BDH subsidiary MBFG announces Half Year Results
August 29 2008 - 5:04AM
UK Regulatory
RNS Number : 2930C
Burani Designer Holding N.V.
29 August 2008
BURANI DESIGNER HOLDING'S SUBSIDIARY MARIELLA BURANI FASHION GROUP ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
Burani Designer Holding N.V (AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide, today notes
that the company's subsidiary Mariella Burani Fashion Group S.p.A (MBFG), in which it holds a 60.88% stake, has made the following
announcement:
PRESS RELEASE
MARIELLA BURANI FASHION GROUP
Cavriago (RE) - August 29, 2008
THE BOARD OF DIRECTORS OF MARIELLA BURANI FASHION GROUP SPA APPROVED THE FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2008
REFLECTING ORGANIC REVENUE GROWTH OF +9.4% ACCOMPANIED BY MORE THAN PROPORTIONAL GROWTH OF EBITDA +14.8% AND EBIT +34.5%
The Board of Directors of Mariella Burani Fashion Group Spa yesterday approved the
consolidated financial statements for the six month period ended June 30, 2008, which reflect:
* Revenues of EUR325.3 million from EUR346.3 million in 1H 2007. While total revenues declined by during the period, the Group
realised +9.4% organic growth.
* EBITDA of EUR40.1 million (+14.8%) vs. EUR34.9 million in 1H 2007.
* EBIT of EUR30.5 million (+34.5%) vs. EUR22.7 million in 1H 2007.
* Pretax income of EUR12.8 million (+42.1%) vs. EUR 9 million in 1H 2007.
* Net Financial Position (Debt) of EUR260.6 million, reflecting a debt/equity ratio of 0.84 notwithstanding the important
investments effected during the period (including the acquisition of 100% of Finduck (Mandarina Duck), 14% of Francesco Biasia, and 35% of
Jaya). The Net Financial Position at June 30, 2008 does not reflect the EUR 118 million proceeds received on August 7, 2008 from the sale of
49% of APBags to 3i fund.
IAS 8 - Consolidated financial statement 2007 and 2006 Restatement
The Board of Directors of Mariella Burani Fashion Group Spa yesterday also approved, following prescriptions of IAS 8, the restatement
on 2007 and 2006 consolidated financial statements before announced through July 1 and 2, 2008 press releases and in the July 3, 2008
conference call. For this topic and for subsequent actions carried on by the Company please see dedicated paragraph in the first half
financial statement 2008.
FINANCIAL HIGHLIGHTS 1H 2008
Consolidated revenues of EUR325.3 million from EUR346.3 million in 1H 2007. The decline in total revenues during the six month period,
notwithstanding the first time consolidation of Valente, Calgaro and Dadorosa, is explained by the sale of the group's multi-brand retail
division in June, 2007.
The Group realised strong organic revenue growth of 9.4%, driven primarily by:
* the Leather Goods division (Antichi Pellettieri) that realised 19.8% organic growth during the period; primarily attributable to
the excellent results from Baldinini (+43%) and the strong performance from Coccinelle and Braccialini handbags and accessories
collections.
* the 22% organic growth realised by the Digital Fashion Division.
* 16% organic growth in revenues generated from third party licenses.
* strong growth from emerging luxury markets (+ 23%), particularly in Russia (+32%), Eastern Europe (+17%), and the Middle East
(+54%).
Ebitda reached EUR40.1 million for the year (+14.8%) vs. EUR 34.9 million in 1H 2007, reflecting an Ebitda margin of 12.3% (vs. 10.1%)
for the same period in 2007. The restated 2007 Ebitda is impacted by the sale of the multibrand retail division.
The Group's sales mix reflects:
* Leather Goods and Fashion Jewellery divisions, which together generated 59.4% of revenues vs. 44% in 1H 2007;
* Export sales which generated 64.7% of revenues with emerging markets representing 37.9%, and US and Japan, together limited to 5%
of the Group's revenues.
