L'Occitane International SA reports 37.0% Net Income growth and 11.7% Revenue growth
01/06/2015 • About L'Occitane International SA (
$973) • By InTwits
L'Occitane International SA reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- L'Occitane International SA is a growth stock: FY2015 revenue growth was 11.7%, 5 year revenue CAGR was 14.0% at FY2015 ROIC 19.6%
- L'Occitane International SA has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 6.2 in 2015, 31.2 in 2014, 17.5 in 2013, 3.6 in 2012, 2.6 in 2011
- The company has highly profitable business model: ROIC is at 19.6%
- It operates with high leverage: Net Debt/EBITDA is -1.2x while industry average is -1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
L'Occitane International SA ($973) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 772 | 913 | 1,043 | 1,055 | 1,178 | 11.7% |
| Gross Profit | 637 | 755 | 855 | 856 | 963 | 12.6% |
| SG&A | | 93 | 102 | 104 | 111 | 6.4% |
| EBITDA | 161 | 189 | 201 | 184 | 231 | 25.7% |
| Net Income | 100 | 121 | 123 | 89 | 122 | 37.0% |
Balance Sheet
|
|---|
| Cash | 300 | 308 | 320 | 319 | 395 | 23.8% |
| Short Term Debt | 6 | 4 | 6 | 6 | 3 | -51.8% |
| Long Term Debt | 54 | 65 | 77 | 74 | 107 | 46.0% |
Cash flow
|
|---|
| Capex | 36 | 56 | 80 | 61 | 50 | -17.2% |
Ratios
|
|---|
| Revenue growth | 26.1% | 18.3% | 14.2% | 1.1% | 11.7% | |
| EBITDA growth | 14.8% | 17.6% | 6.4% | -8.9% | 25.7% | |
| Gross Margin | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% | 0.7% |
| EBITDA Margin | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% | 2.2% |
| Net Income Margin | 12.9% | 13.3% | 11.8% | 8.5% | 10.4% | 1.9% |
| SG&A, % of revenue | | 10.2% | 9.7% | 9.9% | 9.4% | -0.5% |
| CAPEX, % of revenue | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% | -1.5% |
| ROIC | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% | 2.7% |
| ROE | 27.7% | 20.0% | 17.8% | 12.0% | 15.2% | 3.2% |
| Net Debt/EBITDA | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 11.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 77.5% to 78.8% in 2015.
Gross Margin increased slightly on 0.67 pp from 81.1% to 81.8% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.9 pp from 8.5% to 10.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.3%. The company's CAPEX/Revenue decreased slightly on 1.9 pp from 6.2% in FY2012 to 4.3% in FY2015. It's average CAPEX/Revenue for the last three years was 5.9%.
Return on investment
The company operates at good ROIC (19.60%) and ROE (15.19%). ROIC increased on 2.7 pp from 16.9% to 19.6% in FY2015. ROE increased on 3.2 pp from 12.0% to 15.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is 0.5x. Net Debt / EBITDA increased on 0.1x from -1.3x to -1.2x in FY2015. Debt jumped on 38.8% in FY2015 while cash jumped on 23.8% in FY2015.
Management team
L'Occitane International SA's CEO is Reinold Geiger. Reinold Geiger has 17 years tenure at the company.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find L'Occitane International SA benchmarking vs. other companies in Cosmetics/Personal Care industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | -50.8% | -98.6% | 1,059.5% | 238.8% | |
| Vinda International Holdings Ltd ($3331) | 32.3% | 26.4% | 12.8% | 17.5% | |
| Natural Beauty Bio-Technology Ltd ($157) | 21.8% | -18.2% | -9.1% | 15.1% | |
| Ming Fai International Holdings Ltd ($3828) | 35.9% | 14.3% | -0.1% | -3.4% | |
| China Child Care Corp Ltd ($1259) | 51.5% | 23.9% | 8.9% | -13.4% | |
| |
|---|
| Median (7 companies) | 21.8% | -5.0% | -0.1% | -3.4% | |
|---|
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | |
| EDS Wellness Holdings Ltd ($8176) | 23.6% | -72.8% | -43.6% | 39.8% | |
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | |
| Vinda International Holdings Ltd ($3331) | 27.2% | 30.8% | 29.0% | 30.2% | |
| |
|---|
| Median (6 companies) | 33.0% | 36.4% | 38.2% | 38.6% | |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | |
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | |
| EDS Wellness Holdings Ltd ($8176) | -262.4% | -1,026.9% | -249.8% | -13.7% | |
| |
|---|
| Median (7 companies) | 13.9% | 9.5% | 7.4% | 8.6% | |
|---|
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | |
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | |
| BaWang International Group Holding Ltd ($1338) | 16.6% | 28.6% | 3.9% | 2.3% | |
| |
|---|
| Median (7 companies) | 5.5% | 10.1% | 6.6% | 3.7% | |
|---|
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | |
| EDS Wellness Holdings Ltd ($8176) | -52.1% | -5.3% | -48.6% | -8.4% | |
| |
|---|
| Median (7 companies) | 11.4% | 13.8% | 4.3% | 5.6% | |
|---|
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | |
| China Child Care Corp Ltd ($1259) | -3.0x | -2.1x | -2.7x | -4.6x | |
| |
|---|
| Median (4 companies) | -1.5x | -1.9x | -2.6x | -3.0x | |
|---|
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
