Kering: Press release - 2023 Annual Results
Kering - Press release - 2023 Full-year results
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PRESS RELEASE |
|
February 8, 2024 |
2023 ANNUAL RESULTS
Revenue: €19,566
milliondown 4% as reported, down 2% on a
comparable basis
Recurring operating income down to €4,746
million
Net income attributable to the Group: €2,983
millionRecommended ordinary dividend: €14 per share
“In a trying year for the group, we strengthened
our organization and took significant steps to further enhance the
visibility and exclusivity of our Houses. We are focused on
revitalizing Gucci, leveraging the unique blend of craftsmanship,
Italian heritage, and modernity that characterizes this iconic
House. The launch of Kering Beauté and the acquisition of Creed, a
storied maker of high-end fragrances, will enable us to capture our
share of the steadily growing beauty market. In a market
environment that remains uncertain in early 2024, our continuing
investments in our Houses will put pressure on our results in the
short term. Thanks to the experience gained across the group
through a decade of outstanding expansion, we are confident in
achieving our long-term ambitions.”
François-Henri Pinault, Chairman and
Chief Executive Officer
-
Revenue amounted to €19.6 billion in
2023, a decrease of 4% as reported, including
significant impacts from changes in exchange rates and the scope of
consolidation (-4% and +2% respectively) and down 2% on a
comparable basis.
- Sales from the
directly operated retail network, including e-commerce, were stable
on a comparable basis.
- Wholesale and
Other revenue fell 11% on a comparable basis, as the Group further
strengthened the exclusivity of its Houses’ distribution.
- In the fourth quarter of
2023, revenue was down 6% as reported and down 4% on a
comparable basis. Sales from the directly operated retail network
dropped 2% on a comparable basis. Revenue grew in Asia-Pacific and
Japan. Trends in Western Europe and North America improved
sequentially.
- 2023 recurring operating
income totaled €4.7 billion in 2023, down 15% from the
2022 level. Recurring operating margin was 24.3% in 2023 versus
27.5% in 2022.
- 2023 net income
attributable to the Group amounted to €3.0 billion.
- Free
cash flow from operations was €2.0 billion in 2023.
Excluding real estate acquisitions and disposals, free cash flow
from operations was €3.3 billion.
Financial indicators
|
(in € millions) |
|
2023 |
2022 |
Change |
|
|
|
|
|
|
|
Revenue |
|
19,566 |
20,351 |
-4% |
|
Comparable change (1) |
|
|
|
-2% |
|
|
|
|
|
|
|
Recurring operating income |
|
4,746 |
5,589 |
-15% |
|
% of revenue |
|
24.3% |
27.5% |
|
|
EBITDA |
|
6,569 |
7,255 |
-9% |
|
% of revenue |
|
33.6% |
35.6% |
|
|
|
|
|
|
|
|
Net income attributable to the Group |
|
2,983 |
3,614 |
-17% |
|
|
|
|
|
|
|
Recurring net income attributable to the Group
(2) |
|
3,061 |
3,747 |
-18% |
(1) Change on a comparable scope
and exchange rate basis.(2) Recurring net income
attributable to the Group: net income from continuing operations
attributable to the Group, excluding non-recurring items.
Operating performance
|
Revenue (in € millions) |
|
2023 |
2022 |
Reported change |
Comparable change(1) |
|
|
|
|
|
|
|
|
Gucci |
|
9,873 |
10,487 |
-6% |
-2% |
|
Yves Saint Laurent |
|
3,179 |
3,300 |
-4% |
-1% |
|
Bottega Veneta |
|
1,645 |
1,740 |
-5% |
-2% |
|
Other Houses |
|
3,514 |
3,874 |
-9% |
-8% |
|
Kering Eyewear and Corporate |
|
1,568 |
1,139 |
+38% |
+11% |
|
|
|
|
|
|
|
|
Eliminations |
|
(213) |
(189) |
- |
- |
|
|
|
|
|
|
|
|
KERING |
|
19,566 |
20,351 |
-4% |
-2% |
|
|
|
|
|
|
|
(1) Change on a comparable scope
and exchange rate basis.
|
Recurring operating income (in € millions) |
|
2023 |
2022 |
Change |
|
|
|
|
|
|
|
Gucci |
|
3,264 |
3,732 |
-13% |
|
Yves Saint Laurent |
|
969 |
1,019 |
-5% |
|
Bottega Veneta |
|
312 |
366 |
-15% |
|
Other Houses |
|
212 |
558 |
-62% |
|
Kering Eyewear and Corporate |
|
(7) |
(88) |
+92% |
|
|
|
|
|
|
|
Eliminations |
|
(4) |
2 |
- |
|
|
|
|
|
|
|
KERING |
|
4,746 |
5,589 |
-15% |
Gucci
Gucci’s 2023 revenue was €9.9
billion, down 6% as reported and down 2% on a comparable basis.
Sales from the directly operated retail network, which account for
91% of revenue, dropped 2% on a comparable basis. Wholesale revenue
was down 5% on a comparable basis.
