Boucheron. Burberry. Jimmy Choo. Lanvin. Montblanc. Nickel ... · Certificates of deposit (< 3...
Transcript of Boucheron. Burberry. Jimmy Choo. Lanvin. Montblanc. Nickel ... · Certificates of deposit (< 3...
Interparfums. 2010 results. March 2011.
Boucheron. Burberry. Jimmy Choo. Lanvin.Montblanc. Nickel. Paul Smith.S.T. Dupont. Van Cleef & Arpels.
2010 results9 March 2011
Interparfums. 2010 results. March 2011.
Contents2010 operating highlights2010 sales2010 financials2010 organisational developments2011 launches2011 budget
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Interparfums. 2010 results. March 2011.
2010 operating highlightsA more robust market for perfumes and cosmetics2010 sales: €305.7m +17.9% at current exchange rates +18.3% at constant exchange ratesMajor launches Burberry: Burberry Sport Van Cleef & Arpels: Oriens Burberry: Burberry Beauty Lanvin: Marry Me ! Van Cleef & Arpels: Midnight in Paris
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Interparfums. 2010 results. March 2011.
2010 operating highlightsStrong growth in new markets Asia +27% Middle East +16% Return to normal market conditions in Eastern Europe (+61%)
and South America (+42%) Positive momentum in mature markets Western Europe +14% North America +8% (excluding inventory transfer to Interparfums Luxury Brands)
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Interparfums. 2010 results. March 2011.
(€m) 2008 2009 2010 10/09
Net salesGross margin
% of salesOperating profit
% of salesNet income
% of sales
305.7186.7
61.1%42.2
13.8%26.8
8.8%
+18%+23%
+25%
+18%
259.2152.2
58.7%33.7
13.0%22.7
8.7%
264.9152.5
57.6%34.3
12.9%21.1
8.0%
(€m) 2008 2009 2010 10/09
Shareholders’ equityCash net of borrowings(*)
155.8(3.8)
170.045.7
191.945.6
+12%ns
(*) Cash net of borrowings: cash & other current financial assets+ CDs > 3 months -financial debt - short-term loans
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2010 operating highlights
Interparfums. 2010 results. March 2011.
Creation of Interparfums Luxury Brands (IPLB) A wholly-owned subsidiary of Interparfums SA
Marketing of Burberry, Lanvin, Montblanc and Jimmy Choo fragrances starting 1 Jan. 2011, Van Cleef & Arpels fragrances starting 1 March 2011 A team of 7 (General Manager, Stanislas Archambault)Alliance Interparfums / Clarins 1 January 2011 Sharing sales force management and cost Clarins Fragrance Group: Mugler, Azzaro, Porsche Design, David Yurman, Swarovski Four-year renewable agreement Park Avenue office (NY) Warehouse in Orangeburg (near New York City)
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2010 operating highlights
Interparfums. 2010 results. March 2011.
Creation of Interparfums Singapore (IPS) A wholly-owned subsidiary of Interparfums SA
Invoicing from Paris maintained A team of 9 (General Manager, Renaud Boisson)
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2010 operating highlights
Interparfums. 2010 results. March 2011.
Jimmy Choo license agreement commencing on 1 January 2010Launch in January 2011Target markets: Phase one United States United Kingdom Western Europe Phase two Asia Middle East Russia
Strong interest by distributors
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2010 operating highlights
Interparfums. 2010 results. March 2011.
Montblanc license commencing on 1 July 2010 Takeover of inventory held by P&G valued at €2.5m Preparation for launch of a new men’s line planned for spring 2011
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2010 operating highlights
Interparfums. 2010 results. March 2011.
2010 operating highlightsSignature of a license agreement with the Boucheron brand▪ 15-year term
▪ 1 January 2011 -> 31 December 2025
▪ Products▪ Existing lines: Boucheron homme and Boucheron femme, Jaïpur homme and Jaïpur femme▪ Takeover of inventory held by L’Oréal for €1m▪ New production to be available in June-July 2011▪ Launch of a women’s line in 2013
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Interparfums. 2010 results. March 2011.
