[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].

Financial Performance - The financial summary indicates a significant increase in revenue compared to the previous period, although specific figures are not provided in the extracted content [5]. - Reported net sales for the first half of fiscal year 2022 reached €696.4 million, a 12.9% increase from €616.6 million in the same period of fiscal year 2021 [9]. - Operating profit for the first half of fiscal year 2022 was €78.9 million, significantly up from €32.3 million in the previous year, reflecting a strong operational performance [9]. - Net profit for the period increased to €60.6 million, compared to €16.7 million in the same period last year, indicating a robust growth trajectory [9]. - The gross profit margin decreased to 79.7% from 82.1%, while the operating profit margin improved to 11.3% from 5.2% [9]. - Basic earnings per share increased to €0.041 from €0.010, indicating significant growth in shareholder value [9]. - The total comprehensive income for the period was €66,317 thousand, compared to a loss of €41,414 thousand in the previous year, reflecting a significant improvement [83]. - The net profit for the six-month period was €60,612 thousand, compared to €16,718 thousand in the previous year, representing a significant increase [88]. Market Strategy and Expansion - Future outlook includes plans for market expansion and potential acquisitions to enhance growth [5]. - The report outlines a strategic focus on the Asian market, particularly in regions with high growth potential [5]. - The company continues to expand its multi-brand strategy, with the launch of ELEMIS in key markets and the acquisition of a majority stake in Sol de Janeiro, enhancing its brand portfolio [13]. - The company plans to continue expanding its market presence, particularly in Asia, to leverage growth opportunities in emerging markets [138]. Sustainability and Corporate Responsibility - The company emphasizes its commitment to sustainability and corporate social responsibility initiatives [5]. - The company aims to achieve B Corp certification by 2023 and net-zero carbon emissions by 2030, emphasizing its commitment to sustainability [13]. - The board has established a sustainability committee to ensure a unified approach to advancing sustainability initiatives across the organization [73]. Leadership and Governance - The board of directors includes key figures such as Reinold Geiger and André Hoffmann, indicating strong leadership [4]. - The audit committee is chaired by Valérie Bernis, ensuring compliance and oversight [5]. Retail and Customer Experience - The company operates 3,074 retail points and 1,501 directly operated stores [8]. - The company is focused on enhancing customer experience through innovative retail strategies [5]. - Online sales accounted for one-third of total sales, which is approximately 10 percentage points higher than pre-pandemic levels, contributing to overall profitability [13]. Financial Management and Investments - The company has established major banking relationships with institutions like HSBC France and BNP Paribas [5]. - The group is open to further acquisition opportunities, supported by strong cash generation capabilities from L'OCCITANE en Provence and ELEMIS following the recent acquisition of a majority stake in Sol de Janeiro [72]. - The company reported a foreign exchange difference of €6,505 thousand, a significant recovery from a loss of €58,373 thousand in the previous year [84]. Operational Efficiency - The return on invested capital rose to 3.6%, up from 1.5% in the previous year, showcasing improved efficiency in capital utilization [9]. - The average inventory turnover days decreased by 64 days, attributed to improved sales and tighter inventory control [60]. - The company anticipates continued robust omnichannel sales, driven by strong performance from core brands and ELEMIS, projecting profitability growth for the remainder of the fiscal year 2022 [74]. Challenges and Adjustments - The total number of self-operated stores decreased to 1,501 from 1,569, reflecting ongoing adjustments in the retail strategy [9]. - The company strategically closed underperforming stores, including 14 locations in the US as part of the Chapter 11 restructuring plan [25]. - LimeLife experienced a decline of 28.7% in net sales for the first half of fiscal year 2022, contrasting with a 34.9% growth in the same period of the previous year [27]. Regional Performance - Significant growth was observed in China (23.2%), Hong Kong (64.2%), the UK (13.8%), and Brazil (81.3%) during the first half of fiscal year 2022 [25]. - Sales in Hong Kong surged by 64.2% to €51.4 million, driven by a rebound in tourism retail sales and online partnerships [33]. - China recorded net sales of €124.1 million, reflecting a 23.2% increase despite challenges from COVID-19 outbreaks and natural disasters [34].

Sompe CITANE E'OCCITANE INTERNATIONAL S.A. (一家根據盧森堡法律註冊成立的有限公司) 股份代號 : 973 財政年度報告 | --- | --- | --- | --- | |-------|-------|---------------|-------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | L'OCCITANE | | | | | | | | | | | | | | | EN PROVENCE | | | | | | | | | | ...

