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品牌怎么做高端高价?靠这招毛利率高达80%
3 6 Ke· 2025-09-15 09:21
Core Insights - The article emphasizes the importance of profit in business, highlighting that many companies are now realizing that profitability is crucial for attracting investors and sustaining growth [1] - It introduces L'Occitane as a case study of a brand that successfully transformed from a fast-moving consumer goods (FMCG) company to a luxury brand in China, achieving a consistent gross margin above 80% since its entry in 2005 [1][5] Group 1: Brand Strategy - L'Occitane's entry into the Chinese market was marked by a strategic positioning in high-end shopping districts, adjacent to luxury brands like LV and Gucci, which helped establish its premium image [6] - The brand utilized a narrative around Provence culture and natural ingredients, particularly shea butter, to create a compelling story that resonated with Chinese consumers [3][6] - L'Occitane's pricing strategy included high price points for its products, with hand creams starting at 200 RMB, reinforcing its luxury positioning [6] Group 2: Unique Sales Channels - The brand's success is attributed to its innovative use of "high-end special channels," which include partnerships with private banks, luxury hotels, and high-end gift markets, allowing it to reach affluent consumers without direct competition in traditional retail [22][24] - L'Occitane's products are integrated into various high-end settings, such as luxury hotels and banks, enhancing brand visibility and consumer perception of quality [22][23] - The brand has also ventured into unique markets, such as medical supplies, where its products are used in high-end medical equipment, showcasing its versatility and broad appeal [28] Group 3: Lessons for Other Brands - The article suggests that other brands can learn from L'Occitane's approach to building a high-end brand image through strategic channel selection and storytelling [29] - It highlights the importance of timing in entering high-end channels, advocating for early engagement to establish strong partnerships [30] - The concept of creating a "closed loop" between brand image and sales channels is emphasized, where every channel serves both branding and sales purposes [32]
汇源再发文指责临时股东会“黑箱操作”
第一财经· 2025-08-15 07:21
Core Viewpoint - The article discusses the ongoing conflict between Beijing Huiyuan and its major shareholder, Zhuji Wenshenghui, regarding the legitimacy of a recent extraordinary shareholders' meeting and the company's financial performance amid challenges in meeting profit targets [3][5]. Group 1: Shareholder Meeting Controversy - On August 9, a public letter criticized the major shareholder for overdue investments, leading to a response from Beijing Huiyuan on August 14, questioning the legality of the third extraordinary shareholders' meeting held on August 11 [3][4]. - The extraordinary shareholders' meeting was characterized by "black box operations," with the major shareholder conducting the meeting unilaterally, and the only supervisor from Beijing Huiyuan being silenced when attempting to voice objections [3][5]. - The objection letter claims that the meeting violated multiple provisions of the Company Law, thus rejecting its legitimacy and the resolutions made during the meeting [3][5]. Group 2: Financial Performance and Challenges - Beijing Huiyuan's major shareholder, Wensheng Asset, has committed to a cumulative net profit of no less than 1.125 billion yuan from 2023 to 2025, with a target of 402 million yuan for 2025 [5]. - As of the first half of 2023, Beijing Huiyuan's net profit was approximately 100 million yuan, a year-on-year decline of about 40%, raising concerns about meeting the profit targets for the upcoming periods [5]. - If Beijing Huiyuan fails to meet the profit targets, Wensheng Asset may face equity compensation obligations to Guozhong Water or be required to repurchase shares, putting additional pressure on the company [5].
科尔尼最新全球美妆个护行业并购报告——交易总量创历史新高
科尔尼管理咨询· 2025-04-25 09:20
自疫情爆发以来,美妆个护行业的并购活动相比其他行业具有更强的韧性。 2024年美妆个护行业的并 购交易总数量达到了历史新高。 该行业的复苏能力得益于有利的宏观趋势,为其在未来实现可持续增 长以及扩大利润空间提供了支撑。 与X世代和婴儿潮一代相比,千禧一代、Z世代和阿尔法世代更加关注健康和幸福指数,这使得他们 对产品的使用率更高、购买量更大,并且更愿意为产品支付更高的价格,因而持续吸引着投资者的关 注。然而疫情也凸显出了消费者偏好的转变。虽然美妆个护市场的某些领域受到了广泛关注,但其他 领域却面临着挑战,这表明市场分化正在加剧。 对投资者来说未来12到18个月是一个难得的机遇期。 大型跨国公司正面临重新平衡其投资组合的压 力,资产剥离的情况将变得越来越普遍。与此同时,寻求回笼资金的私募股权投资者会处置那些持有 时间较长的资产,这将进一步增加市场上资产的供应。我们预计这将为投资者创造难得的机会,使其 能够以优惠的估值收购资产。 但随着优质资产日益稀缺,同时流动性得以恢复,来自企业和私募股权的竞争可能会引发竞价大战。 对于那些寻求投资组合转型、实现增长并在美妆个护市场占据领先地位的投资者来说,现在正是适合 采取行动 ...
L'OCCITANE(00973) - 2024 - 年度财报
2024-07-26 09:19
Financial Performance - Net sales for FY 2024 reached €2,541.9 million, an increase from €2,134.7 million in FY 2023, representing a growth of approximately 19.0%[12] - Operating profit for FY 2024 was €233.1 million, slightly down from €239.1 million in FY 2023, indicating a decrease of about 2.5%[12] - Gross margin decreased to 79.3% in FY 2024 from 80.5% in FY 2023, reflecting a decline of 1.2 percentage points[12] - The company reported a net profit margin of 4.0% for FY 2024, down from 5.5% in FY 2023, a decrease of 1.5 percentage points[12] - The operating profit margin for FY 2024 was 9.2%, down from 11.2% in FY 2023, reflecting a decline of 2.0 percentage points[12] - The liquidity ratio decreased to 0.9 in FY 2024 from 1.2 in FY 2023, indicating a tighter liquidity position[12] - The net profit for FY 2024 was €101.8 million, a decrease of 13.9% from €118.2 million in FY 2023[49] - Basic and diluted earnings per share for FY 2024 were €0.064, down 18.6% from €0.078 in FY 2023[49] - EBITDA for FY 2024 was €446.0 million, down from €466.0 million in FY 2023[60] Sales and Market Growth - ELEMIS brand achieved double-digit growth in the Chinese market, while overall sales growth remained flat due to strategic investments in marketing and product launches[17] - Sol de Janeiro, the company's second-largest brand, experienced triple-digit sales growth, contributing significantly to profitability in FY 2024[17] - The Americas region saw a significant growth of 63.0% at constant exchange rates, becoming the largest region with 43.0% of total sales revenue[29][30] - Online channel sales increased by 25.2% at constant exchange rates, primarily driven by strong performances from Sol de Janeiro and ELEMIS[33] - The overall same-store sales growth for the group was 7.6% in FY 2024[29] - Other brands collectively recorded a 14.7% growth at constant exchange rates, with Erborian and L'OCCITANE au Brésil showing particularly strong performances[28] Investments and Acquisitions - The company successfully expanded its geographical footprint through acquisitions, including the purchase of luxury home fragrance brand Dr. Vranjes Firenze in March 2024[17] - The company acquired Dr. Vranjes Japan KK for €6.8 million on April 2, 2024, expanding its brand presence in Japan[64] Expenses and Cost Management - Reported sales cost increased by 26.2% or €109,100,000 to €525,600,000 for FY 2024, resulting in a gross margin decrease of 1.2 percentage points to 79.3%[35] - Reported distribution expenses rose by 9.3% or €73,000,000 to €857,700,000 for FY 2024, with distribution expenses as a percentage of net sales decreasing by 3.1 percentage points to 33.7%[36] - Reported marketing expenses increased by 57.3% or €210,600,000 to €578,300,000 for FY 2024, with marketing expenses as a percentage of net sales rising by 5.6 percentage points to 22.8%[37] - Reported general and administrative expenses increased by 28.8% or €58,000,000 to €259,500,000 for FY 2024, with these expenses as a percentage of net sales rising by 0.8 percentage points to 10.2%[39] Sustainability and Corporate Responsibility - The company achieved a significant milestone by obtaining B Corp certification in the first half of FY 2024, highlighting its commitment to sustainability[17] - New targets have been set for the company, including living wages for all team members and reducing carbon emissions across the value chain[17] - The company aims to pay a living wage to every global team member by FY 2026 and is committed to reducing its carbon footprint and plastic pollution[79] - The company has made significant progress in the traceability of plant materials, with 81% of ingredients from L'OCCITANE en Provence and Melvita traceable to their country of origin, aiming for 90% by FY 2026[79] Management and Governance - The board consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors[91] - The company emphasizes gender diversity, with a goal of achieving a balanced representation across all levels, particularly at the board level[94] - The Nomination Committee is responsible for recommending candidates for the board, considering various factors including diversity and qualifications[109] - The company encourages ongoing training for board members on corporate governance and regulatory developments[105] Shareholder Communication and Policies - The company emphasizes communication with shareholders through various channels, including group meetings with analysts and institutional investors[129] - Shareholders can request the convening of a general meeting if they collectively hold at least 5% of the paid-up share capital[129] - The company has established a policy for the disclosure of inside information to ensure compliance with legal requirements[130] Stock Options and Compensation - The total compensation for the top five highest-paid individuals, including one director, was approximately €13,152,000 in FY 2024[118] - The company granted stock options to executives as part of the long-term incentive plan based on performance criteria[119] - The maximum number of shares that can be granted under the 2021 Share Award Scheme is capped at 7,343,852 shares, representing 0.5% of the issued share capital as of September 29, 2021[196]
L'OCCITANE(00973) - 2024 - 年度业绩
2024-06-24 08:30
[Full-Year Performance Summary](index=1&type=section&id=Full-Year%20Performance%20Summary) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) FY2024 net sales grew 24.1% at constant FX, surpassing €2.5 billion, driven by key brands, but reported operating margin declined to 9.2% due to marketing investments Key Performance Indicators for FY2024 (Million Euros) | Metric | FY2024 | FY2023 | Change | Change at Constant FX | | :--- | :--- | :--- | :--- | :--- | | Net Sales | €2,542 | €2,135 | +19.1% | +24.1% | | Reported Operating Profit | €233 | €239 | -2.5% | - | | Reported Operating Margin | 9.2% | 11.2% | -2.0 p.p. | - | | Management Basis Operating Profit | €308 | €337 | -8.4% | - | | Management Basis Operating Margin | 12.1% | 15.8% | -3.7 p.p. | - | - Performance growth was primarily driven by the strong performance of the **Sol de Janeiro** brand and the stable performance of the **L'OCCITANE en Provence** brand[6](index=6&type=chunk) - The decline in operating margin was primarily attributed to increased marketing investments in key brands across strategic markets and channels[6](index=6&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) FY2024 net sales rose 19.1% to €2.542 billion, but operating profit fell 2.5% to €233.1 million due to a 57.3% marketing expense surge, resulting in a 13.9% net profit drop Consolidated Income Statement Summary (Million Euros) | Item | FY2024 | FY2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Sales | 2,541.9 | 2,134.7 | +19.1% | | Gross Profit | 2,016.3 | 1,718.1 | +17.4% | | Operating Profit | 233.1 | 239.1 | -2.5% | | Profit for the Year | 101.8 | 118.2 | -13.9% | | Basic Earnings Per Share (Euros) | 0.064 | 0.078 | -18.6% | - Marketing expenses significantly increased by **57.3%** year-on-year, from €368 million to €578 million, primarily impacting operating profit[7](index=7&type=chunk) - The effective tax rate rose from **34.2% to 46.2%**, leading to a substantial increase in income tax expense and further compressing net profit[7](index=7&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets grew to €3.115 billion, driven by current assets, but total liabilities, especially borrowings, significantly increased, resulting in negative net current assets and higher short-term solvency pressure Consolidated Statement of Financial Position Summary (Million Euros) | Item | March 31, 2024 | March 