Interparfums unveils a 39% drop in net profit in 2020
Interparfums has published a net profit (group share) for 2020 of €30.7 million, down 39.4%. Operating profit was €46.9 million, down 35.8%, giving a margin of 12.8% compared with 15.1% a year earlier. 367.4 million, down 24.1%.
Over the year, net sales for the licence designer decreased by a total of 24.5% to $539 million from $713.5 million in 2019.
Fourth quarter net sales were particularly strong at $184.0 million, up 3.5% from $177.8 million in the fourth quarter of 2019.
“As we reported in January, we ended the year with a surprisingly strong fourth quarter, in fact the best quarter we’ve ever had in terms of sales. Our biggest European brands, Montblanc, Jimmy Choo and Coach, recorded sales growth of 9.8%, 13.4% and 18.0% respectively, which is all the more satisfying as no new products were launched during this period. We are also very satisfied with the preliminary sales of Anna Sui Sky, which began to be rolled out in the last quarter of 2020, contributing to the 62.3% increase in sales of this brand in the fourth quarter,” said Jean Madar, Chairman and CEO of Interparfums.
Net sales from European operations increased by 8.1% from $129.1 million to $139.6 million. Net sales from American operations decreased by 8.8% from $48.7 million to $44.4 million.
However, the Middle East and Eastern European markets recorded the largest declines: 35.5 per cent and 40.0 per cent respectively. The company’s two largest markets, North America and Western Europe, experienced smaller sales declines of 17.8% and 20.7% respectively. The 28.2% decline in sales in Asia was primarily due to the halt in travel and tourism.
Thanks to this financial performance in 2020, the Board of Directors has decided to propose a dividend of €0.55 per share at the Annual General Meeting on 23 April, as well as a new allocation of free shares in June to thank its shareholders for their loyalty and support.
“With a major launch plan, notably a line with a low environmental impact on Rochas fragrances, and particularly dynamic activity in recent weeks, 2021 is looking good for the moment despite continued reduced visibility,” said Philippe Benacin, the group’s CEO.
“In a context of significant increases in marketing and advertising expenditure, necessary to accompany the return to growth, we anticipate an operating margin of around 12% in 2021,” added Philippe Santi, Managing Director.
The company has therefore adjusted its forecasts for 2021: net sales of between $650 and $660 million, taking into account negligible sales in the retail travel sector but also the group’s numerous launches (variations of Urban Hero & Coach Dream, Les Fleurs de Lanvin, four new reds at JC, Moncler juice, etc.).
Read also > FRANCE’S INTERPARFUMS RAISES 2020 REVENUE FORECAST TO OVER 340 MILLION EUROS
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