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MIRA INFORM REPORT
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Report No. : |
504364 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
INTERBEAUTY COSMETICS LTD. |
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Formerly Known As : |
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L’OREAL ISRAEL LTD ·
INTERBEAUTY COSMETICS LTD ·
I.C. ·
HELENA RUBINSTEIN LTD |
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Registered Office : |
P.O. Box 8460,
4A Hatzoran Street, Poleg Industrial Zone, Netanya, 4250604 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2017 [Summarized] |
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Date of Incorporation : |
10.12.1959 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers,
developers, manufacturers, marketers and exporters of cosmetics and body care
products. |
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No. of Employees : |
1,100 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
name and address
Correct Name: INTERBEAUTY COSMETICS LTD.
(Also known as
L’OREAL ISRAEL)
Telephone 972 9 892 82 00 /02
Fax 972 9 865 58 88
Email: comms@il.loreal.com
P.O. Box 8460
4A Hatzoran Street
Poleg Industrial
Zone
Netanya,
4250604, Israel
HISTORY
& LEGAL FORMATION
Originally
established as a private limited company, incorporated as per file No.
51-022419-9 on the 10.12.1959.
Originally
registered under the name HELENA RUBINSTEIN LTD., which changed to I.C.
On 01.01.1994 took
over the activities of subsidiary ORIS COSMETICS LTD., and in another stage
also of PRESTIGE COSMETICS LTD.
Converted into a
public limited company and registered as such as per file No. 52-004175-7 on
the 22.05.1994.
Later re-converted
into a private limited company (but remain with same registration number).
SHARE
CAPITAL
Authorized share
capital NIS 40,000,000.00, divided into -
40,000,000 ordinary shares of NIS 1.00 each,
of which
22,871,051 shares amounting to NIS 22,871,051.00 were issued.
SHAREHOLDERS
1. L'OREAL
S.A., the international concern of Paris, 93%, controlled by the Bettencourt
family and NESTLE Concern,
2. PRO - DAN LTD., 3.5%,
3. PRO
- GAD LTD., 3.5%, both latter controlled by Proper Family (founders).
L’OREAL acquired
part of the Proper family's share initially in 1994 and reached the 92.3% in
1999, reaching current holding in the past years.
DIRECTORS
1. Gad Proper, Chairman,
2. Dan Proper,
3. Arno Lagreign, of Paris, France,
4. Ms. Lorraine Schmidt, of Paris, France,
5. Alexander Popof, a foreign citizen.
GENERAL
MANAGER
Eli Sagiv.
BUSINESS
Importers,
developers, manufacturers, marketers and exporters of cosmetics and body care
products.
Some 50% of sales
are for export.
Among brands manufactured
locally are: "Garnier", "Elvive" and "L'oreal
Paris".
Local sales are
through most local retail chain stores.
Sales are to local
department store HAMASHBIR DEPARTMENT STORE, pharma chains (e.g. SUPER-PHARM,
NEWPHARM).
Sole local agents
of the L'OREAL brands: Paloma Picasso, Ralph Lauren, Yves Saint Laurent,
Lancome, Chacharel, Guy Laroche, Vichy, Kiehl's, Inneov, Kerastase, Giorgio
Armani, Helena Rubinstein, Garnier, Biohterm, Maybelline NY, Kiehl's, etc.
Among local
service providers: M.S. ELECTRONICS, ADAR GLASS, YAEL SOFTWARE & SYSTEMS,
etc.
Operating from
premises (main offices) in 4A Hatzoran Street*, Poleg Industrial Zone, Netanya,
from a plant owned by the shareholders, on an area of 9,000 sq. meters, in the
Industrial Zone, Migdal Ha'emek, and from a logistics center (rented), on an
area of 6,500 sq. meters, in Industrial Park, Caesarea.
*Note:
Street number changed from 1 Hatzoran Street in the past to 4A Hatzoran Street
Website: www.loreal.co.il
Having in all some
1,100 employees.
MEANS
L’OREAL ISRAEL Group consolidated stock said
to be valued at several tens
NIS millions.
Current financial
data not forthcoming, however subject is considered to be financially solid,
also enjoying the backing of parent company L'OREAL S.A, whose financial
indicators show:
€
(millions)
31.12.2017 31.12.2016
Total assets 35,339.1 35,630.2
Equity 24,815.7 24,501.9
L'OREAL S.A current market value € 106.03 billion.
