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L'Occitane (0973) investor relations material

L'Occitane Q4 23/24 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for L'Occitane International S.A.
Q4 23/24 earnings summary24 Jun, 2024

Executive summary

  • Net sales reached €2,541.9 million in FY2024, up 19.1% reported and 24.1% at constant rates, driven by Sol de Janeiro and L'OCCITANE en Provence, with strong growth in the Americas.

  • Sol de Janeiro sales rose 167% at constant rates, becoming the second-largest brand; L'OCCITANE en Provence saw steady growth, especially in China.

  • Management operating profit margin was 12.1% (€308 million), down from 15.8% last year, impacted by higher marketing investments and exceptional items.

  • Net profit declined 13.9% to €101.8 million; EPS was €0.064; net debt increased 13.8% to €736.6 million.

  • The Board recommended no dividend for FY2024 due to a proposed privatisation and delisting from the Hong Kong Stock Exchange.

Financial highlights

  • Gross profit margin was 79.3%, down 1.2 points year-over-year, mainly due to brand mix and FX headwinds.

  • Reported operating profit decreased 2.5% to €233.1 million; operating margin fell to 9.2%.

  • Wholesale and others channel grew 40–46%, led by Sol de Janeiro; online channels up 25–25.2% at constant rates.

  • Americas grew 63% at constant rates, APAC 6.3%, EMEA 4%; China saw 15% growth but slowed in Q4.

  • Other brands: Erborian and L'OCCITANE au Brésil grew over 35%; Melvita returned to growth; LimeLife declined nearly 20%.

Outlook and guidance

  • FY2025 group sales expected to grow 13–15%, with management OP margin improving by 1 point to 13%.

  • By brand: L'OCCITANE en Provence low to mid single-digit sales growth, Sol de Janeiro strong double-digit, Elemis double-digit.

  • Mid-term (to FY2027): group CAGR 12–14%, OP margin close to 15%; Sol de Janeiro OP above 20%, Melvita expected to break even.

  • Cautiously optimistic for FY2025 amid intensifying competition and continued high investments in marketing, IT, and supply chain.

  • Proposed privatisation aims to accelerate transformation and enable more agile strategic investments.

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Frequently asked questions

L'Occitane International S.A. is a Luxembourg-based manufacturer and retailer of natural and organic ingredient-based cosmetics and well-being products. With a portfolio that includes perfumes, skin care, hair care products, soaps, and fragrances, the company emphasizes the use of high-quality, sustainable ingredients. L'Occitane's commitment to traditional production methods and ethical sourcing contributes to its global reputation in the beauty industry. The company is headquartered in Luxembourg, and its shares are listed on the Hong Kong Stock Exchange.

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