L'OCCITANE(00973) - 2024 - 年度业绩

Full-Year Performance Summary Performance Highlights 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] - The decline in operating margin was primarily attributed to increased marketing investments in key brands across strategic markets and channels[6] Consolidated Financial Statements Consolidated Income Statement 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] - 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] Consolidated Statement of Financial Position 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 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] - 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] Management Discussion and Analysis Revenue Analysis 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 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] Performance by Region 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 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 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] - 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] - 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][47] - 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][61] Balance Sheet and Cash Flow Review 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] - 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] Strategic Review and Outlook FY2024 Strategic Execution Review 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] - The Group increased marketing investments to sustain brand growth, capitalize on premiumization trends, and strengthen its multi-brand group position[80] - The acquisition of Italian luxury home fragrance brand Dr. Vranjes Firenze further advanced the strategy of building a balanced brand portfolio[95] Strategic Focus by Brand 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] - 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][91] - ELEMIS: Continued premiumization strategy, reducing discount frequency and depth, resulted in flat sales, but the brand achieved double-digit growth in China[92][93] Organization and Sustainability 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] - The Group became a certified B Corp™ in 2023 and is committed to having newly acquired brands achieve this certification by 2026[99] Outlook and Privatization Proposal 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] - Controlling shareholder L'Occitane Groupe S.A. has proposed to acquire all company shares and privatize it to gain greater strategic investment autonomy[102] Corporate Governance and Other Matters Dividends and Post-Fiscal Year Events 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] - On April 2, 2024, the company acquired Dr. Vranjes Japan KK for €6.8 million[77] - 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]