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,115.0 | 2,816.4 | +10.6% | | Total Liabilities | 2,203.5 | 1,629.4 | +35.2% | | Total Equity | 911.5 | 1,187.0 | -23.2% | | Inventories | 450.3 | 317.2 | +42.0% | | Borrowings (Current + Non-current) | 574.1 | 518.9 | +10.6% | | Net Current Assets | (89.2) | 157.3 | - | [Selected Notes to the Financial Statements](index=4&type=section&id=Selected%20Notes%20to%20the%20Financial%20Statements) Notes highlight Sol de Janeiro as a core growth driver with 23.6% operating margin, other operating expenses include €61.05 million goodwill impairment, and no dividend is recommended due to a privatization proposal Operating Performance by Brand for FY2024 (Million Euros) | Brand | Net Sales | % of Total | Operating Profit/(Loss) | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | L'OCCITANE en Provence | 1,388.9 | 54.6% | 131.7 | 9.5% | | Sol de Janeiro | 686.1 | 27.0% | 161.6 | 23.6% | | ELEMIS | 253.0 | 10.0% | 19.6 | 7.8% | | Other Brands | 214.0 | 8.4% | (79.9) | (37.3%) | | **Total** | **2,541.9** | **100.0%** | **233.1** | **9.2%** | - The largest item within other operating expenses was goodwill impairment for the Melvita and LimeLife brands, totaling **€61.045 million**[19](index=19&type=chunk) - Due to the privatization proposal announced on April 29, 2024, the Board does not recommend a distribution of profits for the year ended March 31, 2024[23](index=23&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) FY2024 net sales grew 24.1% at constant FX, driven by Sol de Janeiro's explosive growth, with Americas becoming the largest market and wholesale channels leading growth [Performance by Brand](index=11&type=section&id=Performance%20by%20Brand) Sol de Janeiro achieved exceptional 167.1% growth at constant FX, becoming the core engine, while L'OCCITANE en Provence saw stable growth, and ELEMIS sales remained flat due to premiumization Sales Growth by Brand (at Constant Exchange Rates) | Brand | FY2024 Sales (Million Euros) | Growth Rate at Constant FX | | :--- | :--- | :--- | | L'OCCITANE en Provence | 1,388.9 | +2.7% | | ELEMIS | 253.0 | +1.3% | | Sol de Janeiro | 686.1 | +167.1% | | Other Brands | 214.0 | +14.7% | | **Total** | **2,541.9** | **+24.1%** | - **Sol de Janeiro's** growth was driven by successful new product launches, strategic expansion of distribution channels, and outstanding performance in wholesale channels[37](index=37&type=chunk) [Performance by Region](index=12&type=section&id=Performance%20by%20Region) Americas grew 63.0% at constant FX, becoming the largest market at 43.0% of sales, driven by Sol de Janeiro, while Asia-Pacific grew 6.3% led by China, and EMEA grew 4.0% Sales Growth by Region (at Constant Exchange Rates) | Region | FY2024 Sales (Million Euros) | % of Total | Growth Rate at Constant FX | | :--- | :--- | :--- | :--- | | Asia-Pacific | 884.2 | 34.8% | +6.3% | | Americas | 1,092.5 | 43.0% | +63.0% | | Europe, Middle East & Africa | 565.2 | 22.2% | +4.0% | | **Total** | **2,541.9** | **100.0%** | **+24.1%** | [Performance by Channel](index=12&type=section&id=Performance%20by%20Channel) Wholesale and other channels grew fastest at 45.7% at constant FX, comprising 39.8% of sales, driven by Sol de Janeiro, with online channels also showing strong growth Sales Growth by Channel (at Constant Exchange Rates) | Channel | FY2024 Sales (Million Euros) | % of Total | Growth Rate at Constant FX | | :--- | :--- | :--- | :--- | | Retail | 745.2 | 29.3% | +3.0% | | Online Channels | 784.9 | 30.9% | +25.2% | | Wholesale & Other | 1,011.8 | 39.8% | +45.7% | | **Total** | **2,541.9** | **100.0%** | **+24.1%** | [Profitability Analysis](index=13&type=section&id=Profitability%20Analysis) FY2024 reported operating margin fell from 11.2% to 9.2%, mainly due to a 5.6 p.p. increase in marketing expenses as a percentage of sales, reflecting strategic investments, while management basis operating margin was 12.1% - Gross margin decreased by **1.2 percentage points** to **79.3%**, mainly due to the increased sales contribution from the **Sol de Janeiro** brand, which has a relatively lower gross margin[44](index=44&type=chunk) - Distribution expenses as a percentage of net sales decreased by **3.1 percentage points**, primarily benefiting from the increased contribution of brands with lower distribution costs like **Sol de Janeiro** and optimized retail network[44](index=44&type=chunk) - Marketing expenses as a percentage of net sales significantly increased from **17.2% to 22.8%**, mainly due to strategic investments in **L'OCCITANE en Provence** in China, the US, and Japan, as well as investments in **Sol de Janeiro** and **ELEMIS**[45](index=45&type=chunk)[47](index=47&type=chunk) - The effective tax rate significantly increased from **34.2% to 46.2%**, primarily due to adverse factors such as impairment of LimeLife US tax losses, undistributed taxable profits, and increased tax rates in certain regions[58](index=58&type=chunk)[61](index=61&type=chunk) [Balance Sheet and Cash Flow Review](index=17&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Review) Period-end cash slightly decreased to €139.5 million, free cash flow declined to €194 million, inventory days increased to 267 due to Sol de Janeiro's expansion, and financing activities saw a net outflow of €125 million Cash Flow Statement Overview (Million Euros) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Net cash inflow from operating activities | 260.5 | 300.2 | | Free Cash Flow | 194.3 | 253.9 | | Net cash (outflow) from investing activities | (109.2) | (35.7) | | Net cash (outflow) from financing activities | (124.9) | (436.8) | | Net (decrease) in cash and cash equivalents | (29.7) | (213.6) | - Cash outflow from investing activities increased, primarily due to the acquisition of Dr. Vranjes Firenze Group (net **€116.7 million**)[63](index=63&type=chunk) - Average inventory days increased by **12 days** to **267 days**, mainly due to increased stocking for the expansion of the **Sol de Janeiro** business[67](index=67&type=chunk) [Strategic Review and Outlook](index=21&type=section&id=Strategic%20Review%20and%20Outlook) [FY2024 Strategic Execution Review](index=21&type=section&id=FY2024%20Strategic%20Execution%20Review) FY2024 saw strong growth, exceeding €2.5 billion in sales, driven by Sol de Janeiro and L'OCCITANE en Provence, consolidating its multi-brand position through increased marketing and optimized omnichannel strategy - The Group maintained strong momentum in FY2024, with sales growing **24.1%** at constant exchange rates, primarily driven by **Sol de Janeiro** and **L'OCCITANE en Provence**[79](index=79&type=chunk) - The Group increased marketing investments to sustain brand growth, capitalize on premiumization trends, and strengthen its multi-brand group position[80](index=80&type=chunk) - The acquisition of Italian luxury home fragrance brand **Dr. Vranjes Firenze** further advanced the strategy of building a balanced brand portfolio[95](index=95&type=chunk) [Strategic Focus by Brand](index=22&type=section&id=Strategic%20Focus%20by%20Brand) L'OCCITANE en Provence maintained share via marketing, Sol de Janeiro expanded distribution for high growth, ELEMIS pursued premiumization, and the Group acquired Dr. Vranjes Firenze - **L'OCCITANE en Provence**: Significant investments in China, the US, and Japan to maintain and expand market share drove stable sales growth[83](index=83&type=chunk) - **Sol de Janeiro**: Continued strong performance, achieving triple-digit growth through successful new product launches and expanded distribution channels (e.g., entering Ulta in the US), becoming the Group's largest profit contributor[90](index=90&type=chunk)[91](index=91&type=chunk) - **ELEMIS**: Continued premiumization strategy, reducing discount frequency and depth, resulted in flat sales, but the brand achieved double-digit growth in China[92](index=92&type=chunk)[93](index=93&type=chunk) [Organization and Sustainability](index=24&type=section&id=Organization%20and%20Sustainability) The Group completed leadership changes, appointing Laurent Marteau as CEO, and achieved B Corp™ certification in 2023, committing to balanced development across employees, planet, and profitability with specific sustainability goals - The Group completed a leadership transition, with Laurent Marteau taking over as CEO on April 1, 2024[98](index=98&type=chunk) - The Group became a certified B Corp™ in 2023 and is committed to having newly acquired brands achieve this certification by 2026[99](index=99&type=chunk) [Outlook and Privatization Proposal](index=24&type=section&id=Outlook%20and%20Privatization%20Proposal) The Group is cautiously optimistic for FY2025, but ongoing strategic investments will pressure margins, with the controlling shareholder proposing privatization to delist for greater strategic autonomy - The Group is cautiously optimistic for FY2025, but continued strategic investments will exert pressure on profit margins[101](index=101&type=chunk) - Controlling shareholder L'Occitane Groupe S.A. has proposed to acquire all company shares and privatize it to gain greater strategic investment autonomy[102](index=102&type=chunk) [Corporate Governance and Other Matters](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Matters) [Dividends and Post-Fiscal Year Events](index=21&type=section&id=Dividends%20and%20Post-Fiscal%20Year%20Events) Due to the privatization proposal, no FY2024 dividend is recommended, with post-fiscal year events including the acquisition of Dr. Vranjes Japan KK and the formal privatization offer announcement - Due to the privatization proposal, the company does not plan to declare, recommend, or pay any dividends[76](index=76&type=chunk) - On April 2, 2024, the company acquired Dr. Vranjes Japan KK for **€6.8 million**[77](index=77&type=chunk) - On April 29, 2024, the controlling shareholder made an offer to acquire all company shares, aiming to privatize the company and delist it from the Hong Kong Stock Exchange[78](index=78&type=chunk)
L'OCCITANE(00973) - 2024 - 中期财报
2023-12-29 08:33
Financial Performance - Net sales for the first half of FY 2024 reached €1,072.0 million, a 19.1% increase from €900.5 million in FY 2023[17] - Operating profit for the first half of FY 2024 was €76.8 million, down 11.5% from €87.0 million in FY 2023[17] - Gross margin decreased to 78.3% in FY 2024 from 80.2% in FY 2023[17] - Net profit margin fell to 3.7% in FY 2024 compared to 7.1% in FY 2023[17] - The company reported a return on equity of 3.8% for FY 2024, down from 4.8% in FY 2023[17] - The net profit for the first half of FY 2024 decreased by €24,300,000 or 38.0% to €39,600,000, with basic and diluted earnings per share dropping by 45.0% to €0.023[85] - The operating profit margin for the first half of FY 2024 is 8.4%, impacted by increased marketing investments[23] - The operating profit for the same period was €89.7 million, a decrease from €104.1 million in the previous year[45] - The group reported a net profit of €39,630 thousand for the period, a decrease from €63,890 thousand year-on-year[128] - Basic and diluted earnings per share were both €0.023, down from €0.042 in the same period last year[128] Sales Growth - Sales growth at constant exchange rates was 25%, driven primarily by the brands L'OCCITANE en Provence and Sol de Janeiro[21] - Sol de Janeiro achieved a remarkable sales growth of 188.8%, reaching €270,000,000 in the first half of FY 2024, surpassing its total sales for FY 2023[58] - ELEMIS recorded a sales growth of 7.6% in the first half of FY 2024, with a notable increase of over 200% in China[58] - The Americas region led growth with a 63.6% increase in sales, primarily driven by Sol de Janeiro's performance in the U.S.