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]
L'OCCITANE(00973) - 2019 - 年度财报