Full Year 2024 SMCP SA Earnings Call Transcript
Key Points
- SMCP SA (XPAR:SMCP) achieved resilient sales performance across most regions despite challenging macroeconomic conditions.
- The company implemented essential measures to streamline its network, improve cost efficiency, and optimize production processes, leading to improved profitability in the second half of 2024.
- Strong cash management resulted in significant free cash flow generation, enabling a substantial reduction in net debt.
- The digital sales channel remains robust, contributing approximately 20% to overall sales.
- SMCP SA (XPAR:SMCP) made progress in sustainability initiatives, including adopting a biodiversity strategy and implementing a worldwide parental policy.
- Overall sales decreased by 1.5% at constant foreign exchange rates, with a notable decline in China due to network optimization and challenging economic conditions.
- The company faced short-term costs related to restructuring and network optimization, impacting profitability.
- Asia, particularly China, experienced an 18% organic sales decline due to decreased traffic and store closures.
- The EBIT margin was affected by exogenous factors such as inflation in rents and salaries, and restructuring costs.
- The company remains cautious about achieving a 10% EBIT margin target, now expected in the second half of 2026 instead of the full year.
Welcome to the SMCP 2024 full year results conference call. My name is Allen and I'll be a coordinator for today's event. Please note this call is being recorded. (Operator Instructions)
I will now hand you over to your host, Amelie Dernis, head of Investors Relations, to begin today's conference. Thank you.
Thank you. Good evening, everyone. Thanks for being with us today for the publication of our full year results. I'm here with our CEO, Isabelle Guichot, and our CFO, Patricia Huyghues-Despointes. You can listen to the publication via the usual conference call or you can connect to the webcast to have the presentation displayed.
As usual, we can go through the presentation and then we'll have the Q&A session. Before I hand it over to Isabelle and Patricia, I invite you to go through our usual disclaimer on page 2, and I think we can start now.
Thank you, Emily. Good evening
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