* Own brands which generated 84.8% of revenues;
* Direct distribution channels that generate 63% of revenues with 21.8% generated from DOS and Franchisees.
Ebit increased to EUR30.5 million (+34.5%) from EUR22.7 million of the same period 2007.
Pretax income increased to EUR12.8 million (+42.1%) for 1H 2008 vs. EUR 9 million in 1H 2007.
Net Financial Position (Debt) of EUR260.6 million, reflecting a debt/equity ratio of 0.84 from EUR 193.4 million at December 31, 2008
notwithstanding the important investments effected during the period (including the acquisition of 100% of Finduck (Mandarina Duck), 14% of
Francesco Biasia, and 35% of Jaya). The Net Financial Position at June 30, 2008 does not reflect the EUR 118 million proceeds received on
August 7, 2008 from the sale of 49% of APBags to 3i fund.
STRATEGIC AND OPERATING HIGHLIGHTS - 1H 2008
MBFG has been extremely active in 2008 with important strategic acquisitions and alliances as well as a continuous focus on emerging
markets. In addition, the Group has reinforced its international retail network, launched new products and collections, and made notable
senior management appointments.
Notably, on August 8, 2008 Mariella Burani Family Holding (MBFH), controlled by BDH, launched a partial tender offer for up to 15% of
the share capital of MBFG at a price of EUR 17.5 per share. MBFG filed the related Offer Document to Consob on August 28, 2008.
In addition important strategic acquisitions and alliances effected by MBFG and its subsidiary
Antichi Pelletieri during the period include:
* the acquisition by 3i fund of 49% of APBags, a newly established sub-holding that houses Antichi Pellettieri's handbags and
accessories companies. The transaction is expected to accelerate the development of APBags in the Chinese and Indian markets;
* the acquisition by Antichi Pellettieri of 100% of Finduck, a company that owns the renowned Mandarina Duck brand (June 24, 2008).
As noted in the auditors' report, the six days of operations of Finduck have not been consolidated in the financials for the six month
period ended June 30, 2008 as it was not possible to report only six days of operations according to International Accounting Standards;
* the continued extension of the Group's retail network, which counts 280 boutiques at June 30, 2008 (90 DOS and 160 Franchisees),
including the 44 boutiques (11 DOS and 33 franchisees) inaugurated in the first six months of this year, of which over 60% are located in
emerging markets;
* the launch of new products and collections for the Group's own brands and for renowned third party brands including John Galliano
jewellery, Bickkembergs children's wear, Aquascutum footwear, Gherardini and Amazon Life handbags and accessories;
* the introduction and development of the Group's footwear collections in Cina;
* the further integration of recently acquired companies with particular attention to the development of synergies within the
Group.
In addition, the Antichi Pellettieri Board of Directors on the last August 27th has agreed to convene an extraordinary shareholders'
meeting on October 6, 2008 as is required in order to transfer the AP shares from the Expandi segment of the Italian Stock Exchange to MTA
in continuous trading.
OUTLOOK 2008
As witnessed in the results, the accessible luxury goods market continues to offer MBFG numerous opportunities. MBFG benefits from both,
its strong position in this market segment as well as its consolidated presence in emerging markets. In addition, the Group's presence in
the USA and Japan, today considered higher risk markets, is today limited to 5% of MBFG's total revenues.
The encouraging sell-out statistics of the Spring/Summer 2008 collections, the positive performance in the first half of the year,
combined with the acquisition of Finduck Srl, lead management to expect continued dynamic growth in 2008.
"The Financial Reporting Officer, Giuseppe Gullo, certifies - pursuant to art. 154-bis, paragraph
2 of the Uniform Finance Act (Legislative Decree 58/1988) - that the information contained in
this press release corresponds to the accounting documents, ledgers and entries".
