Kering: Press release - First-half 2024 results
KERING_Press release - First-half 2024 results - 24 07 2024
PRESS RELEASE
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July 24, 2024
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FIRST-HALF 2024 RESULTS
Group revenue: €9,018
million
down 11% as reported and on a comparable basis
Recurring operating income:
€1,582 million
Net income attributable to the Group:
€878 million
“In a challenging market environment, which
adds pressure on our top line and profitability, we are working
assiduously to create the conditions for a return to growth. Our
Houses pursue their investments to enrich their offer, intensify
the impact of their communications, and reinforce the exclusivity
of their distribution. We make certain that every one of these
investments creates value for the long term. While the current
context might impact the pace of our execution, our determination
and confidence are stronger than ever.”
François-Henri Pinault, Chairman and
Chief Executive Officer
- Group
revenue amounted to €9.0 billion in the first half
of 2024, down 11% both as reported and on a comparable
basis.
- In the
second quarter of 2024, revenue totaled €4.5 billion, also
down 11% as reported and on a comparable basis. The decline in
revenue as reported includes a negative currency effect of 1% and a
positive scope effect of 1% from the consolidation of Creed.
- Sales from the
directly operated retail network fell by 12% on a comparable basis
in the second quarter, adversely affected by lower store traffic.
Trends in the various regions in the second quarter remained
broadly in line with the first quarter, apart from a sequential
improvement in Japan and a deceleration in Asia-Pacific.
- Wholesale and Other revenue fell 6%
on a comparable basis, as the Group continued to enhance the
exclusivity of its Houses’ distribution. Kering Eyewear pursued its
positive trend.
- As the Group
maintains its ongoing investment in its Houses, recurring
operating income fell 42% to €1.6 billion in the first
half, in line with the guidance provided when the Group reported
its first-quarter 2024 revenue. Recurring operating
margin was 17.5%, significantly lower than in the first
half of 2023, resulting from negative operational leverage. The
Group prioritizes expenditures aimed at nurturing the desirability
of its Houses and maintains strict control over all operating
expenses.
- Net
income attributable to the Group was €878 million in the
first half of 2024.
- Free
cash flow from operations remained high at €1.9 billion in
the first half excluding real estate acquisitions, thanks to good
inventory management in particular. Including the acquisition of a
prestigious property on Fifth Avenue in New York City, free cash
flow from operations totaled €1.1 billion.
Operating performance
(1) On a comparable
scope and exchange rate basis.
Revenue
(in € millions) |
|
H1 2024 |
H1 2023 |
Reported change |
Comparable change
(1) |
|
|
|
|
|
|
Gucci |
|
4,085 |
5,128 |
-20% |
-18% |
Yves Saint Laurent |
|
1,441 |
1,576 |
-9% |
-7% |
Bottega Veneta |
|
836 |
833 |
+0% |
+3% |
Other Houses |
|
1,717 |
1,856 |
-7% |
-6% |
Kering Eyewear and Corporate |
|
1,067 |
869 |
+23% |
+7% |
|
|
|
|
|
|
Eliminations |
|
(128) |
(127) |
N/A |
N/A |
|
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|
|
|
|
KERING |
|
9,018 |
10,135 |
-11% |
-11% |
Recurring operating income
(in € millions) |
|
H1 2024 |
H1 2023 |
Change |
|
|
|
|
|
Gucci |
|
1,007 |
1,810 |
-44% |
Yves Saint Laurent |
|
316 |
481 |
-34% |
Bottega Veneta |
|
121 |
169 |
-28% |
Other Houses |
|
44 |
224 |
-80% |
Kering Eyewear and Corporate |
|
101 |
63 |
+61% |
|
|
|
|
|
Eliminations |
|
(7) |
(8) |
N/A |
|
|
|
|
|
KERING |
|
1,582 |
2,739 |
-42% |
Gucci
In the first half of 2024,
Gucci’s revenue was €4.1 billion, down 20% as
reported and down 18% on a comparable basis. Sales from the
directly operated retail network dropped 20% on a comparable basis,
while wholesale revenue was down 9%.
In the second quarter of 2024,
the House's sales were down 19% on a comparable basis, with a 20%
decline in the directly operated retail network. Performances in
each region were broadly in line with those of the prior quarter,
including a continuing marked decrease in Asia-Pacific. Gucci's new
offering, rolled out in stores in line with plans, is well
received, while sales of carryovers remained lower.
Gucci's recurring operating
income totaled €1.0 billion in the first half of 2024.
Recurring operating margin was 24.7%, reflecting
investments to pursue the House's long-term strategic
initiatives.
Yves Saint Laurent
Yves Saint Laurent's revenue in the
first half of 2024 was €1.4 billion, down 9% as reported
and down 7% on a comparable basis. On a comparable basis, the
House's sales from its directly operated retail network were down
6% while wholesale revenue fell 25%.
In the second quarter of 2024,
Yves Saint Laurent's sales were down 9% on a comparable basis, with
an 8% decline in the directly operated retail network. Performance
deteriorated in Asia-Pacific, while trends in Japan showed a
sequential improvement. The House pursued initiatives targeting
local customers, and its new collections were very well received.
