RNS Number : 6337E
Burani Designer Holding N.V.
30 September 2008
September 30, 2008
BURANI DESIGNER HOLDING N.V.
RESULTS ANNOUNCEMENT FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2008
Burani Designer Holding N.V. (LSE AIM: BRDH), a company offering Italian lifestyle products and services to customers world-wide,
announces its consolidated results for the six month period ended June 30, 2008, reflecting both an 11.4 % increase in revenues and a 93.1%
increase in EBITDA compared to the first six months of 2007.
Results Summary
EUR/m June 30, 2007 (*) June 30, 2008 Change Change %
Consolidated revenues 356.5 397.1 40.6 +11.4
EBITDA 34.7 67.0 32.3 +93.1
EBIT 22.4 46.0 23.6 +105.4
PRE -TAX PROFIT 9.1 19.4 10.3 +113.2
AFTER TAX PROFIT (7.2) 13.9 21.1 +293.1
EUR/m December 31, 2007 June 30, 2008
Net Financial Position (Debt) 177.5 284.5
Debt/equity ratio 0.33 0.54
(*) H1 2007 Consolidated Financial Statements have been provided for comparison purposes only and are not required per IAS 34. H1 2007
results have been restated to reflect the adjustments made, in accordance with IAS 8, to the MBFG consolidated financial statements for the
period.
H1 2007 consolidated results include the pro-rata contribution from the companies acquired by BDH during the period, namely Arcte (from
May, 2007), Crisfer (from April, 2007), and Eurocosmesi (from May, 2007). H1 2007 results also reflect the consolidation within Mariella
Burani Fashion Group of Facco and Rosato, (Fashion Jewellery) and, the deconsolidation of the multi-brand retail division as of June, 2007.
H1 2008 consolidated results include the pro rata contribution from SPM (from June, 2008) which was acquired during the period. H1
results also reflect the consolidation within Mariella Burani Fashion Group of Calgaro and Valente, (Fashion Jewellery), Dadorosa (Leather
Goods), and the deconsolidation of the multi-brand retail division (Revedi SpA, Revedi SA, Bernie's AG and Don Gil GmbH) as of June, 2007.
The Net Financial Position at June 30, 2008 reflects the acquisition of Finduck by Antichi Pellettieri, the further acquisition of
minority interests, including 14% of Francesco Biasia and 35% of Jaya, as well as the acquisition of SPM Drink System and Chocolat by BDH,
notwithstanding the fact that these companies' results have not been incorporated in the six month figures (with the exception of SPM for
one month). In addition, the Net Financial Position does not reflect the EUR 118 million proceeds received on August 7, 2008 from the sale
by AP of 49% of APBags to 3i Private Equity Fund.
Financial Review
Consolidated revenues increased by 11.4% to EUR397.1 million during the first six months of 2008 compared to EUR356.5 million in H1 2007
and reflect the pro rata contribution from SPM (from June 2008) which was acquired during H1 2008. The 2008 results also reflect the
consolidation within Mariella Burani Fashion Group of Calgaro and Valente (Fashion Jewellery), Dadorosa (Leather Goods) and the
deconsolidation of the multi-brand retail division as of June, 2007
Net revenue growth was driven by the strong performance of:
* The Leather goods division (Antichi Pellettieri), +26% during H1 2008;
* Emerging luxury markets (+34%), particularly driven by Russia, Eastern Europe and the Middle East; and
* Optimal growth in Italy driven by Baldinini and Braccialini as well as the notable performance of AP's retail network and the
strong performance of the Group's Childrenswear Division.
EBITDA reached EUR67.0 million for the first half of 2008 with an EBITDA margin of 16.9%, compared to EUR34.7 million for the same
period of last year (+93.1%). EBITDA benefited from the consolidation of the financial results of the Group's companies for the full six
month period, the consolidation of the businesses acquired during the year, the deconsolidation of the multi-brand retail division, the
capital gain realised by MBFG on the sale of AP shares (in the acquisition of Finduck) and the capital gain realised by BDH on the sale of
MBFG shares. In addition, EBITDA also benefited from the Group's optimal sales mix including:
* Own brands which generated 84.8% of consolidated operating revenues;
* Export sales which generated 58.8% of consolidated operating revenues with emerging markets, which are growing at 34.0% per annum,
generating 34.5% of operating revenues. The US and Japan together accounted for approximately 5% of the Group's operating revenues; and
* Direct distribution channels which generated 58.0% of consolidated operating revenues.
