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Interparfums Earnings Release 2020
1445_iss_2020-07-23_ca2ba114-c4d5-4bb7-9b31-683084c0be8a.pdf
Earnings Release
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2020 first half Sales: €139m An operating margin of around 5% expected
Consolidated first-half sales for 2020 amounted to €139.3 million, down 42% from the same period in 2019.
Half-year highlights by brand
| (€m) | 2nd quarter | 1st half | Change | ||
|---|---|---|---|---|---|
| 2019 | 2020 | 2019 | 2020 | 20/19 | |
| Montblanc | 31.1 | 8.3 | 71.8 | 36.2 | -50% |
| Coach | 22.9 | 7.3 | 41.7 | 33.6 | -19% |
| Jimmy Choo | 19.6 | 7.0 | 46.2 | 26.7 | -42% |
| Rochas | 6.6 | 4.6 | 14.6 | 12.4 | -15% |
| Lanvin | 14.1 | 2.6 | 28.1 | 10.9 | -61% |
| Van Cleef & Arpels | 5.5 | 1.1 | 9.5 | 4.7 | -51% |
| Boucheron | 3.9 | 1.1 | 10.1 | 4.4 | -57% |
| Karl Lagerfeld | 4.5 | 1.6 | 7.2 | 4.2 | -41% |
| Other | 3.6 | 2.2 | 9.2 | 6.2 | ns |
| Total sales | 111.8 | 35.8 | 238.4 | 139.3 | -42% |
ns: not significant
Sales by the different brands in the 2020 first half were adversely impacted by the closure for several weeks of most points of sale throughout the world, with declines of between 40% and 60% in the period. For Coach and Rochas fragrances, this decrease was mitigated by the launches of the Coach Dreams and L'Homme Rochas lines at the start of the year.
Philippe Benacin, Chairman and CEO commented: "Figures cease to be meaningful above certain levels. They do however force us to rethink how we work, plan ahead and anticipate, calculate, maintain the bonds between our teams, re-examine our business, production plans, relations with our partners, our human resources and both our short and long-term strategies. Such efforts carried out in the second quarter enabled us to finalize our license agreement with Moncler, our equity stake in Origines Parfums and maintain earnings at positive levels for the first six months despite an astonishing and unexpected decline in sales."
Philippe Santi, Executive Vice President, added: "Since the end of March, we have taken measures to adapt all operating expenses, especially for marketing and advertising, according to the different assumptions for a recovery in business. As a result, despite a decline in sales of more than 40%, through our flexible operating model, we will be able to achieve a positive operating margin of around 5% in H1 2020."
While the sustained level of sales in the United States and Western Europe over the last several years limited the scope of the decline, the health crisis has broadly impacted all regions, with the steepest declines in the Middle East and Eastern Europe. In France, sales rebounded significantly in May and June, driven by the good performances of
Africa 0.8 0.8 2.2 2.0 -9% Asia 18.3 6.0 40.3 21.8 -46% Eastern Europe 9.3 1.9 16.2 7.9 -51% France 7.3 5.9 17.8 12.8 -28% Middle East 13.8 3.7 33.7 15.0 -55% North America 32.8 9.1 66.1 41.6 -37% South America 9.5 3.0 19.8 11.5 -42% Western Europe 20.0 5.4 42.3 26.7 -37% Total sales 111.8 35.8 238.4 139.3 -42%
2nd quarter
2019 2020 2019 2020 20/19
1st half
Rochas and Montblanc fragrances.
Half-year highlights by region
(€m)
Upcoming event
2020 first-half results September 08, 2020 (before the opening of Euronext Paris)
Investor relations and analysts contact
Philippe Santi Executive Vice President [email protected]
Press contact
Cyril Levy-Pey Communication Director [email protected]
Shareholder information
+33 1 53 77 00 99
Paris, July 23, 2020
This press release is available in French and English on the company's website www.interparfums-finance.fr
Interparfums 4 rond-point des Champs Elysées 75008 Paris Tel. +33 1 53 77 00 00
Visit us on interparfums-finance.fr
ISIN : FR0004024222-ITP Reuters : IPAR.PA Bloomberg : ITP Euronext Compartment A Eligible for Deferred Settlement Service (SRD) Eligible for PEA PME savings vehicles