par INTER PARFUMS (EPA:ITP)
2023 results: Current operating margin: 20%. Net margin: 15%. Dividend per share: +20%
2023 results
Current operating margin: 20% Net margin: 15% Dividend per share: +20%
Income statement highlights(1) - €m 2022 2023 23/22 Dividend and bonus share issue
Net sales | 706.6 | 798.5 | +13% |
Gross margin % of sales | 472.3 66.8% | 525.0 65.8% | +11% |
Current operating income % of sales | 138.3 19.6% | 160.4 20.1% | +16% |
Operating profit % of sales | 131.8 18.7% | 165.6 20.7% | +26% |
Net income % of sales | 99.5 14.1% | 118.7 14.9% | +19% |
On February 27, 2024, the Company’s Board of Directors approved the financial statements for the year ended December 31, 2023 and decided to propose to the Combined General Meeting of April 16, 2024:
A dividend of €1.15 per share(2) representing a 20%(3) increase from the prior year or a payout ratio unchanged at 67% of net income;
For the 25th consecutive year, a bonus share issue in June 2023 on the basis of one new share for every ten shares held.
Sales price increases introduced at the start of the year limited the impact of higher raw material and packaging costs as well as the slightly unfavorable euro-dollar exchange rate trend. As a result, the decline in the gross margin as a percentage of sales in 2023 was contained and limited compared with 2022. Strong growth in unit sales and the continuing strength of marketing and advertising investments with a budget of €177m or 22% of sales, in conjunction with maintaining fixed costs under control, contributed to a sharp rise in current operating income | Board of Directors The Board of Directors decided, following the recommendation of the Corporate Governance, Nominations and Compensation Committee, to propose to the Combined General Meeting of April 16, 2024 the appointment of Caroline Renoux as an independent director for a term of 4 years. Founder and Chief Executive of companies focusing on CSR issues, Caroline Renoux will bring her expertise and extensive experience in promoting sustainable development to the newly-created CSR Committee. Annual highlights |
to more than €160m for the year, up 16% on 2022, and a current In June, Interparfums carried out its 24th bonus share issue; operating margin for the full year reaching 20%. After taking In November, Interparfums’ ESG performance improved by into account annual impairment tests of assets, operating profit 8 points over the previous year, with a score of 84/100 by rose 26% year-on-year while the operating margin reached an Ethifinance ESG Ratings;
unusually high level of 20.7%. Also in November Interparfums conducted its first employee engagement survey;
Despite a one-off increase in the average tax rate, net income In December, Interparfums joined the Science Based for the year followed the same trend with growth of 19% Targets initiative (SBTi) to validate its approach for reducing compared with 2022, to reach nearly €119m, with a net margin greenhouse gas emissions;
of close to 15%. Finally, in January 2024, Interparfums’ rating by Sustainalytics,
Balance sheet highlights(1) - €m | 12/31/22 | 12/31/23 | 23/22 | a leading ESG rating firm, was raised to 24.8, an increase of nearly 10 points in just one year, and is now on a par with the |
Inventories Cash & current financial assets | 153.5 235.8 | 202.4 177.7 | +32% -25% |
Shareholders’ equity Borrowings & financial liabilities | 592.5 147.0 | 641.0 123.0 | +8% -16% |
leading companies in the Beauty sector.
Paris, February 28, 2024
While sourcing issues continued to weigh on working capital in 2023, the easing of supply chain pressures in recent months should help bring down current inventory levels in 2024. Following payment of the second €40m installment in connection with the Lacoste upfront license fee, cash net of borrowings and financial liabilities stood at nearly €55m, and shareholders’ equity at €644m, representing 66% of total assets at December 31, 2023. | (1) Audit procedures have been completed and the audit report is in the process of being issued. (2) Ex-rights date: April 26, 2024 (midnight) - Payment date: April 30, 2024 (3) Taking into account the bonus issue of June 2023 |
Philippe Benacin, Chairman and CEO commented: “ 2023 marked another year of excellent sales and earnings, driven not only by the continuing strength of the global fragrance market but also the success of a tried and tested strategy, the continuing appeal of our brands and fragrance lines and the dedication of our teams. Based on the good level of sales in January and February, particularly for the Lacoste fragrances, we are on track to meet our full-year sales targets for 2024. ”
Philippe Santi, Executive Vice President, added: “W e will pursue our long-term strategy for development in the year ahead by devoting the necessary resources to support the growth of each of our brands, including notably substantial investments for the renewed launch of the Lacoste brand. Despite these efforts, we will nevertheless be expecting profitability in 2024 to remain at a high level. ”
Interparfums This press release is available
 |
10 rue de Solférino in French and English
75007 Paris on the company’s website Tel. +33 (0)1 53 77 00 00 interparfums-finance.fr
Upcoming events
2024 Annual General Meeting
April 16, 2024 (Pavillon d’Armenonville – Paris)
Publication of Q1 2024 sales April 25, 2024
(before the opening of Paris – Euronext Stock Exchange)
Investor Relations and Analysts Contact
Philippe Santi Executive Vice President psanti@interparfums.fr
Press contact
Cyril Levy-Pey Communication Director clevypey@interparfums.fr
ISIN : FR0004024222-ITP
Reuters : IPAR.PA
Bloomberg : ITP
Euronext Compartment A
Eligible for Deferred
Settlement Service (SRD)
Eligible for PEA
Index - SBF 120, CAC Mid 60
Consolidated financial statements
Consolidated income statement
€ thousands except per share data which is in units | 2022 | 2023 | |
Sales Cost of sales | 706,624 (234,344) | 798,481 (273,462) | |
Gross margin | 472,280 | 525,019 | |
% of sales Selling expenses Administrative expenses |
| 66.8% (305,835) (28,133) | 65.8% (330,518) (34,054) |
Current operating income | 138,312 | 160,447 | |
% of sales Other operating expenses Other operating income | 19.6% (6,491) — | 20.1% — 5,113 | |
Operating profit | 131,821 | 165,560 | |
% of sales Financial income Interest and similar expenses | 18.7% 1,997 (2,766) | 20.7% 7,437 (7,389) | |
Net finance income/(costs) | (769) | 48 | |
Other financial income Other financial expense | 28,916 (26,682) | 11,274 (13,567) | |
Net financial income/(expense) | 1,465 | (2,245) | |
Income before income tax | 133,286 | 163,315 | |
% of sales Income tax Effective tax rate Share of profit/(loss) from equity-accounted companies | 18.9% (33,061) 24.8% (47) | 20.5% (43,935) 26.9% 293 | |
Net income | 100,178 | 119,673 | |
% of sales Share of net (income)/loss attributable to non-controlling interests Net income attributable to owners of the parent |
| 14.2% (655) 99,523 | 15.0% (931) 118,742 |
% of sales | 14.1% | 14.9% | |
Net earnings per share (1) Diluted earnings per share (1) | 1.58 1.58 | 1.80 1.80 |
(1) Restated on a prorated basis for bonus share grants.
