L'OCCITANE INTERNATIONAL S.A. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
L'OCCITANE INTERNATIONAL S.A.49, Boulevard Prince Henri L-1724 Luxembourg
R.C.S. Luxembourg: B80359
(Incorporated under the laws of Luxembourg with limited liability) (Stock code: 973)
INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017 HIGHLIGHTSDespite a challenging retail backdrop, the Group made encouraging progress in key emerging markets, emerging brands and online channels. Group's net sales were =C 548.2 million, an increase of 1.1% at constant exchange rates; like-for-like sales growth was 2.3%.
China and Brazil were among the fastest growing countries, with sales growth at constant rates of 22.7% and 13.2% respectively.
Gross profit margin reached 82.8%, 0.6 points higher than same period last year.
Operating margin reduced by 1.0 point of net sales, due mainly to currency exchange headwinds, one-off and phasing effects.
Gains from the Web and Sell-in channels, pricing and production costs compensated for most of the effect of soft retail environment on the distribution costs.
Due to the Group's strong seasonality and phasing effects combined with foreign exchange losses, which are largely unrealized, profit for the period ended at =C 10.7 million.
The board (the "Board") of directors (the "Directors") of L'Occitane International S.A. (the "Company") is pleased to announce the consolidated interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 September 2017 together with comparative figures for the six months ended 30 September 2016. The following financial information, including the comparative figures, has been prepared in accordance with International Financial Reporting Standards ("IFRS").
CONSOLIDATED STATEMENT OF INCOMEFor the six months ended 30 September | Notes | 2017 =C '000 | 2016 =C '000 |
Net Sales | 2 | 548,210 | 551,663 |
Cost of sales | (94,263) | (98,230) | |
Gross profit | 453,947 | 453,433 | |
% of net sales | 82.8% | 82.2% | |
Distribution expenses | (296,987) | (289,448) | |
Marketing expenses | (77,770) | (77,296) | |
Research & development expenses | (7,682) | (7,476) | |
General and administrative expenses | (58,601) | (60,647) | |
Share of gain / (losses) from joint venture accounted for using the equity method | 405 | (27) | |
Other gains, net | 3 | 468 | 832 |
Operating profit | 4 | 13,780 | 19,371 |
Finance costs, net | 5 | (809) | (118) |
Foreign currency (losses) / gains | (2,980) | 649 | |
Profit before income tax | 9,991 | 19,902 | |
Income tax credit | 6 | 736 | 6,545 |
Profit for the period from continuing operations | 10,727 | 26,447 | |
Attributable to: | |||
Equity owners of the company | 11,077 | 25,989 | |
Non-controlling interests | (350) | 458 | |
Total | 10,727 | 26,447 | |
Effective tax rate | -7.4% | -32.9% | |
Earnings per share for profit attributable to the equity owners of the Company during the period (expressed in Euros per share) | |||
Basic | 0.008 | 0.018 | |
Diluted | 0.008 | 0.018 |
Number of shares used in earnings per share calculation | |||
Basic | 7 | 1,461,435,471 | 1,464,559,221 |
Diluted | 7 | 1,463,011,450 | 1,466,793,552 |
As at | Notes | 30 September 2017 | 31 March 2017 |
=C '000 | =C '000 | ||
ASSETS | |||
Property, plant and equipment, net | 172,802 | 172,357 | |
Goodwill | 130,268 | 138,676 | |
Intangible assets, net | 75,899 | 56,677 | |
Deferred income tax assets | 89,366 | 80,058 | |
Investments in associates | 114,316 | - | |
Other non-current receivables | 41,264 | 41,449 | |
Non-current assets | 623,915 | 489,217 | |
Inventories, net | 9 | 156,760 | 138,096 |
Trade receivables, net | 10 | 99,014 | 107,983 |
Other current assets | 57,446 | 55,162 | |
Derivatives financial instruments | 845 | 153 | |
Cash and cash equivalents | 303,203 | 452,751 | |
Current assets | 617,268 | 754,145 | |
TOTAL ASSETS | 1,241,183 | 1,243,362 | |
EQUITY AND LIABILITIES | |||
Share capital | 44,309 | 44,309 | |
Additional paid-in capital | 342,851 | 342,851 | |
Other reserves | (88,359) | (66,125) | |
Retained earnings | 563,657 | 598,845 | |
Capital and reserves attributable to the equity owners | 862,458 | 919,880 | |
Non-controlling interests | 175 | 465 | |
Total equity | 862,633 | 920,345 | |
Borrowings | 87,448 | 70,572 | |
Deferred income tax liabilities | 3,493 | 3,973 | |