In the fourth quarter of 2023,
Gucci’s revenue decreased 4% on a comparable basis. Sales from the
directly operated retail network were down 4% on a comparable
basis, with sequential improvements in North America and
Asia-Pacific, as well as in Leather Goods and Women’s
Ready-to-Wear. Towards the end of the quarter, Gucci reopened its
historic store on via Monte Napoleone in Milan. Wholesale revenue
was up 3% on a comparable basis in the quarter.
Gucci's recurring operating
income totaled €3.3 billion in 2023. The recurring
operating margin was 33.1%, as investments in implementing
the House’s strategy weighed on profitability.
Yves Saint Laurent
In 2023, Yves Saint Laurent’s
revenue amounted to €3.2 billion, down 4% as
reported and down 1% on a comparable basis. Sales from the directly
operated retail network rose by 4% on a comparable basis, while
revenue from Wholesale, still undergoing rationalization, was down
26% on a comparable basis.
In the fourth quarter of 2023,
sales were down 5% on a comparable basis, while revenue from the
directly operated retail network was stable. Yves Saint Laurent
performed well in Asia-Pacific and Japan, while sales in North
America and Western Europe declined year-on-year, with trends
improving sequentially. The House opened its largest store
worldwide in the fourth quarter, on the Champs-Elysées in Paris.
Wholesale revenue was down 39% in the fourth quarter.
Yves Saint Laurent achieved recurring
operating income of nearly €1 billion in 2023, and its
recurring operating margin remained above 30%.
Bottega Veneta
Bottega Veneta's revenue totaled
€1.6 billion in 2023, down 5% as reported and down
2% on a comparable basis. Sales from the directly operated retail
network rose by 4% on a comparable basis, while Wholesale revenue
fell by 24% on a comparable basis, in line with the House’s
strategy.
Sales in the fourth quarter of
2023 were down 4% on a comparable basis, and up 5% in the
directly operated retail network, driven by Bottega Veneta’s solid
performance in North America and encouraging signs in Asia-Pacific,
particularly Mainland China. Wholesale revenue was down 37% on a
comparable basis.
In 2023, Bottega Veneta achieved
recurring operating income of €312 million,
yielding a recurring operating margin of 19%,
reflecting the House’s continuing investments.
Other Houses
2023 revenue from Other Houses
amounted to €3.5 billion, down 9% as reported and down 8% on a
comparable basis. On a comparable basis, sales from the directly
operated retail network rose by 3%, while Wholesale revenue was
down 29%.
In the fourth quarter of 2023,
sales from the Other Houses dropped 5% on a comparable basis, while
sales from the directly operated retail network were up 4%.
Wholesale revenue was down 30%.
Trends improved significantly for Balenciaga in
North America and Western Europe, and the House also delivered a
solid performance in Asia-Pacific. At Alexander McQueen, sales in
the directly operated retail network were up fueled by its
Ready-to-Wear collections. Brioni had another very good
quarter.
Kering’s Jewelry Houses maintained their
excellent momentum, with double-digit growth in the fourth quarter,
driven by the success of all collections.
The Other Houses generated recurring
operating income of €212 million in 2023, while
recurring operating margin fell to 6%.
Kering Eyewear and Corporate
In 2023, Kering Eyewear’s
revenue hit a new record of €1.5 billion (up 35%
as reported and up 10% on a comparable basis), benefiting from the
consolidation of Maui Jim and excellent development of the brand
portfolio. In the fourth quarter, sales were up 6%
on a comparable basis.
Kering Eyewear’s recurring operating
income rose sharply to €276 million, reflecting Maui Jim’s
contribution and the Eyewear division’s newly acquired scale.
Taking into account Kering Beauté and Corporate
costs, the Kering Eyewear & Corporate segment posted a
recurring operating loss of €7 million, an improvement from 2022.
Creed’s high level of profitability offset start-up costs at Kering
Beauté.
Financial performance
In 2023, Kering’s net financial
expense totaled €410 million.
The effective tax rate on
recurring income was 27.4%.
Net profit attributable to the
Group was €3.0 billion.
Earnings per share amounted to
€24.40.
Cash flow and financial
position
Free cash flow from operations was over €2.0
billion in 2023. Excluding real estate acquisitions and disposals,
free cash flow from operations was €3.3 billion.
At December 31, 2023, Kering’s net debt amounted
to €8.5 billion. The increase reflects the acquisitions
carried out during the year.
Dividend
In its February 7, 2024 meeting, Kering’s Board
of Directors decided to ask shareholders to approve a cash dividend
of €14.00 per share at the Annual General Meeting to be held on
April 25, 2024 to approve the financial statements for the year
ended December 31, 2023.An interim dividend of €4.50 per share was
paid on January 17, 2024. If approved, a final dividend of €9.50
will be paid on May 6, 2024 on positions determined on the evening
of May 3, 2024. The ex-date for the final dividend payment will be
the morning of May 2, 2024.
