Luxury jeweler Bulgari's Irish division distributes €90 million in dividends despite profits plummeting by 22%
Bulgari Ireland, a significant part of the luxury brand owned by LVMH, has been under close scrutiny from tax authorities in Italy due to its role in the company's global tax structures. Despite this, the Irish unit has continued to contribute significantly to the brand's financial performance.
In 2024, Bulgari Ireland reported a turnover of €1.46 billion, a decrease from the previous year's €1.56 billion. However, the company managed to pay out a dividend of €90 million, higher than the €85 million paid out in 2023. The dividend payment was primarily funded by the unit's profits, which stood at €55.6 million in 2024, down from €97.8 million in 2023.
The company's revenue from the Americas increased from €149.4 million in 2023 to €165.2 million in 2024. Sales in other countries totalled €6.7 million, while sales in the Middle East increased from €144.3 million in 2023 to €159.2 million in 2024. Sales in the rest of Europe decreased from €258.5 million in 2023 to €242.4 million in 2024.
Most of Bulgari's business is conducted in Japan and the Far East. Sales in Japan for Bulgari in 2024 were €175.1 million, up from €120.2 million in 2023. Sales in the rest of the Far East decreased from €805.6 million in 2023 to €638.6 million in 2024. Sales in Italy were €68.2 million, a marginal decrease from the previous year.
Bulgari Ireland operates a logistic center for the storage and distribution of jewellery and watches at Horizon Logistics Park near Dublin Airport. The company employs 183 staff across administration, distribution, sales (customer service), and warehouse. Employee costs totalled just over €14 million last year, an increase from a little over €13 million in 2023.
Administrative expenses for Bulgari Ireland in 2024 were €402 million, down from €484.3 million in the previous year. The cost of sales for the company was €960.2 million, down from €968.4 million in the previous year.
It is worth noting that Bulgari Ireland received a sum of more than €10.1 million from the Italian tax authorities in relation to a VAT refund since the year end. The tax authority that refunded this amount is not specified in the provided search results. Bulgari Ireland paid tax of €9.9 million on its ordinary activities, an increase from the previous year's €7 million.
In conclusion, while Bulgari Ireland has faced scrutiny over its role in the brand's global tax structures, it continues to play a significant part in the company's financial performance. The unit's revenue and profits may have decreased slightly in 2024 compared to the previous year, but it still managed to pay out a higher dividend and reduce its administrative expenses and cost of sales. The company's logistic center in Ireland serves as a crucial hub for the distribution of jewellery and watches to various parts of the world.
