Despite ongoing uncertainty in the markets and shaky consumer confidence across the globe, the British leather goods maker Mulberry Group has posted a pre-tax profit of £36m for the year ended 31 March 2012 – an increase of 54 per cent, compared to £23.34m for the same period last year.
Diluted earnings per share were 43.4p (2011: 29.1p), while net operating expenses were £76.1m (2011: £56.5m).
Over the past year, Mulberry opened 14 new stores in the UK, the Netherlands, the US, Korea, Singapore, Thailand and Taiwan. The company has announced plans for a further 15 to 20 international store openings during the current financial year.
Total revenues increased by 38 per cent to £168.46m (2011: £121.64m). International sales were £65.2m, 61 per cent up on the previous year, while the gross margin increased to 66.2 per cent (2011: 65.4 per cent).
During the year, investments in property, plant and equipment totalled £10m (2011: £12.8m) and included £1.2m investment in the extension of the company’s existing Somerset factory and £8.2m in new stores.
The group’s gross profit as a percentage of revenue has increased to 66.2 per cent from 65.4 per cent for the prior year. This increase is due primarily to the economies of scale achieved from increased volume.
Godfrey Davis, chairman of Mulberry Group, said:
We continue to focus on developing our business internationally, opening new stores and building the foundations for long term growth. The investment in a second factory in the UK will reinforce the group’s position as the largest UK manufacturer of luxury leather goods.
