INTER PARFUMS (EPA:ITP) - 2019 results

Transparency directive : regulatory news

03/03/2020 06:45

2019 results

Audited accounts(*)(EURm)    2018     2019 19/18

Net sales           455.3     484.3         +6%
Operating profit     66.2      73.1        +10%
% of sales          14.5%     15.1%
Net income           47.1      50.6         +7%
% of sales          10.4%     10.5%
Total shareholders'
equity              446.2     462.8         +4%
Cash net of
borrowings          182.6     195.7         +7%
(*) Audit report in the process of being issued

Another year of strong earnings growth
By maintaining tight controls over all expenses, operating profit exceeded the
most recent guidance to reach EUR73.1m, a 10.4% increase from the prior year.
In response, the operating margin rose above 15%.

Even though interest rates have continued to decline and hedging costs remain
high, net income grew to more than EUR50m or 7.4% compared to 2018, with the
net margin reaching 10.5%.

A financial structure which remains solid
While EUR30m was paid in dividends(1) and EUR20m to reimburse the Rochas loan,
effective ongoing cash flow management led to an increase in net cash for the
year of more than EUR13m. As a result, net cash exceeded EUR195m at December
31, 2019.

Further growth in the dividend
The Board of Directors, after meeting on March 2,
2020, will ask the Annual General Meeting of April 24,
2020 to approve:

- a dividend of EUR0.71 per share(2), a 10% increase in relation to 2018 taking
into account the bonus issue of June 2019, or a payout ratio of 66%;

-for the 21st consecutive year, a bonus share issue in June 2020 granting one
new share for every ten shares held.

(1) The dividend for fiscal 2018 was paid in May 2019
(2) Ex-rights date: May 5, 2020 (midnight) - Payment date: May 7, 2020

Philippe Benacin, Chairman and CEO commented:
"In line with expectations, we met our targets in 2019 with organic growth in
sales of EUR30m. In 2020, our development will be driven by a sustained program
of launches for our main brands, and notably Coach and Jimmy Choo, to which
will be added the first Kate Spade fragrance. Even if our activity in China is
limited (2% of 2019 sales), the coronavirus epidemic may be expected to have a
significant impact on the distribution of our products in all regions of Asia,
Europe and the Middle East, whereas our production is mainly concentrated in
France and Europe. Combined with the significant base effect from the launches
of the Montblanc Explorer, Jimmy Choo L'Eau and Jimmy Choo Floral lines at the
beginning of last year, sales in the first quarter of this year will be
approximately 10% lower than in Q1 2019. However, given the strength of our
long-term business model and the quality of our major brands, this situation in
no way alters our strategy and launch plans."

Philippe Santi, Executive Vice President and CFO, added: " Our financial
performances in 2019 were excellent both for sales and earnings, with operating
and net margins attaining record levels. In 2020, despite the many
uncertainties with respect to the length and severity of this epidemic, our
flexible business model and the considerable strength of our balance sheet will
enable us to successfully weather this current period of turbulence. "

Operating profit
EUR73m (+10%)

Dividend per share
EUR0.71 (+10%)

Publication of 2020 first-quarter sales
April 23, 2020
(before the opening of Euronext Paris)

2020 Annual General Meeting
(Pavillon Gabriel, Paris)
April 24, 2020 - 2pm

Investor relations and analysts contact

Philippe Santi
Executive Vice President
psanti@interparfums.fr

Press contact

Cyril Levy-Pey
Communication Director
clevypey@interparfums.fr

Shareholder information +33 1 53 77 00 99

Paris, March 3, 2020

This press release and the presentation of 2019 annual results are available in
French and English on the company's website www.interparfums-finance.fr

Interparfums
4 rond-point des Champs Elysées
75008 Paris
Tel. +33 1 53 77 00 00

Visit us on interparfums-finance.fr

ISIN : FR0004024222-ITP
Reuters : IPAR.PA
Bloomberg : ITP
Euronext Compartment A
Eligible for Deferred
Settlement Service (SRD)
Eligible for PEA PME
savings vehicles

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INTER PARFUMS (EPA:ITP) - 2019 results

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