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].
L'OCCITANE(00973) - 2020 - 中期财报