Financial Performance - The company reported a net sales of €900.5 million for the first half of FY2023, a 29% increase compared to €696.4 million in the same period of FY2022[15]. - Operating profit for the first half of FY2023 was €87.0 million, up from €78.9 million in FY2022, reflecting a strong performance despite macroeconomic challenges[15]. - The net profit for the first half of FY2023 was €63.9 million, compared to €60.6 million in the previous year, indicating continued growth in profitability[15]. - The gross margin improved to 80.2% in FY2023 from 79.7% in FY2022, showcasing enhanced operational efficiency[15]. - The operating margin decreased to 9.7% in FY2023 from 11.3% in FY2022, primarily due to increased costs[15]. - The company achieved a net profit margin of 7.1% in FY2023, down from 8.7% in FY2022, highlighting the need for cost management strategies[15]. - The chairman reported a record interim net profit for the second consecutive year, emphasizing the resilience of the multi-brand business model[17]. - The company reported a net sales of €900.5 million for the first half of FY2023, an increase from €725.1 million in the same period last year, representing a growth of 24.2%[30]. - Operating profit for the same period was €101.5 million, up from €74.4 million, reflecting a significant increase of 36.4%[30]. - The net profit margin improved to 9.6%, compared to 7.7% in the previous year, indicating enhanced profitability[30]. Store and Retail Performance - The company had a total of 1,380 self-operated stores as of the first half of FY2023, down from 1,501 in the same period of FY2022, indicating a strategic focus on store optimization[15]. - The total number of retail locations decreased from 3,068 as of March 31, 2022, to 2,896 as of September 30, 2022, a reduction of 172 locations or 5.6%[34]. - Retail traffic and tourist sales increased by 4.4% at constant exchange rates, despite a net closure of 121 stores, including 110 in Russia[40]. - The overall same-store sales growth was 0.7% for the first half of FY2023, with notable performance in the Americas and Europe, Middle East, and Africa regions[37]. - Online channel sales increased by 10.4% to €264.7 million, while retail sales grew by 9.9% to €321.7 million in the first half of FY2023[39]. Regional Performance - The Americas region saw a remarkable growth of 84.5% at reported rates and 59.8% at constant rates, with net sales reaching €281.0 million in the first half of FY2023[37]. - The Asia-Pacific region's net sales grew by 7.8% at reported rates and 1.9% at constant rates, with significant contributions from Hong Kong, Australia, and Malaysia[38]. - ELEMIS recorded a net sales of €105.1 million, with a growth of 21.1% at reported rates and 13.1% at constant rates, primarily due to strong performance in the U.S.[35]. Sustainability and Corporate Responsibility - The company aims to enhance its geographical balance and multi-brand group strategy, focusing on sustainable practices and positive impacts on society and the environment[18]. - The company is preparing to launch several sustainable products, reinforcing its commitment to environmental responsibility[18]. - The company has established a sustainability committee at the board level to integrate environmental, social, and governance considerations into decision-making[18]. - The company introduced a new mission focused on triple bottom line benefits: employees, the planet, and profitability, aiming for B Corp certification in 2023[75]. - The company is committed to sustainable practices and aims to find more sustainable ways of working as part of its new mission[75]. Cost Management and Financial Health - Return on equity for the first half of FY2023 was 4.8%, slightly down from 4.9% in FY2022, reflecting the impact of increased capital employed[15]. - The current ratio improved to 1.1 in FY2023 from 0.9 in FY2022, indicating better short-term financial health[15]. - Cost of sales increased by 25.9% to €178.2 million, while gross margin improved by 0.5 percentage points to 80.2%[41]. - Distribution expenses rose by 22.4% to €353.1 million, improving as a percentage of net sales by 2.2 percentage points to 39.2%[44]. - Marketing expenses increased by 44.1% to €160.6 million, accounting for 17.8% of net sales, driven by investments in traditional and digital media[45]. - R&D expenses rose by 20.5% to €10.2 million, slightly decreasing as a percentage of net sales to 1.1%[46]. Investments and Acquisitions - The company acquired 2,646,000 treasury shares during the period, with stock options exercised totaling 4,405,850[89]. - The acquisition of Grown Alchemist was completed on April 1, 2022, for €5 million, giving L'Occitane a 49.24% stake in the company, which holds 65% of Grown Alchemist's equity[104]. - The acquisition of Sol de Janeiro was completed for a total consideration of €330,900,000, acquiring 82.86% of the company[157]. - The company invested an additional €13,500,000 in L'Occitane Middle East to develop its business in Saudi Arabia, maintaining a 51% equity stake[156]. Financial Risks and Management - The group faces multiple financial risks, including market risk (foreign currency risk, interest rate risk, and price risk), credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[105]. - The group systematically hedges at least 80% of transaction risks, with decisions on hedging economic risks approved by the CFO[107]. - The group maintains a prudent liquidity risk management strategy, ensuring ample cash reserves and access to committed credit facilities[112]. - As of September 30, 2022, the group's liquidity reserves were sufficient to cover expected cash flows without liquidity risk[112]. Cash Flow and Capital Structure - The net cash used in investing activities for the first half of FY2023 was €50,900,000, an increase of €40,700,000 from €10,200,000 in the same period last year[56]. - The net cash outflow from financing activities was €175,900,000 in FY2023, compared to €241,600,000 in the same period last year[57]. - The company reported a cash flow hedge fair value loss of €56,000 during the period[89]. - The total financial assets measured at fair value amounted to €70,940 thousand as of September 30, 2022, compared to €35,048 thousand as of March 31, 2022, representing an increase of about 102%[114]. Future Outlook - The company plans to continue focusing on international expansion and new product launches to drive future growth[36]. - The company remains cautiously optimistic for the second half of FY2023 despite ongoing macroeconomic challenges, including inflation impacting costs[76].
L'OCCITANE(00973) - 2023 - 中期财报