Financial Performance - Net sales for the first half of FY 2024 reached €1,072.0 million, a 19.1% increase from €900.5 million in FY 2023[17] - Operating profit for the first half of FY 2024 was €76.8 million, down 11.5% from €87.0 million in FY 2023[17] - Gross margin decreased to 78.3% in FY 2024 from 80.2% in FY 2023[17] - Net profit margin fell to 3.7% in FY 2024 compared to 7.1% in FY 2023[17] - The company reported a return on equity of 3.8% for FY 2024, down from 4.8% in FY 2023[17] - The net profit for the first half of FY 2024 decreased by €24,300,000 or 38.0% to €39,600,000, with basic and diluted earnings per share dropping by 45.0% to €0.023[85] - The operating profit margin for the first half of FY 2024 is 8.4%, impacted by increased marketing investments[23] - The operating profit for the same period was €89.7 million, a decrease from €104.1 million in the previous year[45] - The group reported a net profit of €39,630 thousand for the period, a decrease from €63,890 thousand year-on-year[128] - Basic and diluted earnings per share were both €0.023, down from €0.042 in the same period last year[128] Sales Growth - Sales growth at constant exchange rates was 25%, driven primarily by the brands L'OCCITANE en Provence and Sol de Janeiro[21] - Sol de Janeiro achieved a remarkable sales growth of 188.8%, reaching €270,000,000 in the first half of FY 2024, surpassing its total sales for FY 2023[58] - ELEMIS recorded a sales growth of 7.6% in the first half of FY 2024, with a notable increase of over 200% in China[58] - The Americas region led growth with a 63.6% increase in sales, primarily driven by Sol de Janeiro's performance in the U.S.[61] - The group's overall same-store sales growth was 7.8% for the first half of FY 2024[60] - The Asia-Pacific region recorded a 9.2% increase in sales, significantly boosted by a 28.0% growth in China[61] - Online sales grew by 26.9% to €321,100,000, while wholesale and other channels saw a 44.9% increase to €437,700,000[62] Cost and Expenses - Cost of sales increased by 30.2% or €53.9 million to €232.1 million in the first half of FY 2024, with a gross margin decrease of 1.9 percentage points to 78.3%[65] - Distribution expenses rose by 10.9% or €38.6 million to €391.7 million, improving as a percentage of net sales by 2.7 percentage points to 36.5%[67] - Marketing expenses surged by 47.8% or €76.9 million to €237.5 million, increasing as a percentage of net sales by 4.4 percentage points to 22.2%[68] - R&D expenses increased by 11.5% or €1.2 million to €11.3 million, remaining stable at 1.1% of net sales[70] Inventory and Cash Management - The average inventory turnover days improved to 278 days in FY 2024 from 293 days in FY 2023[17] - The average inventory turnover days increased by 15 days, with a net inventory value of €391,000,000, up 26.3% from €309,500,000 a year earlier[93] - Cash and cash equivalents as of September 30, 2023, were €104,000,000, down from €150,600,000 a year earlier[88] - The net debt decreased by €87,900,000 or 10.7% to €735,200,000 as of September 30, 2023, compared to €823,100,000 a year earlier[88] Strategic Initiatives - The company plans to continue investing in all its brands to strengthen its position as a multi-brand group[21] - The company aims to create strong performance during major festive seasons and continues to invest in targeted activities and strategic product categories[26] - The company celebrated becoming a certified B Corp™, reflecting its commitment to social and environmental performance[26] - The group plans to expand Sol de Janeiro into new product categories and implement a premiumization strategy for ELEMIS to enhance long-term growth and profitability[106] Market and Regional Performance - L'OCCITANE en Provence achieved a growth of 22% in the Chinese high-end beauty market at constant exchange rates[23] - The group maintained a balanced regional sales mix, with the Americas accounting for 41.3% of total sales[61] - Retail sales grew 3.7% at constant exchange rates, benefiting from improved market conditions in China; excluding Russia, retail growth was 5.5%[63] Financial Position and Liabilities - Total borrowings as of September 30, 2023, were €525,200,000, a decrease from €624,800,000 a year earlier[88] - The company reported a significant foreign exchange loss of €4,988 thousand related to equity investments, compared to a loss of €4,215 thousand in the previous year[129] - The company has established standard payment and delivery terms to manage credit risk effectively[168] - The group has sufficient provisions for potential credit losses and monitors counterparty solvency[169] Acquisitions and Investments - The company acquired a 35% stake in Group Fourteen Holdings Pty Ltd for €10,036,000, increasing its ownership to 67%[197] - L'Occitane International S.A. purchased an additional 0.1% stake in ELEMIS for €1,065,000, raising its total ownership to 98.7%[198] - The company invested €9,427,000 in Good Glamm Group, increasing its equity stake from 15.53% to 15.80%[199] Future Outlook - The group remains cautiously optimistic about the second half of the fiscal year 2024, despite additional marketing investments impacting profit margins[117] - The implementation of the OECD's Pillar Two rules will require multinational enterprises with global revenues exceeding €750 million to pay a minimum effective corporate tax rate of 15% starting from the fiscal year 2025[150]
L'OCCITANE(00973) - 2024 - 中期财报