INTERIM RESULTS - Group L'OCCITANE 1H... · INTERIM RESULTS For the Six Months ended 30 September...
Transcript of INTERIM RESULTS - Group L'OCCITANE 1H... · INTERIM RESULTS For the Six Months ended 30 September...
INTERIM RESULTS For the Six Months ended 30 September 2019
Highlights
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* The Group adopted IFRS 16 from 1 April 2019 but has not restated comparatives for the prior year’s reporting period.
FY2019 H1 FY2020 H1 Change FY2020 H1
reported reported excl. IFRS
16 impact
Net sales (million €) 595.4 727.2 +22.1% 727.2
Net sales growth at constant rates +19.0%
Gross profit margin 82.4% 81.2% -1.2 pp 81.2%
Operating profit margin 1.0% 5.7% +4.7 pp 5.5%
Net profit margin 0.9% 3.5% +2.6 pp 4.0%
Earnings per share (€ per share) 0.005 0.017 +240.0% 0.020
Accounting and comparability matters
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Already in FY2020 H1
Cash / non-cash
Recurring / one-off
Lease accounting under IFRS 16 Yes Non-cash Recurring
ELEMIS acquisition costs through P&L Yes Cash One-off
ELEMIS purchase price allocation No
ELEMIS amortization of customer relationships No Non-cash Recurring
Accounting treatment of fiscal depreciation of LimeLife and ELEMIS goodwills
Yes (LL) No (Ele) Non-cash Recurring
Swiss tax rate Yes Cash Recurring
IFRS 16 Impact on Net Profit & Balance Sheet
* assumed the same effective tax rate percentage as in the reported profit for the period ended 30 September 2019.
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FY2019 H1
FY2020 H1
FY2020 H1 Growth % Growth %
reported reported IFRS 16 impacts
excluding IFRS 16 impacts
reported excluding IFRS 16 impacts
€ '000 € '000 € '000 € '000 Net Sales 595,385 727,157 727,157 22.1% 22.1%
Cost of sales (104,857) (137,047) (137,047) Gross profit 490,528 590,110 590,110 20.3% 20.3% Operating profit 5,812 41,771 1,951 39,820 618.7% 585.1%
Finance costs, net (1,687) (10,691) (6,843) (3,848) Foreign currency gains / (losses) (1,536) 1,618 (405) 2,023
Profit before income tax 2,589 32,698 (5,297) 37,995 1163.0% 1367.6% Income tax expense 2,999 (7,460) 1,208 (8,668)* -348.7% -389.0%
Net profit 5,588 25,238 (4,089) 29,327 351.6% 424.8%
Total Assets (€ mil) 1,294 2,379 408 1,971 83.9% 52.4%
Net (Cash) / Debt (€ mil) (164) 905 432 474 -650.7% -388.1%
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151
0
20
40
60
80
100
120
140
160
FY2019 H1 FY2019
Operating profit (million €)
595
1,427
0
200
400
600
800
1,000
1,200
1,400
1,600
FY2019 H1 FY2019
Net Sales (million €)
42%
Seasonality: low profit contribution from 1H
5
4%
L'Occitane en Provence
76.3%
Elemis 11.6%
LimeLife 5.6%
Others 6.5%
H1 Net Sales Breakdown
By Business Segment By Geography By Brand
* Others include emerging brands Melvita, Erborian and L'Occitane au Brésil.
*
Sell-out
66.1%
Sell-in 33.9%
USA 18.4%
Japan 14.7%
UK 10.6%
China 10.5%
Hong Kong 8.0%
France 6.7%
Brazil 3.6%
Russia 3.1%
Taiwan 2.1%
Other countries
22.3%
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(1) Others include LimeLife, marketplaces and other service sales. (2) Excluding the impact of foreign currency translation effects.
H1 net sales up 19.0% at constant rates (22.1% at reported rates)
0
50
100
150
200
250
300
350
400
Compstores
Non-compstores & others
Sell-in FX rates
million €
H1 FY2019
H1 FY2020
5%
local currency growth: 19.0%
currencies: 3.1%
Contribution to growth (2) : 23%
73%
+2%
+20%
+52%
(1)
overall sales growth: 22.1%
0
50
100
150
200
250
France UK USA Brazil Russia
H1 FY2019 H1 FY2020
3% 48% 23% 2%
+7%
+26%
3%
+10% +15%
Contribution to growth (1) :
+235%
million €
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(1) Excluding foreign currency translation effects. (2) Excluding ELEMIS, growth in the UK was +10.8% at constant rates. (3) Excluding ELEMIS, growth in the US was -5.1% at constant rates.
H1 sales growth by geography – Americas and Europe (at constant rates)
(2)
(3)
0
50
100
150
200
250
Japan Hong Kong China Taiwan Othergeographic
areasFX rates
H1 FY2019 H1 FY2020
4% -3% 8% 0% 13%
+4%
-6% +13%
+3%
+10%
Contribution to growth (1) :
million €
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H1 sales growth by geography – Asia and others (at constant rates)
(1) Excluding foreign currency translation effects.
