Financial highlights...Working capital ratios Inventory turnover days 286 +84 +8 -13 -19 346 FY2020...
Transcript of Financial highlights...Working capital ratios Inventory turnover days 286 +84 +8 -13 -19 346 FY2020...
Financial highlights
Highlights
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* At constant rates, unless otherwise stated.
FY2020 H1 FY2021 H1 Change
Net sales (million €) 727.2 616.6 -15.2%
Gross profit margin 81.2% 82.1% +0.9 pp
Operating profit margin 5.7% 5.3% -0.4 pp
Net profit margin 3.5% 2.8% -0.7 pp
Net debt (million €) (905.4) (698.7) -22.8%
Free cash flow (million €) 79.2 107.6 +35.9%
H1 net sales breakdown
By GeographyBy Brand
* Others include Melvita, Erborian and L'Occitane au Brésil.
*
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By Segment
L'Occitane
en
Provence
75.0%
ELEMIS
10.5%
LimeLife
8.8%
Others
5.7%
USA
18.5%
China
15.8%
Japan
14.3%UK
10.6%
France
6.1%
Hong Kong
5.2%
Taiwan
2.9%
Russia
2.8%
Brazil
1.8%
Others
22.0%
Sell-out
71.9%
Sell-in
28.1%
-50
50
150
250
350
450
550
650
L'Occitane en
Provence
ELEMIS LimeLife Others FX rates
million €
H1 FY2020
H1 FY2021
-85%
overall sales growth: -15.2%local currency growth: -13.1%
currencies: -2.1%
Contribution
to growth (3) :-19% -11%
-15%
-22%
-22%
overall sales growth: -15.2%
+35%
15%
(2)
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(1) ELEMIS’ comparable sales growth FY2021 H1 was -11.1%.
(2) Others include Melvita, Erborian and L'Occitane au Brésil.
(3) Excluding the impact of foreign currency translation effects.
H1 net sales by brand
(1)
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(1) Excluding foreign currency translation effects.
H1 sales growth by geography – Americas and Europe(at constant rates)
0
50
100
150
200
France UK USA Brazil Russia
H1 FY2020 H1 FY2021
-12% -12% -19% -12%
-23%
-13%
-3%
-42%-11%
Contribution
to growth (1) :
-14%
million €
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H1 sales growth by geography – Asia and others(at constant rates)
(1) Excluding foreign currency translation effects.
-50
0
50
100
150
200
250
Japan Hong Kong China Taiwan Other
geographic
areas
FX rates
H1 FY2020 H1 FY2021
-20% -26% 25% 2% -25%
-17%
-43%
+31%
+15%
-15%
Contribution
to growth (1) :
million €
% of net sales
FY2020 H1 FY2021 H1 Change
Gross profit margin 81.2 82.1 0.9
Distribution expenses (50.4) (50.3) 0.1
Marketing expenses (12.7) (14.4) (1.7)
Research & development expenses (1.4) (1.3) 0.1
General & administrative expenses (10.9) (11.2) (0.3)
Others 0.0 0.4 0.4
Operating profit margin 5.7 5.3 (0.4)
Profitability analysis
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Gross margin (as % of net sales)
9
81.2%
-0.4-0.4 -0.3 -0.2 +0.2
+0.3+1.7
82.1%
FY2020 H1 production obsolescence Freight &
Duties
FX pricing
&
other
brand
country
product
mixes
channel
mix
FY2021 H1
Distribution expenses (as % of net sales)
10
(50.4%)
-11.7-1.2 +0.3
+2.8+3.0
+6.9
(50.3%)
FY2020 H1
Leverage &
efficiency one-off
FX
reclass
COVID
subsidies
COVID
savings
channel
brand
mix FY2021 H1
Marketing expenses (as % of net sales)
11
(12.7%)
-0.9-0.8
-0.4 -0.2 -0.7 +0.8+0.5
(14.4%)
FY2020 H1
channel
mix leverage
promo
tools,
samples other
advert &
events
China
advert &
events
other
countries
brand
mix FY2021 H1
General and administrative expenses (as % of net sales)
12
(10.9%)
-1.9-0.4
-0.4-0.2
+0.8
+1.8
(11.2%)
FY2020 H1 leverage
phasing
others
invest IT
staffing office one-offs
Covid
mgmt FY2021 H1
Operating profit margin (as % of net sales)
13
5.7%
+8.0
+7.6
+0.4 -0.3 -0.5-0.5
-15.1
5.3%
FY2020 H1 Channel
mix
Covid
Mgmt
brand
mix
Marketing One-off
others
Other
investments
leverage
& efficiency
FY2021 H1
20.2 19.7
2.2
-9.2
32.9
4.4%30.5%
4.1%
-26.2%
5.3%
-10
-5
0
5
10
15
20
25
30
35
40
L'Occitane
en Provence
ELEMIS LimeLife other
brands
Total
operating profit OP %million €
Operating profit by brand
14
15
Working capital ratios
Inventory turnover days
286
+84 +8 -13 -19
346
FY2020 H1 finished
goods,
MPPs
raw
materials
provision FX FY2021 H1
as at: FY2020 H1 FY2021 H1 Change
Inventory turnover days (based on cost of sales) 286 346 60
Trade receivables turnover days (based on net sales) 38 41 3
Trade payables turnover days (based on cost of sales) 200 248 48
Cash Cycle (days of net sales) 54 58 4
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Capital expenditures
17.8
8.8
12.0
0.0
38.7
3.05.8
2.00.1
10.8
stores Info.
