By  on March 16, 2007

PARIS — Groupe Clarins announced a net profit increase of 130.8 percent to 223.3 million euros, or $279 million at average exchange, in 2006 versus 2005. The hike was thanks to a financial transaction involving its stake in L'Occitane.

Clarins said in a statement Thursday that it converted its L'Occitane bonds into shares — a move that increased its shareholding in the natural beauty manufacturer and retailer to 23 percent from 10 percent. Clarins plans to sell part of its stake to a newly created L'Occitane holding company for a cash payment of 132.2 million euros, or $174.53 million at current exchange. Under the terms of the deal, Clarins will retain 10 percent of the holding company worth around 50 million euros, or $66 million.

Clarins' 2006 operating profit inched up 0.8 percent to 127.3 million euros, or $160 million, despite the discontinued distribution of Procter & Gamble fragrances in the U.S. As reported, net sales declined 3.1 percent to 967.2 million euros, or $1.22 billion, versus 2005.

load comments
blog comments powered by Disqus