Highlights
2
*The figure illustrates dividends declared for the period indicated, not actual dividends paid during theperiod indicated. Final dividend of €0.0297 per share proposed for the year ended 31 March 2019 issubject to the approval of the shareholders of the Company at the forthcoming AGM.
(million €) FY2018 FY2019 Change
Net sales 1,319.4 1,426.9 +8.1%
Gross profit margin 83.3% 83.2% -0.1 pp
Operating profit margin 10.7% 10.6% -0.1 pp
Net profit margin 7.3% 8.2% +0.9 pp
Earnings per share (€ per share) 0.066 0.081 +22.7%
Dividend per share (€ per share)* 0.0297 0.0297 -
3
Net Sales Breakdown
By Business Segment By GeographyBy Brand
* Others include emerging brands Melvita, Erborian and L'Occitane au Brésil
USA16.3%
Japan15.6%
China12.5%
Hong Kong9.6%
France7.2%
UK4.3%
Brazil4.0%
Russia3.6%
Taiwan2.7%
Other countries
24.3%
Sell-out
75.4%
Sell-in24.6%
L'Occitane en Provence
87.4%
LimeLife5.9%
Others *6.7%
4
(1) Others include LimeLife, marketplaces, mail-orders and other service sales (2) Excluding the impact of foreign currency translation effects
Net sales up 8.7% at constant exchange rates(8.1% at reported rates)
-50
150
350
550
750
950
Compstores
Non-compstores & others
Sell-in FX rates
million €
FY2018
FY2019
11%
overall sales growth: 8.1%local currency growth: 8.7%
currencies: -0.6%
Contributionto growth (2) :
71% 19%
+2%
+26% +6%
(1)
overall sales growth: 8.1%
5
(1) Excluding foreign currency translation effects(2) Excluding LimeLife, growth was -2.0% at constant rates, due to the net 12 stores closed this year
Sales growth by geography – Americas and Europe(at constant rates)
0
50
100
150
200
250
France UK USA Brazil Russia
FY2018 FY2019
1% 1% 48% 6%
+1%
+32%
5%
+11% +12%
Contributionto growth (1) :
+1%
million €
(2)
6
(1) Excluding foreign currency translation effects
Sales growth by geography – Asia and Other Countries(at constant rates)
-50
0
50
100
150
200
250
300
350
400
Japan Hong Kong China Taiwan Othercountries FX rates
FY2018 FY2019
0% 9% 17% -1% 14%
+0%
+9%+12%
-3%
+5%
Contributionto growth (1) :
million €
7
(1) Including own E-commerce and excluding stores closed for renovation
Same store sales growth profile (1)
FY2019 compared to FY2018
0.3% 1.5%
15.1%
-2.7% -0.2%
1.7%
-0.3% -2.6%
6.9%
-2.7%
2.2% 1.8%
Japan Hong Kong China Taiwan Othercountries
Group
FY2018 FY2019
-2.9%
0.2%
-2.7%
4.5%0.4%
-2.1% -0.1% 0.0%
5.9% 5.4%
France UK USA Brazil Russia
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Profitability analysis
% of net sales
FY2018 FY2019 Change
Gross profit margin 83.3 83.2 (0.1)
Distribution expenses (48.5) (49.1) (0.6)
Marketing expenses (13.6) (13.0) 0.6
Research & development expenses (1.3) (1.3) 0.0
General & administrative expenses (9.3) (9.3) 0.0
Other losses & gain from J.V. 0.1 0.0 (0.1)
Operating profit margin 10.7 10.6 (0.1)
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Gross margin (as % of net sales)
83.3%
-0.2 -0.2 -0.1 +0.3 +0.1
83.2%
FY2018 Brandmix
(LimeLife)
othersrounding
MPP&
boxes
productionfreightduties
pricing&
productmix
FY2019
10
Distribution expenses (as % of net sales)
(48.5%)
-0.6 -0.4 -0.3 -0.2 -0.1 +0.5+0.5
(49.1%)
FY2018
brandmix
(LimeLife)
investretail
TR
investlargestorerental
promotools
others logisticschannel
mix
lowerpre-
openingclosing FY2019
11
Marketing expenses (as % of net sales)
(13.6%)
+0.3 +0.2 +0.2 -0.1
(13.0%)
FY2018
brandmix
(LimeLife)
adv,eventpromo
toolleverageefficiency reclass FY2019
12
G&A expenses (as % of net sales)
(9.3%)
-0.6 -0.1 +0.2 +0.2 +0.2 +0.1
(9.3%)
FY2018 LimeLifemiscel-laneous leverage
lowerpersonel
reclass,rounding FX FY2019
13
Operating profit margin (as % of net sales)