Consolidated balance sheet
ASSETS € thousands | 2022 | 2023 | ||||||
Non-current assets Net trademarks and other intangible assets Net property, plant, equipment Right-of use assets Long-term investments Other non-current financial assets Equity-accounted investments Deferred tax assets |
231,595 148,169 12,314 3,316 7,901 12,424 12,345 |
235,215 148,599 14,370 2,509 4,726 12,467 19,403 | ||||||
Total non-current assets | 428,064 | 437,289 | ||||||
Current assets Inventory and work-in-progress Trade receivables and related accounts Other receivables Corporate income tax Current financial assets Cash and cash equivalents |
153,466 138,902 29,563 2,222 99,013 136,747 |
202,387 139,452 11,018 326 39,987 137,734 | ||||||
Total current assets | 559,913 | 530,904 | ||||||
Total assets | 987,977 | 968,193 | ||||||
SHAREHOLDERS’ EQUITY & LIABILITIES € thousands | 2022 | 2023 | ||||||
Shareholders’ equity Share capital Additional paid-in capital Retained earnings Net income for the year |
188,718 — 304,218 99,523 |
207,590 — 314,670 118,742 | ||||||
Equity attributable to owners of the parent | 592,459 | 641,002 | ||||||
Non-controlling interests | 2,183 | 2,672 | ||||||
Total shareholders’ equity | 594,642 | 643,674 | ||||||
Non-current liabilities Non-current provisions for contingencies and expenses Non-current borrowings Non-current lease liabilities Deferred tax liabilities |
7,422 122,767 10,233 5,211 |
8,781 98,689 12,100 7,956 | ||||||
Total non-current liabilities | 145,633 | 127,526 | ||||||
Current liabilities Trade payables and related accounts Current borrowings Current lease liabilities Current provisions for contingencies and expenses Corporate income tax Other liabilities |
113,235 24,260 2,699 — 7,315 100,194 |
110,659 24,306 3,014 — 9,070 49,944 | ||||||
Total current liabilities | 247,702 | 196,993 | ||||||
Total shareholders’ equity and liabilities | 987,977 | 968,193 | ||||||
€ thousands Cash and cash equivalents Current financial assets | 2022 136,747 99,013 | 2023 137,734 39,987 | |
Cash and current financial assets Current borrowings Non-current borrowings | 235,760 (24,259) (122,767) | 177,721 (24,306) (98,689) | |
Total gross debt | (147,027) | (122,995) | |
Net debt | 88,734 | 54,726 |
Statement of cash flows
€ thousands | 2022 | 2023 | |
Cash flows from operating activities Net income Depreciation, amortization and other Share of profit/(loss) from equity-accounted companies Net finance costs/(income) Tax charge of the period |
100,178 27,187 298 769 33,398 |
119,673 22,409 (293) (48) 43,935 | |
Cash flow from operations before tax and finance costs | 161,830 | 185,676 | |
Interest expense payments Tax payments | (2,694) (30,346) | (3,777) (39,201) | |
Cash flow from operations after tax and finance costs | 128,790 | 142,698 | |
Change in inventory and work in progress Change in trade receivables and related accounts Change in other receivables Change in trade payables and related accounts Change in other current liabilities | (67,925) (13,276) (5,915) 21,087 16,058 | (63,251) (146) 21,566 (2,576) (13,783) | |
Change in working capital requirements | (49,971) | (58,190) | |
Net cash flows provided by (used in) operating activities | 78,819 | 84,508 | |
Cash flows from investing activities Net acquisitions of intangible assets Net acquisitions of property, plant and equipment Net acquisitions of right-of-use assets Acquisition of equity interests Net acquisitions of marketable securities Changes in long-term investments | (51,439) (26,405) 5,105 — (2,363) 731 | (41,562) (7,540) (4,899) — 87,218 807 | |
Net cash flows provided by (used in) investing activities | (74,371) | 34,024 | |
Cash flows from financing activities Issuance of borrowings and new financial debt Debt repayments Loan to stakeholders Change in lease liabilities Dividend payments to shareholders Own shares | 50,000 (13,043) — (2,697) (53,565) (5,104) | 113 (24,500) (27,550) 2,182 (65,944) (1,845) | |
Net cash flows provided by (used in) financing activities | (24,409) | (117,544) | |
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Change in net cash | (19,961) | 987 | |
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Opening cash and cash equivalents Closing cash and cash equivalents | 156,708 136,747 | 136,747 137,734 |
The reconciliation of net debt breaks down as follows: