RNS Number : 0433V
Burani Designer Holding N.V.
22 May 2008
BURANI DESIGNER HOLDING N.V.
RESULTS ANNOUNCEMENT FOR THE YEAR ENDED DECEMBER 31, 2007
Burani Designer Holding N.V. (LSE AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide,
announces its results for the year ended 31 December 2007, reflecting a 10.6% increase in 2007 revenues, and a 17.9% increase in revenues
net of extraordinary items.
Results Summary
31 December 2007 2006 Change
Consolidated revenues (EURM) 743.8 672.6 *10.6%
Consolidated revenues excl. extraordinary items (EURM) 690.6 585.7 *17.9%
EBITDA (EURM) 107.0 124.3 *13.9%
EBITDA excl. extraordinary items (EURM) 85.8 78.8 *8.90%
EBIT (EURM) 78.3 91.8 *14.7%
EBIT excl. extraordinary items (EURM) 67.0 61.2 *9.60%
Net debt 177.5 215.5 *17.6%
The consolidated financial statements include the pro rata contribution from the companies acquired during 2007, namely Arcte, Crisfer,
Eurocosmesi (from April 2007) and Granulati (from October 2007). The results also reflect the consolidation within Mariella Burani Fashion
Group of Valente, Rosato, Calgaro (Fashion jewellery) and Dadorosa (Leather Goods), the deconsolidation of the multi-brand retail division
as of June, 2007. Extraordinary items include the capital gain on the IPO of Antichi Pellettieri in 2006 and the capital gain on the
disposal of the multi-brand retail division in 2007.
Highlights
· Successful listing on London*s AIM market in June 2007 raising EUR130m (of which EUR94m proceeds due to the Company); proceeds
used to finance the expansion of the BDH Group through selective acquisitions;
· Expansion of the fashion jewellery business within Mariella Burani Fashion Group through the acquisitions of three successful
Italian companies: Rosato, Valente and Calgaro;
· Strategic entry into the beachwear and underwear business, identified as an attractive target segment of the accessible luxury
goods market, through the acquisitions of Crisfer and Arcte;
· Extension into complementary wellness and skincare through the acquisition of Eurocosmesi;
· Diversification into Italian fine foods through new subsidiary BDH Food Design; majority stake acquired in Granulati Italia SpA
and new joint venture established to develop a network of premium Italian ice cream boutiques in Italy and abroad under the Chocolat brand;
· Joint ventures agreed with Damas and Gitanjali Group to further develop MBFG*s global presence, especially in the Middle East and
India; and
· Inauguration of 48 boutiques in 2007; BDH*s retail network at year end included 247 mono-brand boutiques worldwide (89 DOS & 158
franchisees).
Kevin Tempestini, Chief Executive Officer, commented:
"A solid platform has been laid down this year for the development of a diversified accessible luxury Group offering Italian lifestyle
products and services to customers world-wide. The financial accounts are encouraging, notwithstanding the fact that they incorporate one
time costs related to the IPO, and only nine months of operating results of the newly acquired companies. Annual results are indicative of
the direction this Group will take and the dynamic pace at which our strategies will be implemented to create value for our shareholders.
Current trading is buoyant and I am confident that 2008 will reflect double digit growth."
Operating Review
Burani Designer Holding's strategy to become a leading provider of 'Italian Lifestyle' products and services worldwide progressed well
during 2007. During the year, in addition to successful growth of BDH's main subsidiary Mariella Burani Fashion Group, the Company focused
on capturing selected acquisition opportunities in the fragmented Italian market and creating divisions within the same sectors to drive
growth, benefit from scale and develop synergies. Specific operating highlights include:
Apparel, Leather Goods and Fashion Jewellery - Mariella Burani Fashion Group
MBFG continued to expand its leather goods and fashion jewellery divisions, both characterised by increasingly attractive growth rates
and margins, with:
- The acquisition of three jewellery businesses - Rosato, Valente and
Calgaro
- The acquisition of Dadorosa, worldwide licensee of the renowned leather
goods brand Gherardini
- A joint venture agreement with Damas Jewellery, a leading international
jewellery retailer based in Dubai, to further develop both groups'
presence in the fashion jewellery market worldwide
- A joint venture agreement with the Gitanjali Group, a fully integrated
jewellery conglomerate, based in Mumbai, India for the distribution of
MBFG apparel, leather goods and fashion jewellery collections in India
- New licensing agreements with Aquascutum, Gherardini, John Galliano,
Phard, Bogner and Amazon Life
- Inauguration of 48 boutiques in 2007
Beachwear & Underwear
During the year BDH acquired Crisfer, an Italian luxury beachwear company producing and distributing under the Fisico brand and Arcte,
an Italian luxury beachwear and underwear company whose lines include Argentovivo and Bacirubati. Specific highlights include:
- New licenses for the production and distribution of renowned third party
brands including Patrizia Pepe and Replay
- New Fisico flagship store on Via Montenapoleone in Milan, Italy
- Fisico Jogging Couture "JC" collection launched
Wellness & Skincare
In 2007, BDH also acquired Eurocosmesi, an Italian company that designs and distributes a wide range of perfumes under licence for
renowned international luxury brands, as well as skincare products under its Transvital trademark. During 2007 new perfume collections for
Canali, Byblos and Mila Schon were launched as well as Memento, the first owned fragrance brand.
