Sales of the French specialist in luxury perfumes and cosmetics contracted in the first half of 2024. But the restructuring efforts of its Beauty Retail division are paying off: the group has improved its financial performance.
Some good, some bad… Bogart’s sales did indeed slow down in the first half of 2024, which ended on June 30. But the French group specialized in the creation, manufacture and marketing of luxury perfumes and cosmetics improved its margins.
Bogart reported sales down slightly (-2.6%) to 134 million euros for the first half of 2024, but “in a less buoyant global economic environment”, the group points out. This decline “takes into account the mechanical drop in sales in Spain following the subsidiary’s change of business model, and certain perimeter effects (integration of new stores in Germany and optimization of 3 stores in Dubai)”.
Variable setbacks
Its Bogart Beauty Retaildivision , the largestin terms of sales volume, fell “only” by 1.9% to 107.7 million euros, while the Bogart Fragrances & Cosmetics division dropped more sharply (-5.4%) to 26.3 million euros.
Bogart Beauty Retail has over 450 selective perfumeries and drugstores under the April, DI, HC Parfümerie and Gottmann banners, in Europe (France, Germany, Belgium, Slovakia) and the United Arab Emirates.
Bogart Fragrances & Cosmetics comprises nine fragrance, skincare, make-up and hair care brands (own brands and licenses), including Carven, Chevignon, Jacques Bogart, Ted Lapidus Parfums, Piaubert and recently Rose et Marius….
On a like-for-like basis, however, Group sales were “ virtually stable ( -0.3%)”.
Clear improvement in results
On the positive side, the Group also reports a “clear improvement in results”, with double-digit growth in Ebitda (+13.9%) to 17.2 million euros. It sees this as “the full impact of the strategic reorganization measures implemented on the network last year”.
The main driver of this performance, supported by “lower personnel costs and other recurring expenses”, was Bogart Beauty Retail, which posted a 23% increase in Ebitda (to 9.5 million euros).
As a result, Bogart significantly improved its margin rate, which rose to 52.3% from 51.9% in the first half of 2023.
In another virtuous financial development, the Group’s operating loss was more than halved, from 3.1 to 1.2 million euros, and its net loss reduced by 28% to 5.2 million euros.
Profitable growth strategy
And Bogart has no intention of stopping there… The group explains that it “remains committed to pursuing its strategy of profitable growth in 2024”.
It continues to focus “its efforts on increasing margins in its core businesses” and to “give priority to higher value-added sales”.
It is counting on the “ good momentum” of its “fragrance and cosmetics launches in the second half of the year” to support the activity of its Bogart Fragrances & Cosmetics division.
“The improvement in profitability should continue in Bogart Beauty Retail thanks to the success of the reorganizations carried out in France and Belgium”. As a reminder, the Group had closed 26 stores in these two countries by 2022.
Today, Bogart assures us, “ Belgium is benefiting from the effects of the network restructuring and revitalization plan, with a significant evolution of the April offering”. The Group also points out that “this business is traditionally more profitable in the second half of the year”.
External growth
Finally, the beauty specialist remains “always on the lookout for external growth opportunities to further expand its store network in Europe”. Earlier this year, it acquired 9 independent perfumeries across the Rhine, which were integrated into its German HC Parfumerie network (91 stores and over 500 employees) at the beginning of March.
Still on the subject of external growth, in the first quarter Bogart acquired Rose et Marius, a young nugget of Haute Parfumerie made in Provence, which was integrated into its Fragrances & Cosmetics division.
All that remains now is to convince the Paris Bourse that its strategy is the right one.
On September 27, the day after the publication of its half-year results, Bogart’s share price fell by 0.93%, and on September 28, by a further 1.25%. ….Over six months, Bogart’s share price has fallen by 5.4%, and over five years, by 27.1%.
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