PARIS — Inter Parfums SA reported 2014 net income declined 33 percent to 23.2 million euros, or $30.8 million, due chiefly to the termination of the Burberry license agreement in March 2013.
The Paris-based subsidiary of Inter Parfums Inc. of New York, said Wednesday its operating profit was down 39.7 percent to 31.5 million euros, or $41.9 million, in the year. The company’s operating margin came in at 10.6 percent.
Inter Parfums SA in mid-November had set as a full-year-2014 operating margin target of 10 percent to 11 percent.
The company outpaced its sales goals, too, which it had fixed at 280 million euros, or $372.3 million. In 2014, Inter Parfums SA revenues reached 297.1 million euros, or $395 million, down 15.2 percent in reported terms and up 19 percent on a like-for-like basis.
Dollar figures are converted at average exchange for the period to which they refer.
“For the first full year entirely devoted to its new scope of brands, the company’s strategy remained on track with 20 percent of sales revenue devoted to marketing and advertising expenses,” stated Inter Parfums SA.
As of Dec. 31, 2014, shareholders’ equity stood at 367.7 million euros, or $488.9 million, while net cash equaled 224.7 million euros, or $298.7 million.
“The performance of 2014 confirms the group’s capacity to outpace the beauty market and its competitors, and meet the objectives set one year ago,” stated Philippe Benacin, chairman and chief executive officer of Inter Parfums SA. “Sales for the first two months of 2015 and the current level of orders give us further grounds for optimism this year.”
Continued Philippe Santi, the company’s executive vice president: “If the favorable level for euro-U.S. dollar exchange rates persists, we will further ramp up marketing and advertising efforts to accelerate the development of our leading brands, while improving profitability with a target operating margin of 11 percent to 12 percent for the year.”