L'Occitane (0973) investor relations material

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 the Americas as the largest region.

• Sol de Janeiro sales grew 167% at constant rates, becoming a key growth and profitability driver; L'OCCITANE en Provence and ELEMIS also contributed.

• Operating profit was €233.1 million (down 2.5%), with management OP margin at 12.1% and reported margin at 9.2%, reflecting higher marketing and non-operational costs.

• Net profit declined 13.9% to €101.8 million; EPS was €0.064, impacted by higher tax rates and impairment charges.

• The Board recommended no dividend for FY2024 due to a proposed privatisation and delisting.

Financial highlights

• Gross profit margin was 79.3% (down 1.2 pts), mainly due to brand mix and FX impacts.

• Wholesale and others channel grew 40–46%, online channels up 25–25.2% at constant rates.

• Marketing expenses rose to 22.8% of net sales, reflecting strategic investments in brand growth.

• Distribution expenses improved to 33.7% of net sales, aided by brand mix and network rationalization.

• Free cash flow was €194.3 million, down from €253.9 million last year.

Outlook and guidance

• FY2025 guidance: group sales growth expected in the low teens (13–15%), with a one-point improvement in management OP margin (to ~13%).

• Cautiously optimistic for FY2025, but profit margins expected to remain under pressure due to continued investments in marketing, store refurbishment, IT, and talent.

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

• Mid-term (to FY2027): group CAGR of 12–14%, OP margin expected to return close to 15%.