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].

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 ...

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]

[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)

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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 L’OCCITANE INTERNATIONAL S.A. 49, Boulevard Prince Henri L-1724 Luxembourg R.C.S. Luxembourg: B80359 （根據盧森堡法律註冊成立的有限公司） （股份代號：973） 截至二零二三年九月三十日止六個月 中期業績公告 摘要 • 本集團的銷售淨額按固定匯率計算增加24.9%，超過10億歐元，主要得益於Sol de Janeiro的強勁增 長以及L’OCCITANE en Provence的可觀增長，尤其是在中國的增長。 • 毛利率維持在78.3%的高位，儘管與去年同期相比下跌1.9個百分點，主要由於Sol de Janeiro及 ELEMIS等批發銷售佔比較高的品牌的銷售貢獻較高。 • 經營溢利達76,800,000歐元，較去年同期減少11.8%。這主要由於本集團大幅增加在戰略性市場及 渠道中為主要品牌配置的營銷投 ...

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]

[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)

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].

Financial Performance - Net sales for the fiscal year ending March 31, 2022, were €1,781.4 million, an increase from €1,537.8 million in the previous year[11]. - Operating profit for the same period was €310.7 million, up from €216.8 million year-over-year[11]. - The net profit margin improved to 13.6% from 10.0% in the previous year[11]. - The return on equity increased to 19.1%, compared to 12.7% in the prior year[11]. - The gross margin was reported at 82.2%, down from 83.0% year-over-year[11]. - The current ratio improved to 1.1 from 0.9 in the previous year, indicating better short-term financial health[11]. - The average inventory turnover days decreased to 265 days from 282 days, reflecting improved inventory management[11]. - The company’s cash flow from operations reached €326.0 million, reflecting strong operational performance[26]. - The net profit for fiscal year 2022 was €241.9 million, a 57.5% increase from €153.6 million in fiscal year 2021[55]. - Basic and diluted earnings per share for fiscal year 2022 were €0.165 and €0.164, respectively, up 59.7% and 59.8% from €0.103 in fiscal year 2021[55]. - The overall net sales for fiscal year 2022 totaled €1,809,984,000, marking a 16.7% increase compared to €1,550,883,000 in fiscal year 2021[32]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development[11]. - L'Occitane plans to exceed €2 billion in sales for the upcoming fiscal year, continuing its path of sustainable growth and healthy profitability[17]. - The company introduced two new brands, Sol de Janeiro and Grown Alchemist, as part of its strategy to transform into a global multi-brand group[16]. - The digital-first global expansion strategy has successfully extended the footprint of ELEMIS into over ten markets while maintaining significant profitability[16]. - The company suspended investment and expansion plans following the outbreak of the Russia-Ukraine conflict in Q4 of fiscal year 2022[44]. - The company anticipates that its online sales will remain at high levels due to the growth of digital-native brands[73]. Brand Performance - L'Occitane achieved record sales growth of over 10% and an operating margin of 17.4%, the highest since its listing[15]. - L'Occitane en Provence accounted for 76.8% of total sales, with a reported growth of 15.0%[31]. - ELEMIS contributed 12.5% to total sales, showing a strong growth of 42.4%[30]. - Sol de Janeiro, integrated into the accounts from January 2022, contributed €26,100,000, representing 11.0% of overall growth for fiscal year 2022[31]. - LimeLife experienced a decline in sales of 30.8% due to a high base effect from the previous year[31]. - Other brands, including Erborian and L'OCCITANE au Brésil, grew by 19.0% at constant exchange rates[31]. Sustainability Initiatives - L'Occitane is making significant progress towards achieving B Corp certification by 2023, integrating sustainability into its management incentives[16]. - The group is focused on sustainable development, aiming for B Corp certification by 2023, and has received recognition for its sustainability initiatives, including awards for eco-friendly designs[77]. - The group committed to invest €5 million in the Livelihoods Carbon fund, aiming for carbon compensation by 2030 as part of its environmental strategy[199]. Corporate Governance - The company has complied with all applicable corporate governance codes during the fiscal year 2022, except for the separation of the roles of chairman and CEO, which has been rectified with the appointment of André Joseph Hoffmann as CEO[83]. - The board consists of nine directors, including four executive directors, one non-executive director, and four independent non-executive directors[86]. - The company emphasizes the importance of board diversity, aiming to enhance performance and decision-making through a variety of skills, experiences, and backgrounds[87]. - The company has established various committees, including the audit committee, nomination committee, remuneration committee, and sustainability committee, to enhance corporate governance[92]. Shareholder Engagement - The company has adopted a dividend policy that considers financial performance, cash flow, business conditions, and capital requirements, with no guarantee of specific dividend payments in any given period[101]. - The board recommends a final dividend of €0.06585 per share, subject to shareholder approval at the annual general meeting[125]. - The company emphasizes communication with shareholders through various channels, including meetings with analysts and institutional investors, and provides timely updates on its website[102]. Financial Position - Total assets increased to €3,009,074 thousand as of March 31, 2022, compared to €2,489,539 thousand in the previous year, representing a growth of approximately 20.9%[181]. - The group’s goodwill as of March 31, 2022, was €990,500,000, with intangible assets totaling €487,400,000, including trademarks valued at €434,900,000[169]. - The company reported a significant increase in cash equivalents at the beginning of the year, rising to €421,216 thousand from €166,342 thousand, which is an increase of approximately 153.5%[186]. Employee and Operational Insights - The group had 9,042 employees as of March 31, 2022, an increase from 8,733 employees the previous year[161]. - The company ensures competitive compensation for employees at all levels, with potential stock options and training programs[161]. - The management team consists of individuals with diverse backgrounds in finance, technology, and marketing, enhancing the company's strategic capabilities[117].