Outlook
To achieve its long-term vision, Kering invests
in the development of its Houses, so that they continuously
strengthen their desirability and the exclusivity of their
distribution, strike a perfect balance between creative innovation
and timelessness, and achieve the highest standards in terms of
quality, sustainability, and experience for their customers. In an
environment of ongoing economic and geopolitical uncertainty,
Kering will continue to execute on its strategy and vision, in
pursuit of two key ambitions: to maintain a trajectory of long-term
profitable growth, and to confirm its status as one of the most
influential groups in the Luxury industry.
In 2024, in a context of ongoing normalization of
the sector’s growth, the impact of Kering’s investment strategy
will weigh on the group’s full-year recurring operating income
(based on the scope of consolidation and exchange rates at December
31, 2023), which should post a decline compared to the level
reported in 2023, particularly in the first half of the year. The
group will prioritize expenses and investments supporting the
long-term development and growth of its houses, while remaining
vigilant and disciplined with regards to its cost structure.
***
At its February 7, 2024 meeting, Kering’s Board
of Directors, chaired by François-Henri Pinault, approved the
consolidated financial statements for 2023. The consolidated
financial statements have been audited and are in the process of
being certified.
WEBCAST
Kering will present its
2023 results in a webcast, which can be accessed
here at 8:30 a.m. (CET) on Thursday,
February 8, 2024.
The presentation will
be followed by a Q&A session for analysts and investors.
The slides (PDF) will
be available ahead of the webcast at www.kering.com/en/finance.
A replay of the webcast
will also be available at www.kering.com/en/finance.
The notes to the consolidated financial
statements are included in the 2023 financial document available at
www.kering.com.
About Kering
A global Luxury group, Kering manages the
development of a series of renowned Houses in Fashion, Leather
Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo,
Qeelin and Ginori 1735, as well as Kering Eyewear and Kering
Beauté. By placing creativity at the heart of its strategy, Kering
enables its Houses to set new limits in terms of their creative
expression while crafting tomorrow’s Luxury in a sustainable and
responsible way. We capture these beliefs in our signature:
“Empowering Imagination”. In 2023, Kering had 49,000 employees and
revenue of €19.6 billion.
Contacts
|
Press |
|
|
| Emilie
Gargatte |
+33 (0)1 45 64 61
20 |
emilie.gargatte@kering.com |
| Marie de
Montreynaud |
+33 (0)1 45 64 62
53 |
marie.demontreynaud@kering.com |
| |
|
|
|
Analysts/investors |
|
|
| Claire
Roblet |
+33 (0)1 45 64 61
49 |
claire.roblet@kering.com |
| Julien
Brosillon |
+33 (0)1 45 64 62
30 |
julien.brosillon@kering.com |
|
APPENDICES EXCERPT FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL
INFORMATION RELATING TO THE 2023 ANNUAL RESULTS
POSITION AS OF DECEMBER 31, 2023
AUDITED FINANCIAL STATEMENTS, CERTIFICATION IN
PROGRESS |
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Contents |
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Page |
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Highlights and announcements since January 1,
2023 |
8 |
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Consolidated income statement |
11 |
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Consolidated statement of comprehensive
income |
12 |
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Consolidated balance sheet |
13 |
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Consolidated statement of changes in equity |
14 |
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Consolidated statement of cash flows |
15 |
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Revenue by quarter |
16 |
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Main definitions |
17 |
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HIGHLIGHTS AND ANNOUNCEMENTS SINCE
JANUARY 1, 2023
Launch of the Circular Hub, the first
dedicated circular economy platform in the Italian Luxury
industryFebruary 21, 2023 – With support of Kering, Gucci
launched its Circular Hub, the first dedicated circular economy
platform for the Luxury sector, in Italy on February 21, 2023. Its
aim is to accelerate the circular transformation of the Italian
fashion industry's production model across the entire value chain,
encompassing raw materials, design, and the optimization of
production and logistics. It is a platform for innovation,
supporting the design and manufacturing of circular products and
the development of new solutions.
Kering Eyewear acquires French
manufacturing company UNTMarch 13, 2023 – Kering Eyewear
strengthened its position in the Luxury eyewear industry by
acquiring 100% of Usinage & Nouvelles Technologies (UNT) on
June 30, 2023. UNT is based in the Jura region of France and is a
key player in the manufacturing of high precision metal and
mechanical components for the Luxury eyewear sector.
Kering plots a new course in terms of
sustainability with group-wide target for reducing absolute
emissions by 40%March 17, 2023 – Kering announced a
commitment to reducing its greenhouse gas emissions by 40% in
absolute terms by 2035 compared with 2021. This new target, which
covers scopes 1, 2 and 3 of the Greenhouse Gas Protocol (GHG
Protocol), forms part of the evolution of the Group’s
sustainability strategy and represents a necessary step to
accelerate the implementation of the Group’s vision of modern and
responsible luxury.
