Modest downturn at Inter Parfums

Published: 18-Jun-2010

Mixed performances for designer fragrances


Inter Parfums has reported a slight downturn of 2.1% in sales from €264.9m to €259.2m in 2009. Net profits rose from €21.1m to €22.6m while net margin rose from 8% to 8.7%.

Burberry fragrances were able to consolidate market share with the introduction of the Burberry for Beat line for men and the segment was helped by strong performances by the brand's existing lines.

Burberry sales dipped from €169m to €166.2m (64.1% of total sales) but Lanvin held up with sales rising from €39m to €40.6m. Sales from Van Cleef & Arpels and Paul Smith dipped slightly.

President Philippe Benacin describes the sales picture as a marginal downturn with help coming from the foreign currency hedging initiated in October 2008. Earnings reflected tight control over operating costs and marketing budgets which combined with solid contributions from European distribution subsidiaries.

Benacin said 2010 had started on a positive note with the launch of several fragrance lines and a new premium Lanvin line for women. Marketing of the Montblanc fragrance lines will start in July.

Sales overall this year are expected to top €265m on growth of over 7% and new acquisitions in the medium term by Inter are not being ruled out.

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