Inter Parfums records net-income drop of 6%
US fragrance manufacturer Inter Parfums Inc reports that net income was down by 6% on year for the fourth quarter of 2004 to $3.5m. The company previously reported a Q4 sales increase of 30% to $63.8m. On a more positive note, full-year net income was up 13% to $15.7m, while sales rose 27% on year to $236m.
Inter Parfums executive vp and chief financial officer Russell Greenberg reiterated forecasted $280m of sales for this year and net income that should come in at 2004 levels.
Speaking about the results, Inter Parfums chairman and ceo Jean Madar took the opportunity to explain some of the companyâs new initiatives. He explained that distributors should expect to see higher selling prices to partially offset the higher royalty and marketing costs incurred under the new terms of the Burberry license. ãSupplier price concessions are also in the works. In our opinion, the most productive step will be the formation of joint ventures or company-owned subsidiaries within key markets to handle Burberry fragrance distribution,ä Madar added.
Madar also explained that both acquisitions and brand extensions will be key for future development. ãHaving made two acquisitions in 2004, the Lanvin fragrance license and the majority stake in Nickel, acquisitions are clearly an important ingredient in our growth strategy. [·] Brand extension has been and will likely continue to be the foundation of our growth strategy. In addition to fragrance, we believe that several of our brands may be well suited to skincare and cosmetics programs, both of which we are now exploring.ä Indeed, Inter Parfums reserves the right to create skin- and personal-care lines according to the new Burberry contract.
In the meantime, the company will see through the international rollout of Celine currently taking place, will launch a new Christian Lacroix fragrance family this summer and will introduce an Arpge for men!!! under the Lanvin license this fall.
US fragrance manufacturer Inter Parfums Inc reports that net income was down by 6% on year for the fourth quarter of 2004 to $3.5m. The company previously reported a Q4 sales increase of 30% to $63.8m. On a more positive note, full-year net income was up 13% to $15.7m, while sales rose 27% on year to $236m.
Inter Parfums executive vp and chief financial officer Russell Greenberg reiterated forecasted $280m of sales for this year and net income that should come in at 2004 levels.
Speaking about the results, Inter Parfums chairman and ceo Jean Madar took the opportunity to explain some of the companyâs new initiatives. He explained that distributors should expect to see higher selling prices to partially offset the higher royalty and marketing costs incurred under the new terms of the Burberry license. ãSupplier price concessions are also in the works. In our opinion, the most productive step will be the formation of joint ventures or company-owned subsidiaries within key markets to handle Burberry fragrance distribution,ä Madar added.
Madar also explained that both acquisitions and brand extensions will be key for future development. ãHaving made two acquisitions in 2004, the Lanvin fragrance license and the majority stake in Nickel, acquisitions are clearly an important ingredient in our growth strategy. [·] Brand extension has been and will likely continue to be the foundation of our growth strategy. In addition to fragrance, we believe that several of our brands may be well suited to skincare and cosmetics programs, both of which we are now exploring.ä Indeed, Inter Parfums reserves the right to create skin- and personal-care lines according to the new Burberry contract.
In the meantime, the company will see through the international rollout of Celine currently taking place, will launch a new Christian Lacroix fragrance family this summer and will introduce an Arpge for men!!! under the Lanvin license this fall.