Mariella Burani Fashion Group (MBFG) designs, produces and distributes world wide a diversified and complementary range of Luxury
apparel, footwear, leather accessory and jewellery collections under its own brands and under license for prestigious international
designers. MBFG founded in 1960 by Walter Burani, Chairman and CEO of the Group listed in the STAR segment of the Italian stock exchange
since July, 2000, is today an internationally recognised public company with an established position in the accessible luxury goods market.
The Group's dynamic revenue growth is attributable to internal development including product diversification, brand expansion, and new
geographic market penetration. The Group has also made strategic acquisitions to capitalise on the know-how and experience developed by
niche players in the Italian apparel, knitwear, textile and leather goods sectors. MBFG manages to provide top quality luxury goods at
accessible prices by capitalising on the strength and flexibility provided by Italy's industrial districts, world renown for their excellence in the development of luxury products. The Group's aim is to become one
of the leading players in the accessible luxury market worldwide by further developing its product offering, its brand portfolio, and its
global distribution network.
Contacts:
Investor Relations e Corporate Development: Carol Brumer, tel. (+39) 02 76420111 e-mail: cbrumer@mariellaburani.com
Corporate Communication: Daniela Zari, tel. (+39) 02 76015354 e-mail: dzari@mariellaburani.com
CONSOLIDATED FINANCIAL STATEMENTS at 30th June 2008
Consolidated balance sheet - Assets
in EUR/000
ASSETS 06/30/08 12/31/07 06/30/07
Non current assets
Property, plant and equipment 58.741 58.300 53.924
Intangible assets 337.193 (**) 325.636 (**) 317.716
Investment property 1.664 1.664 1.664
Capital investments 59.069 34.757 13.625
Long term financial assets available for sale 54 85 100
Deferred tax assets 22.300 19.688 22.478
Long term financial derivatives 179
Other long term financial receivables 4.263 4.496 178
Long term trade and other receivables 12.603 12.297 21.755
Total 496.066 456.923 431.440
Non current assets to be divested
Assets to be divested
Current assets
Inventories 178.711 162.011 155.356
Short term trade and other receivables 185.983 168.136 144.835
Current tax assets 20.024 29.442 16.019
Other short term financial receivables 121.384 108.244 116.304
Short term financial assets available for sale 40.306 40.013 23.929
Short term derivatives
Negotiable securities valued at fair value 3.626 3.406 15.742
Cash and cash equivalents 33.586 33.130 37.361
Total 583.620 544.382 509.546
Total assets 1.079.686 1.001.305 940.986
Consolidated balance sheet - Liabilities
in EUR/000
SHAREHOLDERS' EQUITY AND LIABILITIES 06/30/08 12/31/07 06/30/07
Share capital and reserves
Capital issued 15.431 15.453 15.484
Share premium reserve 70.358 70.358 70.358
Other reserves 83.845 (**) 93.967 (**) 96.104
Net income of the period 3.958 (**) (4.760) (**) (13.207)
Total 173.592 175.018 168.739
Minority interests 135.519 140.345 123.424
Total shareholders' equity 309.111 315.363 292.163
Non current liabilities
Long term loans and borrowing 184.375 165.687 231.552
Long term financial derivatives 116 252
Deferred tax liabilities 77.015 77.479 91.121
Post employment benefits 11.366 12.056 14.451
Long term provisions 2.554 3.645 2.144
Other long term liabilities 129 3.410 6.836
Total 275.439 262.393 346.356
Current liabilities
Short term trade and other payables 167.673 152.170 149.830
Current tax liabilities 22.613 26.657 26.444
Short term financing 303.279 243.203 123.455
Short term derivatives
Short term provisions 1.571 1.519 2.738
Total 495.136 423.549 302.467
Total liabilities 1.079.686 1.001.305 940.986
(**)These amounts are modified over the official Balance Sheet as a result of adjustments made in accordance with IAS accounting
principle 8 as described in the related paragraph of the 1H 2008 Note to Financial Statement.
