Press ReleaseAugust, 1st, 2008
CONSOLIDATED RESULTS FOR THE 1st QUARTER 2008-2009
Impact of the fire on sales is material but in line with our expectations.
Re-building on the plant is on schedule.
EBIT as at June, 30, 2008 amounts +1.0 M€ (vs -0.2 M€ last year)
Net profit for the Quarter amounts 0.5 M€ (vs. -0.4 M€ last year).
I - KEY INDICATORS
Key indicators for the first quarter 2008-2009 are as follow:
| Euro millions | Quarter 1 | ||
| Consolidé | 2008-2009 | 2007-2008 | Variation |
| Net Sales | 14.4 | 17.0 | -15.0% |
| Gross Margin | 6.9 | 8.6 | -19.1% |
| % | 48.1% | 50.5% | -2.4pts |
| EBIT | 1.0 | -0.2 | |
| % | 6.9% | -1.4% | +8.3pts |
| Net resuilt | 0.5 | -0.4 | |
| % | 3.3% | -2.5% | +5.9pts |
Despite the consequences of the fire, sales decrease has been limited. Thanks to the insurance coverage for operational loss, EBIT figures are positive.
Sales per activity:
Lighters and writing instruments suffers deeply from the impact of the fire as inventories were low and production through sub contractors was still limited. Implementation of subcontracting was progressive all over the quarter. At the end of June, production capacity is in line with our expectations for lighters and writing instruments at 50%.
Leather goods and RTW tend to compensate the supply constraint and did quite well during this 1st quarter.
Exchange rate impact is very material on product sales and amounted -2.6% for the period compared to last year.
Royalties are decreasing mostly because of exchange rate impact and ready-to-wear and leather goods licence for Hong-Kong/China.
Results
- Because of the decrease in sales because of the fire and the weight of production fixed costs, gross margin is slightly lower that last year.
Except for France (impact of the fire), all countries show gross margin % over last year. Compared to budget, all countries (including France) are over budget in %.
- Overheads are increasing by +8.0%, mostly because of communication expenses in view of limiting the consequences of the fire on our sales.
- Non recurring items include exceptional costs linked to the fire such as sub contracting. It also includes 4.9 M€ linked to the operational loss.
EBIT amounts +1.0 M€ (-0.2 M€ last year and -3.3 M€ budget).
Net profit is slightly positive at +0.5 M€ (vs. -0.4 M€ last year).
Contacts:
- Contact Analyst: Michel Suhard 01 53 91 33 11
- Contact Press: Burson-Marsteller
Lorie Lichtlen (33) 1 41 86 76 60 lorie.lichtlen@bm.com
Adélaïde Leroy-Beaulieu (33) 1 41 86 76 86 Adelaide.leroy-beaulieu@bm.com