[61] - The group's overall same-store sales growth was 7.8% for the first half of FY 2024[60] - The Asia-Pacific region recorded a 9.2% increase in sales, significantly boosted by a 28.0% growth in China[61] - Online sales grew by 26.9% to €321,100,000, while wholesale and other channels saw a 44.9% increase to €437,700,000[62] Cost and Expenses - Cost of sales increased by 30.2% or €53.9 million to €232.1 million in the first half of FY 2024, with a gross margin decrease of 1.9 percentage points to 78.3%[65] - Distribution expenses rose by 10.9% or €38.6 million to €391.7 million, improving as a percentage of net sales by 2.7 percentage points to 36.5%[67] - Marketing expenses surged by 47.8% or €76.9 million to €237.5 million, increasing as a percentage of net sales by 4.4 percentage points to 22.2%[68] - R&D expenses increased by 11.5% or €1.2 million to €11.3 million, remaining stable at 1.1% of net sales[70] Inventory and Cash Management - The average inventory turnover days improved to 278 days in FY 2024 from 293 days in FY 2023[17] - The average inventory turnover days increased by 15 days, with a net inventory value of €391,000,000, up 26.3% from €309,500,000 a year earlier[93] - Cash and cash equivalents as of September 30, 2023, were €104,000,000, down from €150,600,000 a year earlier[88] - The net debt decreased by €87,900,000 or 10.7% to €735,200,000 as of September 30, 2023, compared to €823,100,000 a year earlier[88] Strategic Initiatives - The company plans to continue investing in all its brands to strengthen its position as a multi-brand group[21] - The company aims to create strong performance during major festive seasons and continues to invest in targeted activities and strategic product categories[26] - The company celebrated becoming a certified B Corp™, reflecting its commitment to social and environmental performance[26] - The group plans to expand Sol de Janeiro into new product categories and implement a premiumization strategy for ELEMIS to enhance long-term growth and profitability[106] Market and Regional Performance - L'OCCITANE en Provence achieved a growth of 22% in the Chinese high-end beauty market at constant exchange rates[23] - The group maintained a balanced regional sales mix, with the Americas accounting for 41.3% of total sales[61] - Retail sales grew 3.7% at constant exchange rates, benefiting from improved market conditions in China; excluding Russia, retail growth was 5.5%[63] Financial Position and Liabilities - Total borrowings as of September 30, 2023, were €525,200,000, a decrease from €624,800,000 a year earlier[88] - The company reported a significant foreign exchange loss of €4,988 thousand related to equity investments, compared to a loss of €4,215 thousand in the previous year[129] - The company has established standard payment and delivery terms to manage credit risk effectively[168] - The group has sufficient provisions for potential credit losses and monitors counterparty solvency[169] Acquisitions and Investments - The company acquired a 35% stake in Group Fourteen Holdings Pty Ltd for €10,036,000, increasing its ownership to 67%[197] - L'Occitane International S.A. purchased an additional 0.1% stake in ELEMIS for €1,065,000, raising its total ownership to 98.7%[198] - The company invested €9,427,000 in Good Glamm Group, increasing its equity stake from 15.53% to 15.80%[199] Future Outlook - The group remains cautiously optimistic about the second half of the fiscal year 2024, despite additional marketing investments impacting profit margins[117] - The implementation of the OECD's Pillar Two rules will require multinational enterprises with global revenues exceeding €750 million to pay a minimum effective corporate tax rate of 15% starting from the fiscal year 2025[150]
L'OCCITANE(00973) - 2024 - 中期业绩
2023-11-28 08:31
[Executive Summary](index=1&type=section&id=Executive%20Summary) The group's net sales grew by 24.9% at constant exchange rates, but operating profit decreased by 11.8% due to increased marketing investments Key Financial Highlights for H1 FY2024 | Metric | Six Months Ended September 30, 2023 (EUR thousand) | Y-o-Y Change | | :--- | :--- | :--- | | Net Sales (constant FX) | >1,000,000 | 24.9% increase | | Gross Margin | 78.3% | 1.9 percentage points decrease | | Operating Profit | 76,800 | 11.8% decrease | | Management Operating Profit Margin | 8.4% | 3.1 percentage points decrease | - Net sales at constant exchange rates grew by **24.9%**, primarily driven by strong growth from Sol de Janeiro and significant growth from L'OCCITANE en Provence in the Chinese market[4](index=4&type=chunk) - Operating profit decreased by **11.8%**, mainly due to the group's substantial increase in marketing investments for key brands in strategic markets and channels[4](index=4&type=chunk) [Key Interim Financial Information](index=1&type=section&id=Key%20Interim%20Financial%20Information) This section presents the group's interim consolidated financial statements, including income, comprehensive income, and statement of financial position - The reporting period covers the six months ended September 30, 2023 (H1 FY2024), with financial data prepared in accordance with International Financial Reporting Standards[5](index=5&type=chunk) [Interim Consolidated Income Statement](index=2&type=section&id=Interim%20Consolidated%20Income%20Statement) In H1 FY2024, net sales increased by 19.0% to EUR 1,072,024 thousand, but profit for the period decreased by 38.0% to EUR 39,630 thousand, impacted by higher marketing and finance costs Key Data from Interim Consolidated Income Statement for H1 FY2024 | Metric | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | 1,072,024 | 900,505 | 19.0% | | Gross Profit | 839,915 | 722,276 | 16.3% | | Gross Margin | 78.3% | 80.2% | -1.9pp | | Operating Profit | 76,762 | 87,031 | -11.8% | | Profit for the Period | 39,630 | 63,890 | -38.0% | | Basic Earnings Per Share | 0.023 | 0.042 | -45.0% | - Marketing expenses significantly increased by **47.8%** to EUR 237,475 thousand, contributing to the decline in operating profit[6](index=6&type=chunk) - Finance costs grew substantially by **69.9%** to EUR 26,388 thousand, further eroding profit for the period[6](index=6&type=chunk) [Interim Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for H1 FY2024 significantly decreased by 64.0% to EUR 70,109 thousand, primarily due to reduced currency translation differences Key Data from Interim Consolidated Statement of Comprehensive Income for H1 FY2024 | Metric | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | % Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 39,630 | 63,890 | -38.0% | | Currency Translation Differences | 35,467 | 124,367 | -71.5% | | Total Comprehensive Income for the Period | 70,109 | 194,847 | -64.0% | - Currency translation differences primarily arose from the US dollar, particularly related to goodwill, trademarks, and right-of-use assets[7](index=7&type=chunk) [Interim Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2023, total assets increased by 4.3% to EUR 2,936,887 thousand, driven by higher inventories and trade receivables, while total equity decreased Key Data from Consolidated Statement of Financial Position as of September 30, 2023 | Metric | September 30, 2023 (EUR thousand) | March 31, 2023 (EUR thousand) | % Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,936,887 | 2,816,428 | 4.3% | | Non-current Assets | 2,018,422 | 2,008,346 | 0.5% | | Current Assets | 918,465 | 808,082 | 13.7% | | Total Equity | 952,147 | 1,187,001 | -19.7% | | Non-current Liabilities | 1,214,144 | 978,609 | 24.1% | | Current Liabilities | 770,596 | 650,818 | 18.4% | - Inventories increased from EUR 317,197 thousand to **EUR 390,951 thousand**, and trade receivables from EUR 256,553 thousand to **EUR 297,827 thousand**, driving current asset growth[8](index=8&type=chunk) - Other financial liabilities significantly increased from EUR 338,650 thousand to **EUR 589,257 thousand**, leading to a substantial rise in non-current liabilities[8](index=8&type=chunk) [Notes to the Interim Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed notes on the preparation basis, new accounting standards, segment information, and specific income and expense items [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) This section outlines that the interim condensed consolidated financial information is prepared in accordance with IAS 34, with consistent accounting policies except for interim income tax calculation - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting"[9](index=9&type=chunk) - Interim income tax is calculated based on the estimated annual effective tax rate, which is a key difference from the accounting policies for annual consolidated financial statements[9](index=9&type=chunk) [Other New and Amended Standards](index=5&type=section&id=Other%20New%20and%20Amended%20Standards) This section lists new and amended IFRS standards effective from April 1, 2023, noting that IAS 12 amendments are expected to have a significant impact from FY2025 - Amendments to IAS 1 require entities to disclose "material accounting policy information" instead of "significant accounting policies"[10](index=10&type=chunk) - Amendments to IAS 8 clarify the distinction between changes in accounting policies and changes in accounting estimates[10](index=10&type=chunk) - Amendments to IAS 12, requiring companies to recognize deferred tax on transactions that give rise to equal taxable and deductible temporary differences on initial recognition, are expected to have a **significant impact** on the group from FY2025[10](index=10&type=chunk) [2. Net Sales and Segment Information](index=6&type=section&id=2.%20Net%20Sales%20and%20Segment%20Information) This section identifies four operating segments—L'OCCITANE en Provence, Sol de Janeiro, ELEMIS, and Other Brands—and assesses their performance using net sales and operating profit/(loss) - The group identifies four operating segments: L'OCCITANE en Provence, Sol de Janeiro, ELEMIS, and Other Brands[11](index=11&type=chunk) - Management assesses the performance of each operating segment based on net sales and operating profit/(loss)[11](index=11&type=chunk) [2.1. Performance by Operating Segment](index=6&type=section&id=2.1.%20Performance%20by%20Operating%20Segment) Sol de Janeiro significantly increased its net sales and operating profit margin, becoming the second-largest brand, while L'OCCITANE en Provence's operating profit margin sharply declined Net Sales and Operating Profit by Operating Segment for H1 FY2024 | Brand | Net Sales (EUR thousand) | Sales Share | Operating Profit (EUR thousand) | Operating Profit Margin | | :--- | :--- | :--- | :--- | :--- | | L'OCCITANE en Provence | 595,638 | 55.6% | 746 | 0.1% | | Sol de Janeiro | 269,988 | 25.2% | 77,931 | 28.9% | | ELEMIS | 109,156 | 10.2% | 7,052 | 6.5% | | Other Brands | 97,242 | 9.1% | (8,967) | (9.2)% | | **Total** | **1,072,024** | **100.0%** | **76,762** | **7.2%** | - Sol de Janeiro's net sales significantly increased from EUR 94,605 thousand to **EUR 269,988 thousand**, becoming the group's second-largest brand with an operating profit margin of **28.9%**[13](index=13&type=chunk)[14](index=14&type=chunk) - L'OCCITANE en Provence's operating profit margin sharply decreased from 9.1% to **0.1%**, despite remaining the largest brand by sales[13](index=13&type=chunk)[14](index=14&type=chunk) [2.2. Performance by Geographical Region](index=7&type=section&id=2.2.%20Performance%20by%20Geographical%20Region) The Americas region became the largest sales contributor with a 57.4% year-on-year increase, driven by strong performance, while China remained a key market in Asia Pacific Net Sales by Geographical Region for H1 FY2024 | Region | September 30, 2023 (EUR thousand) | Sales Share | September 30, 2022 (EUR thousand) | Sales Share | | :--- | :--- | :--- | :--- | :--- | | Asia Pacific | 371,361 | 34.6% | 370,280 | 41.1% | | Americas | 442,381 | 41.3% | 280,990 | 31.2% | | Europe, Middle East & Africa | 258,282 | 24.1% | 249,235 | 27.7% | | **Total** | **1,072,024** | **100.0%** | **900,505** | **100.0%** | - The Americas region's net sales increased by **57.4%** year-on-year, with its share of total sales rising from 31.2% to **41.3%**, making it the largest sales region[15](index=15&type=chunk) - The Chinese market contributed **12.6%** of the group's total sales, serving as a significant contributor to the Asia Pacific region[15](index=15&type=chunk) [3. Other Operating Income](index=7&type=section&id=3.