EBIT equalled EUR46.0 million for the first half of 2008 versus EUR22.4 million for the same period of last year.
Pre-tax income of EUR19.4 million for the first six months of 2008 compared to EUR9.1 million for the same period of last year; and
Net debt amounted to EUR284.5 million for the first half of 2008 compared to net debt of EUR177.5 million as at December 31st 2007,
reflecting an optimal debt/equity ratio of 0.54, notwithstanding significant investments effected during the period and the fact that the
EUR118 million of proceeds from the sale of AP Bags to 3i (received on August 7, 2008) were not included in the balance sheet as at June 30,
2008.
Highlights
* BDH has been active, throughout the year, in the purchase and sale of the shares of its subsidiary, MBFG on the open market and
today owns over 61% of MBFG's outstanding share capital. These transactions have been effected with the intent of capitalising on an
investment opportunity provided by weak financial markets, and have culminated in the establishment of Mariella Burani Family Holding
(MBFH), a special purpose vehicle, which launched a partial tender offer for up to 15% of the share capital of MBFG at a price of EUR 17.5
per share in August, 2008. The related Offer Document was approved by Consob on September 11, 2008. The acceptance period extends from
September 18 to October 22, 2008 and the payment date is October 27, 2008;
* The acquisition by 3i of 49% of APBags, a newly established sub-holding which holds the Antichi Pellettieri handbags and
accessories companies. The transaction, which closed on August 7, 2008, will be reflected in the accounts in the third quarter of 2008. The
new alliance with 3i is expected to accelerate the development of AP Bags , particularly in emerging Asian markets;
* The acquisition by Antichi Pellettieri of 100% of Finduck, a company which owns the renowned Mandarina Duck brand (May 2008);
* Further expansion in Italian Fine Foods with the acquisition of 51% of SPM (June 2008), 51% of DulciOliva (August 2008) and 100%
of Gelosia (2H 2008);
* The acquisition of a 35% interest in Lebanon Company MMB SAL, a joint venture established with Malia Holdings, a diversified
Lebanese Group, to develop a luxury retail network for the distribution of BDH products in the Levant countries; to include Apparel &
Leather Goods collections, and Fine Foods;
* The inauguration of 44 boutiques in the first half of 2008 (11 DOS and 33 Franchisees); BDH's retail network as at the end of June
2008 included 378 mono-brand boutiques worldwide (129 DOS and 249 Franchisees, including the boutiques of Mandarina Duck).
* The Board of Directors of Antichi Pellettieri proposed, for approval at the shareholders' meeting scheduled for October 6, 2008, a
transfer of the AP listing from the Expandi segment of the Italian Stock Exchange to MTA in continuous trading.
Kevin Tempestini, Chief Executive Officer, commented:
"BDH management remains active in the pursuit, development and integration of companies in the Italian lifestyle sector. We remain
optimistic with respect to our long term results and confirm our double digit revenue and EBITDA growth expectations for the full year 2008.