Consolidated profit and loss account
in EUR/000
PROFIT AND LOSS ACCOUNT 06/30/08 12/31/07 06/30/07
Net Revenues 325.373 (**) 674.027 (**) 346.288
Change in inventory of finished product and works in progress 21.008 11.681 (975)
Raw materials and consumables 150.042 285.010 147.891
Cost of labor 45.181 90.635 51.770
Other operating costs 111.041 226.654 110.716
EBITDA 40.117 83.409 34.936
Depreciation, amortization and write-downs 9.571 27.191 12.365
EBIT 30.546 56.218 22.571
Financial income 3.337 4.253 1.727
Financial charges 20.616 31.878 15.333
Profit (loss) from foreign exchange transactions (348) (664) 28
Profit (loss) from assets to be divested (142)
Pre-tax profit 12.777 27.929 8.993
Deferred tax liabilities/assets (2.765) (**) (4.416) (**) 7.505
Income taxes 7.591 15.495 9.225
After tax profit 7.591 16.850 (7.737)
Minority interests 3.993 21.610 5.470
Net profit for the year 3.958 (**) (4.760) (**) (13.207)
(**)These amounts are modified over the official Balance Sheet as a result of adjustments made in accordance with IAS accounting
principle 8 as described in the related paragraph of the 1H 2008 Note to Financial Statement.
CONSOLIDATED STATEMENT OF CASH FLOWS AT JUNE 30, 2008
in EUR/000
06/30/2008
06/30/
2007
1 - Opening balance at the beginning of the period 1.176 30.877
2 - Total cash flows generated (absorbed) by
operations
Pre-tax profit (loss) 12.777 8.993
Amortization and depreciation 7.078 9.577
Net gains (losses) from disposal of property, 0 0
plant and equipment
Net gains (losses) from disposal of intangible 0 0
assets
Net gains (losses) from disposal of financial 0 0
assets
Net change in risk reserves and provisions for 764 876
employee benefits
Loss /income from investments valued at equity 0 146
Net financial charges 4.729 3.348
TOTAL 25.348 22.940
Net change in working capital (24.575) (1.350)
Interest paid 12.898 10.229
TOTAL (11.677) 8.879
3 - Total cash flows generated (absorbed) by
investing activities
Interest received 0 0
Dividends received (7) (4)
Net change in:
- intangible assets (7.338) (2.208)
- property, plant and equipment (3.578) (6.091)
- financial assets 2.921 (19)
TOTAL (8.002) (8.322)
4 - Total cash flows generated (absorbed) by
financing activities
Increase in capital and reserves (9.436) (6.528)
Proceeds from capital increase 0 0
Finance lease payments (principal) (402) (614)
Reciept/(repayment) of loans 30.070 (47.100)
Dividends paid (4.767) (15.543)
Change in scope of consolidation (35.393) 22.971
TOTAL (19.928) (46.814)
5 - Net cash flows generated in the period (14.259) (23.317)
6 - Closing balance at the end of the period (13.083) 7.560
BDH Enquiries:
Burani Designer Holding N.V. Tel: +39 027 642 0111 / +39 348 256 1971
Carol Brumer (cbrumer@buranidh.com)
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Sally Marshak
Lindsay Noton
www.buranidh.com
NOTES TO EDITORS
The BDH Group offers a complementary range of "Italian lifestyle" products and services to an international customer base. BDH is a
player in fashion apparel, leather goods and jewellery through its subsidiary Mariella Burani Fashion Group S.p.A. (MBFG), and in three
complementary business segments - beachwear & underwear, wellness spas & skincare and food design. BDH, listed on London's Alternative
Investment Market (AIM) in June 2007, focuses on growth through the acquisition and integration of quality "Italian lifestyle" businesses
and the creation of operating divisions able to benefit from scale and synergies of the BDH Group. The management believes that the in-depth
knowledge of luxury products, the value created by strategic shareholders, the skills of the BDH team management as well as the Group's
investment approach, represent a great opportunity of value creation for shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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