L'Occitane profit soars 60pc

Aiden He

L'Occitane International (0973) recorded a 60.1 percent jump in net profit to 242 million euros (HK$2.01 billion) for the year ended March from a year ago and raised the proposed final dividend by 78.6 percent to 0.06585 euros.

The dividend payout ratio increased by 5 percentage points to 40 percent and basic earnings per share also grew to 0.165 euros, the French cosmetics and skincare brand said in a filing yesterday.

Net sales for the period increased by 15.8 percent year-on-year to 1.78 billion euros, of which, net revenue from China advanced by 24.4 percent to 328 million euros, and that from Hong Kong also surged by 25.7 percent to 118.9 million euros.

The firm said the lockdown of major cities in China in this quarter has adversely impacted its offline channels in the country, as well as sections of its online business due to warehouse closures. Despite this and its exit from the Russian market, which accounted for 3.5 percent of the annual net turnover and 2.1 percent of the total assets, L'Occitane said it expects to pass the 2 billion euros sales market in this financial year while retaining healthy profitability.

Vice-chairman and chief executive Andre Hoffmann said in a press conference that online sales of the mainland market have picked up this month and may still record a double-digit growth this year.

Price hikes of at least 2 percent for products across various markets are expected to be announced in the year due to inflation, especially the surge in shopping costs, Hoffmann added.