BRDH Burani

    RNS Number : 1682I
  Burani Designer Holding N.V.
  14 November 2008
   




    14 November 2008


    BURANI DESIGNER HOLDING'S SUBSIDIARY MARIELLA BURANI FASHION GROUP ANNOUNCES FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER
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 70.2% stake, has made the following
announcement: 

    PRESS RELEASE
    MARIELLA BURANI FASHION GROUP
    Cavriago (RE) - November 14, 2008

    THE BOARD OF DIRECTORS OF MARIELLA BURANI FASHION GROUP SPA APPROVED THE FINANCIAL RESULTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30,
2008 REFLECTING TOTAL REVENUE GROWTH OF +7.9% ACCOMPANIED BY MORE THAN PROPORTIONAL GROWTH OF EBITDA +76% AND EBIT +117.2%

    The Board of Directors of Mariella Burani Fashion Group Spa approved the consolidated financial statements for the nine month period
ended September 30, 2008 which reflect:  

    *     Revenues of EUR562.2 million (+7.9%) from EUR520.9 million in 9M 2007.
    *     EBITDA of EUR 106.6 million (+76%) vs. EUR60.6 million in 9M 2007.
    *     EBIT of EUR 91.5 million (+117.2%) vs. EUR42.1 million in 9M 2007.
    *     Pretax income of EUR65.4 million (+ 201.2%) vs. EUR 21.7 million in 9M 2007.
    *     Net Financial Position (Debt) of EUR 174.5 million, vs. EUR 260.6 million at June 30, 2008, that reflects the sale of 49% of
APBags to 3i as well as the consolidation of the Net Debt of Finduck, resulting in a optimal consolidated debt/equity ratio at September 30,
2008 of 0.41.


     FINANCIAL HIGHLIGHTS - 9M 2008

    Consolidated revenues increased 7.9% over the prior year period from EUR 520.9 million to EUR 562.2 million reflecting the acquisition
of Finduck, the capital gain realised on the sale of 49% of AP Bags to 3i, strong growth realised by the Group's Leather Goods subsidiary
(Antichi Pellettieri), partially offset by the sale of certain businesses in the prior year: 

    *     The Apparel division was negatively impacted by the deconsolidation of the Group's multi-brand retail division,
    *     The Leather Goods division (Antichi Pellettieri) realised 44.8% revenue growth during the period reflecting the first time
consolidation of Finduck and strong organic revenue growth from the footwear and handbags division, with Baldinini footwear and accessory
collections and Coccinelle and Braccialini handbag and accessory collections performing particularly well,
    *     The Jewellery division realised 21.1% revenue growth during the period, benefiting from the Rosato jewellery collections,
particularly in emerging markets,
    *     the Digital Fashion division continues to expand and reflected 44% revenue growth during the period, 
    *     Revenues from third party licenses grew by 29.6% during the period, while
    *     Revenues in emerging markets, currently representing 34,4% of Group sales, increased by 17% during the period.



    * The comparitive figures as at September 30, 2007 have been restated in compliance with IAS 8 as described in the first half 2008
Financial Statement.

    Ebitda reached EUR106.6 million for the period (+76%) vs. EUR 60.6 million  in 9M 2007, reflecting an Ebitda margin of 19% (vs. 11.6%
for the same period in 2007). Ebitda growth is attributed to the first time contribution of Finduck, the net capital gain realised on the
sale of 49% of AP Bags to 3i, and to the Group's positive sales mix, that reflects:

    *     Growth in revenues generated from the Leather Goods and Fashion Jewellery divisions, accounting for 65.2% of revenues in 9M 2008;
    *     Export sales, representing over 63.2% of 9M 2008 revenues with emerging markets generating 34.4%; revenues generated by the Group
in the US and Japan are limited to 5.5% of the Group's revenues;
    *     Own brands which generated 84.2% of revenues;
    *     Direct distribution channels that generate 60.5% of revenues with 23.1% generated from DOS and Franchisees.  

    Ebit increased to EUR91.5 million (+117.2%) from EUR 42.1 million of the same period 2007.

    Pretax income increased to EUR 65.4 million (+201.2%) for 9M 2008 vs. EUR 21.7 million in 9M 2007.

    Net Financial Position (Debt) of EUR 174.5 million, vs. EUR 260.6 million at June 30, 2008, reflecting the sale of 49% of APBags to 3i
as well as the consolidation of the Net Debt of Finduck, resulting in a optimal consolidated debt/equity ratio at September 30, 2008 of
0.41.


    STRATEGIC AND OPERATING HIGHLIGHTS - 9M 2008

    2008 has proven to be important year for the Group with the announcement of strategic alliances and acquisitions, an increased focus on
business development in emerging markets and with new licensing partners. In addition, the Group has reinforced its international retail
network, launched new products and collections, and made notable senior management appointments.  

    *     Mariella Burani Family Holding (MBFH), 93% controlled by BDH, acquired, via a voluntary tender offer, 15% of the share capital of
MBFG at a price of EUR 17.5 per share. MBFH currently directly owns 75,8% of MBFG; 

    *     3i, an international investment Group, acquired 49% of APBags, a newly established sub-holding corporation that houses Antichi
Pellettieri's handbags and accessories companies, for EUR 118 million. The transaction is expected to accelerate the development of APBags
in the Chinese and Indian markets;

    *     Antichi Pellettieri acquired 100% of Finduck, a company that owns the renowned Mandarina Duck brand, for EUR 36.9 million (June
24, 2008);  

    *     MBFG, together with its parent company, BDH, entered into a joint venture agreement with Malia Holding, a diversified Lebanese
Group, with the intent to develop the full portfolio of Mariella Burani brands in Levant countries;  


    *     MBFG and its subsidiary, AP launced new products and collections for the Group's own brands and under license for renowned third
party brands including John Galliano jewellery, Bickkembergs children's wear, Aquascutum footwear, Gherardini and Amazon Life handbags and
accessories;

    *     MBFG continued to extend the Group's retail network, with the inauguration of 59 boutiques in the 9 month period (14 DOS and 45
franchisees; 60% in emerging markets), which counts 376 boutiques at September 30, 2008 (126 DOS and 250 Franchisees);

    *     the further integration of recently acquired companies with particular attention to the development of synergies within the
Group.

    In addition, the shareholders' of AP agreed, at the extraordinary shareholders' meeting held on October 6, 2008, to transfer the AP
shares from the Expandi segment of the Italian Stock Exchange to MTA in continuous trading. The transfer is expected to be effective in
early December.

    OUTLOOK 

    As witnessed in the results, the accessible luxury goods market continues to offer MBFG numerous opportunities and the Group is
benefiting from its established position in this market segment as well as its consolidated presence in emerging markets, a key growth
driver.  In addition, the Group's presence in the USA and Japan, today considered higher risk markets, is limited to 5% of MBFG's total
revenues.  
    The positive performance in the first nine months of the year, the encouraging sell-out statistics of the Autumn/Winter 2008-2009
collections, combined with the contribution of Finduck Srl and the benefits of our strategic partnerships, give management confidence in the
near and long terms prospects for the business.

    "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.


    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
    Sarah Gestetner
    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
 
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