"
Operating Review
In addition to the successful growth of its main subsidiary, Mariella Burani Fashion Group, the BDH Group has, during the first half of
2008, focused on the further development of its Beachwear & Underwear, Fine Fragrance & Skincare, (for wellness and cosmetics) and Fine
Foods divisions. Specific operating highlights include:
Apparel, Leather Goods and Fashion Jewellery - Mariella Burani Fashion Group
MBFG continued to expand its apparel, leather goods and fashion jewellery divisions, with:
* The acquisition by Antichi Pellettieri of 100% of Finduck, a company which
owns the renowned Mandarina Duck brand (May 2008);
* The acquisition by 3i of 49% of APBags, a newly established sub-holding
which holds the Antichi Pellettieri handbags and accessories companies;
* The inauguration of 44 boutiques in the first half of 2008 (11 DOS and 33
franchisees);
* The launch of new products and collections for the Group's own brands and
for renowned third party brands including John Galliano jewellery,
Bikkembergs children's wear, Aquascutum footwear, Gherardini and Amazon Life
handbags and accessories;
* The further integration of recently acquired companies with particular
attention to the development of synergies within the Group
Beachwear & Underwear
Specific highlights include:
* The launch of Patrizia Pepe, Replay and Mariella Burani Beachwear &
Underwear collections
* Further "refinement" of the Arcte brand portfolio
* Further rationalisation and integration of Crisfer and Arct also within
MBFG
Fine Fragrance & Skincare
* The acquisition of the Gandini perfume division, active in the production
and distribution of Gandini perfume and skin care products for men and women,
and sold in over 4000 locations world-wide.
* New agreements signed to produce and distribute Gazzetta Dello Sport and
Pinco Pallino Fragrance and Skincare collections
* Focus on export markets, including Russia, Hong Kong and Turkey, which
reflected 55% growth during the H1 2008 period
* Reinforced the management team
BDH Food Design
* The acquisition of 51% of SPM (June 2008), 51% of DulciOliva (August 2008),
and 100% of Gelosia (2H 2008)
* The acquisition of a 35% interest in Lebanon Company MMB SAL, a joint
venture established with Malia Holdings, a diversified Lebanese Group, to
develop a luxury retail network for the distribution of BDH products in the
Levant countries; to include Apparel & Leather Goods collections, and Fine
Foods
Outlook
Management expects continued growth for 2008 as a function of the positive preliminary results of the Spring/Summer 2009 sales
campaigns, the continued expansion of the international distribution network and the strong performance of our directly operated stores
during the first half of 2008.
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
Sally Marshak Sarah Gestetner
Tel: +44 790 3349040 Tel: +44 776 7481163
e-mail: e-mail:
sally.marshak@citigatedr.co.uk sarah.gestetner@citigatedr.co.uk
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, Fine
Fragrances & 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 interim balance sheet
ASSETS 30 June 2008 As at 31 December 30 June 2007 (*) Note
2007
Non current assets
Property, plant and equipment 75,397 73,105 68,479
Intangible assets 547,358 507,044 471,639
Investment property 1,664 1,664 1,664
Investments 59,171 34,960 13,664
Long term financial assets for 62 125 100
sale
Deferred tax assets 23,106 20,535 23,774
Long term financial 179
derivatives
Other long term financial 9,247 4,500 151
receivables
Long term trade and other 12,685 12,324 21,801
receivables
Total 728,869 654,257 601,272
Current assets
Inventories 209,092 183,629 172,778
Short term trade and other 245,289 213,044 176,332
receivables
Current tax assets 22,646 29,907 17,698
Other short term financial 122,976 113,484 116,304
receivables
Short term financial assets 40,406 44,709 28,904
for sale
Negotiable securities 16,449 16,262 15,742
recognized at fair value
Cash and cash equivalents 52,385 73,488 147,036
Total 709,243 674,523 674,794
Total assets 1,438,111 1,328,781 1,276,066
SHAREHOLDERS' EQUITY AND
LIABILITIES
Share capital and reserves
Capital issued 3,780 3,780 3,780
Share premium reserve 125,939 125,939 113,412
Other reserves 164,632 174,575 193,029
Net income of the period 13,512 (6,630) (6,469)
Total 307,863 297,663 303,752
Minority interests 222,798 233,834 225,701
Total shareholders' equity 530,661 531,497 529,453
Non current liabilities
Long term loans and borrowing 224,873 187,341 261,921
Long term derivatives 164 252
Deferred tax liabilities 87,958 90,884 106,542
Post employment benefits 13,492 15,526 19,540
Long term provisions 4,577 3,753 972
Other non current liabilities 3,086 3,576 15,835
Total 333,986 301,244 405,062
Current liabilities
Short term trade and other 213,730 186,941 178,274
payables
Current tax liabilities 28,219 27,529 27,583
Short term loans and 329,819 280,019 132,956
borrowings
Short term provisions 1,697 1,549 2,738
Total 573,465 496,038 341,551
Total liabilities 1,438,111 1,328,781 1,276,066
(*) IAS 34 does not require balance sheet comparatives for the prior interim period. Comparatives as at 30 June 2007 are presented
voluntarily and restated with respect to the official financial statements to reflect the adjustments made in accordance with IAS 8 at MBFG
level, as explained in a separate section of the notes to this half-year report.