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(1) Including own E-commerce
Same store sales growth profile (1)
H1 FY2020 compared to H1 FY2019
1.3% 5.4% 7.6%
-3.0% -0.6%
2.0%
-0.3%
-19.0%
5.7% 1.9%
5.4% 1.7%
Japan Hong Kong China Taiwan Othergeographic
areas
Group
H1 FY2019 H1 FY2020
-4.6% -0.8%
3.3% 6.4% 4.2% 6.7% 2.7%
-4.0%
1.0% 4.1%
France UK USA Brazil Russia
Profitability analysis
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% of net sales
FY2019 H1 FY2020 H1 Change
Gross profit margin 82.4 81.2 (1.2)
Distribution expenses (55.0) (50.4) 4.6
Marketing expenses (14.6) (12.7) 1.9
Research & development expenses (1.4) (1.4) 0.0
General & administrative expenses (10.5) (10.9) (0.4)
Other gains 0.1 0.0 (0.1)
Operating profit margin 1.0 5.7 4.7
Gross margin (as % of net sales)
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82.4%
-1.7 -0.2 -0.1 +0.1 +0.1 +0.2 +0.4
81.2%
FY2019 H1 Brand mix promotools
newfactory inBrazil &others
pricingproduct
mix
obsole-scence
production& freight& duties
FX FY2020 H1
Distribution expenses (as % of net sales)
13
(55.0%)
-0.3 -0.1 +0.3 +0.3 +0.3 +0.5 +3.6
(50.4%)
FY2019H1
LimeLifeinvest FX
phasing&
others IFRS 16
Leverage&
efficiencychannel
mixBrand
mixFY2020
H1
Marketing expenses (as % of net sales)
14
(14.6%)
-0.1 +0.3 +0.3 +0.6 +0.8
(12.7%)
FY2019 H1 otherbrand
mix phasing
leverage,efficiciency,
teams
advertising,events,tools,CRM FY2020 H1
General & admin expenses (as % of net sales)
15
(10.5%)
-0.7 -0.3 -0.1 +0.1 +0.1 +0.5
(10.9%)
FY2019 H1Acquisition
costs Investone-off &litigations others FX
brandmix FY2020 H1
Operating profit margin (as % of net sales)
16
1.0%
+2.3
+1.4
+1.2 +0.5 +0.4 +0.4 +0.3 -0.9
-0.9
5.7%
FY2019 H1 brandmix
leverageefficiency
TargetedControlledMarketing
FX Phasing Channelmix
IFRS 16 Acquisitionfees
& others
Otherinvest
FY2020 H1
Working capital ratios
17
Inventory turnover days
302
+11 +13 -40
286
FY2019 H1 Existingbrands
FX ELEMIS FY2020 H1
as at: FY2019 H1 FY2020 H1 Change
Inventory turnover days (based on cost of sales) 302 286 -16
Trade receivables turnover days (based on net sales) 33 38 5
Trade payables turnover days (based on cost of sales) 204 200 -4
Cash Cycle (days of net sales) 51 54 3
(1) Net Operating Profit After Tax # / Capital Employed (2) Net profit attributable to equity owners / shareholders' equity excluding minority interest (3) Current assets / current liabilities (4) Current assets - stocks / current liabilities (5) Total debt / total assets (6) Net debt / (total assets - total liabilities) * 100%
# NOPAT = (Operating Profit + foreign currency net gains or losses) x (1 - effective tax rate) Capital Employed = Non-current assets - (deferred tax liabilities + other financial liabilities + other non-current
liabilities) + working capital
Balance sheet ratios
Reported Excl. IFRS 16
impacts Reported
FY2019 H1 FY2020 H1 FY2020 H1 Profitability Return on Capital Employed (ROCE)(1) 1.3% 2.1% 1.7% Return on equity (ROE)(2) 0.8% 2.9% 2.5%
Liquidity Current ratio (times)(3) 2.6 1.5 1.2 Quick ratio (times)(4) 1.8 0.9 0.7
Capital adequacy Gearing ratio(5) 7.1% 25.9% 39.6% Debt to equity ratio(6) net cash position 44.0% 84.5%
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Capital expenditures (excl. acquisitions of subsidiaries and financial investments)
19
22.4
8.0 13.0
1.7
45.0
17.8
8.8 12.1
0.0
38.7
stores Info.Tech.
factoriesR&D
others Total
million €
FY2019 H1 FY2020 H1
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Strategic review
Skincare Positioning Omni-channel Experiences
Multi-brand Strategy Targeted Investments
Engaging Marketing Campaigns Sustainability
- Immortelle Reset serum on track to sell 1 million units for the full year
- ELEMIS will further bolster the skincare segment
- Further diversification of brand mix is expected
- ELEMIS’ market expansion is imminent
- Each brand encouraged to be autonomous while identifying synergies
- Leveraged expertise of local marketing teams to create culturally-relevant and impactful campaigns
- Successful “Balloon Journey” brand event held for a second year to an expanded number of cities
- Aim to provide a seamless path-to-purchase online and offline
- Created exciting retail experiences in key cities such as Tokyo and London
- Focus on profitability evident in disciplined and targeted investments
- Marketing investments are concentrated on major campaigns, products and channels
- Sustainability is prioritized at every step of the value chain
- Expanded agreement with Loop Industries to transition to 100% sustainable PET plastic packaging earlier than expected
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Outlook
“Pulse” Strategy Multi-brand Group Holiday Season
- Continue to execute the “Pulse” strategy to build trust, achieve sustainable growth and enhance profitability
- Expect to see enhanced profitability with targeted investments and the consolidation of the ELEMIS brand
- Operate as multi-brand group where unique brand identities are celebrated and common values shared
- Brands stay autonomous and agile while seeking synergies
- Upcoming holiday season remains a key period
- Strong marketing calendar and targeted investments should further energize the Group’s profitability drive
The Group remains confident to pursue its mission to be a leader in the affordable premium beauty space and deliver long-term value to its shareholders
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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.
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