Other financial liabilities | 6,033 | 5,603 | |
Other non-current liabilities | 30,478 | 31,405 | |
Non-current liabilities | 127,452 | 111,553 | |
Trade payables | 11 | 104,417 | 102,429 |
Salaries, wages, related social items and other tax liabilities | 56,376 | 64,339 | |
Current income tax liabilities | 6,904 | 9,496 | |
Borrowings | 2,424 | 2,468 | |
Other current liabilities | 68,454 | 18,024 | |
Derivatives financial instruments | 647 | 442 | |
Provisions for other liabilities and charges | 11,876 | 14,266 | |
Current liabilities | 251,098 | 211,464 | |
TOTAL EQUITY AND LIABILITIES | 1,241,183 | 1,243,362 | |
NET CURRENT ASSETS | 366,170 | 542,681 | |
TOTAL ASSETS LESS CURRENT LIABILITIES | 990,085 | 1,031,898 |
-
Basis of preparation
This condensed consolidated interim financial information ("consolidated interim financial information") for the six-month period ended 30 September 2017 ("period ended 30 September 2017") has been prepared in accordance with IAS 34, 'Interim financial reporting' as issued by the International Accounting Standards Board. The consolidated interim financial information should be read in conjunction with the consolidated annual financial statements for the year ended 31 March 2017, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
The accounting policies and methods of computation used in the preparation of this interim financial information are consistent with those of the annual consolidated financial statements for the year ended 31 March 2017, except as described below:
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
Interpretations and amendments to IFRSs effective for the financial period beginning 1 April 2017 do not have any material impact on the consolidated financial statements.
-
Net sales and segment information
Management assesses the performance of two operating segments, which are Sell-out and Sell-in:
Sell-out comprises the sales of products directly to the final customers. These sales are mainly done in the Group's stores and/or through the Group's websites;
Sell-in comprises the sales of products to intermediates. These intermediates are mainly distributors, wholesalers, TV show channels and travel retailers. This segment also comprises sales of products to corporate customers, airline companies and hotels.
From a geographical perspective, management assesses the performance of the individual countries.
2.1 | Operating segments For the six months ended 30 September 2017 | |||
Other | ||||
reconciling | ||||
In thousands of Euros | Sell-Out | Sell-In | items | Total |
Net sales | 397,077 | 151,133 | - | 548,210 |
In % | 72.4% | 27.6% | - | 100.0% |
Gross profit | 349,525 | 104,422 | - | 453,947 |
% of sales | 88.1% | 69.1% | - | 82.8% |
Distribution expenses | (243,672) | (26,684) | (26,631) | (296,987) |
Marketing expenses | (23,055) | (4,005) | (50,710) | (77,770) |
Research & development expenses | - | - | (7,682) | (7,682) |
General and administrative expenses | - | - | (58,601) | (58,601) |
Share of profit from joint operations | - | - | 405 | 405 |
Other gains / (losses), net | 46 | (8) | 430 | 468 |
Operating profit | 82,844 | 73,725 | (142,789) | 13,780 |
% of sales | 20.9% | 48.8% | - | 2.5% |
For the six months ended 30 September 2016 | ||||
Other | ||||
reconciling | ||||
In thousands of Euros | Sell-Out | Sell-In | items | Total |
Net sales | 400,549 | 151,114 | - | 551,663 |
In % | 72.6% | 27.4% | - | 100.0% |
Gross profit | 349,712 | 103,721 | - | 453,433 |
% of sales | 87.3% | 68.6% | - | 82.2% |
Distribution expenses | (236,283) | (27,913) | (25,252) | (289,448) |
Marketing expenses | (24,233) | (4,897) | (48,166) | (77,296) |
Research & development expenses | - | - | (7,476) | (7,476) |
General and administrative expenses | - | - | (60,647) | (60,647) |
Share of loss from joint operations | - | - | (27) | (27) |
Other gains, net | 308 | 1 | 523 | 832 |
Operating profit | 89,504 | 70,912 | (141,045) | 19,371 |
% of sales | 22.3% | 46.9% | - | 3.5% |
L'Occitane International SA published this content on 20 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 November 2017 08:40:01 UTC.
Original documenthttp://img.loccitane.com/OCMS/Group/doc/pdf/EN/E_20171120.pdf
Public permalinkhttp://www.publicnow.com/view/875ABE850F0029A7C073EF578E12A08F46710A67
