The company said that its operating revenues fell to CHF47.8m (€33.5m) from CHF108.6m in 2008, a decrease of 56 per cent, which was attributed to tough trading conditions in the luxury segment due to the economic crisis.
The company’s other activities include jewellery and cut glass, mainly represented by its stake in the Lalique brand, but these product categories have been particularly hard hit by the economic conditions.
Fragrance and cosmetics buoy results
However, the Switzerland-based company said that sales in its fragrance and cosmetics business increased during the year, while operating profit for the division rose by CHF9.5m.
Sales for this division increased by 4 per cent to CHF42.7m, compared to 2009, while profit before tax and interest (EBIT) more than tripled to CHF9.m.
During the period, sales for the fragrance and cosmetics division were driven by the introduction of a new brand, Nikki Beach, a US sun care and fragrance range, which the company acquired through a licensing agreement in May.
Samourai and Jaguar fragrances lead the way
Likewise the company said that sales of the Samourai and Jaguar fragrances rose by 9 per cent and 17 per cent respectively, while Parfums Gres sales declined by 3 per cent.
The company says it plans to expand this range with new cosmetic and sun care products that will be launched during the spring and summer of this year.
Group profits were impacted by the restructuring of the crystal glass and fragrance business Lalique, which was bought in 2008, but overall the company managed to cut its losses considerably compared to the previous year.
Net losses reduced significantly
The net group loss was CHF1.3m, compared to a loss of CHF11.0m in 2008. The figure included costs associated with restructuring of the Lalique business of CHF3.0m.
Looking ahead to the rest of the year, the company said that changes to its core fragrance and cosmetics business mean that this is likely to be the source of continued growth in the future, while its stake in the Lalique business has already shown double-digit organic sales growth in the first couple of months of 2010.
The company added that it expects to see the ‘normalisation’ of the economic climate in the coming year and that its Lalique business will return to profit by 2011.