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Coccinelle & Braccialini perform well at Mariella Burani

30 Aug '08

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• Own brands which generated 84.8% of revenues;
• Direct distribution channels that generate 63% of revenues with 21.8% generated from DOS and Franchisees.

Ebit increased to €30.5 million (+34.5%) from €22.7 million of the same period 2007.

Pretax income increased to €12.8 million (+42.1%) for 1H 2008 vs. € 9 million in 1H 2007.

Net Financial Position (Debt) of €260.6 million, reflecting a debt/equity ratio of 0.84 from € 193.4 million at December 31, 2008 notwithstanding the important investments effected during the period (including the acquisition of 100% of Finduck (Mandarina Duck), 14% of Francesco Biasia, and 35% of Jaya). The Net Financial Position at June 30, 2008 does not reflect the € 118 million proceeds received on August 7, 2008 from the sale of 49% of APBags to 3i fund.

Strategic and Operating Highlights – 1H 2008:
MBFG has been extremely active in 2008 with important strategic acquisitions and alliances as well as a continuous focus on emerging markets. In addition, the Group has reinforced its international retail network, launched new products and collections, and made notable senior management appointments.

Notably, on August 8, 2008 Mariella Burani Family Holding (MBFH), controlled by BDH, launched a partial tender offer for up to 15% of the share capital of MBFG at a price of € 17.5 per share. MBFG filed the related Offer Document to Consob on August 28, 2008.

In addition important strategic acquisitions and alliances effected by MBFG and its subsidiary Antichi Pelletieri during the period include:

• the acquisition by 3i fund of 49% of APBags, a newly established sub-holding that houses Antichi Pellettieri's handbags and accessories companies. The transaction is expected to accelerate the development of APBags in the Chinese and Indian markets;
• the acquisition by Antichi Pellettieri of 100% of Finduck, a company that owns the renowned Mandarina Duck brand (June 24, 2008). As noted in the auditors' report, the six days of operations of Finduck have not been consolidated in the financials for the six month period ended June 30, 2008 as it was not possible to report only six days of operations according to International Accounting Standards;
• the continued extension of the Group's retail network, which counts 280 boutiques at June 30, 2008 (90 DOS and 160 Franchisees), including the 44 boutiques (11 DOS and 33 franchisees) inaugurated in the first six months of this year, of which over 60% are located in emerging markets;
• the launch of new products and collections for the Group's own brands and for renowned third party brands including John Galliano jewellery, Bickkembergs children's wear, Aquascutum footwear, Gherardini and Amazon Life handbags and accessories;
• the introduction and development of the Group's footwear collections in Cina;
• the further integration of recently acquired companies with particular attention to the development of synergies within the Group.

In addition, the Antichi Pellettieri Board of Directors on the last August 27th has agreed to convene an extraordinary shareholders' meeting on October 6, 2008 as is required in order to transfer the AP shares from the Expandi segment of the Italian Stock Exchange to MTA in continuous trading.

Outlook 2008:
As witnessed in the results, the accessible luxury goods market continues to offer MBFG numerous opportunities. MBFG benefits from both, its strong position in this market segment as well as its consolidated presence in emerging markets. In addition, the Group's presence in the USA and Japan, today considered higher risk markets, is today limited to 5% of MBFG's total revenues.

The encouraging sell-out statistics of the Spring/Summer 2008 collections, the positive performance in the first half of the year, combined with the acquisition of Finduck Srl, lead management to expect continued dynamic growth in 2008.

Mariella Burani Fashion Group Spa

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