EQS Group-Ad-hoc: Lalique Group SA / Key word(s): Half Year Results
Lalique Group announces half-year results 2019
Today at 11:00 a.m. CEST, the results for the first half of 2019 will be presented in a conference call for investors, analysts and the media.
Lalique Group delivered solid further growth in the first half of 2019. This was driven primarily by continued strong growth in the Ultrasun segment as well as the positive development of Parfums Grès and Bentley Fragrances. While Lalique Parfums saw sales decline, the crystal business within the Lalique segment experienced solid growth, partly due to the opening of new boutiques in Japan, China, Macau, Vietnam and France in the second half of 2018 and the first half of 2019. The acquisition of The Glenturret also contributed to growth. In total, Group operating revenue increased by 5% to EUR 70.0 million (+2% in local currencies) compared to the prior-year period.
Personnel costs rose by 7% to EUR 17.2 million, reflecting the planned expansion of the business. Other operating expenses of EUR 15.5 million were slightly higher than the figure for the prior-year period, with expenses in the first half of 2019 including a positive impact of EUR 3.5 million due to the first-time application of IFRS 16, while depreciation increased by EUR 3.2 million. Operating expenses reflect planned costs for the international expansion of the business as well as the restructuring in the US on the one hand, and EUR 1.2 million of one-off costs related to the acquisition of 50% of The Glenturret on the other.
This resulted in earnings before interest and taxes (EBIT) of EUR 0.5 million in the first half of 2019, compared to EUR 2.0 million in the prior-year period. The EBIT margin was 0.7%, compared to 2.9% in the first half of 2018. Net Group profit totalled EUR -0.8 million, compared to EUR 1.3 million in the prior-year period, which included a positive tax effect of EUR 1.0 million in connection with the company tax reform in France. Excluding acquisition costs, EBIT was EUR 1.7 million, the EBIT margin was 2.5% and net Group profit was EUR 0.4 million.
The Ultrasun segment once again achieved strong growth in all key markets, especially in China, Switzerland and EU states. The increased focus on distribution through pharmacies and chemists continued to pay off. Sales rose by a total of 18% to EUR 15.5 million. Including higher growth-related personnel costs, EBIT increased by 32% to EUR 3.9 million.
In the other segments, Jaguar Fragrances recorded slight growth (+1%), while Parfums Grès reported a pleasing rise in sales of 41%. Among the other brands, Bentley Fragrances experienced a 27% increase in sales, and Parfums Samouraï achieved growth of 4% following successful product launches. The perfume filling and logistics operation Lalique Beauty Services produced a result that was in line with expectations. The whisky distillery The Glenturret, which has been fully consolidated in the accounts of Lalique Group since its acquisition on 28 March 2019, generated sales of EUR 0.7 million in the last three months of the first half of 2019.
Outlook for 2019
In the second half of 2019, Lalique will continue to focus its business expansion on Asia - primarily Japan. With regard to the previously communicated negotiations surrounding two additional perfume licences, one of the agreements is expected to be concluded in the second half of 2019, while it is likely that more time will be required for the second agreement.
For the full year 2019, Lalique Group expects to achieve further moderate sales growth in the low single digit percentage range (in local currencies), as previously announced. However, particularly in view of the shortfall of sales at Lalique Parfums, the EBIT margin for 2019 is likely to be lower than in 2018, when extraordinary income was recorded in the second half of the year. Lalique Group originally expected a slight increase in the EBIT margin for 2019.
Roger von der Weid, CEO of Lalique Group: "In the first half of 2019, we achieved solid growth overall while continuing to invest in the breadth of our business, and we made progress in the development of our business activities. We are convinced that we have thus created an even better basis for future growth and a gradual increase in profitability. When expanding our business, we will continue to focus on Asia, especially Japan, as well as on integrating The Glenturret into our diversified portfolio to appeal to a broad target clientele in the luxury goods market."
Conference call for investors, analysts and the media
Phone: +41 43 499 45 58
You can find further information at: www.lalique-group.com.
1) Positive impact of EUR 3.5 million compared to H1 2018 due to IFRS 16
2) Negative impact of EUR -3.2 million compared to H1 2018 due to IFRS 16
3) Positive impact of EUR 0.2 million compared to H1 2018 due to IFRS 16
4) Negative impact of EUR -0.2 million compared to H1 2018 due to IFRS 16
in EUR million
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:||871595|
|End of Announcement||EQS Group News Service|
871595 11-Sep-2019 CET/CEST