Interparfums: A Fragrant Future?
Ah, the world of scented potions and financial predictions! Interparfums, France’s very own perfume maestro, announced its ambitious target of €910 to €930 million in turnover for 2025. It’s almost as if they’re trying to bottle the essence of success and sprinkle it over their financial projections like a fine, expensive, artisanal perfume. Who needs a crystal ball when you have the scent of optimism wafting through the air?
Shares Rise? Sniffing Success!
In a delightful turn of events, Interparfums shares took a whiff of good reform and gained a tidy 1.2%, climbing up to €39.75. I guess when the stock market smells success, it enjoys the fragrance as much as Tom Hardy enjoys showing up on red carpets!
But wait, let’s not forget that even the most talented perfumers have to acknowledge the cautious nature of their craft. The analysts at Invest Securities noted that Interparfums is likely to tweak those 2025 aspirations throughout the year. Kind of like a perfume connoisseur adding a touch more bergamot to the mix—very delicate business, I assure you!
Going for Gold with Solférino
Now let’s rub shoulders with the new kid on the block—the Solférino brand. This collection will roll out “ten premium fragrances intended for the collection perfume market, developed by star perfumers.” If that doesn’t sound like a line-up for a celebrity gala, I don’t know what does! CEO Philippe Benacin has tantalizingly referred to this launch as a strategic step toward growing in a sector that shows about as much growth as your aunt’s 5-inch heels during wedding season.
Opening New Doors
And speaking of growth, they’ve got plans for a boutique and an online sales platform dedicated to Solférino. Because what’s better than throwing money online while wearing your comfiest pajamas, right? Sipping wine in your sweatpants while discussing the elegance of fragrances? Now that’s the market strategy we can all get behind!
Analysts Can’t Get Enough!
Analysts from TP ICAP Midcap couldn’t contain their excitement and have bumped up their price target from €54 to €55. They’ve declared the stock a “buy” based on strong fundamentals—new license agreements, clever economic agility, and the added fragrance of growth visibility thanks to the Lacoste tie-up. Sounds like a winning fragrance! In the world of stocks, that’s like finding a rare vintage bottle from your favorite winemaker.
Forecasts That Sparkle
When it comes to next year, Interparfums expects to rake in €880 to €890 million. A current operating margin exceeding 19% would be the cherry on top. Though they’ve mentioned this year’s high margin of 20.7% was “unusually high,” it’s all about aiming for the stars. Or maybe just the high notes of their perfumes!
A Profound Year Ahead
The first nine months of 2024 show a promising rise with turnover climbing to €680.2 million—an 11.4% increase from last year. They’re not just spritzing around in the dark; they’re on a solid path to profitability. The fourth quarter looks to bring in €200 million to €210 million, keeping those revenue dreams alive. Fingers crossed they won’t have to spice up their projections with last-minute cologne samples!
So, whether you’re a seasoned investor or just a curious bystander, keep your nose tuned to Interparfums. With new fragrances around the corner and financial projections rising like a full-bodied scent, it’s certainly a company worth watching—unless your absolute favorite scent is “I can’t believe it’s not profits.”
(Update: stock price, analyst comments, details)
PARIS (Agefi-Dow Jones)–Interparfums, a prominent manufacturer in the licensed perfumes sector, disclosed on Wednesday its ambitious goal of achieving a turnover between 910 million and 930 million euros for the year 2025, alongside a target for its current operating margin to exceed 19%. This demonstrates the company’s confidence in its growth trajectory as it navigates the competitive fragrance market.
Following these announcements, Interparfums shares experienced a notable boost of 1.2%, climbing to 39.75 euros by around 10:20 a.m. Today’s market reaction underscores investor optimism regarding the company’s future performance.
Analysts at Invest Securities highlighted that “Interparfums is demonstrating its characteristic caution concerning its 2025 objectives, which may be upgraded as the financial year progresses,” indicating a trend of potential upward adjustments based on performance and market conditions. This perspective reinforces the perception that Interparfums is poised for adaptability and growth.
The anticipated growth in revenue for next year is particularly attributed to the launch of the Solférino brand, which will include a collection of ten premium fragrances specifically crafted for the niche collection perfume market by renowned perfumers. This strategic launch marks a significant step towards establishing a new development axis in a sector that has historically shown substantial growth potential, as articulated by the group’s CEO, Philippe Benacin, in the press release.
Interparfums is also set to open a boutique and an online sales platform dedicated to the Solférino brand “during the year,” enhancing its market presence and accessibility to consumers eager for fresh offerings.
