Financial Performance - Net sales for the fiscal year ended March 31, 2020, were €1,644.1 million, an increase from €1,426.9 million in the previous year, representing a growth of 15.3%[12] - Operating profit for the same period was €187.3 million, up from €150.7 million, reflecting a growth of 24.4%[12] - The gross profit margin decreased to 81.6% from 83.2% year-on-year[12] - The operating margin improved to 11.4% from 10.6% in the previous year[12] - The company reported a net profit margin of 7.0%, down from 8.2% in the previous year[12] - The group's overall operating profit margin increased by 0.8 percentage points to 11.4%, attributed to the contribution from ELEMIS[15] - The company's net cash inflow from operations was 369.5 million[22] - The gross profit margin for the fiscal year was 81.6%, while the net profit margin was 7.0%[22] - The estimated total sales loss due to COVID-19 was approximately €56 million, representing about 18% of Q4 2020 sales and 3.4% of total sales for FY 2020[61] - Net profit for the fiscal year 2020 was €115.2 million, a decrease of 2.0% or €2.3 million from 2019[59] Sales and Market Performance - L'OCCITANE en Provence recorded a sales growth of 3.9% and an operating profit increase of 9.8%, with an operating profit margin improvement of 0.8 percentage points to 14.0%[15] - The online direct sales channel grew by 41.8% at constant exchange rates, compensating for the loss of sales due to temporary store closures during the last quarter of the fiscal year[15] - ELEMIS accounted for 10% of the total sales in the fiscal year 2020, achieving growth and profitability despite the challenges posed by COVID-19[15] - The overall sales growth for the group was 15.2%, with a contribution of 100% from various channels[32] - The resale distribution channel accounted for 30.8% of total sales, reaching €506.2 million, an increase of 44.1% at reported exchange rates and 41.6% at constant exchange rates, contributing 80.1% to overall growth[35] - The UK experienced a remarkable growth of 165.1% in sales, reaching €160.8 million, largely attributed to contributions from ELEMIS[36] - The United States saw sales of €295.8 million, an 18.0% increase, driven by strong demand and contributing significantly to overall growth[36] - ELEMIS recorded sales of €165,800,000, contributing 10.1% to total sales, with notable e-commerce growth in the UK and US[30] Operational Metrics - The company operated a total of 1,608 self-operated stores, an increase from 1,572 stores in the previous year[12] - Average inventory turnover days improved to 245 days from 273 days, showing better inventory management[12] - The current ratio decreased to 1.2 from 2.2, indicating a decline in short-term liquidity[12] - The total debt to total assets ratio increased to 37.2% from 28.8% year-on-year, indicating higher leverage[12] - Comparable store sales declined by 2.9%, significantly impacted by COVID-19 store closures in key markets[34] Corporate Governance - The board consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors[99] - The board is responsible for long-term development and strategy, as well as controlling and evaluating the company's daily operations[97] - The company has adopted a corporate governance manual based on the Corporate Governance Code, available on the company's website[90] - The board has established audit, nomination, and remuneration committees, each with defined authority and responsibilities[111] - The company emphasizes the importance of diversity in enhancing decision-making and governance[101] Sustainability and Social Responsibility - The company aims to achieve 100% sustainable PET plastic packaging by 2025, in partnership with Loop Industries[15] - The group donated 700,000 hand sanitizers to institutions in France and the U.S. during the pandemic, demonstrating its commitment to social responsibility[85] - The group plans to implement various cost-saving measures, including reducing basic salaries for directors and senior management, and renegotiating commercial rents[86] - The company has established a sustainable policy and has been producing an annual Environmental, Social, and Governance (ESG) report since the fiscal year ending March 31, 2011[133] Employee and Management Information - The group had 9,347 employees as of March 31, 2020, an increase from 8,601 employees on March 31, 2019, reflecting a growth of approximately 8.6%[197] - The group maintains a competitive compensation structure for employees, with potential stock options and training programs available[197] - The leadership team includes individuals with extensive backgrounds in finance, marketing, and operations, contributing to a well-rounded strategic approach[150] Financial Management and Risks - The company has a comprehensive financial risk management policy outlined in the consolidated financial statements[157] - The independent auditor, PricewaterhouseCoopers, has issued an unqualified opinion on the consolidated financial statements, affirming their compliance with international financial reporting standards[200] - The company has reported significant contingent liabilities, with details provided in the consolidated financial statements[195]
L'OCCITANE(00973) - 2020 - 年度财报