PARIS (Agefi-Dow Jones)–The Interparfums share gained 1.3% to 46.80 euros on the Paris market, while the licensed perfume manufacturer published sharply higher results in the first half and confirmed its financial objectives for 2022. This progression of the title appears however timid in view of the increase of 1.6% posted by its benchmark index, the SBF 120.
“The results for the first half are solid, but the market expected it, which explains the moderate reaction of the title on the stock market,” observes an analyst based in Paris. “While there is no slowdown in demand, continued strains in supply chains are dampening growth potential,” he adds.
During the presentation of the results of Interparfums, Philippe Benacin, its CEO, estimated that these tensions had amputated the activity of 20 to 25 million euros in the first half. An amount to be compared to the 318.7 million euros in turnover recorded over the period, up 19.7% at current exchange rates.
Despite these difficulties, to which was added the inflation in the cost of raw materials, packaging and transport, Interparfums managed to record net results in the first half.
The group benefited from a still dynamic global perfumery market, from the increase in invoicing prices passed at the beginning of the year and from the favorable evolution of the euro-dollar parity.
Between January and June, net income group share thus stood at 54.2 million euros, up 19% compared to the first half of 2021.
For its part, operating profit reached 71.8 million euros in the first half of this year, up 9% over one year, and the operating margin stood at 22.5%, exceeding the threshold of the 20% that the group had set itself. Operating margin fell by 2.1 percentage points year-on-year, due to the 60% increase in marketing and advertising costs to develop its brands.
In the future, Interparfums has specified that it does not rule out strengthening its brand portfolio, if an opportunity for external growth arises.
For the whole of the 2022 financial year, the group is still aiming for a turnover of between 630 and 640 million euros and an operating margin of around 16%. By way of comparison, revenue stood at 560 million euros in 2021 and the operating margin at 17.6%.
For their part, analysts polled by FactSet expect a turnover of 641 million euros and an operating margin of 16.7% for the whole year.
If it is still too early to formulate objectives for 2023, Philippe Benacin indicated that the invoicing prices would be raised by 5% on February 1. The leader clarified that no other price increase was planned next year at this stage.
-Vincent Alsuar, Agefi-Dow Jones; +33 (0)1 41 27 47 39; [email protected] ed: ECH
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September 09, 2022 09:30 ET (13:30 GMT)