SMCP’s full-year results Wednesday saw it confirming that sales rose 4 per cent at constant exchange rates (3 per cent on an organic basis) to reach € 1.231 billion. But net profits still plummeted and the company is intensifying its efforts to boost its brands and control costs.
“Nearly stable vs 2022, despite a challenging and very promotional environment in several markets,” the business stated of the average in-season discount rate.
Even though the group’s adjusted EBIT decreased by 28 per cent on an annual basis, it recovered in the second half and ended the year at € 79.5 million, or 6.5 per cent of sales. From € 267 million to € 236 million, adjusted EBITDA decreased.
The net profit was only € 11 million. It reported net profit of € 51 million for January–December 2022, but that amount was only € 37 million after one-time items were taken out. That was precisely one year ago.
On the other hand, SMCP’s cash generation improved in the second half and its net debt decreased in comparison to 2022.
With € 413 million in sales, France’s sales were essentially unchanged from the previous year. A traffic slowdown there, particularly in December, hurt the second half “due to persistent inflation which affected consumer purchasing power.” However, sales of digital goods were strong.
Its yearly sales increased 3.2 per cent organically and 3.1 per cent on a reported basis to reach € 388.8 million in the remaining EMEA region (except from France). Its like-for-like sales were strong even with a high basis of comparison. However, following a strong first half performance (+9 per cent), H2 was negatively hit by both inflation and a downturn in demand. The Middle East, Germany, and Spain “performed well,” but the UK and Switzerland had a worse year “due to low tourism flow.”
Organic sales decreased 3 per cent to € 173.4 million in America, according to reported sales data, “after two years in a row of outstanding performance.” However, the second part was better. Sales in the US stayed strong, and in Q4, Canada started to expand again.
In the meantime, reported sales in Asia Pacific increased by 10.6 per cent, with organic sales reaching € 255.2 million, up 12.5 per cent. Every market saw growth, with the exception of Taiwan and Korea. In addition to double-digit growth, the group also profited from “the internalisation of Australia & New Zealand network” and strong results in Hong Kong, Macau, Singapore, and Malaysia.
