L'Occitane International SA reports 9.8% Net Income decline in 2016 while 8.9% Revenue growth
06/06/2016 • About L'Occitane International SA (
$973) • By InTwits
L'Occitane International SA reported FY2016 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: FY2016 revenue growth was 8.9%, 5 year revenue CAGR was 10.7% at FY2016 ROIC 18.5%
- L'Occitane International SA has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 0.95 in FY2016, 4.6 in FY2015, 5.3 in FY2014, 6.2 in FY2013, 31.1 in FY2012
- The company has highly profitable business model: ROIC is at 18.5%
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. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 913 | 1,043 | 1,055 | 1,178 | 1,283 | 8.9% |
| Gross Profit | 755 | 855 | 856 | 963 | 1,062 | 10.2% |
| SG&A | 93 | 102 | 104 | 111 | 279 | 150.8% |
| EBITDA | 189 | 201 | 184 | 231 | 229 | -0.8% |
| Net Income | 121 | 123 | 89 | 122 | 110 | -9.8% |
Balance Sheet
|
|---|
| Cash | 308 | 320 | 319 | 395 | 425 | 7.5% |
| Short Term Debt | 4 | 6 | 6 | 3 | 2 | -11.0% |
| Long Term Debt | 65 | 77 | 74 | 107 | 86 | -19.5% |
Cash flow
|
|---|
| Capex | 56 | 80 | 61 | 50 | 52 | 2.3% |
Ratios
|
|---|
| Revenue growth | 18.3% | 14.2% | 1.1% | 11.7% | 8.9% | |
| EBITDA growth | 17.6% | 6.4% | -8.9% | 25.7% | -0.8% | |
| Gross Margin | 82.7% | 82.0% | 81.1% | 81.8% | 82.8% | 1.0% |
| EBITDA Margin | 20.7% | 19.3% | 17.4% | 19.6% | 17.8% | -1.7% |
| Net Income Margin | 13.3% | 11.8% | 8.5% | 10.4% | 8.6% | -1.8% |
| SG&A, % of revenue | 10.2% | 9.7% | 9.9% | 9.4% | 21.7% | 12.3% |
| CAPEX, % of revenue | 6.2% | 7.6% | 5.8% | 4.3% | 4.0% | -0.3% |
| ROIC | 23.2% | 21.4% | 16.9% | 19.6% | 18.5% | -1.1% |
| ROE | 20.0% | 17.8% | 12.0% | 15.2% | 12.9% | -2.2% |
| Net Debt/EBITDA | -1.3x | -1.2x | -1.3x | -1.2x | -1.5x | -0.2x |
Revenue and profitability
The company's Revenue increased on 8.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from -0.41% to -6.3% in FY2016.
Gross Margin increased slightly on 0.98 pp from 81.8% to 82.8% in FY2016. SG&A as a % of Revenue surged on 12.3 pp from 9.4% to 21.7% in FY2016.
Net Income marign decreased slightly on 1.8 pp from 10.4% to 8.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
L'Occitane International SA's CAPEX/Revenue was 4.0% in FY2016. L'Occitane International SA showed decline in CAPEX/Revenue of 3.6 pp from 7.6% in FY2013 to 4.0% in FY2016. For the last three years the average CAPEX/Revenue was 4.7%.
Return on investment
The company operates at good ROIC (18.52%) and ROE (12.95%). ROIC decreased slightly on 1.1 pp from 19.6% to 18.5% in FY2016. ROE decreased on 2.2 pp from 15.2% to 12.9% in FY2016.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -1.2x to -1.5x in FY2016. Debt dropped on 19.3% while cash increased on 7.5%.
Management team
L'Occitane International SA's CEO Reinold Geiger has spent 17 years at the company.
