Fragrance Brands Propel Inter Parfums in 3rd Qtr.
NEW YORK — Inter Parfums Inc. said Wednesday that sales and profits increased during the third quarter due to strength in its Gap, Banana Republic, Roxy, Paul Smith and Van Cleef & Arpels fragrance businesses.
The firm, based here, reported net income of $5.7 million in the quarter ended Sept. 30, a 21.9 percent increase from $4.6 million in the same period a year ago. The company earned 27 cents a diluted share, compared with 23 cents a share last year, surpassing Wall Street estimates of 26 cents a share for the most recent quarter, according to Yahoo Finance.
Quarterly revenues were $102.3 million, a 14.1 percent increase from $89.7 million in the prior year.
The firm’s European sales weighed in at $88.1 million, up 15.8 percent compared with $76.1 million last year. “The launches of the Roxy and Paul Smith Rose fragrances and the increasing contribution of Van Cleef & Arpels fragrances factored into the [European] sales increase,” Jean Madar, chairman and chief executive officer of Inter Parfums, said in a statement.
In the U.S., where sales were up 4 percent to $14.2 million from $13.6 million last year, expanded distribution of Gap products, as well as new Gap and Banana Republic product launches, drove revenues.
For the first nine months of the year, earnings increased by 24 percent to $15.2 million, or 74 cents, from $12.3 million, or 60 cents, a year ago. Sales were up 17 percent to $270.2 million, from $230.9 million last year.
Inter Parfums reaffirmed guidance for full-year 2007 sales of $378 million, earnings of $21.5 million and diluted earnings per share at $1.04.
— Matthew W. Evans
Symrise Earnings Vault in Quarter
PARIS — Flavors and fragrances supplier Symrise reported Wednesday third-quarter 2007 net income spiked 780 percent to 31.7 million euros, or $43.6 million at average exchange, from 3.6 million euros, or $4.6 million, in the same prior-year period.
The Holzminden, Germany-based firm’s earnings before interest, taxes, depreciation and amortization adjusted to eliminate integration and restructuring expenses rose 9.5 percent to 75.2 million euros, or $103.3 million, in the third quarter ended Sept. 30.
This story first appeared in the November 8, 2007 issue of WWD. Subscribe Today.
Such increases were due to numerous factors, including effective cost management, plus well-received products that “offer end-consumers something new,” explained a company spokeswoman, giving as an example a fragrance recently developed by Symrise that has moisturizing properties. She said the company has also made some small yet very effective acquisitions. Further, Symrise now appears on more top-10 manufacturers’ core lists of fragrance suppliers.
In the third quarter, Symrise’s sales came in at 328.3 million euros, or $451.1 million, up 5.2 percent.
For the first nine months of 2007, the company’s net profits jumped 343.7 percent to 84.3 million euros, or $113.3 million at average exchange, from 19 million euros, or $23.6 million. EBITDA adjusted to eliminate integration and restructuring expenses gained 13.9 percent to 219 million euros, or $294.4 million, and sales grew 4.7 percent to 989.2 million euros, or $1.33 billion.
“We are delighted about the successful development of the business in the first nine months and are optimistic about 2007 as a whole,” said Gerold Linzbach, Symrise’s chief executive officer, in a statement.
Company executives predict sales growth on the basis of local currencies in 2007 will reach the top end of the 5 to 6 percent forecast given earlier.
— Jennifer Weil
Henkel Unit Sees 6.4% Uptick
BERLIN — Henkel’s cosmetics and toiletries division posted third-quarter earnings before interest and taxes of 95 million euros, or $130.5 million at average exchange, a gain of 6.4 percent from the same period a year ago.
Quarterly sales for the division rose 3.5 percent, or 5.1 percent on a currency-adjusted basis, to reach 768 million euros, or $1.06 billion. Organic sales growth was 7.3 percent and, when adjusted for foreign exchange, operative earnings were up 8.7 percent.
Henkel said its core markets of Western Europe and the U.S. continued to have good performance, results that were further augmented by positive outcomes in Eastern Europe and Latin America.
Group EBIT, which includes the firm’s laundry, home care and adhesives technologies divisions, surged 12 percent to 359 million euros, or $493.3 million. Group sales were up by 3 percent to 3.36 billion euros, or $4.61 billion, and organic sales grew by 6 percent.
On Wednesday, Henkel said that based on encouraging business developments in the first nine months, sales adjusted for foreign exchange, acquisitions and divestments are now expected to grow 5 percent to 6 percent for the full fiscal year, up from the previous forecast of 4 percent to 5 percent.
The Düsseldorf-based company continues to expect full-year operating profit, when adjusted for foreign exchange, to increase in excess of organic sales growth.
— Melissa Drier