Preliminary investigation by the European
CommissionApril 19, 2023 – On April 18, 2023, as part of a
preliminary investigation into the fashion sector in several
countries under EU antitrust rules, the European Commission started
an inspection at the Italian premises of Kering subsidiary Gucci.
The Group is fully cooperating with the Commission as regards this
investigation.
Kering unveils its Italian headquarters
in the center of MilanMay 25, 2023 – Kering announced the
opening of its new 9,500 square-meter offices in Milan. Kering is
the sole occupant of the six-floor Palazzo Pertusati, located in
the central Via Senato.
Acquisition of luxury fragrance House
Creed by Kering BeautéJune 26, 2023 – Kering Beauté’s
acquisition of a 100% stake in Creed, announced on June 26, 2023,
was completed on October 17, 2023. Creed has been consolidated in
Kering’s financial statements since November 1, 2023. The
acquisition of Creed represents a major milestone for Kering
Beauté. A perfect fit with the Group’s portfolio of renowned Luxury
Houses, it gives Kering Beauté substantial scale and a platform for
supporting the future development of other Kering Beauté fragrance
franchises, particularly by leveraging Creed’s global distribution
network.
Acquisition of a significant stake in
ValentinoJuly 27, 2023 – Kering acquired a 30% stake in
Valentino for €1.7 billion from Mayhoola, as part of a strategic
partnership that leaves open the possibility for Mayhoola to become
a shareholder in Kering. The agreement comprises an option for
Kering to acquire 100% of the share capital of Valentino no later
than 2028. This stake has been accounted for in Kering’s financial
statements using the equity method since November 30, 2023.
Maison Boucheron acquires a High Jewelry
workshopNovember 6, 2023 – Boucheron pursued its
development strategy and strengthened its production capabilities
by acquiring a High Jewelry workshop employing around 60
craftspeople near Place Vendôme in Paris on October 31, 2023.
Bond issuesAs part of the
Group’s active liquidity management, Kering carried out three bond
issues in 2023, helping it to enhance its funding flexibility and
allowing it both to refinance existing debt and fund recent
acquisitions. The great success of these issues with investors
underscored the market’s confidence in the Group’s credit quality.
Kering’s long-term debt is rated A with a stable outlook by
Standard & Poor's.
- On February 20, 2023, Kering
carried out a €1.5 billion bond issue consisting of two tranches:
- a €750 million tranche with a
6-year maturity and a 3.25% coupon,
- and a €750 million tranche with a
10-year maturity and a 3.375% coupon.
The issue allowed the Group to refinance existing
debt and, in part, fund the Maui Jim acquisition.
- On August 29, 2023, Kering carried
out a €3.8 billion bond issue consisting of four tranches:
- a €750 million tranche with a
2-year maturity and a 3.75% coupon,
- a €750 million tranche with a
4-year maturity and a 3.625% coupon,
- a €1 billion tranche with an 8-year
maturity and a 3.625% coupon,
- a €1.3 billion tranche with a
12-year maturity and a 3.875% coupon.
This issue was partly intended to fund the
acquisition of Creed.
- On November 16, 2023, Kering
carried out an £800 million bond issue consisting of two tranches:
- a £400 million tranche with a
3-year maturity and a 5.125% coupon,
- a £400 million tranche with a
9-year maturity and a 5% coupon.
This issue allowed the Group to diversify its
funding sources by raising money in the sterling bond market for
the first time.
Acquisition of a prestigious property on
Fifth Avenue in New York CityJanuary 22, 2024 – Kering
announced the acquisition of a prestigious New York City property
comprising luxury retail spaces across multiple floors and totaling
approximately 115,000 sq. ft, or 10,700 sq. m., located at 715-717
Fifth Avenue, on the southeast corner of 56th Street, for $963
million (€885 million). This investment represents a new milestone
in Kering’s selective real-estate strategy aimed at securing key
locations that are highly desirable for its Houses.
APPOINTMENTS AND MOVEMENTS SINCE JANUARY
1, 2023
Appointment of Sabato de Sarno as Gucci’s
Creative Director January 28, 2023 – Sabato De Sarno’s
appointment as Creative Director of Gucci was announced on January
28, 2023. He is responsible for defining and expressing the House’s
creative vision through womenswear, menswear, leather goods,
accessories, and lifestyle collections. Sabato De Sarno presented
his first collection during Milan Women's Fashion Week in September
2023.
Appointment of Raffaella Cornaggia as
Chief Executive Officer of Kering BeautéFebruary 3, 2023 –
Raffaella Cornaggia was appointed as CEO of Kering Beauté on
February 3, 2023. She is based in Paris, and has joined the Group’s
Executive Committee. Supported by a team of seasoned professionals,
her role is to develop Bottega Veneta, Balenciaga, Alexander
McQueen, Pomellato and Qeelin’s expertise in the Beauty category
while carrying out strategic acquisitions in that sector.