Subject is an “Approved
Enterprise” and as such enjoys government financial support (tax benefits
etc.).
The Israeli
Investment Center (IIC) has approved investment plans of
US$ 1.86 for
enlargement and renovation of subject’s plant.
In December 2001,
IIC approved a further US$ 1.575 million investment plan for the expansion of
subject’s plant.
In November 2008
IIC approved NIS 12.5 million investment plan for the expansion of subject's
plant in Migdal Ha'emek.
There are 4
charges for unlimited amounts registered on the company's assets (financial
assets, fixed assets and equipment), in favor of the State of Israel and
companies (last charge placed in 2010).
REVENUES
We could not
obtain sales data from subject’s officials.
2017 sales reported
to be circa NIS 510 million.
L'OREAL S.A
consolidated sales:
2016 sales were €
24,916.3 million, making a net profit of € 3,105.8 million.
2017 sales were €
26,023.7 million, making a net profit of € 3,581.4 million.
OTHER
COMPANIES
L'OREAL ISRAEL
COSMETICS LTD., importers and marketers of cosmetic products.
BANKERS
According to our (since
subject’s officials did not disclose bank data, we are unable to verify the u/m
bank details):
Bank Leumi
Le'Israel Ltd., Main Branch (No. 876), Haifa.
First
International Bank of Israel Ltd., Haifa Main Branch (No. 006), Haifa.
Citibank S.A.,
Main Branch (No. 001), Tel Aviv.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
Subject's officials disclosed only general
data.
L’OREAL concern is
considered to be the largest cosmetic Group in the world, having 82,600
employees worldwide.
In Israel, subject
is well known long established company. It is the largest local cosmetics
company.
Proper Family
(shareholders no.2 & 3) were the founders, owners managers of one of
Israel’s largest food concerns, OSEM. In 1998 Gad and Dan Proper family sold
47% of OSEM to NESTLE for US$ 33 million, and along the years NESTLE increased
their stake, till reaching full ownership.
In the end of 2010
subject sold its "Natural C Beauty" brand for a reported sum of NIS 9
million.
In February 2013
it was reported that subject will start marketing the perfume brand of
"Victor & Rolf".
In March 2013 it
was reported that subject is opening the first brand store of the
"Kiehl" brand (which was acquired by L’OREAL in 2000 for US$ 100
million), intending to expand to further stores in the future.
According to
market surveys for 2010 1st quarter, the local deodorant market
rolls turnover of NIS 150 – NIS 165 million per annum and subject’s “Garnier”
captured 6% - 10% market share.
In January 2016 it
was reported that the Yves Saint Laurent brand will be sold only in the APRIL
cosmetic chain store.
In June 2017 it
was reported that subject will open 3 Kiehl’s brand stores with an investment
of NIS 3 million. Also it was reported that subject is expanding its e commerce
activity
According to a report from November 2016, the local cosmetics and personal care market is valued at NIS 6 billion.
In addition, local
cosmetics industry sales for export are valued at further NIS 1 billion. 60% of
the sales are of body care and make-up, the rest are perfumes.
Local popular
make-up and cosmetics market is valued at some NIS 700 million per annum.
The perfume sales
are estimated at over NIS 700 million per annum and double (NIS 1.4 billion)
when including duty-free sales.
Total sales by
local cosmetics manufacturers is valued at US$ 1 billion (2015), of which 40%
were for export, mainly to the USA and EU. About 60% of the sales are of body
care and make-up, the rest are perfumes, manufactured by some 10 large plants,
30 medium-size and few tens of smaller plants. There are some 7,000 employees
in the local cosmetic segment.
According to the
Central Bureau of Statistics (CBS) data, exports of essential oils and perfume
materials, toilet, polishing and cleansing preparations from Israel in 2017
summed up to US$ 640.2 million, compared to US$ 603.3 in 2016 and US$ 596
million in 2015. Export in the first 2 months of 2018 reached US$ 116.3
million, 13.5% increase from the parallel period in 2017.
SUMMARY
Notwithstanding
the lack of updated business data from subject's officials, considered good for
trade engagements.
Note: Since
February 2013 Israel Post has started using a new area code method of 7 digits
(the old method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.22 |
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1 |
INR 92.84 |
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Euro |
1 |
INR 81.27 |
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ILS |
1 |
INR 18.66 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.