Financial Performance - For the six months ended September 30, 2020, net sales amounted to €727.2 million, up from €595.4 million in 2019, representing a growth of approximately 22.1%[13]. - Operating profit for the same period was €41.8 million, significantly increased from €5.8 million in the previous year, indicating a substantial improvement in operational efficiency[13]. - The company reported a net profit margin of 3.5%, up from 0.9% in the previous year, showcasing enhanced profitability[13]. - Net profit for the period was €25.2 million, up from €5.6 million, resulting in a net profit margin of 3.5% compared to 0.9% in the previous year[23]. - The group's sales revenue for the first half of the fiscal year 2020 increased by 22.1% at reported rates and 19.0% at constant rates, driven by strong growth across all brands and major regions[29]. - The company reported a net profit of €25,238 thousand for the period ending September 30, 2019, compared to €5,588 thousand in the same period of 2018, representing a significant increase[102]. Profitability Metrics - The gross profit margin decreased to 81.2% from 82.4% year-on-year, reflecting changes in cost structures and pricing strategies[13]. - The return on capital employed improved to 1.7% from 1.3%, demonstrating better utilization of capital resources[13]. - Operating profit rose by €36,000,000 to €41,800,000, representing a growth of 618.7%, with an operating margin increase of 4.7 percentage points to 5.7%[63]. - The gross margin was reported at 81.2%, slightly down from 82.4% in the previous year, indicating a focus on maintaining profitability despite market challenges[23]. Sales and Market Expansion - The total number of directly operated stores increased to 1,593, compared to 1,555 in the previous year, indicating ongoing expansion efforts[13]. - The contribution of the core brand L'OCCITANE en Provence to overall sales decreased from 86% in FY2019 to 76% in FY2020, highlighting the growth of other brands like ELEMIS[17]. - ELEMIS achieved double-digit growth in its home market and is expected to sell 1 million units of its star product by the end of the fiscal year, having sold 500,000 units in the first half[17]. - The fastest-growing market was the UK, with growth exceeding 200%, primarily due to ELEMIS, while the US saw a growth of 26.0% driven by ELEMIS[29]. - The company maintained a selective global retail expansion strategy, adding 21 self-operated stores primarily from L'Occitane en Provence[32]. Online and Digital Strategy - The company is expanding its online presence in China with new WeChat mini-programs and an official e-commerce website to enhance its digital sales strategy[17]. - The online direct sales channel grew by 40.8%, contributing 16.2% to total direct sales, while excluding ELEMIS, the growth was 17.0%[32]. - The group plans to expand ELEMIS's successful "digital-first" strategy into multiple Asian markets, including launching a store on Tmall Global[84]. Inventory and Receivables Management - Average inventory turnover days improved to 286 days from 302 days, reflecting more efficient inventory management[13]. - Trade receivables turnover days increased to 38 days from 33 days, indicating a longer collection period[13]. - Average inventory turnover days decreased by 16 days to 286 days, primarily due to ELEMIS's inventory turnover days being significantly lower than the group average, contributing 40 days[73]. - Accounts receivable turnover days increased by 5 days in the first half of fiscal year 2020, attributed to the inclusion of ELEMIS and adverse foreign exchange impacts[74]. Financial Position and Liquidity - The current ratio decreased to 1.2 from 2.6, suggesting a tighter liquidity position[13]. - The debt-to-asset ratio increased to 39.6% from 7.1%, indicating a rise in leverage[13]. - Cash and cash equivalents as of September 30, 2019, were €80,400,000, down from €299,400,000 a year earlier[71]. - The net cash outflow from financing activities for the first half of the fiscal year 2020 was €67.6 million, compared to a net cash outflow of €1.9 million in the same period last year[73]. Sustainability Initiatives - The company aims to achieve 100% sustainable PET plastic packaging by 2025, advancing its commitment to sustainability and circular economy initiatives[17]. - The group aims to transition to 100% sustainable PET plastic packaging by 2025, having expanded its supply agreement with Loop Industries[89]. Strategic Focus - The management remains focused on the Pulse strategy to drive sustainable sales growth and profitability despite external economic and political challenges[17]. - The company implemented the second year of its "Pulse" strategy, focusing on team empowerment, retail fundamentals, omnichannel approaches, customer interaction, and brand commitment[81]. Acquisitions and Investments - The acquisition of ELEMIS contributed 0.7 percentage points to the increase in general and administrative expenses[62]. - The acquisition of ELEMIS was completed for a total consideration of €753.6 million, aimed at expanding business in key regions and new distribution channels[158]. - The company invested €114,224,000 (approximately $128,000,000) to acquire a 60.48% stake in LimeLife USA, with the identifiable net assets valued at €19,400,000[169].