2010 operating highlightsAmendment to the Burberry brand license agreement▪ Extension of the current license agreement
▪ 31 December 2016 -> 31 December 2017
▪ Deadline advanced for exercising right to repurchase the license▪ 31 December 2011 -> 31 December 2012▪ Fair market value
▪ Date advanced for exercising option to extend license an additional 5 years▪ 31 December 2014 -> 31 December 2015
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Interparfums. 2010 results. March 2011.
2010 salesBurberry 2010 sales: €184.8m (+11%) Launch of the Burberry Sport line Launch of the Burberry Beauty make-up line
29 points of sale/ 3 e-commerce sites 72,000 items sold
Gains by well-established lines Burberry, Burberry Weekend and Burberry Touch Steady performance by Burberry Brit and Burberry The Beat
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Interparfums. 2010 results. March 2011.
2010 salesLanvin 2010 sales: €53.0m (+31%) Launch of the women’s line Marry Me ! (€7m) Sustained growth by the lines:
Eclat d’Arpège (+29%) Jeanne Lanvin (+15%)
Robust gains in Eastern Europe and Asia
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Interparfums. 2010 results. March 2011.
Van Cleef & Arpels 2010 sales: €25.9m (+29%) Spring launch of the women's line Oriens (€6m) Fall launch of the men’s line Midnight in Paris (€3m) Growth in all regions (particularly in the Middle East)
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2010 sales
Interparfums. 2010 results. March 2011.
2010 salesS.T. Dupont 2010 sales: €15.8m (+37%) Launch of the Intense and Essence Pure Ice lines in the spring Launch of the women's line Miss Dupont in the fall Steady performances by well-established lines Discussions in progress on extension of the license agreement
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Interparfums. 2010 results. March 2011.
2010 salesPaul Smith 2010 sales: €14.9m (+17%) Growth of Paul Smith, Paul Smith Extrême and Paul Smith Rose lines Launch of Paul Smith Man 2 line Concentration of sales in Western Europe (2/3)
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Interparfums. 2010 results. March 2011.
Montblanc 2010 sales: €7.0mGood commercial start in North and South America
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2010 sales
Interparfums. 2010 results. March 2011.
2010 salesNickel 2010 sales: €2.3m (-3%) Growth of the Nickel Bio line Flat sales in export markets
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Interparfums. 2010 results. March 2011.
2010 salesSales by brand(€m) 2009 2010 2010/2009
Burberry 166.2 184.8 +11% Lanvin 40.6 53.0 +31% Van Cleef & Arpels 20.2 25.9 +29% S.T. Dupont 11.5 15.8 +37% Paul Smith 12.8 14.9 +17% Montblanc - 7.0 ns Nickel 2.3 2.2 - Jimmy Choo - 0.6 ns Other 5.6 1.5 ns
Total 259.2 305.7 +18%
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Interparfums. 2010 results. March 2011.
2010 salesSales by region(€m) 2009 2010 2010/2009
Africa 1.8 2.6 +42% North America 43.8 42.9 ns South America 17.5 24.8 +42% Asia 37.5 47.7 +27% Eastern Europe 18.4 29.6 +61% Western Europe 85.1 96.9 +14% France 26.4 27.9 +5% Middle East 28.7 33.3 +16%
Total 259.2 305.7 +18%
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Interparfums. 2010 results. March 2011.
2010 sales
North America
14% (17%)
Western Europe
32% (33%)France
9% (10%)
South America
8% (7%)
Eastern Europe
10% (7%)
Middle East
11% (11%)
Asia
15% (14%)
Africa
1% (1%)
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Regional sales mix 2010 (2009)
Interparfums. 2010 results. March 2011.
Interparfums. 2010 results. March 2011.
2010 sales
9% 10%
7%8%
8%
11%
14%
16%38% (€81m))
45% (€135m)
■ Asia
■Middle East
■ South America
Eastern Europe
2006 2010
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Growing weight of new markets
Interparfums. 2010 results. March 2011.
2010 financialsSales by currency
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Pounds sterling
7% (9%)
Other
4% (3%)
Dollar
38% (35%)Euro
51% (53%)
Interparfums. 2010 results. March 2011.
