Firm recovery
For several years now, new fragrances have been conditioning the activity level
of the selective fragrance market. In that respect, 2005 will stay in the minds
as a year of moderate achievements. LISI COSMETICS took part in major launches
such as Shiseïdo (Gaultier²), Gucci (Envy me and Envy me 2), Procter
& Gamble (Ghost), Chanel (Allure Sensuelle and Cristalle Gloss). But its product
renewal rate still remains insufficient to ensure solid growth.
Due to the disposal of LISI COSMETICS Italia in 2004,
the -7.6% drop is limited to –3.8% on a comparable data basis.
Consolidation of results
Thanks to a major resource optimization program, automated assembly, the setting
up of an effective polishing workshop and the commissioning, towards the end of
the year, of a new water treatment plant on the metal site of Saint-Saturnin du
Limet, LISI COSMETICS has improved its productivity, its quality level, and its
logistic service rate, significantly.
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Thus, the operating margin is significant
at +€0.3 M, versus zero in 2004, while activity is slightly down. In 2005,
the division sowed the fruits of the adjustment measures conducted in 2004 and
displayed positive net results that are a source of encouragement for the future.
Such robustness is illustrated by the division's financial structure, with external
debt limited to €3.5 M, for shareholders' equity of €15.4 M.
2006 Outlook
LISI COSMETICS' goal is to be able to take part in a large number of worldwide
fragrance launches and consolidate its relationships with strategic clients. In
2006, LISI COSMETICS intends to confirm its commercial and financial recovery,
whose key factors remain a number of projects in the pipeline that are expected
to actually crop up in the course of H1 2006.
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