Soaring sales in Russia and China drive L’Occitane profit
Net sales up 21.9% in the six months ended 30 September 2012
L’Occitane International SA has announced an increase in net sales of 21.9% to €449.2m (13.5% in local currency terms) in the six months ended 30 September 2012, chiefly driven by strong sales in Russia, China, Hong Kong and the US. Sales in Russia grew 35.0%, while China sales increased 22.7%. Likewise, developed markets including the UK, Hong Kong and the US maintained double-digit growth.
In terms of profitability, L’Occitane’s operating profit for the period increased 27.9% to €41.9m, while net profit was up 15.8% to €34.5m. The company attributed profit increase to the aforementioned net sales growth and the increased overall operating profit margin (9.3%), a result of the exchange rate effects and the leverage of its existing structures.
L’Occitane also noted that it had continued to invest in future sales growth during the period, in particular its in-store network, marketing resources and business platform. The company increased the total number of retail locations from 2,082 in 31 March 2012 to 2,218 in 30 September 2012. The net increase of 67 L’Occitane and Melvita stores included 25 new stores in Asia, 32 in Europe and 10 in the Americas.
Reinold Geiger, chairman and ceo of L’Occitane, said: “The company has demonstrated strong resilience in the current challenging market environment. Apart from our global retail expansion strategy for new store openings and important store renovations we will continue our investments to further strengthen our business platform for future growth. The digital online channel remains a key area of focus and a growth driver for the company. Increased spending has been allocated to this channel to enhance our internet presence and we are seeing strong developments in our e-commerce business.”