2010 financialsSales by currencyCurrency Av. exch. rates Currency
2009 2010 effect
$ / € 1.2930 1.3210 -€2.2m £ / € 0.89 0.86 +€0.6m Y / € 132 120 +€0.8m
For info : $/€ exchange rate of 1.2930 in 2009 through hedging instruments vs. actual $/€ exchange rate of 1.3950
Sales of €306.6m, up 18.3% at constant exchange rates
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Interparfums. 2010 results. March 2011.
2010 financialsIncome statement highlights(€m) 2009 2010 2010/2009
Net sales 259.2 305.7 +18% Cost of sales (107.0) (119.0) +11% Gross margin 152.2 186.7 +23%
% of sales 58.7% 61.1% Logistics & transport (8.4) (10.6) +26% Marketing & advertising (39.4) (52.1) +32% Royalties (25.0) (30.5) +22% Staff costs (excluding production) (16.3) (19.5) +20% Subcontracting / subsidiaries (9.5) (10.4) +10% Depr., amortiz. & provisions (6.2) (6.4) +2% Other (13.7) (15.0) +9% Operating income 33.7 42.2 +25%
% of sales 13.0% 13.8%
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Interparfums. 2010 results. March 2011.
2010 financialsIncome statement highlights(€m) 2009 2010 2010/2009
Operating income 33.7 42.2 +25%% of sales 13.0% 13.8%
Net financial income (expense) 1.1 (2.2) ns Income before tax 34.7 39.9 +15%
% of sales 13.4% 13.1% Income tax (12.0) (13.3) +11%
Effective tax rate 33.6% 33.3% Net income 22.8 26.6 +17%
% of sales 8.8% 8.7% Attributable to non-controlling interests (0.1) 0.1 ns Net income 22.7 26.8 +18%
% of sales 8.7% 8.8%
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Interparfums. 2010 results. March 2011.
2010 financialsBalance sheet highlights
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Non-current assets87.3 (68.1)
Current assets148.1 (118.6)
Cash & other current financial assets57.7 (66.2)
Shareholders’ equity191.9 (170.0)
Long-term debt12.1 (20.5)
Current liabilities89.1 (62.4)
Assets Liabilities
Interparfums. 2010 results. March 2011.
2010 financialsNet cash(€m) 31.12.2009 31.12.2010
Certificates of deposit (< 3 months) 44.7 19.0 Money market mutual funds 16.8 3.1 Bank balances 5.4 3.7 Cash and cash equivalents 66.9 25.8 Current financial assets (CDs > 3 months) - 35.8 Cash and current financial assets 66.9 61.6 Bank overdrafts & short-term loans (0.7) (3.9) Cash net of short term debt 66.2 57.7 Borrowings > 1 year (11.9) (3.4) Borrowings < 1 year (8.6) (8.6) Borrowings (20.5) (12.1) Cash net of borrowings 45.7 45.6
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Interparfums. 2010 results. March 2011.
2010 financialsCash flow highlights(€m) 2009 2010
Cash flow 29.5 44.8 Inventories 24.6 (28.4) Trade receivables 14.5 (10.3) Other receivables (1.2) (1.3) Trade payables (11.1) 11.5 Other payables - 10.7 Change in working capital requirements 29.8 (17.8) Total cash flow from operating activities 56.3 27.0
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Interparfums. 2010 results. March 2011.
2010 financialsCash flow highlights(€m) 2009 2010
Acquisition of intangible fixed assets (0.6) (17.4) Acquisition of property, plant & equipment (2.9) (3.9) Acquisition of marketable securities (>3 months) - (35.8) Other (0.3) (0.5) Total cash flows from investing activities (3.8) (57.6) Issuance of borrowings - - Debt repayments (9.4) (8.2) Dividends paid (5.1) (6.3) Other 1.9 0.4 Total cash flow from financing activities (12.6) (13.7)
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Interparfums. 2010 results. March 2011.
2010 financialsCash flow highlights(€m) 2009 2010
Net change in cash 39.9 (44.3) Opening cash and cash equivalents 26.3 66.2 Closing cash and cash equivalents 66.2 21.9 57.7
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Interparfums. 2010 results. March 2011.