10.7%
-1.1
-0.7 +0.5 +0.5+0.4 +0.1 +0.1 +0.1
10.6%
FY2018 LimeLife
Brandmix
investlarge
storesBA
leverageefficiency
lowerpre-
opening
channelmix
savingmktg
priceproduct
mix
FX FY2019
14
Effective tax rate
(29.0%)
+5.5
+3.2
+1.0+0.8 -2.2
(20.7%)
FY2018
UStaxcutLY
countrymix FX other
derecognitionoftax
credits FY2019
15
Capital expenditures(excl. acquisitions of subsidiaries and financial investments)
62.1
14.0 16.4
0.4
92.9
41.8
18.624.4
1.5
86.3
stores Info.Tech.
factoriesR&D
others Total
million €
FY2018 FY2019
16
Working capital ratios
Inventory turnover days
243
+17+12 +5 +3 -7
273
FY2018 LimeLife Elemis FX lowerprovision
lowerinventory
FY2019
existing brands
as at: FY2018 FY2019 Change
Inventory turnover days (based on cost of sales) 243 273 30
Trade receivables turnover days (based on net sales) 30 32 2
Trade payables turnover days (based on cost of sales) 188 203 15
Cash Cycle (days of net sales) 39 44 5
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Balance sheet ratios
FY2018 FY2019
ProfitabilityReturn on Capital Employed (ROCE)(1) 15.1% 15.9%Return on equity (ROE)(2) 10.3% 11.6%
LiquidityCurrent ratio (times)(3) 3.1 2.2Quick ratio (times)(4) 2.4 1.4
Capital adequacyGearing ratio(5) 6.8% 29.4%Debt to equity ratio(6) net cash 40.0%(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
# # Capital Employed calculation excluded the goodwill on Elemis as the profit will only be consolidated in FY2020 onwards.
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Strategic review
Multi-brand Strategy Omni-channel Experiences
Skincare PositioningEfficient & Entrepreneurial
Organization
Engaging Marketing Campaigns
Sustainability
- ELEMIS acquisition complements the Group’s channel and product portfolio
- Refocused LimeLife’sinternational strategy
- Continued growth for emerging brands
- Immortelle Reset serum became global bestseller and grew face care mix
- ELEMIS acquisition will bolster this segment further
- Leveraged expertise of local marketing teams to create culturally-relevant and impactful campaigns
- Targeted investments lowered marketing expenses as a percentage of net sales
- Created memorable and consistent online and offline experiences
- Flagship stores in New York and London won prestigious awards for retail design
- Empowered teams and encouraged entrepreneurial spirit through new incentive scheme
- Other operational improvements: ship-from-store, factory in Brazil
- Sustainability is prioritized at every step of the value chain
- Recently signed multi-year agreement with Loop Industries to transition to 100% sustainable PET plastic packaging
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Outlook
“Pulse” Strategy Multi-brand Group Solid Product Pipeline
- 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
- Product innovation remains key
- Ongoing hero product strategy will place emphasis on face care
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 caseof any inaccuracies, incompleteness or inconsistency with other documents, onlythe Company’s latest issued annual or interim report for detailed financials shallprevail and shall be deemed to be the only official document.
The financial information and certain other information presented in a number oftables 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 thetotal figure given for that column. In addition, certain percentages presented in thetables reflect calculations based upon the underlying information prior to roundingand, accordingly, may not conform exactly to the percentages that would bederived if the relevant calculations were based upon the rounded numbers.
Disclaimer