Consolidated interim income statement
EUR/000
INCOME STATEMENT 30 June 2008 As at 31 December 30 June 2007 (*) Note
2007
Revenues 397,080 718,296 356,528
Change in inventory of finished product and works in 28,620 14,683
progress 3,214
Raw materials and consumables 308,932
173,243 154,225
Cost of labor 97,710
52,939 54,539
Other operating expenses 132,484 244,820
116,265
EBITDA 67,034 81,517 34,713
Depreciation, amortization and 21,021 28,733 12,338
write-downs
EBIT 52,784 22,375
46,014
Financial income 3,967 6,139
2,366
Financial charges 36,605
30,154 15,556
Profit (loss) from foreign exchange transactions (682)
(334) 30
Income from investments in affiliated companies 0 0 (147)
valued at equity/result from associated and joint
ventures accounted for using the equity method
Profit (loss) from assets to (142) 0 0
be divested*
Pre-tax profit 19,350 21,637 9,068
Tax 5,396 9,064 16,258
Net Profit for the year after 13,954 12,572 (7,190)
tax
Minority interests 443 19,202 721
Net profit for the year of the Group 13,512 (6,630) (6,469)
Numbers of shares (unit) 74,843,286 68,153,018 60,536,646
Basic earnings per share (unit 0.18 (0.10) (0.10)
EUR)
Diluted earnings per share (unit EUR) 0.18 (0.10) (0.10)
(*) IAS 34 does not require balance sheet comparatives for the prior interim period. Comparatives as at 30 June 2007 are presented
voluntarily and restated with respect to the official financial statements to reflect the adjustments made in accordance with IAS 8 at MBFG
level, as explained in a separate section of the notes to this half-year report.
Consolidated interim cash flow statement
06/30/08 12/31/07
Opening balance 39,734 38,427
Cash flows generated (absorbed) by operating
activities
Pre tax profit (loss) 19,350 21,637
Depreciation and amortization 18,528 18,852
Net capital gains (losses) from the disposal of 0 0
property, plant and equipment
Negative goodwill (7,099) (6,209)
Net capital gains (losses) from the disposal of non (33,112) (10,538)
current financial assets
Net change in provisions for risks and employee (587) 6,044
benefits
Loss/income from equity accounted investments 2,018 0
Net financial charges 12,054 6,456
TOTAL 11,153 36,241
Net change in working capital (29,692) (12,758)
Tax paid 0 (16,818)
Interest paid 14,467 24,673
TOTAL (15,225) (4,903)
Cash flow generated (absorbed) by investing activities
Interest received 0 (75)
Dividends received (62) (4)
Net change in:
- intangible assets (29,742) (13,330)
- property, plant and equipment (5,747) (14,395)
- financial assets 34,116 (80,779)
TOTAL (1,435) (108,582)
Cash flow generated (absorbed) by financing activities
Change in share capital and reserves (14,791) 89,095
Proceeds from capital increase 0 0
Payment of finance lease installments (principal) (468) (884)
Receipt (repayment) of loans 24,221 (21,292)
Payment of dividends 0 (8,780)
Change in scope of consolidation (1*) (45,779) 20,413
TOTAL (36,817) 78,552
Net cash flow for the period (42,324) 1,307
Closing balance (2,590) 39,734
(1*)This item includes changes in tangible and intangible assets, specifically brands and goodwill (shown net of deferred taxes),
arising from the change in the scope of consolidation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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