Lalique Group SA / Key word(s): Half Year Results
Lalique Group announces 2020 half-year results
A telephone conference for investors, analysts and the media will be held today at 10.00 CEST.
As a result of the easing of lockdown measures, Lalique Group has seen an improvement in sales trends in all segments since the second half of May, although the global economic downturn and continued protective measures at a local level are continuing to impact on the business.
On the cost side, Lalique Group implemented measures to maintain the company's capital and liquidity position and to generate savings. These included a substantial reduction in marketing initiatives, the deferral of projects to develop and launch new products, a hiring freeze, and salary and bonus waivers by members of the Board of Directors and the Executive Board. The Group also introduced short-time working or equivalent support measures for the majority of employees at its head office in Zurich and in all its locations in France, as well as overseas. Further, it was able to secure rent reductions for points of sale that were temporarily closed. These measures contributed to an 18% decrease in personnel costs to EUR 14.1 million in the first half of 2020. At EUR 10.0 million, other operating expenses were 36% lower than in the prior-year period.
Lalique Group continues to have a solid liquidity and capital position with an equity ratio of 50.7% at the end of June 2020, compared to 50.1% at the end of 2019.
Ultrasun achieved sales of EUR 12.5 million in the seasonally stronger first half of 2020, down 20% compared to the prior-year period. In the key markets Switzerland and the UK in particular, the drop in sales was limited despite the Covid-19 situation, with decreases of 12% and 15%, respectively. In Switzerland, the proportion of sales generated from the distribution of products through pharmacies and drugstores continued to grow. In the UK, distribution via TV and online channels offset a significant portion of the reduction in sales at retail outlets. Overall, costs decreased by 7%. Profitability at EBIT level was EUR 2.0 million (prior-year period: EUR 3.9 million).
In the Jaguar Fragrances segment, sales declined by 40%. However, with EBIT of EUR 0.2 million, the top-selling perfume brand in Lalique Group's portfolio remained profitable (prior-year period: EUR 1.8 million). The Parfums Grès segment saw sales fall by 39% as its core markets in Spain and Latin America were severely affected by the pandemic. EBIT was EUR 0.0 million (prior year: EUR 0.6 million).
Among the other brands, Bentley Fragrances experienced a 34% decline in sales. Parfums Samouraï recorded a decrease of 47%, primarily reflecting strict protective measures in Japan. The perfume filling and logistics operation Lalique Beauty Services achieved a slight increase in sales during the reporting period, reflecting the fact that the filling facility could be used for the production of hand disinfectants for third-party clients. The whisky distillery The Glenturret, which has been fully consolidated by Lalique Group since the acquisition on 28 March 2019, recorded a 53% decrease in sales compared to the period from April to June 2019. On the one hand, the launch of a new whisky range had to be postponed, and on the other hand, there were practically no sales due to the closure of the visitor centre because of the lockdown.
Aligned with the development in sales, Lalique Group will continue to exercise strict cost management in the second half of 2020. At the same time, the Group is planning to resume preparations for selected projects and new launches that had been deferred. The rebranding of the distillery The Glenturret - together with the launch of the new whisky range led by the renowned whisky maker Bob Dalgarno - is currently planned for the fourth quarter of 2020, depending on the development of Covid-19 in Scotland. The launch of the first perfume under the new Brioni license that was originally scheduled for the fourth quarter of 2020 is now planned for spring 2021. Digital marketing and online activities, as well as distribution via online merchants, will be further expanded for all segments.
Against the backdrop of the corona situation and the ongoing recession, Lalique Group will continue to consistently pursue its diversification strategy to make use of the breadth of its business. Barring a renewed increase in the severity of the Covid-19 pandemic or other unforeseen events, Lalique Group expects growth in sales to be in the low double-digit percentage range for 2021 compared to the anticipated reduced level of sales for 2020. As already announced in April 2020, the Group expects the achievement of its medium-term goals (sales growth in the mid-single digit percentage range and a gradual increase in the EBIT margin to 9%-11%) to be delayed. It will provide a further update when it presents its results for the full year 2020.
Roger von der Weid, CEO of Lalique Group: "In the first half of 2020, the lockdown measures introduced to combat Covid-19 had a very adverse effect on our entire business. Since mid-May, we have seen signs of recovery in all business segments that should continue in the second half of the year, provided the severity of the pandemic does not increase again. Lalique Group has maintained a very solid financial position, and we are convinced of the benefits of our broad-based business - especially in the current difficult economic environment. Against this backdrop, and always taking the corona-related developments into account, we will resume preparations for selected strategic initiatives in the coming months while at the same time pursuing our strict cost management."
Documentation on half-year results 2020
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) The Group restated the figures for the comparative period as at 30 June 2019 for the correction of an error in deferred taxes.
2) Non-cash impairment charge of EUR 4.3 million on the Lalique brand in the first half of 2020.
In EUR million
The complete consolidated financial statements for the first half of 2020 are available at www.lalique-group.com/financial
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:||1128959|
|End of Announcement||EQS Group News Service|