InterParfums parts with P&G but signs Clarins agreement in US
Prestige fragrance company reports 24% increase in sales in first half of 2010
Fragrance manufacturer and distributor InterParfums and P&G Prestige have decided not to renew their distribution agreement covering the Burberry and Lanvin fragrances in the US, which expires on 31 December, 2010. Instead, development and distribution of the Burberry, Lanvin, Montblanc and Jimmy Choo brands in the region will be the responsibility of recently formed subsidiary InterParfums Luxury Brands, effective 1 January, 2011.
InterParfums Luxury Brands has also signed a four-year renewable agreement with Clarins Group USA to share and manage an expanded sales force. Under the deal, Clarins Group USA will provide InterParfums Luxury Brands with logistical and administrative support.
The announcement of these deals coincides with the release of solid first half 2010 results for InterParfums. Sales were up 24% on the prior year period, amounting to €150.7m and net income grew 12% to €12.9m. Operating profit meanwhile was €21.5m, 43% higher than in the first half of 2009. The company said the growth was a result of increased investment in marketing and advertising.
“Given the quality of these first half results and the steady growth momentum throughout the summer, we anticipate strong gains in earnings and high profit margins for the full year,” predicted executive vp & chief financial officer Philippe Santi.