BDH Food Design
A new division BDH Food Design was established during the period to extend BDH's reach into the internationally renowned Italian fine
foods business. Specific highlights include:
- The acquisition of a majority stake in Granulati Italia SpA, a
manufacturer and distributor of granulated fine foods (instant beverages,
desserts and ice cream) based in Bergamo, Italy
- A new joint venture established to develop a network of premium Italian
ice cream boutiques in Italy and abroad under the Chocolat brand
Seven Management Company
Established in 2007 to provide corporate, financial and merger and acquisitions advisory services for BDH as well as independent third
parties.
BDH Consulting and Facilities Management
Established in 2007 to provide facility management services to companies within the BDH Group and to independent third parties.
Financial Review
Consolidated revenues increased 10.6% to EUR743.8 million compared to EUR672.6 million for 2006 and reflect the pro rata contribution
from the companies acquired by the BDH Group during 2007, namely Arcte, Crisfer, Eurocosmesi (from April 2007) and Granulati (from October
2007). The results also reflect the consolidation within Mariella Burani Fashion Group of Valente, Rosato, Calgaro (Fashion jewellery) and
Dadorosa (Leather Goods) and the deconsolidation of the multi-brand retail division as of June, 2007.
Excluding extraordinary items, consolidated revenues increased 17.9% to EUR690.6 million in 2007 from EUR585.7 million in 2006.
Extraordinary items include the capital gain on the IPO of Antichi Pellettieri in 2006 and the capital gain on the disposal of the
multi-brand retail division in 2007.
Net revenue growth was driven by the strong performance of:
* The Leather goods division (Antichi Pellettieri), +17% during 2007
* Emerging luxury markets (+36.1%), particularly driven by the Middle East
* Optimal growth in Italy (+28.7%) driven by the collections of Francesco Biasia, Braccialini, and Baldinini , the notable
performance of AP's retail network (+21.0%), and the strong performance of the Children's wear division.
EBITDA reached EUR107.0 million, (EBITDA margin of 14.4%), compared to EUR124.3 million for 2006. Excluding extraordinary items,
consolidated EBITDA increased 8.9% to EUR85.8 million in 2007 from EUR78.8 million in 2006. Improved EBITDA is primarily attributable to
increased operating leverage, economies of scale, further rationalisation, and an improved sales mix overall. The improved sales mix is
evidenced by the increased weight of revenues from:
* Leather Goods and Fashion Jewellery that, together, generated over 55% of BDH consolidated revenues;
* Export sales which generated 60.1% of consolidated operating revenues with US and Japan, together, representing less than 4% of
the Group's revenues;
* Direct distribution channels which today generate 62.7% of consolidated operating revenues.
EBIT equalled EUR78.3 million versus EUR91.8 million for 2006. Excluding extraordinary items, consolidated EBIT increased 9.6% to
EUR67.0 million in 2007 from EUR61.2 million in 2006;
Pre-tax income of EUR47.1 million compared to EUR68.1 million for 2006; and
Net debt amounted to EUR177.5 million, an improvement compared to the net debt at December 31st 2006 of EUR 215.5 million, benefiting
from the June 2007 IPO and reflecting a debt/equity ratio of 0.34.
General Shareholder's meeting
The General Shareholders' Meeting of Burani Designer Holding N.V. has been convened for June 25, 2008 at the corporate headquarters in
Amsterdam.