Departure of Daniela Riccardi from
Kering's Board of DirectorsApril 27, 2023 – In the meeting
of the Board of Directors held after the end of the AGM on
Thursday, April 27, 2023, Daniela Riccardi resigned from her role
as a director of Kering.
Appointment of Maureen Chiquet to
Kering’s Board of DirectorsJuly 18, 2023 – The Board of
Directors, after consultation with the Nominations & Governance
Committee, decided to coopt Maureen Chiquet as independent director
for the remainder of Daniela Riccardi’s term of office (expiring on
December 31, 2025). She joined Kering’s Board of Directors in
September 2023. Maureen Chiquet, a US citizen, has more than 35
years' experience in the fashion and luxury goods sector, including
nine years as Global CEO of Chanel.
Moves to strengthen Kering’s governance
and organizationJuly 18, 2023 - Kering announced a series
of top appointments aimed at reinforcing stewardship of its Houses,
further elevating its operational expertise and strengthening its
organization:
- In addition to her existing role as
President and CEO of Yves Saint Laurent since 2013, Francesca
Bellettini was appointed Kering Deputy CEO in charge of Brand
Development.
- Jean-Marc Duplaix, Chief Financial
Officer since 2012, was appointed Kering Deputy CEO in charge of
Operations and Finance.
- Jean-François Palus, Kering Group
Managing Director, was appointed President and CEO of Gucci,
replacing Marco Bizzarri, who had been President and CEO of Gucci
since 2015 and who left the company on September 23, 2023.
- Armelle Poulou, Director of
Corporate Finance, Treasury and Insurance since 2019, was appointed
Chief Financial Officer of Kering on September 1, 2023. She reports
to Jean-Marc Duplaix.
Alexander McQueen and Sarah Burton
announce the end of their collaborationSeptember 11, 2023
– Alexander McQueen and its Creative Director Sarah Burton
announced the end of their collaboration after two decades
together.
Seán McGirr appointed Creative Director
of Alexander McQueenOctober 3, 2023 – Seán McGirr was
appointed as Alexander McQueen’s Creative Director. He was
previously Head of Ready-to-Wear at JW Anderson.
Departure of Tidjane Thiam from Kering's
Board of DirectorsJanuary 9, 2024 – In order to have the
necessary time to devote to his political commitments, Tidjane
Thiam – who was elected President of the Democratic Party of Ivory
Coast on December 22, 2023 – submitted his resignation from his
position as Director to the Chairman of Kering’s Board of
Directors. Tidjane Thiam became an independent Director of Kering
on June 16, 2020. He was Chair of the Audit Committee and a member
of the Remuneration Committee.
CONSOLIDATED INCOME
STATEMENT
|
(in € millions) |
2023 |
2022 |
|
CONTINUING OPERATIONS |
|
|
|
Revenue |
19,566 |
20,351 |
|
Cost of sales |
(4,639) |
(5,153) |
|
Gross margin |
14,927 |
15,198 |
|
Other personnel expenses |
(2,982) |
(2,830) |
|
Other recurring operating income and expenses |
(7,199) |
(6,779) |
|
Recurring operating income |
4,746 |
5,589 |
|
Other non-recurring operating income and expenses |
(103) |
(194) |
|
Operating income |
4,643 |
5,395 |
|
Financial result |
(410) |
(260) |
|
Income before tax |
4,233 |
5,135 |
|
Income tax expense |
(1,163) |
(1,420) |
|
Share in earnings (losses) of equity-accounted companies |
4 |
2 |
|
Net income from continuing operations |
3,074 |
3,717 |
|
o/w attributable to the Group |
2,983 |
3,613 |
|
o/w attributable to minority interests |
91 |
104 |
|
DISCONTINUED OPERATIONS |
|
|
|
Net income from discontinued operations |
– |
1 |
|
o/w attributable to the Group |
– |
1 |
|
o/w attributable to minority interests |
– |
– |
|
TOTAL GROUP |
|
|
|
Net income of consolidated companies |
3,074 |
3,718 |
|
o/w attributable to the Group |
2,983 |
3,614 |
|
o/w attributable to minority interests |
91 |
104 |
|
|
|
|
|
(in € millions) |
2023 |
2022 |
|
Net income attributable to the Group |
2,983 |
3,614 |
|
Basic earnings per share (in €) |
24.38 |
29.34 |
|
Diluted earnings per share (in €) |
24.37 |
29.31 |
|
Net income from continuing operations attributable to the
Group |
2,983 |
3,613 |
|
Basic earnings per share (in €) |
24.38 |
29.33 |
|
Diluted earnings per share (in €) |
24.37 |
29.30 |
|
Net income from continuing operations (excluding non-recurring
items) attributable to the Group |
3,061 |
3,747 |
|
