Financial Performance - Net sales for the fiscal year ended March 31, 2021, were €1,537.8 million, a decrease from €1,644.1 million in 2020, representing a decline of approximately 6.5%[15] - Operating profit increased to €220.2 million, up from €187.3 million in the previous year, reflecting a growth of 17.4%[15] - The gross margin improved to 83.0%, compared to 81.6% in the prior year, indicating a positive trend in cost management[15] - Net profit margin rose to 10.2%, up from 7.0% year-over-year, showcasing enhanced profitability[15] - The return on equity increased to 12.9%, compared to 10.6% in the previous year, indicating better utilization of shareholder equity[15] - The group's reported net sales for the fiscal year 2021 were €1,537.8 million, a decrease of 6.5% compared to the fiscal year 2020[34] - The operating profit for fiscal year 2021 was €220.2 million, with an operating margin of 14.3%[31] - The net profit margin for fiscal year 2021 was 10.2%, compared to 7.0% in fiscal year 2020[31] - Total sales for the fiscal year 2021 were €1,550,883 thousand, a decrease of 5.7% compared to €1,644,083 thousand in the fiscal year 2020[37] - The company recorded a net sales figure of €34.5 million in Brazil for fiscal year 2021, a significant decline of 40.2% compared to fiscal year 2020[57] Retail Operations - The company operated 1,523 self-managed stores, a decrease from 1,608 stores in the previous year, reflecting a strategic consolidation[15] - The total number of retail locations decreased from 3,486 on March 31, 2020, to 3,088 on March 31, 2021, a reduction of 398 locations or 11.4%[35] - The number of self-operated stores decreased from 1,608 to 1,523, a net decrease of 85 stores or 5.3%[35] - The number of non-self-operated stores decreased by 313 or 16.7%, primarily due to reductions in travel retail, distribution, and franchise locations[35] - The company strategically closed 25 underperforming stores in the U.S. as part of a Chapter 11 restructuring plan[35] Market Performance - Strong growth was observed in key markets such as China (36.0%), Taiwan (15.5%), and Russia (6.1%) at constant exchange rates[34] - Online sales in China grew over 60% during the pandemic, demonstrating the importance of digital channels[34] - Sales in China increased by 33.7% at constant exchange rates, contributing 252.7% to overall growth[41] - The number of self-operated stores in China was 198, contributing 76.9% to overall growth with a same-store sales increase of 20.3%[43] - Retail sales in China grew by over 50% in Q4 of fiscal year 2021, driven by successful promotional activities during the Lunar New Year and International Women's Day[103] Sustainability Initiatives - The company aims to achieve net-zero emissions by 2030, reflecting its commitment to sustainability[34] - The company plans to achieve carbon neutrality in its two production sites in France by 2025 and across the group by 2030[109] - The group continues to focus on sustainability, with a commitment to ensure that 100% of its plastic bottles are made from 100% recycled plastic by 2025[109] - The company has established a sustainable policy and has been publishing annual Environmental, Social, and Governance (ESG) reports since the fiscal year ending March 31, 2011[155] Cost Management - The average inventory turnover days increased to 282 days from 245 days, suggesting a need for improved inventory management[15] - Distribution expenses decreased by 13.0% to €666.2 million in fiscal year 2021, with a reduction in the percentage of sales to 43.3%[62] - General and administrative expenses decreased by 7.6% or €12,100,000 to €147,800,000, representing 9.6% of net sales, a decrease of 0.1 percentage points[66] - The restructuring efforts have led to significant cost savings expected in the coming years[34] - The group expects to save approximately €9 million to €10 million annually over the next four to five years following the successful completion of its Chapter 11 bankruptcy case in the U.S.[108] Digital Transformation - The company has launched over ten e-commerce platforms across various markets in Europe and Asia within a year[34] - Online sales increased by 69.2%, accounting for over one-third of total sales, compensating for the closure of over 75% of physical stores during peak COVID-19[102] - The company continues to focus on a multi-brand strategy with a digital-first global expansion for ELEMIS, reinforcing its commitment to sustainable growth[104] Corporate Governance - The company has adhered to all corporate governance codes except for the separation of the roles of Chairman and CEO, which is held by Reinold Geiger, deemed effective for strong leadership[119] - The board consists of 11 members, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring a diverse skill set and high ethical standards[123] - The company has adopted a diversity policy for its board, aiming to enhance performance and decision-making through varied skills, experiences, and backgrounds[125] - The board has established three committees: Audit, Nomination, and Remuneration, to oversee various aspects of governance and operations[121] Executive Leadership - Yves Blouin appointed as Executive Director effective January 14, 2021, bringing over 28 years of leadership experience in managing global luxury and cosmetics brands across diverse markets[167] - Thomas Levilion has been with the group since March 2008, currently serving as Executive Director and Deputy General Manager of Finance and Administration, with extensive experience in global supply chain and mergers[170] - Séan Harrington, co-founder of ELEMIS, has led the brand's transformation into a global skincare leader since its acquisition by the group in March 2019[171] - The management team is committed to exploring new opportunities for growth and improvement in the luxury and cosmetics market[167] Financial Management - The company's cash and cash equivalents increased significantly to €421.2 million as of March 31, 2021, up from €166.3 million a year earlier[80] - The total borrowings as of March 31, 2021, amounted to €522.1 million, with unutilized borrowing facilities totaling €433 million[80] - Free cash flow for the fiscal year 2021 was €401,673,000, up from €302,021,000 in 2020, representing a significant increase of 33%[81] - The effective tax rate decreased to 21.1% in fiscal year 2021 from 28.2% in fiscal year 2020, primarily due to one-time impacts[76] Shareholder Engagement - The board proposed a final dividend of €0.03687 per share, subject to shareholder approval at the annual general meeting[186] - 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] - The company emphasizes communication with shareholders through various channels, including analyst meetings and investor forums[148]
L'OCCITANE(00973) - 2021 - 年度财报