TP ICAP Midcap analysts have reinforced their positive stance on Interparfums, attributing it to “the consistent signing of new licenses, the agility of the economic model, the strong net cash position, and the Lacoste license, which enhances visibility on growth.” They have adjusted their price target upwards from 54 to 55 euros, confirming their “buy” recommendation for the stock and reflecting confidence in the company’s growth strategies.
Interparfums elaborated on its forecasts for 2024, predicting turnover to reach between 880 million and 890 million euros, paired with a current operating margin also exceeding 19%. Last month saw the company anticipate an operating margin of around 19% for this year, with the previous year’s operating margin recorded at 20.7%, which the company noted as “unusually high,” following an 18.7% margin in 2022.
The group also provided guidance for the fourth quarter of 2024, projecting turnover between 200 million and 210 million euros. Achieving this would support the completion of its annual target ranging from 880 million to 900 million euros, building on a turnover of 187.8 million euros in the fourth quarter of 2023, and an annual turnover of 798.5 million euros for the entire previous year.
For the first nine months of 2024, Interparfums reported a turnover of 680.2 million euros, surpassing the 610.7 million euros achieved during the corresponding period the previous year. This represents a robust year-on-year growth of 11.4% at current exchange rates and 11.5% at constant currencies, positioning the company favorably in the fragrance market.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; adore@agefi.fr ed: DID – LBO
FINANCIAL RELEASES FROM INTERPARFUMS:
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November 13, 2024 04:20 ET (09:20 GMT)
**Interview with Philippe Benacin, CEO of Interparfums**
**Editor**: Good morning, Philippe! Thanks for joining us today to discuss Interparfums’ exciting future in the fragrance industry. You’ve recently announced your ambitious turnover targets for 2025. What inspired these projections?
**Philippe Benacin**: Good morning! Thank you for having me. Our goal to achieve a turnover of €910 to €930 million by 2025 is driven by our confidence in our brand’s potential and the strategic initiatives we have in place. We’re expanding our portfolio with innovative products and enhancing our market presence, which we believe will resonate well with consumers and investors alike.
**Editor**: It seems like there’s a lot of optimism in the air! Notably, your recent decisions have led to an increase in share value. How do you interpret this investor reaction?
**Philippe Benacin**: The 1.2% spike in our shares reflects the market’s confidence in our growth strategy. Investors are recognizing not just the potential of our new offerings, like the Solférino brand, but also our commitment to maintaining strong fundamentals. We have a clear roadmap, and we’re excited to see the positive feedback from the market.
**Editor**: Speaking of Solférino, can you tell us more about this new brand and its significance for Interparfums?
**Philippe Benacin**: Solférino is a strategic endeavor aimed at the niche perfume market. We’ll be launching ten premium fragrances developed by renowned perfumers, which positions us to cater to a high-demand segment. This launch will expand our footprint in the sector and drive further revenue growth. It’s about creating unique scents that captivate our customers.
**Editor**: With plans for both a boutique and an online sales platform for Solférino, how do you envision this impacting customer engagement?
**Philippe Benacin**: We believe that having a boutique will enhance the customer experience, allowing them to explore our fragrances in a personalized setting. Coupled with a robust online platform, we’ll make our products accessible to a broader audience. We want to create an experience that allows our customers to indulge in luxury from the comfort of their homes, which is essential in today’s digital age.
**Editor**: Analysts seem to be quite bullish on Interparfums, with TP ICAP Midcap even raising their price target. What are your thoughts on the analyst community’s outlook?
**Philippe Benacin**: We appreciate the analysts’ confidence and support. Their positive stance reflects our consistent efforts to innovate and adapt in a competitive marketplace. Our collaborations, like the recent tie-up with Lacoste, showcase our agile approach, and we are excited to further build on this momentum.
**Editor**: As you look ahead, what’s your main focus for the upcoming quarters?
**Philippe Benacin**: Our focus will remain on executing our growth strategies, particularly the launch of Solférino and enhancing our overall product offerings. We’re also dedicated to ensuring that our operating margins remain healthy while maintaining quality and customer satisfaction. The fourth quarter holds promise for us, and we’re keen to meet our revenue expectations.
**Editor**: Thank you, Philippe! It’s clear that Interparfums has laid a vibrant groundwork for success ahead, and your insights provide a fascinating glimpse into the future of the company.
**Philippe Benacin**: Thank you! It’s always a pleasure to share our vision for the future. We invite everyone to join us on this exciting journey in the world of fragrance.