Basic earnings per share (in €) |
25.02 |
30.42 |
|
Diluted earnings per share (in €) |
25.01 |
30.39 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
(in € millions) |
2023 |
2022 |
|
Net income |
3,074 |
3,718 |
|
o/w attributable to the Group |
2,983 |
3,614 |
|
o/w attributable to minority interests |
91 |
104 |
|
Change in currency translation adjustments relating to
consolidated subsidiaries : |
(75) |
(69) |
|
change in currency translation adjustments |
(75) |
(69) |
|
amounts transferred to the income statement |
– |
– |
|
Change in foreign currency cash flow hedges : |
(4) |
246 |
|
change in fair value |
268 |
(68) |
|
amounts transferred to the income statement |
(271) |
327 |
|
tax effects |
(1) |
(13) |
|
Change in other comprehensive income (loss) of
equity-accounted companies : |
– |
– |
|
change in fair value |
– |
– |
|
tax effects |
– |
– |
|
Gains and losses recognized in equity, to be transferred to
the income statement |
(79) |
177 |
|
Change in provisions for pensions and other post-employment
benefits : |
1 |
24 |
|
change in actuarial gains and losses |
1 |
30 |
|
tax effects |
– |
(6) |
|
Change in financial assets measured at fair value
: |
(23) |
(225) |
|
change in fair value |
(33) |
(272) |
|
tax effects |
10 |
47 |
|
Gains and losses recognized in equity, not to be
transferred to the income statement |
(22) |
(201) |
|
Total gains and losses recognized in equity |
(101) |
(24) |
|
COMPREHENSIVE INCOME |
2,973 |
3,694 |
|
o/w attributable to the Group |
2,879 |
3,576 |
|
Net income of consolidated companies attributable to minority
interests |
94 |
118 |
CONSOLIDATED BALANCE SHEET
Assets
|
(in € millions) |
2023 |
2022 |
|
Goodwill |
7,112 |
4,053 |
|
Brands and other intangible assets |
8,178 |
7,357 |
|
Lease right-of-use assets |
4,984 |
4,929 |
|
Property, plant and equipment |
5,341 |
3,388 |
|
Investments in equity-accounted companies |
1,750 |
49 |
|
Non-current financial assets |
536 |
855 |
|
Deferred tax assets |
1,520 |
1,640 |
|
Other non-current assets |
16 |
8 |
|
Non current assets |
29,437 |
22,279 |
|
Inventories |
4,550 |
4,465 |
|
Trade receivables and accrued income |
1,151 |
1,180 |
|
Current tax receivables |
765 |
378 |
|
Current financial assets |
136 |
167 |
|
Other current assets |
1,406 |
1,136 |
|
Cash and cash equivalents |
3,922 |
4,336 |
|
Current assets |
11,930 |
11,662 |
|
Assets held for sale |
– |
– |
|
TOTAL ASSETS |
41,367 |
33,941 |
Equity and liabilities
|
(in € millions) |
2023 |
2022 |
|
Equity attributable to the Group |
15,212 |
13,998 |
|
Equity attributable to the minority interests |
798 |
785 |
|
Equity |
16,010 |
14,783 |
|
Non-current borrowings |
10,026 |
4,347 |
|
Non-current lease liabilities |
4,511 |
4,420 |
|
Other non-current financial liabilities |
13 |
- |
|
Non-current provisions for pensions and other post-employment
benefits |
68 |
66 |
|
Non-current provisions |
21 |
19 |
|
Deferred tax liabilities |
1,776 |
1,572 |
|
Other non-current liabilities |
311 |
228 |
|
Non current liabilities |
16,726 |
10,652 |
|
Current borrowings |
2,400 |
2,295 |
|
Current lease liabilities |
884 |
812 |
|
Current financial liabilities |
588 |
663 |
|
Trade payables and accrued expenses |
2,200 |
2,263 |
|
Current provisions for pensions and other post-employment
benefits |
12 |
12 |
|
Current provisions |
163 |
168 |
|
Current tax liabilities |
536 |
567 |
|
Other current liabilities |
1,848 |
1,726 |
|
Current liabilities |
8,631 |
8,506 |
|
Liabilities associated with assets held for sale |
– |
– |
|
TOTAL EQUITY AND LIABILITIES |
41,367 |
33,941 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
Before appropriation of net income(in €
millions) |
Number of shares outstanding |
Share capital |
Capitalreserves |
Keringtreasuryshares |
Cumulative translation
adjustments |
Remeasurement of financial
instruments |
Otherreserves and net income |
Group |
Minorityinterests |
TOTAL |
|
As of January 1, 2022 |
124,068,705 |
499 |
1,655 |
(380) |
(82) |
165 |
11,469 |
13,326 |
389 |
13,715 |
|
Net income |
|
|
|
|
|
|
3,614 |
3,614 |
104 |
3,718 |
|
Total gains and losses recognized in equity |
|
|
|
|
(83) |
21 |
24 |
(38) |
14 |
(24) |
|
Comprehensive income |
|
|
|
|
(83) |
21 |
3,638 |
3,576 |
118 |
3,694 |
|
Change in equity of Kering SA |
102,862 |
|
38 |
|
|
|
|
38 |
– |
38 |
|
Change in equity of subsidiaries |
