EQS Group-Ad-hoc: Lalique Group SA / Key word(s): Annual Results
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Personnel costs rose 7% in 2018 to EUR 32.6 million, and other operating expenses increased 7% to EUR 32.4 million. This is mainly attributable to investments in the further expansion of the business, in line with the guidance provided with the announcement of the half-year results in September 2018. Accordingly, earnings before interest and taxes (EBIT) amounted to EUR 6.1 million, after reaching EUR 7.5 million in 2017. The EBIT margin was 4.5% versus 5.8% in 2017. Net Group profit amounted to EUR 5.2 million compared with EUR 6.9 million in the previous year, including a positive tax effect in connection with the company tax reform in France of EUR 1.0 million in 2018 and EUR 1.9 million in 2017.
In 2018, operating revenue for the Lalique segment increased 7% or 10% in local currencies to EUR 83.1 million. Excluding the above-mentioned compensation, sales rose 4%. Lalique perfumes reported a double-digit rise in sales compared with the previous year (+11%), with particularly strong development in the Middle East, the US, Russia and China. In the crystal business, which is the largest business unit in this segment, sales rose 4%. In gastronomy and hospitality, the two hotels/restaurants Villa René Lalique and Château Hochberg reported high occupancy rates, reflecting continued strong interest from guests and the public. The higher overall costs (+9%) are mainly attributable to the business expansion in Japan, restructuring of the subsidiary in the US and the opening of new boutiques in locations including Tokyo, Shanghai and Bordeaux. EBIT was EUR -1.7 million (previous year: EUR -0.5 million).
Ultrasun once again recorded a very strong result for the year under review. This segment reported growth in all key markets, in particular also in Switzerland, China and the United Kingdom. The strategy being pursued focuses on collaboration with scientific institutes and dermatologists as well as increased distribution through pharmacies and chemists, and has paid off. Sales rose 34% or 37% in local currencies to EUR 17.4 million, as gross profit margin remained unchanged, while total operating costs increased 12%. EBIT rose to EUR 2.2 million (previous year: EUR 0.8 million).
In the other segments, Jaguar Fragrances saw sales increase slightly by 2% or 6% in local currencies following a strong year in 2017. While the price correction in the US adversely impacted sales, the brand developed positively in Europe in particular - the most important market for Jaguar Fragrances. Parfums Grès reported a decline in sales of 19% or 16% in local currencies due to a price correction and the economic uncertainties in Latin America, one of Grès' key regions. Of the other brands, Bentley Fragrances reported a decrease in sales of 4% (stable in local currencies), as lower sales volumes in the Middle East were only offset in part by increased sales in Asia and the US. Following a very good year in 2017 and a period of consolidation, Parfums Samouraï reported a decline of 17% or 14% in local currencies. However, with its clear focus on Japan, it is well positioned for the future. Lalique Beauty Services, the perfume filling and logistics operation, developed in line with expectations. With the new filling facility which began operations in the fall of 2018, productivity and capacity have increased substantially, also for third-party customers.
Acquisition of 50% of The Glenturret and intended capital increase
The purchase price of GBP 15.5 million for Lalique Group's 50% stake of The Glenturret and working capital of approx. CHF 4 million were financed through a shareholder loan by Silvio Denz, Chairman of Lalique Group and its main shareholder. In the course of 2019, Lalique Group intends to propose to its shareholders a capital increase by way of a rights issue to refinance parts of the shareholder loan and finance other investments and growth initiatives. To increase the free float, Silvio Denz intends not to exercise his subscription rights. Zürcher Kantonalbank will act as Lead Manager for the planned capital increase.
Roger von der Weid, CEO of Lalique Group: "In 2018, we further strengthened our business and invested in Lalique Group's international presence while at the same time achieving a solid result. With the acquisition of The Glenturret, we have further expanded our portfolio and now address an even broader clientele in the international luxury goods market. We are well positioned with our diversified business model, and are therefore convinced that our activities in 2019 will continue to develop positively. Our goal is to leverage the investments in our business and strong brands to create an even more attractive offering for our clients, and to gradually increase profitability and add value for shareholders."
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Development of key figures for Lalique Group
In EUR million
In EUR million
The complete consolidated financial statements for 2018 are available at www.lalique-group.com/financial.
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This communication does not constitute an "offer of securities to the public" within the meaning of Directive 2003/71/EC of the European Union (the "Prospectus Directive") of the securities referred to in it (the "Securities") in any member state of the European Economic Area (the "EEA"). Any offers of the Securities to persons in the EEA (if any) will be made pursuant to an exemption under the Prospectus Directive, as implemented in member states of the EEA, from the requirement to produce a prospectus for offers of the Securities.
The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to US persons (as such term is defined in Regulation S under the Securities Act) unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. Lalique Group SA has not registered, and does not intend to register, any of its shares in the United States, and does not intend to conduct a public offering of securities in the United States.
This publication constitutes neither an offer to sell nor a solicitation to buy securities of Lalique Group SA and it does not constitute a prospectus or a similar notice within the meaning of article 652a, article 752 and/or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Any offering and/or listing of securities will be made solely by means of, and on the basis of, a securities prospectus which is to be published. An investment decision regarding any publicly offered securities of Lalique Group SA should only be made on the basis of a securities prospectus. If the rights issue proceeds with a resolution at the next ordinary shareholders meeting, the securities prospectus is expected to be published after the meeting and will be available free of charge at Lalique Group.
This communication is not for distribution in the United States, Canada, Australia or Japan. This communication does not constitute an offer to sell, or the solicitation of an offer to buy, securities in any jurisdiction in which is unlawful to do so.
End of ad hoc announcement
|Company:||Lalique Group SA|
|Phone:||043 499 45 00|
|Fax:||043 499 45 03|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||800935|
|End of Announcement||EQS Group News Service|
800935 17-Apr-2019 CET/CEST