Parfum D'Image posts double-digit growth

By Guy Montague-Jones

- Last updated on GMT

Related tags Parfum d'image Perfume Aroma compound

After announcing a major expansion into the US market, contract
manufacturer Parfum D'Image has reported high double-digit annual
sales and net profit growth.

France-based Parfum D'Image, which makes perfumes and cosmetics on contract, posted sales of €25.99m for the year ending September 2007, an increase of 27.7 per cent on 2006.

The company's consolidated sales, without the impact of the acquisition of Essens, were still strong, increasing 22.1 per cent to €24.86m. Operating profit increased 15.7 per cent to €4.6m but operating margins fell to 17.7 per cent from 19.6 per cent last year.

Parfum D'Image said its operating margin was affected by non-recurrent items such as the costs of creating its American arm.

The company said its operating margin was 20 per cent without these non-recurrent items.

Tax reductions boosted net profit, which increased 26.7 per cent to €3.2m. Breaking down the company's sales figures, Parfum D'Image said the acquisition of Essens brought with it large and expanding accounts with retailers such as Pimkie.

In addition, new contracts, notably with Carrefour and Galeries Lafayette boosted the company's sales figures in France.

In the UK, Superdrug, BHS and River Island began stocking the company's products and it also created a range for Laura Ashley and developed its relationship with Claire's.

Following a rapid expansion plan, Parfum D'Image also made its first inroads into the American market making €1.1m worth of sales after sealing deals with major distributors including TJMaxx, Jean Coutu and Rexall.

Growth in the US market is set to accelerate after Parfum D'Image bought Latitudes International Fragrance last month for an estimated price of $19m (€12.9m).

Latitudes produces fragrances for perfumes and personal care products as well as candles, potpourri and diffusers.

It will equip Parfum d'Image with several major US clients including Old Navy, Ralph Lauren and Bath and Body Works.

The acquisition of Latitudes, which attained a turnover of $19m, will be paid for with $12m in cash and $7m over the next three years.

The buy-out will be financed by a bank loan and cash flows from the newly acquired business unit.

Parfum D'Image expects to achieve sales figures of between €45m and €50m for 2008 and has a long-term target of quadrupling its sales to €100m by 2010.

Related topics Fragrance

Related news

Related suppliers