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Inter Parfums SA Raises 2013 Targets

First-half profits gained 87 percent as company discloses plan to sell the Nickel brand to L’Oréal.

Repetto's first fragrance.

PARIS — Inter Parfums SA said first-half net profits increased 87 percent and raised its guidance for the full year.

The France-based subsidiary of Inter Parfums Inc. also said it has countersigned a final letter of offer for the sale of men’s skin-care brand Nickel to L’Oréal, effective Dec. 31. Terms of the deal were not disclosed.

Inter Parfums SA said net income in the six months ended June 30 reached 35.3 million euros, or $46.4 million. Due to a limited advertising spend for Burberry, whose beauty license was terminated with Inter Parfums on March 31, first-half profits achieved high levels with a 25 percent operating margin and a 16 percent net margin, the company said.

As reported, Inter Parfums SA’s first-half sales gained 4.6 percent to 218.5 million euros, or $286.9 million. Without the Burberry activity, company revenues advanced 13.4 percent to 119.7 million euros, or $157.2 million.

Dollar figures were converted at average exchange rates for the period.

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At June 30, shareholders’ equity was 355 million euros, or $466.2 million, and net cash was 191 million euros, or $250.8 million.

“Based on summer sales and prospects for the new Repetto and Boucheron lines in the fall, we now anticipate annual revenue for 2013 of 335 million euros [or $444.5 million at current exchange],” said Philippe Benacin, Inter Parfums SA chairman and chief executive officer. “As for next year, with continuing expansion by existing lines and a sustained program of launches, growth — excluding Burberry sales of 2013 — could reach 15 percent to 20 percent for a full-year revenue target of 280 million euros [or $371.5 million] in 2014.”

The company will also strengthen marketing and advertising efforts in the second half, while raising the operating margin objective to 12 percent for 2013. Operating income guidance has been elevated to about 47 million euros to 48 million euros, or $62.4 million to $63.7 million, reflecting a margin of 14 percent, according to Philippe Santi, company vice president.

He added the operating margin target for 2014 is now 10 percent to 11 percent.