%20Other%20Operating%20Income) Other operating income for H1 FY2024 decreased by 35.6% to EUR 2,232 thousand, primarily due to the absence of capital gains from changes in equity interest recorded in the prior year Other Operating Income for H1 FY2024 | Item | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Government grants | 675 | 552 | | Net gain on disposal of Duolab International SARL | 1,320 | – | | Gain on disposal of assets | 210 | 372 | | Capital gain from changes in equity interest in associates and joint ventures | – | 1,700 | | **Total** | **2,232** | **3,467** | - Prior year's other operating income included a **EUR 1,700 thousand** capital gain from changes in equity interest in Good Glamm Group, which was absent in the current period[15](index=15&type=chunk) [4. Other Operating Expenses](index=7&type=section&id=4.%20Other%20Operating%20Expenses) Other operating expenses for H1 FY2024 significantly decreased by 83.9% to EUR 2,321 thousand, mainly due to the absence of capital losses from the Russia divestment in the prior year Other Operating Expenses for H1 FY2024 | Item | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Net loss on disposal of CAPSUM | (1,993) | – | | Loss on disposal of assets | (328) | – | | Reclassification to income statement (currency translation differences) | – | (10,805) | | Capital loss on disposal of L'Occitane Russia | – | (3,632) | | **Total** | **(2,321)** | **(14,437)** | - Prior year's other operating expenses included **EUR 10,805 thousand** in currency translation differences and **EUR 3,632 thousand** in capital losses from the Russia divestment, which were absent in the current period[15](index=15&type=chunk) [5. Share of Profits/(Losses) of Associates and Joint Ventures Accounted for Using the Equity Method](index=8&type=section&id=5.%20Share%20of%20Profits%2F%28Losses%29%20of%20Associates%20and%20Joint%20Ventures%20Accounted%20for%20Using%20the%20Equity%20Method) Net losses from associates and joint ventures expanded by 107.8% to EUR 8,464 thousand in H1 FY2024, primarily due to increased losses from Good Glamm Group Share of Profits/(Losses) of Associates and Joint Ventures for H1 FY2024 | Company | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Good Glamm Group | (11,404) | (4,759) | | CAPSUM | 468 | 406 | | L'Occitane Middle East | 2,472 | 280 | | **Total** | **(8,464)** | **(4,073)** | - Losses from Good Glamm Group expanded from EUR 4,759 thousand to **EUR 11,404 thousand**, representing the primary driver of the increased losses[16](index=16&type=chunk) [6. Depreciation, Amortisation and Impairment](index=8&type=section&id=6.%20Depreciation%2C%20Amortisation%20and%20Impairment) Total depreciation, amortisation, and impairment for H1 FY2024 remained stable at EUR 76,711 thousand, consistent with the prior year Depreciation, Amortisation and Impairment for H1 FY2024 | Metric | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Depreciation, Amortisation and Impairment | 76,711 | 76,816 | [7. Finance Income and Costs](index=8&type=section&id=7.%20Finance%20Income%20and%20Costs) Net finance costs increased by EUR 9,300 thousand to EUR 23,737 thousand in H1 FY2024, driven by higher interest expenses and fair value changes related to the L'Occitane Russia divestment Finance Income and Costs for H1 FY2024 | Item | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Finance income | 2,651 | 1,064 | | Fair value change of consideration for disposal of L'Occitane Russia | (8,645) | (7,885) | | Interest expense | (13,546) | (4,088) | | Interest and finance charges paid/payable on lease liabilities | (4,197) | (3,555) | | **Total Finance Costs** | **(26,388)** | **(15,528)** | | **Net Finance Costs** | **(23,737)** | **(14,464)** | - Finance income increased by **149.2%** year-on-year to EUR 2,651 thousand, primarily from interest on cash and cash equivalents[16](index=16&type=chunk) - Total finance costs increased by **69.9%** year-on-year to EUR 26,388 thousand, mainly due to higher interest expenses on borrowings[16](index=16&type=chunk) [8. Income Tax](index=8&type=section&id=8.%20Income%20Tax) Income tax expense for H1 FY2024 was EUR 11,113 thousand, with the effective tax rate increasing to 21.9% due to a higher proportion of taxable income in higher-tax jurisdictions Income Tax Expense and Effective Tax Rate for H1 FY2024 | Metric | September 30, 2023 (EUR thousand) | September 30, 2022 (EUR thousand) | | :--- | :--- | :--- | | Income Tax Expense | (11,113) | (7,781) | | Effective Tax Rate | 21.9% | 10.9% | - Excluding share of profits and losses of associates and joint ventures, the effective tax rate increased from 10.5% to **18.8%**[49](index=49&type=chunk) [9. Earnings Per Share](index=8&type=section&id=9.%20Earnings%20Per%20Share) Profit attributable to owners of the company was EUR 34,000 thousand in H1 FY2024, resulting in basic and diluted earnings per share of EUR 0.023, a 45.0% decrease Earnings Per Share for H1 FY2024 | Metric | September 30, 2023 (EUR) | September 30, 2022 (EUR) | % Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.023 | 0.042 | -45.0% | | Diluted Earnings Per Share | 0.023 | 0.042 | -45.0% | - The number of shares used for earnings per share calculation slightly increased, with basic shares rising from 1,471,333,800 to **1,472,169,550**[6](index=6&type=chunk) [10. Dividends](index=9&type=section&id=10.%20Dividends) The Board does not recommend any distribution for H1 FY2024, aligning with the policy of declaring and paying only a final dividend annually - The Board does not recommend any dividend distribution for the profit generated in H1 FY2024[18](index=18&type=chunk) - The company's policy is to declare and pay only a final dividend annually[18](index=18&type=chunk) [11. Inventories](index=9&type=section&id=11.%20Inventories) As of September 30, 2023, total inventories increased by 23.2% to EUR 390,951 thousand, primarily in finished goods and work-in-progress, and raw materials Inventory Composition as of September 30, 2023 | Item | September 30, 2023 (EUR thousand) | March 31, 2023 (EUR thousand) | | :--- | :--- | :--- | | Raw materials and consumables | 64,884 | 55,104 | | Finished goods and work-in-progress | 354,695 | 285,379 | | Total inventories | 419,579 | 340,483 | | Less: Provision | (28,628) | (23,286) | | **Net Inventories** | **390,951** | **317,197** | - Net inventories increased by **EUR 81,500 thousand** or **26.3%** compared to September 30, 2022, driven by strong growth from Sol de Janeiro and anticipation of Q3 holiday season sales[54](index=54&type=chunk) [12. Trade Receivables](index=9&type=section&id=12.%20Trade%20Receivables) As of September 30, 2023, total trade receivables increased by 16.1% to EUR 297,827 thousand, with most receivables current or less than three months overdue Ageing Analysis of Trade Receivables as of September 30, 2023 | Ageing | September 30, 2023 (EUR thousand) | March 31, 2023 (EUR thousand) | | :--- | :--- | :--- | | Current and less than 3 months overdue | 278,490 | 236,155 | | 3 to 6 months overdue | 13,726 | 15,333 | | 6 to 12 months overdue | 5,408 | 3,464 | | Over 12 months overdue | 5,039 | 6,104 | | Less: Provision for doubtful debts | (4,836) | (4,503) | | **Net Trade Receivables** | **297,827** | **256,553** | - The group believes that the net amount of receivables after provision for doubtful debts does not involve unrecoverable risks[20](index=20&type=chunk) [13. Trade Payables](index=9&type=section&id=13.%20Trade%20Payables) As of September 30, 2023, total trade payables increased by 26.3% to EUR 265,408 thousand, with the majority being current or less than three months overdue Ageing Analysis of Trade Payables as of September 30, 2023 | Ageing | September 30, 2023 (EUR thousand) | March 31, 2023 (EUR thousand) | | :--- | :--- | :--- | | Current and less than 3 months overdue | 261,795 | 208,063 | | 3 to 6 months overdue | 1,762 | 812 | | 6 to 12 months overdue | 1,051 | 32 | | Over 12 months overdue | 800 | 1,196 | | **Total Trade Payables** | **265,408** | **210,103** | [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's financial performance, including revenue, profitability, and key operational factors for H1 FY2024 - The group's net sales for H1 FY2024 grew by **24.9%** at constant exchange rates, reaching **EUR 1.072 billion**[26](index=26&type=chunk) - Operating profit decreased by **11.8%**, primarily due to a substantial increase in marketing investments in strategic markets and channels[4](index=4&type=chunk) - Net profit margin declined from **7.1%** in the prior year to **3.7%**[22](index=22&type=chunk) [Overview](index=10&type=section&id=Overview) In H1 FY2024, net sales grew by 24.9% at constant exchange rates to EUR 1,072.0 million, but operating profit decreased by 11.8% to EUR 76.8 million due to increased marketing investments Management vs. Reported Performance for H1 FY2024 | Metric | Management (2023) (EUR million or %) | Reported (2023) (EUR million or %) | Management (2022) (EUR million or %) | Reported (2022) (EUR million or %) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 1,072.0 | 1,072.0 | 904.5 | 900.5 | | Operating Profit | 89.7 | 76.8 | 104.1 | 87.0 | | Profit for the Period | Not applicable | 39.6 | Not applicable | 63.9 | | Gross Margin | 78.3% | 78.3% | 80.3% | 80.2% | | Operating Profit Margin | 8.4% | 7.2% | 11.5% | 9.7% | | Net Profit Margin | Not applicable | 3.7% | Not applicable | 7.1% | - Management performance excludes losses/profits from joint ventures and associates (Good Glamm Group and CAPSUM) for a more appropriate comparison[22](index=22&type=chunk)[23](index=23&type=chunk) [Definitions](index=10&type=section&id=Definitions) This section defines key terms used in the report, such as "like-for-like sales growth" and "overall growth," both excluding foreign exchange impacts - Like-for-like sales growth refers to the comparison of sales from comparable stores over two fiscal periods, excluding the impact of foreign exchange translation[24](index=24&type=chunk) - Overall growth refers to the increase in total global net sales for the reported fiscal period, excluding the impact of foreign exchange translation[24](index=24&type=chunk) [Seasonal Factors of Operations](index=10&type=section&id=Seasonal%20Factors%20of%20Operations) The group experiences significant seasonality, with Q3 (October 1 to December 31) showing substantially higher sales and operating profit due to the Christmas holiday season - The group's sales significantly increase in the third fiscal quarter (October 1 to December 31) due to the Christmas holiday season[25](index=25&type=chunk) - In FY2023, Q3 sales accounted for **42.2%** of annual sales, and operating profit for **36.4%** of annual operating profit[25](index=25&type=chunk) - The group typically utilizes most of its working capital from April to November to increase production in anticipation of Christmas holiday sales growth[25](index=25&type=chunk) [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) In H1 FY2024, net sales reached EUR 1.072 billion, growing 19.0% at reported rates and 24.9% at constant exchange rates, driven by Sol de Janeiro and L'OCCITANE en Provence in China Net Sales Growth for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Reported FX Growth | Constant FX Growth | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 1,072.0 | 904.5 (restated) | 18.5% | 24.9% | - Growth was primarily driven by the outstanding performance of Sol de Janeiro and the steady growth of L'OCCITANE en Provence in the Chinese market[26](index=26&type=chunk) - The total number of group retail locations increased by **18.7%** from 2,774 to **3,292**, with directly operated retail stores increasing by 2 to **1,364**[27](index=27&type=chunk) [Performance by Brand](index=11&type=section&id=Performance%20by%20Brand) Sol de Janeiro continued its strong growth, increasing by 188.8% at constant exchange rates to EUR 270 million, while L'OCCITANE en Provence saw 3.5% growth, primarily in China Net Sales and Growth by Brand for H1 FY2024 | Brand | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Reported FX Growth (%) | Constant FX Growth (%) | | :--- | :--- | :--- | :--- | :--- | | L'OCCITANE en Provence | 595.6 | 610.3 | (2.4) | 3.5 | | ELEMIS | 109.2 | 105.1 | 3.8 | 7.6 | | Sol de Janeiro | 270.0 | 98.6 | 173.9 | 188.8 | | Other | 97.2 | 90.5 | 7.5 | 10.7 | | **Total** | **1,072.0** | **904.5** | **18.5** | **24.9** | - Sol de Janeiro recorded triple-digit growth across all regions, with sales reaching **EUR 270 million**, surpassing its full-year FY2023 sales[30](index=30&type=chunk) - L'OCCITANE en Provence achieved double-digit