Financial Performance - Net sales for the fiscal year ended March 31, 2019, were €1,426.9 million, an increase from €1,319.4 million in 2018, representing a growth of 8.1%[29] - Operating profit for the same period was €150.7 million, up from €141.0 million, reflecting a growth of 4.9%[29] - Net profit increased to €117.6 million from €96.5 million, marking a significant rise of 22%[29] - The gross margin was reported at 83.2%, slightly down from 83.3% in the previous year[29] - Operating profit increased to €150.7 million, up from €141.0 million in the previous fiscal year, reflecting a stable operating margin of 10.6%[40] - The net profit margin improved to 8.2%, compared to 7.3% in the prior year, indicating enhanced profitability[40] - The cost of sales increased by €18.9 million to €239.9 million, representing an 8.6% increase, while the gross margin remained high at 83.2%, slightly down by 0.1 percentage points[70] - Distribution expenses rose by €60.9 million to €700.4 million, a 9.5% increase, accounting for 49.1% of net sales, up by 0.6 percentage points[71] - Marketing expenses increased by €6.8 million to €186 million, a 3.8% rise, while the percentage of net sales decreased by 0.6 percentage points to 13.0%[72] - Research and development expenses rose by €300,000 to €17.9 million, a 1.9% increase, maintaining a stable percentage of 1.3% of net sales[75] Store and Market Expansion - The company operated a total of 1,572 self-operated stores, an increase from 1,555 stores in the previous year[29] - The total number of retail points increased by 135, reaching 3,420 stores, with a focus on selective global retail network expansion[43] - The company opened 17 new self-operated stores during the fiscal year, with a net increase of 16 stores in Brazil and 10 in Japan[45] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[29] Sales Performance by Region - The U.S. market saw a significant sales increase of 35.0%, reaching €232,404,000, contributing 31.8% to overall growth[52] - In the fiscal year 2019, sales in China reached €178.1 million, representing an 11.9% increase compared to fiscal year 2018, with a fixed exchange rate growth of 12.1% contributing 16.8% to overall growth[57] - Japan's sales for fiscal year 2019 amounted to €222.1 million, showing a growth of 1.5%, while local currency growth was only 0.1% due to a sluggish retail market[58] - Hong Kong's sales netted €137 million in fiscal year 2019, up 9.9% from fiscal year 2018, with a fixed exchange rate growth of 8.6% contributing 9.4% to overall growth[58] - Taiwan's sales for fiscal year 2019 were €38.2 million, down 3.2% (reporting exchange rate) or 2.7% (fixed exchange rate), primarily due to a decline in same-store sales[60] Product Development and Innovation - The company sold over 800,000 units of the new product, the Immortelle Reset Serum, within a year, with expectations to exceed one million units in the following year[34] - The launch of the new hero product, Immortelle Reset Serum, strengthened the brand image of L'OCCITANE en Provence in facial care, contributing to sales momentum[101] - The upcoming product launches include the Immortelle Reset Eye Serum, 86 Champs Élysées Luxury Perfume, and a new hair care line, aimed at driving sustainable growth[112] - The company is committed to sustainable growth and innovation, with ongoing investments in product development and marketing strategies[34] Financial Position and Ratios - Return on invested capital was 15.9%, up from 15.1% in the previous year, indicating improved efficiency[29] - The current ratio decreased to 2.2 from 3.1, suggesting a tighter liquidity position[29] - The debt-to-asset ratio increased to 29.4% from 6.8%, indicating a higher leverage level[29] - The company transitioned from a net cash position to net debt status following the acquisition of Elemis, resulting in a debt-to-equity ratio of 40.0%[96] Corporate Governance - The board consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors[124] - The board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to exercise its responsibilities[123] - The company has implemented a diversity policy to evaluate potential board candidates based on various factors, including skills and experience[137] - The board's diversity policy aims to enhance performance and improve corporate governance by considering various factors such as skills, experience, and background[126] Shareholder Engagement - Shareholders holding at least 5% of the paid-up capital can request a general meeting, which must be held within three months of the request[149] - Shareholders can submit inquiries to the board in writing, which will be forwarded to the chairman for consideration[150] - The company values communication with shareholders and provides updates through various channels, including meetings with analysts and institutional investors[152] Sustainability and Social Responsibility - The company has established a sustainable policy and annual Environmental, Social, and Governance (ESG) report since the fiscal year ending March 31, 2011[156] - The company is committed to charitable initiatives and sustainable resource allocation, with reports available on its website[156] - The company signed a multi-year supply agreement with Loop Industries to transition to 100% sustainable PET plastic packaging by 2025[111]