Hermes boosts profits by 8.7 percent

22nd March 2007, Comments 0 comments

PARIS, March 22, 2007 (AFP) - French luxury products group Hermes reported on Thursday an 8.7-percent rise in net profit last year with help from the sale of its interest in German company Leica Camera.

PARIS, March 22, 2007 (AFP) - French luxury products group Hermes reported on Thursday an 8.7-percent rise in net profit last year with help from the sale of its interest in German company Leica Camera.

Chief executive Patrick Thomas told AFP that the company intended to maintain this rate of profitability in 2007, raising net profit "at the same rate as sales", or eight to 10 percent.

Hermes said that net profit last year totalled 268.4 million euros (356.5 million dollars), including a cpaital gain of 14.1 million euros from the sale of 36.2 percent of Leica Camera.

The outcome fell short of the figure of 271.36 million euros broadly expected by analysts contacted by news service Thomson Financial.

Operating profit rose by 8.3 percent to 415.2 million euros, or by 11.3 percent on a basis of constant exchange rates. This was slightly higher than 411.59 million euros expected by analysts.

The gross operating margin was 27.4 percent from 26.9 percent in 2005 and the net margin was 17.7 percent from 17.3 percent.

In February, Hermes had published sales data for 2006 showing an increase of 6.1 percent to 1.515 billion euros.

Copyright AFP

Subject: French news

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