Press Release26 November 2010
CONSOLIDATED RESULTS FOR THE HALF YEAT 2010-2011 (April/September)
Strong increase in products sales (+13%)
Strong increase in gross margin % on product sales (+6.4 points)
Strong growth for new products (Défi pens, Jet lighters)
Major improvement of all key operational indicators
Back to positive EBIT (+0.7 M€)
Net result close to breakeven - 0.4 M€ vs. -4.6 M€ as at Sept, 30, 2009)
Key indicators as at Sept, 30, 2010 are as follow:
| (euros million) | QUARTER 2 | HALF YEAR 1 | ||||
| Consolidated | 30/09/2010 | 30/09/2009 | Variation | 30/09/2010 | 30/09/2009 | Variation |
| Sales and Royalties | 16.2 | 15.4 | 5.0% | 31.4 | 28.6 | 9.8% |
| Gross Margin | 8.8 | 6.8 | 30.5% | 16.3 | 13.6 | 20.2% |
| % | 54.5% | 43.8% | 10.6% | 51.8% | 47.4% | 4.5% |
| Overheads | -8.7 | -8.0 | 8.1% | -15.9 | -15.9 | -0.1% |
| Other income & expenses | 0.7 | 0.1 | 0.2 | -0.1 | ||
| Gain/(loss) on exchange | -0.5 | -0.2 | 0.2 | -0.4 | ||
| EBIT | 0.3 | -1.4 | 1.7 | 0.7 | -2.9 | 3.6 |
| % | 1.9% | -8.8% | 10.8% | 2.3% | -10.0% | 12.3% |
| Share of results in associates Cy | -0.1 | -0.1 | -0.3 | -0.3 | ||
| Financial expenses | -0.4 | -0.2 | -0.6 | -1.1 | ||
| Tax | -0.1 | -0.3 | -0.2 | -0.3 | ||
| Net result | -0.3 | -2.0 | -0.4 | -4.6 | ||
| % | -1.6% | -12.8% | 11.2% | -1.4% | -16.2% | 14.9% |
Note : the sole half year figures have been reviewed by auditors (limited review)
Sales in France show a continuous strong growth (+17%). Sales in Western Europe are decreasing (-21%) but are not really comparable as last year included major sales to stock depleters in order to decrease the level of inventories ; this was not the case this year.
Strong growth in sales in Hong-Kong/China (+15%) while sales in Japan are negatively impacted by the Japanese economical crisis.
Sales to Agents and Distributors show a strong recovery (+38%) compared to very low sales in 2009-2010 due to high level of inventories within our distributors.
All activities contribute to the growth (+8% for lighters and writing instruments, +18% for leather goods, accessories and RTW) coming mostly from the performances of new products (Défi pens, JET lighters) showing a continuous strong growth.
These products (Défi) have been launched in April 2009 while this year's launches (L8 lighter and Liberté pen) take place in September and, consequently, have a limited impact on sales for the period.
Overall, products sales increase by +13%.
Due to the stop of some licences, including cigarette, in the course of the second half year 2009-2010, royalties are decreasing. Royalties from remaining licences show a strong growth (+26%), especially for perfumes and eyewear.
Exchange rate impact is material for the period (+5%).
Operational results:
- Gross Margin on product sales is strongly increasing (+6.4 points) because of increase in sales combined with the restructuring implemented last year.
- Overheads are decreasing (-10%) in line with the restructuring at head office level carried on end of March 2010.
EBIT is positive for the first time for years amounting +0.7 M€ vs. -2.9 M€ as at Sept, 30, 2009.
Net result is close to breakeven (-0.4 M€) to be compared with -4.6M€ as at Sept, 30, 2009.
Cash
Cash flow from operations is back to a positive situation (+1.8 M€ vs. -2.8 M€ as at Sept, 30, 2009).
Change in working capital is negative (-2.0 M€) due to payment of the restructuring implemented last year.
Based on the positive cash flow from operations, the continuation of the decrease in inventories and the available cash as at Sept, 30, 2010, we consider that the financing of our operations for the next 12 months is secured.
Contact Analyst:
Michel Suhard
(33) 1 53 91 33 07
msuhard@st-dupont.com
Contact press:
Euro RSCG
Thierry Micheels
(33) 1 58 47 94 98
thierry.micheels@eurorscg.fr
P&L
| (Euros thousand) | 30/09/2010 | 30/09/2009 |
| Sales products | 28 822 | 25 566 |
| Royalties | 2 597 | 3 045 |
| Net consolidated sales | 31 419 | 28 611 |
| Cost of sales | (15 130) | (15 058) |
| Gross Margin | 16 289 | 13 553 |
| Communication expenses | (1 502) | (1 586) |
| Selling expenses | (7 497) | (6 665) |
| Overheads | (6 928) | (7 697) |
| Other charges | (572) | (1 579) |
| Other income | 926 | 899 |
| Impairment (IAS 36) | 206 | |
| EBIT | 716 | (2 871) |
| Financial income | 199 | 72 |
| Financial expenses | (853) | (809) |
| Financial result | (654) | (737) |
| Other financial income/(expenses) | 52 | (399) |
| Share of results in associated companies | (296) | (310) |
| Result before tax | (182) | (4 317) |
| Income Tax | (247) | (325) |
| Net result | (429) | (4 641) |
| Net result - Group | (429) | (4 641) |
| Net result - minority interest | - | - |
| Net result per share (euros) | (0,001) | (0,011) |
| Net result per share diluted (euros) | 0,001 | (0,007) |
Balance sheet
| ASSETS | ||
| (Euros thousand) | 30/09/2010 | 31/03/2010 |
| Non current assets | ||
| Goodwill | 2 955 | 3 003 |
| Intangible assets (net) | 765 | 783 |
| Tangible assets (net) | 13 327 | 13 542 |
| Financial assets | 1 286 | 1 305 |
| Associated companies | 7 | 7 |
| Deferred tax | 294 | 281 |
| Total non current assets | 18 634 | 18 922 |
| Current assets | ||
| Inventories | 17 034 | 17 938 |
| Trade debtors | 11 167 | 7 482 |
| Other debtors | 4 984 | 4 144 |
| Current tax assets | 114 | 317 |
| Financial assets | 0 | 0 |
| Cash in hand and cash equivalent | 3 159 | 6 392 |
| Total current assets | 36 458 | 36 272 |
| Total assets | 55 092 | 55 194 |
| LIABILITIES | ||
| (Euros thousand) | 30/09/2010 | 31/03/2010 |
| Equity - Group | ||
| Share capital | 21 238 | 21 238 |
| Additional paid-in capital | 981 | 981 |
| Equity component of convertible bonds | 2 425 | 2 425 |
| Fair value of hedging instruments | -9 387 | -561 |
| Reserves | -400 | -276 |
| Profit/(loss) for the period | -429 | -8 826 |
| Equity attributable to equity holders | 14 429 | 14 981 |
| Minority interests | ||
| Non-current liabilities | ||
| Convertible bonds (long-term portion) | 14 124 | 14 026 |
| Long-term borrowings | 19 | 21 |
| Long-term finance lease liabilities | 60 | 80 |
| Deferred taxes | 164 | 195 |
| Long-term provisions for pension and other post-employment benefits | 5 319 | 5 214 |
| Total non-current liabilities | 19 686 | 19 536 |
| Current liabilities | ||
| Trade accounts payable | 7 150 | 6 377 |
| Other payables | 7 153 | 8 333 |
| Short-term tax liabilities | 460 | 205 |
| Short-term provisions for contingencies and charges | 2 061 | 2 540 |
| Convertible bonds (short-term portion) | 750 | 1 502 |
| Short-term borrowings | 3 179 | 1 449 |
| Short-term finance lease liabilities | 224 | 270 |
| Total current liabilities | 20 977 | 20 677 |
| Total Liabilities | 55 092 | 55 194 |
Cash flow statement
| (Euros thousand) | 30/09/2010 | 31/03/2010 | 30/09/2009 |
| I - Cash flow from operating activities | |||
| Profit/(loss) for the period after tax | (429) | (8 826) | (4 641) |
| Depreciation, amortization and impairment | 878 | 1 788 | 1 087 |
| Change in provision | (386) | (1 405) | (541) |
| Net interest expense | 787 | 1 498 | 665 |
| Gains and losses on disposals of assets | 206 | 557 | 62 |
| Tax expense/(income) | 425 | 457 | 287 |
| (Income)/loss from associates, net of dividends received | 296 | 506 | 310 |
| Cash flow from operations | 1 777 | (5 424) | (2 770) |
| Change in inventories and work in progress | 980 | 8 317 | 4 557 |
| Change in trade accounts receivable | (812) | 1 060 | (591) |
| Change in other receivables (3) | (975) | 2 653 | 1 357 |
| Change in trade accounts payable | 765 | (3 243) | (2 306) |
| Change in other payables | (1 948) | (1 368) | (1 328) |
| Change in operating working capital requirement | (1 990) | 7 418 | 1 690 |
| NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES | (213) | 1 994 | (1 080) |
| II - Capital expenditures | |||
| Development expenditure | (188) | (262) | (84) |
| Acquisitions of property, plant and equipment (net of insurance indemnity | (637) | (1 818) | (705) |
| Acquisition d'autres immobilisations financières | 43 | 277 | (19) |
| Cash used in investing activities | (783) | (1 802) | (808) |
| Proceeds from disposals of intangible assets | |||
| Proceeds from disposals of investments | 2 | 31 | 49 |
| Cash provided by divestments | 2 | 31 | 49 |
| NET CASH USED FOR CAPITAL EXPENDITURES | (781) | (1 771) | (760) |
| III - Cash flows from financing activities | |||
| Increase in borrowings | (0) | 293 | 56 |
| Repayments of borrowings | (182) | (22 630) | (22 588) |
| Interest paid | (1 502) | (1 543) | (1 543) |
| NET CASH GENERATED FROM FINANCING ACTIVITIES | (1 685) | (23 875) | (24 075) |
| Effect of exchange rate fluctuations on cash and cash equivalents | (194) | 297 | 358 |
| Net change in cash and cash equivalents | (2 872) | (23 354) | (25 557) |
| Cash opening balance | 5 808 | 29 162 | 29 162 |
| Cash closing balance | 2 936 | 5 808 | 3 605 |
| Net change in cash | (2 872) | (23 354) | (25 557) |