Half Year 2024 SMCP SA Earnings Call Transcript
Key Points
- SMCP SA (XPAR:SMCP) reported a sequential improvement in sales performance in Q2 compared to Q1, with a decrease of only 2% in Q2 versus 5% in Q1.
- The company achieved a gross margin ratio improvement of more than 1 point compared to last year, now standing above 74%.
- Net debt was reduced to below EUR300 million, a decrease from the same period last year, due to effective inventory and CapEx control.
- Sandro and Maje brands showed positive performance in all regions except China, contributing to overall resilience.
- The company successfully reduced CO2 emissions by 15% between 2022 and 2023, highlighting its commitment to sustainability.
- Overall half-year sales decreased by 3.6% at constant FX and 5.5% like-for-like, indicating a challenging market environment.
- The adjusted EBIT margin was reported at 3.2% of sales, which is below the company's ambition, primarily due to under absorption of fixed OpEx and restructuring costs.
- APAC region experienced a significant decrease in sales by 4 points, largely due to a challenging economic environment in China.
- The company faced a decrease in wholesale revenues, attributed to a lower amount of price liquidation.
- Net result landed at minus EUR28 million, with significant non-recurring charges, including impairments on goodwill and store assets.
Hello, and welcome to the SMCP 2024 half year results. My name is Laura, and I will be your 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 Investor Relations, to begin today's conference. Thank you.
Thank you. Good evening, everyone. Thanks for being with us today for the publication of SMCP half 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 display.
As usual, we will 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, Amelie. Good evening, everyone.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
