L’Occitane results: emerging brands contribute to 4.6% net sales growth
These brands brought in double-digit growth over the recording period, while its other brand, LimeLife, grew more than threefold.
The Luxembourg headquartered company, which trades on a brand image of being associate with the Provence region of southern France, has revealed these figures in its FY2018 results.
Mr. Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane, said, “Despite ongoing foreign exchange headwinds and challenging retail environments in key markets, we made solid progress in emerging markets such as China, online channels, emerging brands and completed the acquisition of the exciting brand, LimeLife.”
“We will continue to boost our appeal and build customer engagement through powerful story-telling as well as targeted and disciplined investments. We have strong confidence the Group is well-positioned to deliver profitable growth and lasting value to our shareholders.”
Key facts and figures
The end of year report reveals the following key figures and changes:
1. Net sales were €1,319.4 million, an increase of 4.6% at constant rates and slight decrease of 0.3% at reported rates.
2. Gross margin remained high at 83.3%.
3. Operating profit and net profit were €141.0 million and €96.5 million, respectively, both decreased from last year. The decrease was partly due to unfavourable foreign exchange effects and consequences from tax reform in the US. Despite the unfavourable foreign exchange effects, operating profit margin was 10.7%.
4. China, Brazil, the US and Hong Kong were the fastest-growing markets.
5. Same Store Sales Growth was 1.7%, a clear improvement in the second half of FY2018.
6. Web sell-out sales (including e-commerce and marketplaces) grew 19.2%, equivalent to 13.7% of total sell-out sales.
7. Emerging brands (Melvita, L’Occitane au Brésil, Erborian) delivered double-digit growth, while LimeLife sales grew more than three-fold in the last calendar year.
8. In view of the Group’s strong net cash position, the Board recommends an increase in the dividend payout ratio from 35% to 45%, with proposed final dividend of €0.0297 per share.