sales growth in the Chinese market, driven by marketing investments in key product categories like face, body, and hair care[29](index=29&type=chunk) - ELEMIS sales in China grew by over **200%**, primarily propelled by social media marketing investments in its best-selling products[30](index=30&type=chunk) [Performance by Region](index=12&type=section&id=Performance%20by%20Region) The Americas region grew by 63.6% at constant exchange rates, becoming the largest sales region, while Asia Pacific grew by 9.2%, with China contributing significantly Net Sales and Growth by Region for H1 FY2024 | Region | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Reported FX Growth (%) | Constant FX Growth (%) | Like-for-like Sales Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Asia Pacific | 371.4 | 371.1 | 0.1 | 9.2 | 4.4 | | Americas | 442.4 | 284.1 | 55.7 | 63.6 | 15.8 | | Europe, Middle East & Africa | 258.3 | 249.2 | 3.6 | 4.1 | 4.1 | | **Total** | **1,072.0** | **904.5** | **18.5** | **24.9** | **7.8** | - The United States is the largest single market, accounting for **36.4%** of the group's net sales, primarily driven by the rapid growth of Sol de Janeiro[34](index=34&type=chunk) - The Chinese market recorded substantial growth of **28.0%** at constant exchange rates, largely due to contributions from L'OCCITANE en Provence and ELEMIS[34](index=34&type=chunk) [Performance by Channel](index=12&type=section&id=Performance%20by%20Channel) Wholesale and other channels grew by 44.9% at constant exchange rates, becoming the largest channel, while online channels also saw robust growth, and retail sales increased by 3.7% Net Sales and Growth by Channel for H1 FY2024 | Channel | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Reported FX Growth (%) | Constant FX Growth (%) | | :--- | :--- | :--- | :--- | :--- | | Retail | 313.2 | 321.7 | (2.6) | 3.7 | | Online Channels | 321.1 | 268.6 | 19.5 | 26.9 | | Wholesale & Other | 437.7 | 314.2 | 39.3 | 44.9 | | **Total** | **1,072.0** | **904.5** | **18.5** | **24.9** | - Wholesale and other channels' sales share significantly increased from 34.7% in the prior year to **40.8%**, mainly due to increased contributions from brands with higher wholesale sales, such as ELEMIS and Sol de Janeiro[35](index=35&type=chunk) - Online channel growth was driven by the strong performance of Sol de Janeiro and ELEMIS, as well as the new Douyin online store channel launched by L'OCCITANE en Provence in China[36](index=36&type=chunk) [Profitability Analysis](index=13&type=section&id=Profitability%20Analysis) In H1 FY2024, profitability was impacted by a 1.9 percentage point decrease in gross margin and a significant 4.4 percentage point increase in marketing expenses, leading to lower operating profit - Gross margin decreased by **1.9 percentage points** to **78.3%**, primarily due to an unfavorable brand mix with an increased sales share from Sol de Janeiro, which has a higher proportion of wholesale sales[38](index=38&type=chunk) - Marketing expenses significantly increased by **47.8%** year-on-year, with its percentage of net sales rising by **4.4 percentage points** to **22.2%**, mainly due to increased strategic marketing investments in traditional and social media[40](index=40&type=chunk) - Operating profit decreased by **11.8%** year-on-year, and the operating profit margin declined by **2.5 percentage points** to **7.2%**, influenced by increased marketing and organizational investments, rising costs, and inflation[45](index=45&type=chunk) [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Gross margin decreased by 1.9 percentage points to 78.3%, primarily due to an unfavorable brand mix with increased wholesale sales from Sol de Janeiro Cost of Sales and Gross Profit for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 232.1 | 178.2 | 30.2% | | Gross Margin | 78.3% | 80.2% | -1.9pp | - A **2.0 percentage point** decrease in gross margin is attributed to an unfavorable brand mix, mainly due to the increased sales share of Sol de Janeiro, which has a higher proportion of wholesale sales[38](index=38&type=chunk) - The decrease in gross margin was partially offset by improved commercial terms (**0.8 percentage points**), price increases (**0.3 percentage points**), and reclassification of sales commissions (**0.3 percentage points**)[38](index=38&type=chunk) [Distribution Expenses](index=13&type=section&id=Distribution%20Expenses) Distribution expenses as a percentage of net sales improved to 36.5%, driven by a favorable brand mix with higher shares from Sol de Janeiro and Erborian Distribution Expenses for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | % of Net Sales | | :--- | :--- | :--- | :--- | :--- | | Distribution Expenses | 391.7 | 353.1 | 10.9% | 36.5% | - A favorable brand mix contributed **5.6 percentage points** of improvement, mainly due to increased shares from Sol de Janeiro and Erborian, which have lower distribution costs[39](index=39&type=chunk) - This improvement was partially offset by increased investments in organization and personnel, IT (**1.5 percentage points**), and higher commission rates for resale partners (**1.2 percentage points**)[39](index=39&type=chunk) [Marketing Expenses](index=14&type=section&id=Marketing%20Expenses) Marketing expenses significantly increased by 47.8% to EUR 237.5 million, representing 22.2% of net sales, primarily due to strategic marketing investments in key brands and markets Marketing Expenses for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | % of Net Sales | | :--- | :--- | :--- | :--- | :--- | | Marketing Expenses | 237.5 | 160.6 | 47.8% | 22.2% | - Increased strategic marketing investments contributed **4.0 percentage points** of growth, with L'OCCITANE en Provence accounting for **3.6 percentage points** (of which China was **2.2 percentage points**)[40](index=40&type=chunk) - Investments in personnel, salary increases, and higher fees contributed **0.7 percentage points**, and brand mix contributed another **0.7 percentage points**[40](index=40&type=chunk) [Research and Development Expenses](index=14&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses increased by 11.5% to EUR 11.3 million, maintaining a stable percentage of net sales at 1.1% Research and Development Expenses for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | % of Net Sales | | :--- | :--- | :--- | :--- | :--- | | Research and Development Expenses | 11.3 | 10.2 | 11.5% | 1.1% | [General and Administrative Expenses](index=14&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased by 18.4% to EUR 114.1 million, representing 10.6% of net sales, with improvements from sales leverage partially offset by higher bonuses and operating costs General and Administrative Expenses for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | % of Net Sales | | :--- | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 114.1 | 96.3 | 18.4% | 10.6% | - Increased sales leverage contributed **2.1 percentage points** of improvement, with a favorable brand mix and phasing effects contributing **0.3 percentage points**[42](index=42&type=chunk) - These improvements were offset by higher bonuses and incentives (**0.7 percentage points**), increased operating costs (**0.7 percentage points**), and higher organizational and IT investments (**0.7 percentage points**)[42](index=42&type=chunk) [Other Operating Income/Expenses and Share of Losses of Associates and Joint Ventures](index=14&type=section&id=Other%20Operating%20Income%2FExpenses%20and%20Share%20of%20Losses%20of%20Associates%20and%20Joint%20Ventures) Other operating income decreased, other operating expenses significantly reduced, and net losses from associates and joint ventures expanded, primarily due to Good Glamm Group Other Operating Income/Expenses and Net Losses of Associates and Joint Ventures for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % of Net Sales (2024) | % of Net Sales (2023) | | :--- | :--- | :--- | :--- | :--- | | Other Operating Income | 2.2 | 3.5 | 0.2% | 0.4% | | Other Operating Expenses | (2.3) | (14.4) | (0.2)% | (1.6)% | | Share of Net Losses of Associates and Joint Ventures | (8.5) | (4.1) | (0.8)% | (0.5)% | - Prior year's other operating income included capital gains from changes in equity interest in Good Glamm Group, which were absent in the current period[43](index=43&type=chunk) - Prior year's other operating expenses included capital losses from currency translation differences due to the Russia divestment, which were absent in the current period[43](index=43&type=chunk) - Increased losses from Good Glamm Group were the primary reason for the expanded losses from associates and joint ventures[44](index=44&type=chunk) [Operating Profit](index=15&type=section&id=Operating%20Profit) Operating profit decreased by 11.8% to EUR 76.8 million, with the operating profit margin declining to 7.2%, mainly due to increased marketing and organizational investments Operating Profit and Margin for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | Operating Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | 76.8 | 87.0 | -11.8% | 7.2% | - Increased marketing and organizational investments led to a **7.0 percentage point** decrease in operating profit margin[45](index=45&type=chunk) - Fixed cost leverage from increased sales contributed **3.3 percentage points** of improvement, and optimized brand mix contributed **3.1 percentage points**[45](index=45&type=chunk) - On a management basis, the operating profit margin was **8.4%** this year, compared to **11.5%** last year, both excluding specific one-off items[46](index=46&type=chunk) [Net Finance Costs](index=15&type=section&id=Net%20Finance%20Costs) Net finance costs increased by EUR 9.3 million to EUR 23.7 million, primarily driven by higher interest expenses on borrowings Net Finance Costs for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Change (EUR million) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 23.7 | 14.4 | 9.3 | - An increase of **EUR 7.9 million** in interest expenses on borrowings was the main reason for the rise in net finance costs[47](index=47&type=chunk) [Foreign Currency Gains/(Losses)](index=15&type=section&id=Foreign%20Currency%20Gains%2F%28Losses%29) Net foreign currency losses increased to EUR 2.3 million, mainly related to the impact of IFRS 16 Foreign Currency Gains/(Losses) for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | | :--- | :--- | :--- | | Net Foreign Currency Losses | (2.3) | (0.9) | - Net foreign currency losses are primarily related to the impact of IFRS 16[48](index=48&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) Income tax expense increased to EUR 11.1 million, with the effective tax rate rising to 21.9% due to a higher proportion of taxable income in higher-tax regions Income Tax Expense and Effective Tax Rate for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Effective Tax Rate (2024) | Effective Tax Rate (2023) | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 11.1 | 7.8 | 21.9% | 10.9% | - Excluding share of profits and losses of associates and joint ventures, the effective tax rates were **18.8%** (H1 FY2024) and **10.5%** (H1 FY2023)[49](index=49&type=chunk) [Profit for the Period](index=16&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 38.0% to EUR 39.6 million, resulting in a 45.0% decline in basic and diluted earnings per share Profit for the Period and Earnings Per Share for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | % Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 39.6 | 63.9 | -38.0% | | Basic Earnings Per Share | 0.023 | 0.042 | -45.0% | | Diluted Earnings Per Share | 0.023 | 0.042 | -45.0% | [Balance Sheet Review](index=16&type=section&id=Balance%20Sheet%20Review) This section reviews the group's liquidity, capital resources, investing and financing activities, and key balance sheet ratios - As of September 30, 2023, the group's cash and cash equivalents were **EUR 104.0 million**, a decrease from EUR 147.3 million as of March 31, 2023[51](index=51&type=chunk) - Total borrowings amounted to **EUR 525.2 million**, a net increase of EUR 6.3 million compared to March 31, 2023[51](index=51&type=chunk) - Net debt was **EUR 735.2 million**, representing a **10.7%** decrease compared to September 30, 