Folli Follie in the First Half 2010

Folli Follie in the First Half 2010:
- Group Revenues increase by 3%
- Folli Follie stand alone revenues increase by 10 %
- Group net income decreases by 30% to € 38 million
Athens, August 30th 2010. Folli Follie S.A. presents solid first half 2010 financial results despite the further worsening of its local market.
George Koutsolioutsos Vice President of Folli Follie and President of Hellenic Duty Free Shops and Elmec Sport said:
“After an excellent start into the year we have delivered solid first half results, despite the further worsening of our local market and the one-off windfall tax which burdened our Group financial results. We are satisfied with our performance to date, taking into consideration the difficult environment in which we are operating. All our teams work very hard to ensure that the Group weathers the current developments and seizes opportunities as soon as this challenging environment subsides.”

Sales rose by 2,7% to EUR 464,7 million in the first half of 2010 (H1 2009: EUR 452,7 million).
Gross profit reached EUR 238,3 million vs. EUR 237,2 million in the same period last year increasing by 0,5%.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) rose by 1,8% to EUR 103,3 million from EUR 101,5 million and Earnings Before Taxes reached EUR 64,8 million compared to EUR 80,3 million in the first half 2009 (-19,3%), driven by higher financial expenses and the one-off windfall tax of EUR 6,2 million.
The group recorded profit after taxes of EUR 43,7 million from EUR 62,8 million the same period last year, representing a decrease of 30,4%. Excluding the extraordinary one-off tax and losses from derivatives and foreign exchange profit after taxes would have reached EUR 65,3 million compared to EUR 62,8million in the first half of 2009 showing an increase of 4,1%.
Net earnings after taxes and minorities decreased by 30% to EUR 38,3 million from EUR 54,7 million the same period last year.
Finally, the earnings per share reached EUR 1,1662 from EUR 1,6718.

Folli Follie (stand alone) results highlights:
With regards to Folli Follie S.A. stand alone figures (based on DFS equity method) revenues for the period January 1st, to June 30th 2010 rose by 10,3% to EUR 207,5 million (H1 2009: EUR 188,1 million).
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) reached EUR 65,0 million from EUR 59,2 million the year before increasing by 9,8%.
Net sales by geographical region:
In an analysis of Folli Follie’s total revenues for the first half 2010 on a stand-alone basis* and by looking at each region, Japan accounted for 10%, the rest of Asia reached 63% of total sales, Europe generated 11% of sales and Travel Retail operations reached a sales participation of 16%.
In a breakdown of sales per region Asia reached EUR 130,0 million of sales against EUR 110,0 million in H1 2009 (+18,2%), Japan posted sales of EUR 20,5 million vs. EUR 22,0 million (-6,8%), Europe recorded revenues of EUR 23,0 million vs. EUR 26,0 million (-11,5%) and the Travel retail sector recorded sales of EUR 34,0 million against EUR 30,1 million (+13%) compared to the same period last year.

Sales per product category:
According to the sales per product category, jewellery accounted for 59%, watches accounted for 34% and accessories for 7% of sales.

* based on DFS equity method (consolidation of HDFS group by 56,8%)

Folli Follie S.A. Group Results

in € million   
 H1 2010  

  H1 2009 
   % change
Gross Margin
Net Profit

Folli Follie stand alone (Sales breakdown per region)

in € million  
H1 2010  
H1 2009  
% change  
Travel Retail

The Folli Follie Group controls the brands Folli Follie and Links of London which create, produce and distribute branded jewellery, watches, accessories and giftware internationally, whereas the Group represents exclusively in Greece and certain countries abroad a rich portfolio of popular and large brands such as Nike, Converse, Coach, Juicy Couture, Samsonite, Patrizia Pepe, Harley Davidson etc.
The Folli Follie Group has a direct control of the Folli Follie and Links of London product distribution network, while it is involved in the field of retail and wholesale with the brand portfolio it represents and distributes. In addition the Group operates two luxury department stores under the brand name “attica” and two outlet centres in Athens through Elmec Sport. Another important pillar of the group’s structure is the travel retail operator Hellenic Duty Free Shops owning the exclusive rights for the Greek Duty Free Business with a paid license until the year 2048.

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