Tech.
factories
R&D
others Total
million €
FY2020 H1 FY2021 H1
Strategic review &
Outlook
Iconic position in key categories underpinned resilience
- COVID-19 opened a window of
opportunity to showcase the
brand’s expertise
- Timely communication angles
helped support resilient sales
performance TW IG: Hand washing video
SG MY: eDMs on
hand care tips
KR: Kakao message on Art of Soap
AU IG: Inviting
consumers to use
our sinks
TW website: Eye treatment for days of wearing masks
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Online and omni-channel the star of the show
*Online channels include e-commerce, marketplaces, web partners and digital direct selling.
Global:
+80.8%
Mix: 40.7%
US:
+46.2%
Mix: 81.1%
Brazil:
+264.4%
Mix: 34.9%
UK:
+114.6%
Mix: 57.0%
France:
+79.0%
Mix: 17.6%
Russia:
+232.1%
Mix: 27.5%
China:
+83.5%
Mix: 32.3%
HK:
+245.4%
Mix: 1.5%
Japan:
+91.1%
Mix: 35.6%
Taiwan:
+94.8%
Mix: 6.9%
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Accelerating social selling initiatives
Livestreaming
Utilising top KOLs in
China to increase
reach and awareness
Clienteling
US beauty advisors
communicated with
customers via SMS and
social media;
10% of US retail sales
Click-and-Collect
Customers across
Europe can order
online for
pick-up in store
Chat & Shop
Omni-channel personal
shopper platform in
Korea riding on
Kakao Talk
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ELEMIS x Sephora China Launch
• Launched in July with 125 doors, and
broke into top 10 exclusive skincare
brands in Sephora in our first month of
sales
• 360° launch campaign, with celebrity
endorser Angela Wang, generated
200M+ impressions
• 20% of our customers are new to
Sephora, representing broad appeal
beyond Sephora’s core demographic
• Building off our launch momentum to
accelerate our expansion with plans for
a full rollout to Sephora’s entire
network by FY2021 Q4
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Territory Launch
Austria LIVE
Belgium LIVE
France LIVE
Germany LIVE
Italy LIVE
Netherlands LIVE
Poland LIVE
Spain LIVE
Hong Kong LIVE
Korea LIVE
Malaysia LIVE
Singapore LIVE
Taiwan LIVE
Thailand LIVE
Australia Upcoming
Japan Upcoming
Switzerland Upcoming
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Swift rollout of e-commerce sites globally
Multi-brand strategy forges
new growth and profit engines
- Improved significantly in FY21 Q2
- Restructuring underway to focus on profitability
- Strong country prioritisation: Japan, France and China
- Strong performance, particularly in FY21 Q2 with close to 30% growth
- Remains profitable
- Improved significantly in FY21 Q2
- Restructuring underway, refined strategy to aim at improving profitability
- Closed 39 underperforming kiosks in FY21 H1
- Achieved 35% growth in FY21 H1
- Turned profitable with 4.1% operating profit margin
- Performed in line with expectations despite near halt to spa and maritime channels
- Digital channels remained in high growth
- Record high operating margin of 30.5%
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3 sustainability priorities
Maximize our POSITIVE IMPACT on
the society and the environment
beyond profit and customers/employees/suppliers satisfaction
Mitigate
THE CLIMATE CRISIS
and anticipate its
consequences
on our business
Preserve and restore
BIODIVERSITY
within and outside of our
value chains
Empower ALL PEOPLE
in our communities,
with a focus on
women empowerment
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Outlook
Accelerate Transformation Holiday Season Growth & Profitability
- Began restructuring
process to accelerate
transformation, and to
become more efficient and
flexible
- Actively addressing loss
areas – emerging brands,
likely acceleration to US
store rationalisation
- Monitoring the latest wave of
COVID-19 in various
markets around the world
- Focused on delivering strong
holiday season
- Although COVID-19 may
impact consumer sentiment
for some time, the Group
will continue to build trust,
achieve sustainable
growth and enhance
profitability
The Group remains confident of its resilience backed by
the inherent strength of its brands, products and web-based activities,
to emerge from the crisis even stronger
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This document is for information purposes only without any binding effect; in case
of any inaccuracies, incompleteness or inconsistency with other documents, only
the Company’s latest issued annual or interim report for detailed financials shall
prevail and shall be deemed to be the only official document.
The financial information and certain other information presented in a number of
tables have been rounded to the nearest whole number or the nearest decimal.
Therefore, the sum of the numbers in a column may not conform exactly to the
total figure given for that column. In addition, certain percentages presented in the
tables reflect calculations based upon the underlying information prior to rounding
and, accordingly, may not conform exactly to the percentages that would be
derived if the relevant calculations were based upon the rounded numbers.
Disclaimer