2022[51](index=51&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, cash and cash equivalents decreased to EUR 104.0 million, while total borrowings slightly increased, and net debt decreased year-on-year Liquidity and Borrowings as of September 30, 2023 | Metric | September 30, 2023 (EUR million) | March 31, 2023 (EUR million) | September 30, 2022 (EUR million) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 104.0 | 147.3 | 150.6 | | Total Borrowings | 525.2 | 518.9 | 624.8 | | Net Debt | 735.2 | Not applicable | 823.1 | | Total Undrawn Borrowing Facilities | 465.3 | 461.5 | 343.2 | - Net debt decreased by **EUR 87.9 million** or **10.7%** year-on-year[51](index=51&type=chunk) [Investing Activities](index=16&type=section&id=Investing%20Activities) Net cash used in investing activities decreased by EUR 29.9 million to EUR 21.0 million, primarily due to the sale of CAPSUM shares, while capital expenditures increased Cash Flow from Investing Activities and Capital Expenditures for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Change (EUR million) | | :--- | :--- | :--- | :--- | | Net Cash Used in Investing Activities | 21.0 | 50.9 | -29.9 | | Capital Expenditures | 28.7 | 21.2 | 7.5 | - The sale of CAPSUM shares generated total proceeds of **EUR 25.0 million**, which was the main reason for the decrease in net cash used in investing activities[52](index=52&type=chunk) - Capital expenditures primarily focused on leasehold improvements (**EUR 11.3 million**), production lines and warehouses (**EUR 9.4 million**), and information technology (**EUR 7.9 million**)[52](index=52&type=chunk) [Financing Activities](index=16&type=section&id=Financing%20Activities) Net cash outflow from financing activities significantly decreased to EUR 61.3 million, primarily due to lower lease principal payments, non-controlling interest acquisitions, and net repayment of borrowings Cash Flow from Financing Activities for H1 FY2024 | Metric | H1 FY2024 (EUR million) | H1 FY2023 (EUR million) | Change (EUR million) | | :--- | :--- | :--- | :--- | | Net Cash Outflow from Financing Activities | 61.3 | 176.0 | -114.7 | - Key outflows included principal portions of lease payments of **EUR 49.4 million**, payments for acquisition of non-controlling interests in non-wholly owned subsidiaries of **EUR 11.1 million**, and net repayment of borrowings of **EUR 1.5 million**[53](index=53&type=chunk) [Inventories](index=17&type=section&id=Inventories) As of September 30, 2023, net inventories increased to EUR 391.0 million, a 26.3% year-on-year growth, while average inventory turnover days decreased by 15 days to 278 days Inventory Turnover Days | Metric | September 30, 2023 | September 30, 2022 | Change (Days) | | :--- | :--- | :--- | :--- | | Average Inventory Turnover Days | 278 | 293 | -15 | - The increase in net inventories was primarily driven by strong growth from Sol de Janeiro and anticipation of Q3 holiday season sales[54](index=54&type=chunk) - The decrease in turnover days was mainly due to faster turnover of finished goods and mini-products (**-12 days**) and favorable foreign exchange impacts (**-10 days**)[54](index=54&type=chunk) [Trade Receivables](index=17&type=section&id=Trade%20Receivables) In H1 FY2024, trade receivables turnover days increased by 1 day to 47 days, mainly due to increased resale sales, especially from Sol de Janeiro to customers with longer payment terms Trade Receivables Turnover Days | Metric | September 30, 2023 | September 30, 2022 | Change (Days) | | :--- | :--- | :--- | :--- | | Trade Receivables Turnover Days | 47 | 46 | +1 | - The increase in turnover days was primarily due to higher resale sales, particularly from Sol de Janeiro to resale customers with longer payment terms[55](index=55&type=chunk) [Trade Payables](index=17&type=section&id=Trade%20Payables) In H1 FY2024, trade payables turnover days decreased by 12 days to 68 days, mainly due to reductions in accrued expenses, trade payables, and other liabilities, along with foreign exchange impacts Trade Payables Turnover Days | Metric | September 30, 2023 | September 30, 2022 | Change (Days) | | :--- | :--- | :--- | :--- | | Trade Payables Turnover Days | 68 | 80 | -12 | - The decrease in turnover days was mainly due to reductions in accrued expenses, trade payables, and other liabilities (**-2 days**) and foreign exchange impacts (**-10 days**)[55](index=55&type=chunk) [Balance Sheet Ratios](index=18&type=section&id=Balance%20Sheet%20Ratios) Profitability ratios slightly changed year-on-year, with return on capital employed decreasing to 3.4% and return on equity to 3.8%, while liquidity and solvency ratios remained stable or improved Balance Sheet Ratios for H1 FY2024 | Metric | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | EBITDA (EUR thousand) | 151,191 | 162,953 | | Return on Capital Employed | 3.4% | 3.5% | | Return on Equity | 3.8% | 4.8% | | Current Ratio (times) | 1.2 | 1.1 | | Quick Ratio (times) | 0.7 | 0.7 | | Debt-to-Asset Ratio | 27.0% | 28.5% | | Debt-to-Equity Ratio | 77.2% | 60.8% | - Capital employed changed by **EUR 488.7 million** year-on-year, primarily due to a significant increase in the valuation of the put option granted for non-controlling interests in Sol de Janeiro[56](index=56&type=chunk) [Foreign Exchange Risk Management](index=18&type=section&id=Foreign%20Exchange%20Risk%20Management) The group hedges foreign exchange risk for anticipated transactions and non-Euro denominated receivables/payables using forward foreign exchange contracts, resulting in a net derivative liability of EUR 1.2 million - The group enters into forward foreign exchange contracts to hedge foreign exchange risk for anticipated transactions and non-Euro denominated trade receivables and payables[59](index=59&type=chunk) - As of September 30, 2023, the group had a net foreign exchange derivative liability of **EUR 1.2 million** from forward foreign exchange contracts and interest rate derivatives[59](index=59&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board does not recommend any dividend distribution for H1 FY2024, consistent with the company's policy of declaring only a final dividend annually - The Board does not recommend any dividend distribution for the profit generated in H1 FY2024[60](index=60&type=chunk) - The final dividend for FY2023 of **EUR 0.03129 per share**, totaling **EUR 46.0 million**, was paid on October 20, 2023[60](index=60&type=chunk) [Events After the Reporting Period](index=19&type=section&id=Events%20After%20the%20Reporting%20Period) The group signed a 10-year lease for a US warehouse, with an estimated right-of-use asset and lease liability of EUR 37.0 million, and assesses no significant impact from the Middle East conflict - The group signed a 10-year lease agreement for a US warehouse, with an estimated right-of-use asset and lease liability of **EUR 37.0 million**[61](index=61&type=chunk) - Management believes the conflict between Israel and Palestine will not have a significant impact on its Middle East operations[61](index=61&type=chunk) [Strategic Review](index=19&type=section&id=Strategic%20Review) This section outlines the group's strategic initiatives, focusing on marketing investments, brand performance, omnichannel strategy, and commitment to sustainable growth - The group's net sales grew by **24.9%** at constant exchange rates, exceeding **EUR 1 billion**, primarily driven by Sol de Janeiro and L'OCCITANE en Provence in the Chinese market[62](index=62&type=chunk) - The group significantly increased marketing investments in key markets and channels to capitalize on growth opportunities and protect market share[62](index=62&type=chunk) - The group is committed to strengthening its position as a competitive multi-brand organization with intergenerational appeal and geographical balance[62](index=62&type=chunk) [Strong Marketing and Flexible Product Strategy to Enhance Core Brand Awareness and Relevance in Key Markets](index=19&type=section&id=Strong%20Marketing%20and%20Flexible%20Product%20Strategy%20to%20Enhance%20Core%20Brand%20Awareness%20and%20Relevance%20in%20Key%20Markets) The group significantly increased marketing investments in H1 FY2024, particularly in China, to boost brand awareness and average transaction value for L'OCCITANE en Provence - The group substantially increased marketing investments for its core brands, especially in strategic markets and channels such as China, the US, Japan, Korea, and travel retail[63](index=63&type=chunk) - L'OCCITANE en Provence's sales in the Chinese market grew by **22%** at constant exchange rates, primarily through marketing investments in face, body, and hair care categories[63](index=63&type=chunk) - In China, brand awareness and sales significantly improved through collaborations with Xiaohongshu for the Almond series, the launch of the White Lavender series, and the re-launch of Immortelle Divine Cream[64](index=64&type=chunk)[65](index=65&type=chunk) [Sol de Janeiro's Outstanding Performance Driven by Core Product Success and New Launches](index=20&type=section&id=Sol%20de%20Janeiro%27s%20Outstanding%20Performance%20Driven%20by%20Core%20Product%20Success%20and%20New%20Launches) Sol de Janeiro maintained strong momentum in H1 FY2024, growing 188.8% at constant exchange rates to EUR 270 million, with an operating profit margin of 28.9%, becoming the group's second-largest brand - Sol de Janeiro's sales grew by **188.8%** at constant exchange rates, reaching **EUR 270 million**, with an operating profit margin of **28.9%**[66](index=66&type=chunk) - The brand is now the group's second-largest, accounting for **25.2%** of net sales[66](index=66&type=chunk) - In its home market, the US, Sol de Janeiro maintained its **1 skincare brand** ranking at both Sephora North America and Kohl's[66](index=66&type=chunk) [ELEMIS Advances Premiumization Strategy](index=20&type=section&id=ELEMIS%20Advances%20Premiumization%20Strategy) ELEMIS grew by 7.6% at constant exchange rates in H1 FY2024, continuing its premiumization strategy by reducing investment in certain online partners to drive direct-to-consumer website traffic - ELEMIS grew by **7.6%** at constant exchange rates and continued its premiumization strategy by reducing investment in certain online partners to drive direct-to-consumer website traffic[67](index=67&type=chunk) - In China, ELEMIS sales grew by over **200%**, primarily through social media marketing investments, especially for its best-selling Pro-Collagen Cleansing Balm[67](index=67&type=chunk) - Despite softer growth in Q2, the US domestic business grew by **18%**, with strong performance in e-commerce channels[67](index=67&type=chunk) [Optimizing Omnichannel Strategy to Enhance Brand Image](index=20&type=section&id=Optimizing%20Omnichannel%20Strategy%20to%20Enhance%20Brand%20Image) The group is refining its omnichannel strategy by refocusing on direct-to-consumer channels to enhance brand image, discontinuing L'OCCITANE en Provence's distribution in French pharmacies - The group is refocusing on direct-to-consumer channels and discontinuing L'OCCITANE en Provence's distribution in French pharmacies to enhance brand image[68](index=68&type=chunk) - Wholesale and other channels grew by **44.9%** at constant exchange rates, becoming the group's largest channel, accounting for **40.8%** of net sales[69](index=69&type=chunk) - Online channels grew by **26.9%** at constant exchange rates, driven by Sol de Janeiro, ELEMIS, and the Douyin online store channel in China[69](index=69&type=chunk) [Certified B Corporation™](index=21&type=section&id=Certified%20B%20Corporation%E2%84%A2) The group achieved Certified B Corporation™ status in August 2023, demonstrating its ongoing commitment to a triple bottom line of people, planet, and profit - The group became a Certified B Corporation™ in August 2023, reflecting its continuous commitment to a triple bottom line of "people, planet, and profit"[70](index=70&type=chunk) - B Corp certification measures and verifies a company's overall social and environmental performance across five pillars: governance, workers, community, environment, and customers[70](index=70&type=chunk) [Outlook](index=21&type=section&id=Outlook) The group maintains a cautiously optimistic outlook for H2 FY2024, anticipating opportunities during the holiday