|
|
|
|
|
|
|
– |
346 |
346 |
|
Expense related to share-based payments |
|
|
|
|
|
|
45 |
45 |
– |
45 |
|
Cancellation of Kering treasury shares |
|
(3) |
(379) |
382 |
|
|
|
– |
– |
– |
|
(Acquisitions) disposals of Kering treasury shares |
(1,951,197) |
|
|
(1,030) |
|
|
|
(1,030) |
– |
(1,030) |
|
Distribution of dividends |
|
|
|
|
|
|
(1,605) |
(1,605) |
(45) |
(1,650) |
|
Other changes |
|
|
|
|
|
|
(352) |
(352) |
(23) |
(375) |
|
As of December 31, 2022 |
122,220,370 |
496 |
1,314 |
(1,028) |
(165) |
186 |
13,195 |
13,998 |
785 |
14,783 |
|
Net income |
|
|
|
|
|
|
2,983 |
2,983 |
91 |
3,074 |
|
Total gains and losses recognized in equity |
|
|
|
|
(78) |
(26) |
|
(104) |
3 |
(101) |
|
Comprehensive income |
|
|
|
|
(78) |
(26) |
2,983 |
2,879 |
94 |
2,973 |
|
Change in equity of Kering SA |
|
|
|
|
|
|
|
– |
– |
– |
|
Change in equity of subsidiaries |
|
|
|
|
|
|
|
– |
9 |
9 |
|
Expense related to share-based payments |
16,928 |
|
|
10 |
|
|
15 |
25 |
– |
25 |
|
Cancellation of Kering treasury shares |
|
(3) |
(330) |
333 |
|
|
|
– |
– |
– |
|
(Acquisitions) disposals of Kering treasury shares |
342,883 |
|
|
230 |
|
|
(217) |
13 |
– |
13 |
|
Distribution of dividends |
|
|
|
|
|
|
(1,705) |
(1,705) |
(42) |
(1,747) |
|
Other changes |
|
|
|
5 |
|
|
(3) |
2 |
(48) |
(46) |
|
As of December 31, 2023 |
122,580,181 |
493 |
984 |
(450) |
(243) |
160 |
14,268 |
15,212 |
798 |
16,010 |
CONSOLIDATED STATEMENT OF CASH
FLOW
|
(in € millions) |
2023 |
2022 |
|
Net income from continuing operations |
3,074 |
3,717 |
|
Net recurring charges to depreciation, amortization and provision
on non-current operating assets |
1,823 |
1,666 |
|
Other non-cash (income) expenses |
94 |
(334) |
|
Cash flow received from operating activities |
4,991 |
5,049 |
|
Interest paid (received) |
300 |
287 |
|
Dividends received |
(9) |
(7) |
|
Current tax expense |
1,007 |
1,597 |
|
Cash flow received from operating activities before
tax, dividends and interests |
6,289 |
6,926 |
|
Change in working capital requirement |
(396) |
(902) |
|
Income tax paid |
(1,434) |
(1,746) |
|
Net cash received from operating activities |
4,459 |
4,278 |
|
Acquisitions of property, plant and equipment and intangible
assets |
(2,611) |
(1,071) |
|
Disposals of property, plant and equipment and intangible
assets |
135 |
1 |
|
Acquisitions of subsidiaries and associates, net of cash
acquired |
(5,093) |
(1,565) |
|
Disposals of subsidiaries and associates, net of cash
transferred |
– |
(32) |
|
Acquisitions of other financial assets |
(56) |
(235) |
|
Disposals of other financial assets |
251 |
115 |
|
Interest and dividends received |
76 |
17 |
|
Net cash received from (used in) investing
activities |
(7,298) |
(2,770) |
|
Increase (decrease) in share capital and other transactions |
– |
38 |
|
Dividends paid to shareholders of Kering SA |
(1,712) |
(1,483) |
|
Dividends paid to minority interests in consolidated
subsidiaries |
(42) |
(45) |
|
Transactions with minority interests |
(24) |
317 |
|
(Acquisitions) disposals of Kering treasury shares |
(10) |
(1,030) |
|
Issuance of bonds and bank debt |
6,205 |
1,742 |
|
Redemption of bonds and bank debt |
(957) |
(904) |
|
Issuance (redemption) of other borrowings |
174 |
343 |
|
Repayment of lease liabilities |
(880) |
(824) |
|
Interest paid and equivalent |
(377) |
(298) |
|
Net cash received from (used in) from financing
activities |
2,377 |
(2,144) |
|
Net cash received from (used in) discontinued operations |
– |
(8) |
|
Impact of exchange rate variations on cash and cash
equivalents |
18 |
222 |
|
Net increase (decrease) in cash and cash
equivalents |
(444) |
(422) |
|
|
|
|
|
Cash and cash equivalents at opening |
4,094 |
4,516 |
|
Cash and cash equivalents at closing |
3,650 |
4,094 |
REVENUE FOR THE FIRST, SECOND, THIRD AND
FOURTH QUARTERS OF 2023
|
(in € millions ) |
|
Q4 2023 |
Q4 2022(1) |
Reported change |
Comparable change(1) |
Q3 2023 |
Q3 2022(1) |
Reported change |
Comparable change(1) |
Q2 2023 |
Q2 2022(1) |
Reported change |
Comparable change(1) |
Q1 2023 |
Q1 2022 (1) |
Reported change |
Comparable change(1) |
|
Gucci |
|
2,528 |
2,733 |
-8% |
-4% |
2,217 |
2,581 |
-14% |
-7% |
2,512 |
2,582 |
-3% |
+1% |
2,616 |
2,591 |
+1% |
+1% |
|
Yves Saint Laurent |
|
835 |
903 |
-8% |
-5% |
768 |
916 |
-16% |
-12% |
770 |
742 |
+4% |
+7% |
