Bulgari Group: net revenues grow by 13% in 2001

Bulgari, the Italian contemporary jeweller, announced today in Rome its preliminary consolidated net turnover for the 2001 financial year. The Bulgari Group net revenue turnover increased by 13% to Euro 766 million, against Euro 676 million in 2000 (the overall net impact of foreign exchange rate variations was non matierial).

Sales increased in all geographic areas, with the only exception of the Americas (-17%). The increase was particularly outstanding in the Middle East (+58%), very good in Europe (+25%), in Japan (+17%), in Italy (+18%) and in the Far East (+14%). All product categories witnessed a strong increase in sales: accessories (+47%), perfumes (+37%) and jewels (+26%). The watches were the only exception, posting a decrease of 6%.

Concerning the fourth quarter only, turnover was of Euro 226 million, witnessing a 6% decrease compared to the same period the year before. In fact, Christmas season sales were beneath expectations, influenced by the events of September 11th and by the deriving absence of Japanese tourists in Europe and the United States. Still referring to the fourth quarter only, sales increased in the Middle east (+48%), in Japan (+4%) and in Europe (+4%), while the Americas (-34%), Italy (-15%) and the Far East (-4%) witnessed a decrease.
Product-wise, during the same period of time, jewellery sales increased by 5%, perfumes by 34% and accessories by 25%. The sales of watches registered a decrease of 27%.

Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: "I'm satisfied with the obtained full year results, considering the current economic climate which was heavily influenced by the tragic events of September 11th.
I believe that the further increase in the jewellery and perfume sales is particularly positive as they are based on the already very strong increase of 2000. The downturn in the watch revenues can partly be attributed to missing sales to retailers, aimed at reducing their existing stock. The recovery of demand should rapidly bring about the reeplenishment of inventories.
2002 results will obviously depend on the evolution of the economic crises which is expected to witness an upturn in the second half of the year.
Obviously, an attentive cost control program has been implemented for several months now, which will assure a good increase in profits for 2002, despite lower sales turnover growth rates with respect to the past years."