season, while acknowledging that increased marketing investments will pressure profit margins - The group holds a cautiously optimistic outlook for H2 FY2024, expecting opportunities during the holiday and gifting season[71](index=71&type=chunk) - Additional marketing investments will exert pressure on profit margins but are crucial for building brand equity and seizing strategic market opportunities[71](index=71&type=chunk) - The group will leverage its strong portfolio of premium beauty brands and long-term investment commitment to achieve sustainable growth and profitability[71](index=71&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) This section covers corporate governance matters, including the Audit Committee's review, compliance with corporate governance codes, and directors' securities transactions - The Audit Committee has reviewed the group's accounting principles, internal controls, and financial reporting matters, including these interim consolidated results[72](index=72&type=chunk) - The company has consistently complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the reporting period[73](index=73&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee reviewed the group's accounting principles, internal controls, and financial reporting, including the consolidated results for the six months ended September 30, 2023 - The Audit Committee comprises three non-executive directors, two of whom are independent non-executive directors[72](index=72&type=chunk) - The Audit Committee has reviewed the group's accounting principles, internal controls, and financial reporting matters, including these interim consolidated results[72](index=72&type=chunk) [Corporate Governance](index=21&type=section&id=Corporate%20Governance) The Board regularly reviews corporate governance practices, committed to maintaining high standards of governance and business ethics, and confirmed compliance with all applicable code provisions - The Board is committed to maintaining high standards of corporate governance practices and business ethics[73](index=73&type=chunk) - For the six months ended September 30, 2023, the company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules[73](index=73&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=Directors%27%20Securities%20Transactions) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[75](index=75&type=chunk) - All directors confirmed compliance with the Model Code during the reporting period after specific enquiry[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During H1 FY2024, the company transferred 560,300 treasury shares under employee share and option schemes, with no other purchases, sales, or redemptions of listed securities - The company transferred **560,300 treasury shares** under its employee gratuitous share and share option schemes[76](index=76&type=chunk) - As of September 30, 2023, the company held **4,795,341 treasury shares**[76](index=76&type=chunk) - Save as disclosed, neither the company nor any of its subsidiaries purchased, sold, or redeemed any other listed securities during the reporting period[76](index=76&type=chunk) [Publication of Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Report) The interim results announcement is available on the HKEX and company websites, and the interim report will be dispatched to shareholders and accessible online - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (group.loccitane.com)[78](index=78&type=chunk) - The interim report will be dispatched to shareholders and will also be available on the aforementioned websites[78](index=78&type=chunk) [Disclaimer](index=22&type=section&id=Disclaimer) This section advises readers that financial data and information presented in the report may contain minor discrepancies due to rounding - Financial data and other information presented in the report may contain minor discrepancies due to rounding to the nearest unit or percentage[80](index=80&type=chunk)
L'OCCITANE(00973) - 2023 - 年度财报
2023-07-31 14:42
Financial Performance - For the fiscal year 2023, the net sales amounted to €2,134.7 million, an increase from €1,781.4 million in the previous year, representing a growth of approximately 19.8%[6] - The operating profit for FY2023 was €239.1 million, down from €310.7 million in FY2022, indicating a decrease of about 23.0%[6] - The net profit for the year was €118.2 million, a significant decline from €241.9 million in the prior year, reflecting a decrease of approximately 51.0%[6] - The gross margin for FY2023 was 80.5%, compared to 82.2% in FY2022, showing a reduction of 1.7 percentage points[6] - The return on equity for FY2023 was 10.1%, down from 19.1% in FY2022, indicating a decline of 9.0 percentage points[6] - The group's overall sales growth for FY2023 was 17.9% at reported exchange rates and 13.4% at constant exchange rates[22] - Total sales for FY2023 reached €2,134.7 million, representing a 17.9% increase compared to FY2022[31] - The total comprehensive income for the year was €127.3 million, down from €292.3 million, indicating a decrease of approximately 56.5%[190] Store and Market Dynamics - The total number of self-operated stores decreased to 1,362 from 1,490 in the previous year, a reduction of about 8.6%[6] - The retail locations decreased from 3,068 on March 31, 2022, to 2,774 on March 31, 2023, a reduction of 294 locations or 9.6%[20] - The company is set to enter the Asian market as part of its exciting plans for the next fiscal year[10] - The Asia-Pacific region accounted for 42.0% of total sales, while the Americas contributed 32.6% and Europe, the Middle East, and Africa accounted for 25.5%[28] Brand Performance - ELEMIS brand grew by 9%, while Sol de Janeiro's sales more than doubled, becoming the group's second-largest brand[10] - ELEMIS experienced a full-year growth of 8.9%, with a significant recovery in Q4 FY2023, achieving a growth rate of 18.1% driven by strong performance in the US[24] - Sol de Janeiro's sales grew over 135.2% in local currency, reaching €267,000,000, making it the group's second-largest brand[26] - The core brand L'OCCITANE en Provence recorded a sales growth of 6.8% for FY2023, with an operating margin of 14.6%[63] Financial Health and Ratios - The company reported a current ratio of 1.2, an improvement from 1.1 in the previous year, indicating better short-term financial health[6] - The asset-to-liability ratio improved to 28.2% from 34.0% in FY2022, reflecting a stronger balance sheet[6] - The company's debt-to-equity ratio improved from 34.0% in FY2022 to 28.2% in FY2023, indicating a stronger capital structure[58] Marketing and Investment Strategies - The company plans to significantly increase marketing investment in China, anticipating positive signs in the market[10] - The company expects double-digit sales growth and robust profitability in FY2024, driven by marketing investments and global expansion of new brands[10] - The group plans to significantly increase marketing investments in key markets such as China, the US, and Japan[73] Sustainability Initiatives - Aiming for a 46% reduction in Scope 1 carbon emissions by FY2031, with a current reduction of 42% achieved[10] - The EcoVadis gold award recognition places the company in the top 5% of rated companies for sustainability efforts[10] - The group is committed to positive human impact and environmental restoration through a series of mid-term goals aligned with three main priorities[118] Governance and Management - The board proposed a total dividend of €0.06585 per share for FY2022, amounting to €96.8 million, which represents 40% of the company's net profit attributable to equity holders[60] - The board's responsibilities include reviewing and approving the group's strategic direction and monitoring the performance of the CEO and senior management[89] - The company has established a policy for the disclosure of inside information to ensure compliance and confidentiality[110] Employee and Diversity Metrics - The overall gender ratio of employees as of March 31, 2023, is 14% male and 86% female, showing a slight increase in female representation from 87% in the previous year[84] - The senior management gender ratio has shifted from 62% male and 38% female to 45% male and 55% female, indicating a significant increase in female leadership[84] Cash Flow and Investments - Cash and cash equivalents as of March 31, 2023, were €147.3 million, down from €360.9 million a year earlier, primarily due to debt repayments of €151 million[48] - Free cash flow for FY2023 was €253.9 million, a decrease from €288 million in FY2022, attributed to increased working capital needs[49] - The company incurred a loss of €82,060 thousand from investing activities, a significant improvement from a loss of €365,799 thousand in the previous year[195] Risk Management and Compliance - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[109] - The board has reviewed the effectiveness of the group's risk management and internal control systems, finding them effective and appropriate[111] - The company emphasizes communication with shareholders through various channels, including meetings with institutional investors and analysts[111]
L'OCCITANE(00973) - 2023 - 年度业绩
2023-06-26 08:32
[Full-Year Performance Announcement](index=1&type=section&id=Full-Year%20Performance%20Announcement) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) The Group achieved record sales of €2.135 billion in FY2023, up 19.8%, driven by Sol de Janeiro and ELEMIS, despite a 23.0% drop in reported operating profit to €239 million due to goodwill impairment FY2023 Performance Highlights | Indicator | Amount/Ratio | | :--- | :--- | | Sales | €2.1347 billion (19.8% YoY growth) | | Reported Operating Profit | €239.1 million (23.0% YoY decrease) | | Management Operating Profit | €336.8 million | | Management Operating Profit Margin | 15.8% | | Proposed Final Dividend Payout Ratio | 40% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) The Group reported increased net sales of €2.135 billion but a significant 51.1% decline in profit for the year to €118 million, driven by lower gross margin and increased operating expenses including goodwill impairment [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) FY2023 Consolidated Income Statement Key Data (in thousands of euros) | Indicator | FY2023 (thousands of euros) | FY2022 (thousands of euros) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | 2,134,689 | 1,781,358 | +19.8% | | Gross Profit | 1,718,141 | 1,463,415 | +17.4% | | Gross Margin | 80.5% | 82.2% | -1.7pp | | Operating Profit | 239,132 | 310,714 | -23.0% | | Profit for the Year | 118,193 | 241,909 | -51.1% | | Basic Earnings Per Share (EUR) | 0.078 | 0.165 | -52.5% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Consolidated Statement of Financial Position Key Data as of March 31, 2023 (in thousands of euros) | Indicator | March 31, 2023 (thousands of euros) | March 31, 2022 (thousands of euros) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,816,428 | 3,009,074 | -6.4% | | Total Liabilities | 1,629,427 | 1,694,468 | -3.8% | | Total Equity | 1,187,001 | 1,314,606 | -9.7% | | Cash and Cash Equivalents | 147,255 | 360,899 | -59.2% | | Net Inventories | 317,197 | 263,162 | +20.5% | [Notes to the Financial Statements (Summary)](index=4&type=section&id=Notes%20to%20the%20Financial%20Statements%20(Summary)) - Other operating expenses surged from **€7.1 million** to **€90.1 million**, primarily due to goodwill impairment totaling **€75.364 million** for the LimeLife and Melvita brands[18](index=18&type=chunk) - Net finance costs significantly increased from **€14.5 million** to **€53.5 million**, mainly due to a **€35.9 million** cost from fair value changes in receivables arising from the disposal of Russian operations[20](index=20&type=chunk) - The Board recommended a final dividend of **€0.03129 per share**, totaling approximately **€46 million**, representing **40.0%** of profit attributable to equity holders of the company[25](index=25&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) The Group's FY2023 sales grew 13.4% at constant exchange rates, driven by Sol de Janeiro and ELEMIS, but profitability declined with gross margin down 1.7 percentage points and reported operating profit margin falling