Bogart Group (Euronext Paris - Compartment B - FR0012872141 - JBOG), which specializes in the creation, manufacture and commercialization of luxury fragrances and cosmetics, has published its 2017 financial results.
|In € million (audited figures)||2016||2017||Change|
|Other income on ordinary activities (Licenses)||1.6||1.5||-6.3%|
|Financial income (expense)||(1.7)||(3.2)||-|
|Group net profit||8.5||9.3||+9,4%|
Bogart Group enjoyed a robust improvement in financial results for 2017, with increased EBITDA in both divisions despite a drop in activity for Distribution. Its results confirm the success of the Group's vertical integration model and measures to streamline its organization, particularly outside France.
Sharp improvement in financial indicators
Bogart Group posted consolidated turnover of €128 million for 2017, up 22.8% year on year, driven by a very strong performance from the Boutiques business. This increase confirms the effectiveness of the Group's vertical integration strategy. At constant scope, year-long turnover was down by 0.7%.
Total revenues (including licenses) amounted to €129.5 million, up 22.4% year on year. They break down as follows:
Distribution: down 11.9% to €36.9 million, due to an unfavorable base effect after major product launches in 2016 and to weaker market conditions in the Middle East and Brazil for Jacques Bogart and Ted Lapidus products.
Boutiques: up 46.2% to €91.1 million, bolstered by the full-year contribution of the HC Parfümerie network (87 fragrance boutiques and franchises in Germany) acquired at end-2016. At constant scope, growth for Boutiques reached 6.7%.
Licenses: down 6.3% to €1.5 million, reflecting changes in licenses.
Operating income has increased in both businesses, despite the Distribution decreased turnover, and came to €16.3 million (€10.9 million in 2016), an increase of 49.5%. This rise is explained by optimization measures implemented in its subsidiaries and the careful management of operating expenses.
Financial expenses of €3.2 million (including €0.3 million linked to exchange rate effects) and a more normative tax expense of €3.9 million (in 2016, the Group's tax expense came to €0.6 million due to deferred tax with respect to HC Parfümerie) resulted in net profit of €9.3 million, up 9.4% from €8.5 million in 2016.
Very healthy financial position and free cash flow of €17 million
At December 31, 2017, Group equity stood at €80.7 million, compared with €74.2 million at end December 2016.
Cash flow from operating activities surged to €18 million (€0.6 million in 2016) thanks to a substantial improvement in working capital and the Group's cash position, offsetting investments for the period of €2.2 million.
All in all, and net of the disposal of financial assets, free cash flow accelerated sharply to €17 million, compared to a negative €7 million the previous year. The Group was therefore able to repay loans during the period for €7.7 million. The Group's net debt position at end-2017 stood at €(10.1) million as against a €(24.4) million the year before, taking gearing to 12.5% versus 32.9% in December 2016.
Cash assets amounted to €40 million (€35.3 million at end-2016) after a dividend payout of €2.5 million with respect to 2016.
Proposed dividend of €0.17 per share
Heartened by the Group's financial results and healthy cash position, the Board of Directors has decided to propose the payment of a dividend of €0.17 per share (up from €0.16 per share the previous year) at its General Meeting on June 29, 2018.
Launches of new perfumes for the Group and restructuration of Methode Jeanne Piaubert
Growth potential for both business divisions in 2018
Bogart Group is aiming for a return to growth for its Distribution business in 2018, drawing in particular on the promising launch of the Dans Ma Bulle fragrance from the Carven brand. The perfume will be rolled out gradually in Europe, Asia (May 2018) and in the United States this summer. A second perfume will be launched on second semester for The Carven line Collection.
The Group has also planned new launches for Ted Lapidus and Jacques Bogart in 2018.
In cosmetics, the Group has significantly restructured its Jeanne Piaubert brand, with a more modern design and a reinforced brand positioning. Five new care products will be launched on the market this year. A number of new products for the April brand will also be launched across the Group's distribution network.
For its Boutiques business, the Group will press ahead with its development strategy and will remain attentive to new opportunities to expand its network of boutiques.
Finally, it plans to overhaul its e-commerce websites to step up online sales.
Bogart Group will publish its turnover for the first quarter of 2018 during the week beginning May 7, 2018.
About BOGART Group
BOGART Group specializes in the creation, manufacture and commercialization of luxury fragrances and cosmetics. With a unique market positioning as a manufacturer-distributor, the Group is present in more than 90 countries, and markets its products in France via selective fragrance and cosmetics networks and overseas via local distributors and Group subsidiaries. The Group employs 1,134 members of staff and generates 77% of its turnover outside France. In 2017, the Group posted turnover of over €128 million.
Turnover by business division breaks down as follows:
- Distribution (29%): fragrances (Bogart own brands, Ted Lapidus and Carven, and licensed brands Chevignon and Naf Naf) and cosmetics (own brands Méthode Jeanne Piaubert and Stendhal).
- Boutiques (71%): own-brand fragrance chain.
Total revenues (including Ted Lapidus licenses) amounted to more than €129.5 million in 2017.
BOGART Group is listed on the Euronext Paris stock exchange (Ticker: JBOG – ISIN: FR0012872141)
|BOGART GROUP||ACTUS finance & communication|
Tel: +33 (0)1 53 77 55 55
|Anne-Pauline Petureaux |
Tel: +33 (0)1 53 67 36 72
|Alexandra Prisa |
Tel: +33 (0)1 53 67 36 90
 The 2017 financial results had been approved by the Board of Directors. The 2017 annual financial statements will be posted for the public and to the AMF by April 30, 2018 at the latest.
 Excluding turnover for Distribution fragrances and cosmetics sold in own-brand boutiques.
 EBITDA = operating income + CVAE (tax on the value added of businesses, levied in France) + depreciation, amortization and provisions + disposals of stock + other non-recurring operating income and expenses.
 The dividend will be released for payment from July 6th, 2018