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INTERVIEW-UPDATE 1-Maesa sees year sales above target - CEO

Published 11/19/2010, 12:19 PM
Updated 11/19/2010, 12:20 PM

* Will beat 70 million euros 2010 sales target

* Sees net debt at 22.5 million euros end-2010

* Sees return to 12-15 percent EBITDA margin from 2011

(Adds quotes, more detail)

By Florent Le Quintrec

PARIS, Nov 19 (Reuters) - French cosmetics supplier Maesa expects to beat its 2010 sales target of 70 million euros ($98 million) as demand from big retail groups grows, its chief executive and co-founder Julien Saada told Reuters.

Maesa, which develops beauty and fragrance products for brands including Sephora and Unilever, wants to use its presence in markets including Britain, China and the United States to increase its order book.

The company wanted to boost organic growth, and would rely on its ability to win over important clients like Carrefour, Payless Shoesource and Zara, Saada said, adding the group should be able to achieve annual sales of 100 million euros within two years.

Maesa, founded in 1997, develops cosmetic products and fragrances, shower gel, face creams and scented candles for retail and consumer clients. It makes the fragrance distributors used in the latest Citroen models.

Saada said he wanted to return quickly to previous levels of profitability. "We will be between 8.5 percent and 9.5 percent this year," he said, referring to its EBITDA (earnings before interest, tax, depreciation and amortisation) margin. "We are going to return to a 12-15 percent range from next year."

"There are many things being prepared with major contracts in the United States and in Europe. We are well placed for 2011," Saada said, citing Zara as an example.

"We developed 16 products for Zara (in 2010). I am currently talking to them about developing between 15 and 30 products next year. It is gigantic."

The group hopes to cut debt taken on to carry out several acquisitions in 2009. Saada said net debt would be around 22.5 million euros by the year-end, against 24.4 million at end-June.

"In June 2011, we will be below 20 million euros," he said. (Reporting by Florent Le Quintrec; Writing by Helen Massy-Beresford; Editing by Dan Lalor)

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