to 11.2% due to impairments and cost increases [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) Net sales grew 13.4% at constant exchange rates, primarily driven by Sol de Janeiro's 135.2% growth and strong performance in the Americas (+62.8%) and wholesale channels (+50.9%) Sales Growth by Brand (at Constant Exchange Rates) | Brand | FY2023 Sales (million euros) | YoY Growth (Constant Exchange Rates) | | :--- | :--- | :--- | | L'OCCITANE en Provence | 1,421.2 | -0.5% | | ELEMIS | 255.9 | +8.9% | | Sol de Janeiro | 267.0 | +135.2% (Non-comparable) | | Other Brands | 190.5 | +7.3% | Sales Growth by Region (at Constant Exchange Rates) | Region | FY2023 Sales (million euros) | YoY Growth (Constant Exchange Rates) | | :--- | :--- | :--- | | Asia-Pacific | 896.2 | +0.5% | | Americas | 695.0 | +62.8% | | Europe, Middle East & Africa | 543.4 | -0.7% | Sales Growth by Channel (at Constant Exchange Rates) | Channel | FY2023 Sales (million euros) | YoY Growth (Constant Exchange Rates) | | :--- | :--- | :--- | | Retail | 761.5 | -2.0% | | Online Channels | 657.6 | +4.8% | | Wholesale & Other | 715.6 | +50.9% | [Profitability Analysis](index=13&type=section&id=Profitability%20Analysis) Profitability was pressured, with gross margin declining 1.7 percentage points to 80.5% and reported operating profit margin falling to 11.2% due to brand mix, cost increases, goodwill impairment, and marketing investments - Gross margin decreased by **1.7 percentage points**, primarily attributed to an unfavorable brand mix (**-1.3pp**), increased production costs (**-0.8pp**), and an unfavorable channel mix (**-0.7pp**)[43](index=43&type=chunk) - Reported operating profit margin decreased by **6.2 percentage points**, mainly due to impairment losses for LimeLife and Melvita (**-2.6pp**), various cost increases (**-2.5pp**), divestment from Russian operations (**-1.2pp**), and increased marketing investments (**-1.2pp**)[52](index=52&type=chunk) Reconciliation of Management Operating Profit to Reported Operating Profit (million euros) | Item | FY2023 (million euros) | FY2022 (million euros) | | :--- | :--- | :--- | | **Management Operating Profit** | **336.8** | **308.2** | | Impact of Russia divestment | (14.4) | – | | LimeLife and Melvita brand impairment | (75.4) | – | | Other adjustments | (7.9) | (2.5) | | **Reported Operating Profit** | **239.1** | **310.7** | [Financial Position and Cash Flow Review](index=17&type=section&id=Financial%20Position%20and%20Cash%20Flow%20Review) While the financial position is sound, cash and equivalents significantly decreased to €147 million, and free cash flow declined to €254 million due to increased working capital needs and debt repayments, though the debt-to-asset ratio improved Cash Flow Statement Overview (in thousands of euros) | Item | FY2023 (thousands of euros) | FY2022 (thousands of euros) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 300,208 | 326,023 | | Free Cash Flow | 253,873 | 288,025 | | Net Cash (Outflow) from Financing Activities | (436,795) | (17,339) | | Net (Decrease) in Cash and Equivalents | (213,644) | (60,317) | - Net cash outflow from financing activities was **€437 million**, primarily comprising **€152 million** in bank loan repayments, **€114 million** in lease payments, and **€97 million** in dividend payments[64](index=64&type=chunk)[65](index=65&type=chunk) Key Financial Ratios | Ratio | FY2023 | FY2022 | | :--- | :--- | :--- | | Return on Capital Employed | 8.4% | 12.8% | | Return on Equity | 10.1% | 19.1% | | Current Ratio (times) | 1.2 | 1.1 | | Debt-to-Asset Ratio | 28.2% | 34.0% | [Strategic Review and Outlook](index=21&type=section&id=Strategic%20Review%20and%20Outlook) The Group successfully implemented a multi-brand strategy, with new brands ELEMIS and Sol de Janeiro contributing significantly to sales, and anticipates double-digit sales growth and healthy profitability in FY2024 driven by market recovery and increased marketing investments - The multi-brand model has been highly effective, with ELEMIS and Sol de Janeiro now accounting for nearly **one-quarter** of the Group's total sales, and Sol de Janeiro becoming the second-largest brand less than two years after acquisition[77](index=77&type=chunk)[81](index=81&type=chunk) - The Group received EcoVadis Gold recognition for sustainability, placing it in the **top 5%** of assessed companies, and is on track to achieve B Corp certification in 2023[83](index=83&type=chunk) - For FY2024, the Group expects to achieve **double-digit sales growth** and healthy profitability, primarily driven by the recovery of international travel, a rebound in the Chinese market, and the continued expansion of new brands[84](index=84&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) The company established an audit committee, complied with corporate governance codes, and recommended a final dividend of €0.03129 per share, maintaining a 40% payout ratio, with key dates for shareholder eligibility also provided - Despite a significant decrease in net profit, the Board recommended maintaining a **40% payout ratio** and proposed a final dividend of **€0.03129 per share**[72](index=72&type=chunk) - The company has established an audit committee, which, along with external auditors, reviewed the consolidated results and financial statements for the current fiscal year[85](index=85&type=chunk) - The report announced the Annual General Meeting date (September 27, 2023) and the final dividend payment date (October 20, 2023), along with details on the associated share transfer registration suspension arrangements[89](index=89&type=chunk)[91](index=91&type=chunk)
L'OCCITANE(00973) - 2023 - 中期财报
2022-12-29 08:41
Financial Performance - The company reported a net sales of €900.5 million for the first half of FY2023, a 29% increase compared to €696.4 million in the same period of FY2022[15]. - Operating profit for the first half of FY2023 was €87.0 million, up from €78.9 million in FY2022, reflecting a strong performance despite macroeconomic challenges[15]. - The net profit for the first half of FY2023 was €63.9 million, compared to €60.6 million in the previous year, indicating continued growth in profitability[15]. - The gross margin improved to 80.2% in FY2023 from 79.7% in FY2022, showcasing enhanced operational efficiency[15]. - The operating margin decreased to 9.7% in FY2023 from 11.3% in FY2022, primarily due to increased costs[15]. - The company achieved a net profit margin of 7.1% in FY2023, down from 8.7% in FY2022, highlighting the need for cost management strategies[15]. - The chairman reported a record interim net profit for the second consecutive year, emphasizing the resilience of the multi-brand business model[17]. - The company reported a net sales of €900.5 million for the first half of FY2023, an increase from €725.1 million in the same period last year, representing a growth of 24.2%[30]. - Operating profit for the same period was €101.5 million, up from €74.4 million, reflecting a significant increase of 36.4%[30]. - The net profit margin improved to 9.6%, compared to 7.7% in the previous year, indicating enhanced profitability[30]. Store and Retail Performance - The company had a total of 1,380 self-operated stores as of the first half of FY2023, down from 1,501 in the same period of FY2022, indicating a strategic focus on store optimization[15]. - The total number of retail locations decreased from 3,068 as of March 31, 2022, to 2,896 as of September 30, 2022, a reduction of 172 locations or 5.6%[34]. - Retail traffic and tourist sales increased by 4.4% at constant exchange rates, despite a net closure of 121 stores, including 110 in Russia[40]. - The overall same-store sales growth was 0.7% for the first half of FY2023, with notable performance in the Americas and Europe, Middle East, and Africa regions[37]. - Online channel sales increased by 10.4% to €264.7 million, while retail sales grew by 9.9% to €321.7 million in the first half of FY2023[39]. Regional Performance - The Americas region saw a remarkable growth of 84.5% at reported rates and 59.8% at constant rates, with net sales reaching €281.0 million in the first half of FY2023[37]. - The Asia-Pacific region's net sales grew by 7.8% at reported rates and 1.9% at constant rates, with significant contributions from Hong Kong, Australia, and Malaysia[38]. - ELEMIS recorded a net sales of €105.1 million, with a growth of 21.1% at reported rates and 13.1% at constant rates, primarily due to strong performance in the U.S.[35]. Sustainability and Corporate Responsibility - The company aims to enhance its geographical balance and multi-brand group strategy, focusing on sustainable practices and positive impacts on society and the environment[18]. - The company is preparing to launch several sustainable products, reinforcing its commitment to environmental responsibility[18]. - The company has established a sustainability committee at the board level to integrate environmental, social, and governance considerations into decision-making[18]. - The company introduced a new mission focused on triple bottom line benefits: employees, the planet, and profitability, aiming for B Corp certification in 2023[75]. - The company is committed to sustainable practices and aims to find more sustainable ways of working as part of its new mission[75]. Cost Management and Financial Health - Return on equity for the first half of FY2023 was 4.8%, slightly down from 4.9% in FY2022, reflecting the impact of increased capital employed[15]. - The current ratio improved to 1.1 in FY2023 from 0.9 in FY2022, indicating better short-term financial health[15]. - Cost of sales increased by 25.9% to €178.2 million, while gross margin improved by 0.5 percentage points to 80.2%[41]. - Distribution expenses rose by 22.4% to €353.1 million, improving as a percentage of net sales by 2.2 percentage points to 39.2%[44]. - Marketing expenses increased by 44.1% to €160.6 million, accounting for 17.8% of net sales, driven by investments in traditional and digital media[45]. - R&D expenses rose by 20.5% to €10.2 million, slightly decreasing as a percentage of net sales to 1.1%[46]. Investments and Acquisitions - The company acquired 2,646,000 treasury shares during the period, with stock options exercised totaling 4,405,850[89]. - The acquisition of Grown Alchemist was completed on April 1, 2022, for €5 million, giving L'Occitane a 49.24% stake in the company, which holds 65% of Grown Alchemist's equity[104]. - The acquisition of Sol de Janeiro was completed for a total consideration of €330,900,000, acquiring 82.86% of the company[157]. - The company invested an additional €13,500,000 in L'Occitane Middle East to develop its business in Saudi Arabia, maintaining a 51% equity stake[156]. Financial Risks and Management - The group faces multiple financial risks, including market risk (foreign currency risk, interest rate risk, and price risk), credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[105]. - The group systematically hedges at least 80% of transaction risks, with decisions on hedging economic risks approved by the CFO[107]. - The group maintains a prudent liquidity risk management strategy, ensuring ample cash reserves and access to committed credit facilities[112]. - As of September 30, 2022, the group's liquidity reserves were sufficient to cover expected cash flows without liquidity risk[112]. Cash Flow and Capital Structure - The net cash used in investing activities for the first half of FY2023 was €50,900,000, an increase of €40,700,000 from €10,200,000 in the same period last year[56]. - The net cash outflow from financing activities was €175,900,000 in FY2023, compared to €241,600,000 in the same period last year[57]. - The company reported a cash flow hedge fair value loss of €56,000 during the period[89]. - The total financial assets measured at fair value amounted to €70,940 thousand as of September 30, 2022, compared to €35,048 thousand as of March 31, 2022, representing an increase of about 102%[114]. Future Outlook - The company plans to continue focusing on international expansion and new product launches to drive future growth[36]. - The company remains cautiously optimistic for the second half of FY2023 despite ongoing macroeconomic challenges, including inflation impacting costs[76].