French group expected to increase target
The current forecast for 2012 sales of the French group Inter Parfums is expected to be revised upwards shortly, according to the company's president, Philippe Benacin. Meanwhile, Benacin has made clear that negotiations over the establishment of a joint enterprise with Burberry of the UK must reach a conclusion in four to six weeks' time.
Talks with Burberry over a joint venture in perfumes and cosmetics started at the request of Burberry in December last year. Benacin said discussions had aimed to arrive at a structure acceptable to both parties and his view at present is that the chances of success are greater than the risk of failure.
If an agreement cannot be reached, Burberry would be free to take back its licence or allow the current agreement run until it expires in December 2017.
The licence agreement is said to be highly important for Inter Parfums given that sales under the licence currently account for over 50% of sales. The French company's sales went up by a record 30% to €398.3m in 2011, helped principally by the success of the Burberry Body perfume. Operating profits rose by 10% to €46.3m.