Tuesday, March 3, 2009

Penguin group announces record 2008 profits

Penguin Group, the international publishing company, on March 2 announced record profits of £93m for 2008, representing growth of 26% over the previous year. The company achieved a profit margin of 10.3%, meeting its commitment to a double digit margin in 2008. Sales rose 7% to £903m. This exceptional performance was achieved in spite of one of the most challenging retail environments in recent times.
The strengthening of the dollar in the course of the year boosted both the sales and the profits of the company in sterling terms but, even on an underlying basis, sales were up by 3% and profits showed growth of 4%. These numbers were all struck after a profit charge to reflect liquidity issues in the UK at the Woolworths Group.
The improved profitability was the result of a company-wide focus on margin improvement through operational efficiency, consistent and disciplined investment in author and product development and the development of a globally coordinated publishing organisation benefiting from worldwide scale.
These strong Penguin results were part of an excellent overall Pearson performance in 2008. Penguin Group Chairman and Chief Executive, John Makinson, said: "We are hugely proud of Penguin's performance in 2008. In a very difficult market for consumer books, which deteriorated progressively during the year, Penguin achieved outstanding growth in sales and profit allowing us to meet our longstanding commitment to a double digit profit margin. This performance was underpinned by exceptional publishing around the world which we expect to continue in 2009."
In India Penguin, the largest English-language publisher, grew sales and won almost all the major awards including the Vodafone Crossword award for Best Book fiction for A Girl and A River by Usha K R and Best Book non- fiction for The Last Mughal by William Dalrymple. The launch of the Allen Lane imprint in India was spearheaded by the publication of founder and chairman of Infosys Nandan Nilekani's Imagining India.

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