Inter Parfums promises major activity for 2010

The French group Inter Parfums has said it is confident of the outlook for 2010 following a difficult year in a challenging economic environment. Inter describes its own 2009 performance as "very satisfactory" given the economic conditions. While there were benefits from foreign exchange hedging, group sales dipped 2.1% at current rates of exchange and 6.2% at constant rates to €259.2m. Despite the contraction last year, Philippe Santi, the company's CFO, said the operating margin was expected to top 12% for 2009 compared with 12.9% in the previous year.

The promise of 2010 is expected to be sustained through major launches of new perfume lines and a line of Burberry make-up products. The launches will include a new Burberry Sport range of men's and women's products and similar launches under the Van Cleef & Arpels label. A women's perfume will be introduced in the Lanvin range.

Last year Inter Parfums saw scarcely any key launches of women's fragrance lines and fragrance sales remained virtually unchanged. Burberry range sales fell by 2% to €166.2m, followed by Lanvin, which receded 4% to €40.6m.

The French fragrances and cosmetics market declined but western Europe generally remained resilient and Inter's four distribution companies posted an aggregate increase in sales of 6%. The Asian and Middle East regions achieved growth of over 10% but North American and east European sales fell by 30% in volume as consumer spending in the US and Russia tailed off in late 2008 and early 2009.

Meanwhile, Inter has signed a licence agreement with Montblanc International to "create, produce and distribute" perfumes and ancillary products under the Montblanc brand. The agreement will run for ten and a half years and will come into operation in July this year.