202
88
140153
214 220
151
123137
115 10992
2005 2006 2007 2008 2009 2010
DIODSO
Days
D
D
D
D
D
D
D
D
D
DIO: days inventory outstanding
DSO: days sales outstanding
Inventory & trade receivables: 2005-2010
D
D
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Interparfums. 2010 results. March 2011.
57.7
11.38.2
40.5
30.1
12.1
66.2
26.3
56.1
44.1
34.4
20.5
2005 2006 2007 2008 2009 2010
Cash
Borrowings
In € million
45.6
Cash & borrowings: 2005-2010
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Interparfums. 2010 results. March 2011.42
Dividend
Dividend €0.48 per share 32% of 2010 consolidated income (28% in 2009) +35% over 2009 A total distribution of €8.6m Dividend payment date: 5 May 2011
Bonus share issue For the 12th consecutive year 1 new shares for every 10 shares held Programmed for June 2011
Interparfums. 2010 results. March 2011.
0.601.00
1.301.60
2.60
3.203.60
4.104.60
5.10
6.30
8.60
0.40
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
In € million
In %
10.0% 13.3% 14.8%
15.8%
18.0%
20.2%
21.2% 22.1%
22.1% 22.8%
24.1%
28.0%
Total dividend & payout
32.0%
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Interparfums. 2010 results. March 2011.44
Capital
Bonus share issue on 20 June 2010 1 new share for every 5 held
Number of shares at 31 December 2010 17,926,195
Number of stock options outstanding at 31 December 2010 472,190
Interparfums. 2010 results. March 2011.
2011 first quarter sales 29 April 2011 (before opening of NYSE-Euronext Paris)
2011 AGM 29 April 2011 (Pavillon Gabriel – Paris, 2:00 p.m.)
2011 first-half sales 26 July 2011 (before opening of NYSE-Euronext Paris)
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Financial calendar
Interparfums. 2010 results. March 2011.
Summary of results A combination of several factors: Strong organic growth (+18% at constant exchange rates) Strong growth in operating income (+25%) Strong growth in the operating margin (13.8% +80 bp) Increase in marketing and advertising budgets (+32%) A very solid balance sheet Shareholders’ equity: €192m Cash net of borrowings (*): €46m
(*) Cash net of borrowings: cash & other current financial assets+ CDs > 3 months -financial debt - short-term loans
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2010 financials
Interparfums. 2010 results. March 2011.
Available in April 2011 – Commissioned in summer 2011Criquebeuf Sur Seine industry park (27) – Autoroute A13 (Upper Normandy)Area: 30,000 m2
Capacity: 43,000 palettesLow capacity storage Seveso classification for 2,090 m3 of inflammable liquidsFrench environmental and antiterrorism compliance certificationsLogidrive IT system with SAP Connexion
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New logistics warehouse
Interparfums. 2010 results. March 2011.
An existing integrated software program at the end of its lifecycle
A study was launched in January 2010 with go live phase scheduled for 2 May 2011
A company-wide project with the participation of 20 employees
Partners: Project management consultancy: Adone Conseil Software publisher: SAP Integrator: Logica
Budget of €1.8m spread over 2010 and 2011
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New information system
Interparfums. 2010 results. March 2011.
Fragrances Jimmy Choo: Women’s line Jimmy Choo (winter) Burberry: Women’s and men’s line Burberry Sport Ice (winter) Montblanc: Men’s line Legend (spring) Paul Smith: Women’s and men’s line Optimistic (spring) Burberry: Women’s line (fall)
Make-up Burberry Beauty: 30 additional references
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2011 launches
Interparfums. 2010 results. March 2011.
Continuing growth
2011 sales guidance raised: €330m/€335m (November 2010) -> €350m (January 2011) Growth of 14% over 2010
With an operating margin in 2011 expected to remain high: Despite a substantial increase in media budgets to support sales and new launches Though less high as a direct result of the consolidation of Interparfums Luxury Brands as of 1 January 2011 (approximately -40 basis points)
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2011 budget