Bulgari Ireland sales jump as it nears the €1 billion mark

Bulgari, the Italian jewellery and luxury goods group whose gems were once favoured by Elizabeth Taylor, recorded a one-third jump in the sales of a unit based in Ireland last year to €906 million.

Bulgari Ireland, which in recent years was central to a tax probe into the group’s activities, recorded a profit after tax of €93 million, according to recently filed accounts. This was up from €60 million in profits the previous year.

The accounts show the group, which imports and exports jewellery and provides "intra-group finance" to the wider Bulgari group, paid a €35 million dividend to its parent company last year. Bulgari is ultimately owned by the giant luxury goods group, LVMH Moet Hennessy.

Asian market

The accounts for the Irish unit reveal Bulgari intends to expand its distribution of the Bulgari brand in the middle east from its Dubai hub. More than half of the Irish unit’s revenues are derived from the Asian market, including the middle east.

About €326 million of Bulgari Ireland’s sales are derived from third parties such as franchisees, while €580 million comes from inter-company transactions, essentially foreign sales routed through the Irish unit.

Bulgari Ireland paid corporation tax of €13.5 million in this country last year.

Heavyweight

The Bulgari group, a heavyweight name in the Italian luxury goods sphere, has previously been the subject of adverse findings by the authorities in its home nation due to its tax arrangements and corporate structure. The Irish unit featured heavily in investigations in recent years.

Despite paying settlements to Italian tax authorities, Bulgari has always denied any wrongdoing in relation to its tax affairs.

In May, a judge in Italy scheduled a trial for October for alleged tax evasion against Paolo and Nicola Bulgari, scions of the family that founded the group. They have denied any wrongdoing.