Appendix 1: Peers in Cosmetics/Personal Care
Below we provide L'Occitane International SA benchmarking against other companies in Cosmetics/Personal Care industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -5.0% | -20.2% | -24.8% | 117.2% | |
| EDS Wellness Holdings Ltd ($8176) | -98.6% | 1,059.5% | 238.8% | 70.4% | |
| Vinda International Holdings Ltd ($3331) | 26.4% | 12.8% | 17.5% | 21.4% | |
| Ming Fai International Holdings Ltd ($3828) | 14.3% | -0.1% | -3.4% | 5.2% | |
| Natural Beauty Bio-Technology Ltd ($157) | -18.2% | -9.1% | 15.1% | 0.2% | |
| |
|---|
| Median (7 companies) | -5.0% | -0.1% | -3.4% | 5.2% | |
|---|
| L'Occitane International SA ($973) | | 14.2% | 1.1% | 11.7% | 8.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 78.6% | 75.8% | 76.9% | 78.4% | |
| China Child Care Corp Ltd ($1259) | 45.9% | 47.3% | 47.5% | 39.3% | |
| BaWang International Group Holding Ltd ($1338) | 41.9% | 48.5% | 37.4% | 38.0% | |
| Vinda International Holdings Ltd ($3331) | 30.8% | 29.0% | 30.2% | 30.5% | |
| Ming Fai International Holdings Ltd ($3828) | 21.6% | 23.9% | 24.0% | 24.4% | |
| |
|---|
| Median (6 companies) | 36.4% | 38.2% | 38.6% | 34.3% | |
|---|
| L'Occitane International SA ($973) | 82.7% | 82.0% | 81.1% | 81.8% | 82.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 38.3% | 25.3% | 29.4% | 38.7% | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 9.5% | -23.3% | -37.4% | 20.4% | |
| Vinda International Holdings Ltd ($3331) | 16.1% | 14.2% | 15.3% | 13.7% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 7.4% | 8.6% | 11.5% | |
| China Child Care Corp Ltd ($1259) | 19.4% | 18.6% | 14.2% | -2.4% | |
| |
|---|
| Median (7 companies) | 9.5% | 7.4% | 8.6% | 11.5% | |
|---|
| L'Occitane International SA ($973) | 20.7% | 19.3% | 17.4% | 19.6% | 17.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 387.3% | 119.7% | 14.9% | 34.3% | |
| Vinda International Holdings Ltd ($3331) | 20.5% | 20.2% | 12.9% | 12.4% | |
| Natural Beauty Bio-Technology Ltd ($157) | 10.1% | 5.1% | 3.7% | 12.0% | |
| Ming Fai International Holdings Ltd ($3828) | 1.8% | 1.4% | 2.3% | 7.5% | |
| China Child Care Corp Ltd ($1259) | 2.7% | 10.1% | 7.8% | 2.6% | |
| |
|---|
| Median (7 companies) | 10.1% | 6.6% | 3.7% | 7.5% | |
|---|
| L'Occitane International SA ($973) | 6.2% | 7.6% | 5.8% | 4.3% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.7% | -67.7% | -113.8% | 35.6% | |
| Natural Beauty Bio-Technology Ltd ($157) | 19.4% | 9.2% | 13.6% | 20.7% | |
| Ming Fai International Holdings Ltd ($3828) | 7.2% | 4.3% | 5.6% | 12.0% | |
| Vinda International Holdings Ltd ($3331) | 13.8% | 10.4% | 10.0% | 9.0% | |
| China Child Care Corp Ltd ($1259) | 27.2% | 23.9% | 13.4% | -3.6% | |
| |
|---|
| Median (7 companies) | 13.8% | 4.3% | 5.6% | 9.0% | |
|---|
| L'Occitane International SA ($973) | 23.2% | 21.4% | 16.9% | 19.6% | 18.5% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.4x | 2.1x | 3.1x | 3.3x | |
| Ming Fai International Holdings Ltd ($3828) | -1.5x | -2.5x | -2.1x | -1.2x | |
| Natural Beauty Bio-Technology Ltd ($157) | -2.3x | -4.6x | -3.9x | -2.6x | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.9x | | | -3.8x | |
| |
|---|
| Median (4 companies) | -1.9x | -2.6x | -3.0x | -1.9x | |
|---|
| L'Occitane International SA ($973) | -1.3x | -1.2x | -1.3x | -1.2x | -1.5x |
