Interparfums: sales up 27% at current exchange rates in Q2

AFP - Interparfums, which manufactures and distributes of fragrances under license, announced on Thursday a turnover up 27% in the second quarter on a comparable basis, and confirms that it has reached its targets for revenue and “high” profitability for 2014.

Based on published figures, the company’s revenue for the second quarter shows a slight decline of 2.2% to 69.1 million euros as compared with 70.7 million a year earlier, according to a company statement.

But according to Interparfums, at constant scope, it displays a sharp 27% increase, driven by the performance of the men’s line Montblanc Legend, the launch of the lines Montblanc Emblem and Karl Lagerfeld and the solid performance of fragrances by Lanvin.

For the first half, sales increased by 21% at constant scope to 144 million euros, excluding Burberry (Interparfum’s license with by the British company has ended) and Nickel (the brand was sold in December).

"As in the past, earnings for the first half are expected to be high," said executive vice president Philippe Santi in the statement. "we confirm that profit levels will remain high for 2014 with an operating margin target of 10 percent to 11 percent,” he added.

For his part, chairman Philippe Benacin confirmed the targeted turnover "of 280 million euros for 2014," even if “business in the second half should be marked by an uncertain economic and monetary environment."

Sales in the first half were buoyed by Montblanc fragrances in particular, up 54% over the period compared to last year at 43.5 million euros, driven by the men’s lines Legend and Emblem.

Lanvin perfume sales fell by 10% to 30.4 million euros during the first six months of the year, but in the second quarter they returned to a “steady performance” after a beginning of the year marked by "the general decline of the Russian market."

Sales of fragrances from Jimmy Choo fell by 22% over the semester to 21.3 million euros. Interparfums expects a stronger second half with the launch of the line Jimmy Choo Man.

Karl Lagerfeld fragrances, which were launched in March, generated sales of 12.7 million euros in the first half.

Interparfums indicates that North America, South America and Western Europe recorded growth of 25% to 50% on a comparable basis. Sales in France rose by 18%. But in Eastern Europe, sales fell by 7% over the period, due to the contraction of the Russian market.


arz/bpi/abb





Paris, July 24 2014 (AFP)