806 |
739 |
+9% |
+8% |
|
Bottega Veneta |
|
431 |
469 |
-8% |
-4% |
381 |
437 |
-13% |
-7% |
438 |
438 |
+0% |
+3% |
395 |
396 |
-0% |
+0% |
|
Other Houses |
|
853 |
924 |
-8% |
-5% |
805 |
995 |
-19% |
-15% |
966 |
982 |
-2% |
-1% |
890 |
973 |
-9% |
-9% |
|
Kering Eyewear and Corporate |
|
366 |
295 |
+24% |
+7% |
333 |
253 |
+31% |
+3% |
436 |
283 |
+54% |
+21% |
433 |
308 |
+41% |
+11% |
|
Eliminations |
|
(46) |
(40) |
- |
- |
(40) |
(45) |
- |
- |
(64) |
(53) |
- |
- |
(63) |
(51) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KERING |
|
4,967 |
5,284 |
-6% |
-4% |
4,464 |
5,137 |
-13% |
-9% |
5,058 |
4,974 |
+2% |
+3% |
5,077 |
4,956 |
+2% |
+1% |
(1) Change on a comparable scope and
exchange rate basis.
MAIN DEFINITIONS
“Reported” and “comparable”
revenueThe Group’s “reported” revenue corresponds to
published revenue. The Group also uses “comparable” data to measure
organic growth. “Comparable” revenue refers to 2022 revenue
adjusted as follows
by:- neutralizing
the portion of revenue corresponding to entities divested in
2022;- including the
portion of revenue corresponding to entities acquired in
2023;- remeasuring
2022 revenue at 2023 exchange rates.These adjustments give rise to
comparative data at constant scope and exchange rates, which serve
to measure organic growth.
Recurring operating incomeThe
Group’s operating income includes all revenues and expenses
directly related to its activities, whether these revenues and
expenses are recurring or arise from non-recurring decisions or
transactions.Other non-recurring operating income and expenses
consist of items that, by their nature, amount or frequency, could
distort the assessment of the Group’s operating performance as
reflected in its recurring operating income. They include changes
in Group structure, the impairment of goodwill and brands and,
where material, of property, plant and equipment and intangible
assets, capital gains and losses on disposals of non-current
assets, restructuring costs and disputes.“Recurring operating
income” is therefore a major indicator for the Group, defined as
the difference between operating income and other non-recurring
operating income and expenses. This intermediate line item is
intended to facilitate the understanding of the operating
performance of the Group and its Houses and can therefore be used
as a way to estimate recurring performance. This indicator is
presented in a manner that is consistent and stable over the long
term in order to ensure the continuity and relevance of financial
information.
EBITDAThe Group uses EBITDA to
monitor its operating performance. This financial indicator
corresponds to recurring operating income plus net charges to
depreciation, amortization and provisions on non-current operating
assets recognized in recurring operating income.
Free cash from operations, available cash
flow from operations and available cash flowThe Group uses
an intermediate line item, “Free cash flow from operations”, to
monitor its financial performance. This financial indicator
measures net operating cash flow less net operating investments
(defined as acquisitions and disposals of property, plant and
equipment and intangible assets).The Group has also defined an
indicator, “Available cash flow from operations”, in order to take
into account capitalized fixed lease payments (repayments of
principal and interest) pursuant to IFRS 16, and thereby reflect
all of its operating cash flows.“Available cash flow” therefore
corresponds to available cash flow from operations plus interest
and dividends received, less interest paid and equivalent
(excluding leases).
Net debtNet debt is one of the
Group’s main financial indicators, and is defined as borrowings
less cash and cash equivalents. Consequently, the cost of net debt
corresponds to all financial income and expenses associated with
these items, including the impact of derivative instruments used to
hedge the fair value of borrowings.
Effective tax rate on recurring
incomeThe effective tax rate on recurring income
corresponds to the effective tax rate excluding tax effects
relating to other non-recurring operating income and expenses.
- Kering - Press release - 2023 Full-year results
Grafico Azioni Kering (TG:PPX)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Kering (TG:PPX)
Storico
Da Dic 2023 a Dic 2024