Dividends
The Board of Directors of Burani Designer Holding N.V. propose the distribution of an ordinary dividend of EUR 0.04 per share to be paid on
July 24, 2008.
Share buy-backs and total return equity swaps
Since its IPO in June 2007, BDH has purchased a total of 1,708,453 MBFG shares, for a total consideration of EUR35.4m, taking its
ownership from 52.8% to 61% of MBFG's outstanding share capital.
In addition to its directly held stake, BDH has synthetic and potential exposure through total return swaps of up to 6.0%.
BDH took the decision to enter the swap to pursue its best interest to have economic exposure to the shares for the duration of the
swap, in the same way as if it directly owned the Shares, but at a considerable reduced capital requirement. BDH will not have legal
ownership of, or voting rights over, the shares.
Buy-back authority
The Board of Directors of Burani Designer Holding N.V. have agreed to extend the existing buy-back plan that provides for the purchase
and sale of up to 10% of the Group's outstanding common shares. The plan will be in effect until the shareholders' meeting to approve the
financial statements for the year ended December 31, 2008.
Outlook
Management expects continued growth for 2008 based on a number of positive indicators including the positive preliminary results of the
Fall/Winter 2008-2009 sales campaigns, the continued expansion of the international distribution network, and the strong performance of our
directly operated stores during the first quarter of 2008.
Post Year-End Highlights
* Antichi Pelletieri acquired 100% of Finduck, owner of the renowned brand, Mandarina Duck
* A non-binding letter has been entered into with Italian entrepreneur Leandro Gualtieri for the acquisition of an equity interest
in Societdelle Terme e del Benessere S.p.A (STB), a company active in the management of luxury resorts and thermal spas in Tuscany, Italy
* Eurocosmesi acquired Gandini Profumi, active in the marketing and distribution of perfumes and skincare products
* Arctboutiques were opened in Italy and Switzerland
* Active domestic and international expansion of Transvital skin care products has been taking place
* New licenses for the production and distribution of renowned third party brands including Mariella Burani beachwear and casual
wear collections and Bikkembergs children's wear collections.
Enquiries:
Burani Designer Holding N.V.
Investor Relations & Strategic Corporate Communications
Development Daniela Zari
Carol Brumer Tel: +39-(0)2-76015354
Tel: +39-(0)2-76420111 Fax: +39-(0)2)76009545
Fax: +39-(0)2-781480 e-mail: dzari@mariellaburani.com
e-mail:
cbrumer@mariellaburani.com
Citigate Dewe Rogerson Tel: +44 207 638 9571
Kate Delahunty
www.buranidh.com
NOTES TO EDITORS
Burani Designer Holding offers a complementary range of "Italian lifestyle" products and services to an international customer base. The
Group is active in the accessible segment of the luxury goods sector through its subsidiary MBFG that provides fashion, leather apparel and
jewellery collections to an international client base, and directly in three complementary business areas; Beachwear & Underwear, Wellness &
Skincare, and Food Design. BDH, listed on the Alternative Investment Market (AIM) in London in June 2007, focuses on growth through the
acquisition of "Italian lifestyle" companies which are grouped into operating divisions in order to benefit from the increased size and the
numerous synergies of the Burani Group. Management believes the combination of MBFG's in-depth knowledge of luxury goods markets and
products, the strategic shareholders in BDH, the Group's investment approach, and the skills of the BDH management team provide a unique
opportunity to create value for shareholders.
Disclaimer
This Statement contains certain forward-looking statements that are subject to risk factors and uncertainties associated with the
fashion industry. Whilst the Group believes the expectation reflected herein to be reasonably in light of the information available to it at
this time, the actual outcome may be materially different owing to factors either beyond the Group's control or otherwise within the Group's
control but where, for example, the Group decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures
contained in such forward looking statements. The figures contained in this press release have not been subject to an audit by the external
auditors of the Company.
CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED)
in EUR/000
PROFIT AND LOSS ACCOUNT 12/31/07 12/31/06
Revenues 743,826 672,615
Change in inventory of finished product and works in 14,683 7,287
progress
Raw materials and consumables 308,932 264,623
Cost of labor 97,710 94,258
Other operating expenses 244,820 196,733
107,047 124,288
EBITDA
Depreciation, amortization and write-downs 28,733 32,477
EBIT 78,314
91,811
Financial income 6,139 3,435
Financial charges 36,605 27,601
Profit (loss) from foreign exchange transactions (682) 401
Income from investments in affiliated companies - 102
valued at equity/result from associates
Profit (loss) from assets to be divested* - -
Pre-tax profit 47,166 68.147
Deferred tax liabilities/assets (16,422) (6.967)
Income taxes 16,818 12,463
Net Profit for the year after tax 46,770 62,651
Minority interests 35,357 45,732
Net profit for the year of the Group 11,414 16,919
CONSOLIDATED BALANCE SHEET (UNAUDITED)
ASSETS at 31st December 2007
in EUR/000
ASSETS 12/31/07 12/31/06
Non current assets
Property, plant and equipment 73,105 62,280
Intangible assets 489,258 402,511
Investment property 1,664 1,664
Investments 34,960 13,606
Long term financial assets available for sale 125 649
Deferred tax assets 20,535 37,857
Long term derivatives 0 0
Other long term financial receivables 4,500 242
Long term trade and other receivables 12,324 17,729
Total 634,471 536,538
Non current assets held for sale
Assets held for sale 0 0
Current assets
Inventories 183,629 194,283
Short term trade and other receivables 213,044 137,638
Current tax assets 29,907 20,333
Other short term financial receivables 113,484 56,891
Short term financial assets available for sale 44,709 19,779
Short term derivatives 0
Negotiable securities recognized at fair value 16,262 11,800
Cash and cash equivalents 73,488 58,016
Total 674,524 498,740
Total assets 1,310,995 1,035,278
CONSOLIDATED BALANCE SHEET (UNAUDITED)
SHAREHOLDERS' EQUITY & LIABILITIES
in EUR/000
SHAREHOLDERS' EQUITY AND LIABILITIES 12/31/07 12/31/06
Share capital and reserves
Capital issued 3,780 41
Share premium reserve 125,939 6,262
Other reserves 148,816 165,674
Net income of the period 11,414 16,919
Total 289,949 188,896
0
Minority interests 223,763 207,549
0
Total shareholders' equity 513,712 396,445
Non current liabilities
Long term loans and borrowing 187,341 227,623
Long term derivatives 164 543
Deferred tax liabilities 90,884 91,081
Post employment benefits 15,526 17,657
Long term provisions 3,753 1,865
Other non current liabilities 3,576 15,583
Total 301,244 354,352
Current liabilities
Short term trade and other payables 186,941 156,881
Current tax liabilities 27,529 25,402
Short term loans and borrowings 280,019 100,622
Short term derivatives 0
Short term provisions 1,549 1,576
Total 496,039 284,481
Total Shareholders' Equity & Liabilities 1,310,995 1,035,278
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
At December 31st, 2007
12/31/07 12/31/06
Opening balance 38,427 36,517
Cash flows generated (absorbed) by operating
activities
Pre tax profit (loss) 47,167 68,147
Depreciation and amortization 18,852 24,707
Net capital gains (losses) from the disposal of 201
property, plant and equipment
Badwill (6,209) 0
Net capital gains (losses) from the disposal of non (27,400) (87,246)
current financial assets
Net change in provisions for risks and employee 6,044 10,280
benefits
Loss/income from equity accounted investments 0 (102)
Net financial charges 6,456 6,212
TOTAL 44,909 22,199
Net change in working capital (12.758) (48,695)
Tax paid (16.818) (12,463)
Interest paid 24,673 17,774
TOTAL (4,903) (43,384)
Cash flow generated (absorbed) by investing
activities
Interest received (75) 0
Dividends received (4) (150)
Net change in:
- intangible assets (13,330) 30,622
- property, plant and equipment (14,395) (15,472)
- financial assets (55,249) 86,221
TOTAL (83,053) 101,221
Cash flow generated (absorbed) by financing
activities
Change in share capital and reserves 54,897 (6,011)
Proceeds from capital increase 0 0
Payment of finance lease instalments (principal) (884) (476)
Receipt (repayment) of loans (21,292) (7,241)
Payment of dividends (8,780) (2,630)
Change in scope of consolidation 20,413 (42,179)
TOTAL 44,354 (58,537)
Net cash flow for the period 1,307 21,499
Closing 39,734 58,016
Adjustment bank overdraft included in EUR 58,016 0 -19,589
Closing balance 39,734 38,427
This information is provided by RNS
The company news service from the London Stock Exchange
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