian jeweller to consolidate its global position on the luxury market by putting into practice the proverb “Qui va piano va sano e va lontano”.
April 15, 2008
