Hermes targets 8-10 pct net profit rise this year; open to non-luxury M&A UPDATE |
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Thu, 22 Mar 2007 11:06
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PARIS (AFX) - Hermes International said it is aiming for a 8-10 pct rise in net profit this year, in line with its target range for sales growth excluding currency effects, and is open to acquisition opportunities, including those outside its main luxury goods sector.Speaking to Agence France-Presse, CEO Patrick Thomas said that 'our aim is to have growth of 8-10 pct which allows us to maintain our profitability at the same level as now.''That means growth in profit at the same rate as sales,' he explained.Hermes this morning reported a 2006 net profit of 268.4 mln eur, up 8.7 pct on the 2005 figure of 247 mln eur.This raised the group's net margin to 17.7 pct compared with 17.3 pct in 2005.Regarding acquisitions, Patrick Thomas said Hermes has no plans for the moment but added that 'an acquisition by Hermes should not be ruled out.'He stated that the company could look at a deal 'in specialist products, different to luxury, something like Leica,' adding that the product would have to be 'unique, outstanding and differentiated in its market'.Hermes previously held a 36 pct stake in Leica Camera AG before selling its holding last year.The group said the disposal contributed 14 mln eur to its 2006 profits.paris@afxnews.comafp/gt/slj/gt/sljCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Hermes FY net up 8.7 pct, helped by faster Q4 sales, Leica disposal UPDATE 