Wholesale revenue was down 25% in the second quarter.
Yves Saint Laurent's recurring operating
income was €316 million in the first half and its
recurring operating margin was 22.0%, as the House
continues to invest in its communications and clientele
initiatives.
Bottega Veneta
Bottega Veneta had a record first
half, with revenue of €836 million,
unchanged as reported and up 3% on a comparable basis. Sales from
the directly operated retail network rose by 8% on a comparable
basis, while wholesale revenue was down 19% on a comparable
basis.
In the second quarter, the House's revenue was
up 4% on a comparable basis. Sales in the directly operated retail
network rose 7% on a comparable basis, supported by double-digit
growth in Western Europe and North America and strong momentum in
the Middle East. Sales in Asia-Pacific were resilient. Wholesale
revenue was down 13%.
Bottega Veneta’s recurring operating
income for the first half of 2024 totaled €121 million,
and its recurring operating margin was 14.5%,
reflecting significant communications expenditure as well as highly
exclusive clienteling events.
Other Houses
The Other Houses' revenue in
the first half of 2024 was €1.7 billion, down 7%
as reported and down 6% on a comparable basis. Sales from the
directly operated retail network rose 1% on a comparable basis,
while wholesale was down 21%.
Second quarter 2024 sales were
down 5% on a comparable basis, with contrasted performance across
Houses. Sales in the directly operated retail network were stable
year-on-year on a comparable basis. Jewelry Houses Boucheron and
Pomellato both achieved double-digit growth. Balenciaga's sales
from its directly operated retail network were unchanged on a
comparable basis. Alexander McQueen continued its creative
transition. Brioni posted strong revenue growth from its directly
operated retail network on a comparable basis. Wholesale revenue of
Other Houses was down 16%.
The Other Houses' recurring operating
income in the first half of 2024 amounted
to €44 million, resulting in a recurring operating
margin of 2.6%. That performance is attributable to
significant reinvestment in communications at Balenciaga and the
impact of the transition at Alexander McQueen, while Boucheron
delivered sharply higher operating income.
Kering Eyewear and Corporate
In the first half of 2024,
total revenue from the Kering Eyewear and
Corporate segment was €1.1 billion, mainly from the
activities of Kering Eyewear and Kering Beauté, the latter
comprising the sales of Creed.
Kering Eyewear's revenue in the
first half of 2024 totaled €914 million, up 5% as
reported and up 6% on a comparable basis.
In the second quarter, Kering
Eyewear's sales rose by 3% both on a comparable basis and as
reported, driven by solid progression of the brands in its
portfolio.
In the first half, Kering
Eyewear's recurring operating income was €196
million. Recurring operating income for the
segment was €101 million, after taking into
account Kering Beauté's recurring operating income along with
Corporate costs (€95 million).
Financial performance
In the first half of 2024, net financial
expense amounted to €288 million.
The effective tax rate on
recurring income was 26.9%.
Net income attributable to the
Group was €878 million.
Cash flow and financial position
The Group's free cash flow from
operations was €1.1 billion in the first half of 2024.
Excluding the acquisition of a prestigious property on Fifth Avenue
in New York City, free cash flow from operations totaled €1.9
billion.
At June 30, 2024, Kering's net
debt amounted to €9.9 billion.
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.
Considering the uncertainties weighing on the
evolution of demand from luxury consumers in the coming months
following the slowdown recorded in the first half of 2024, Kering’s
recurring operating income in the second half of 2024 could be down
by approximately 30% compared to the second half of 2023 (*).
The group prioritizes expenses and initiatives
supporting the long-term development and growth of its houses,
while pursuing with determination the actions required in the
current situation to optimize its cost structure.
(*) Based on the scope of consolidation and exchange rates at
the time of first-half 2024 reporting.
***
At its July 24, 2024, meeting, Kering's
Board of Directors, chaired by François-Henri Pinault, approved the
consolidated financial statements for the six months ended June 30,
2024, which were subject to a limited review.
WEBCAST
Kering will present
its first-half 2024 results in an audiocast, which
will be accessible here at 5.45pm (CET) on
Wednesday, July 24, 2024.
The presentation will
be followed by a Q&A session for analysts and investors.
The slides (in PDF
format) will be available ahead of the audiocast at
www.kering.com.
A replay of the
webcast will also be available at www.kering.com.
About Kering
Kering is a global Luxury group that manages
the development of a collection of renowned Houses in Fashion,
Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo,
Qeelin, 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 FIRST-HALF 2024
RESULTS
SITUATION AS OF JUNE 30, 2024
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Contents |
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page |
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Announcements since January 1, 2024 |
8 |
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Consolidated income statement |
9 |
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Consolidated statement of comprehensive
income |
10 |
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Consolidated balance sheet |
11 |
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Consolidated statement of cash flows |
12 |
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Breakdown of revenue |
13 |
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Main definitions |
14 |
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HIGHLIGHTS AND ANNOUNCEMENTS SINCE
JANUARY 1, 2024
Acquisition of strategic real-estate
assets in New York and Milan
January 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. The building is located at 715-717 Fifth Avenue
and the price paid was $963 million (the equivalent of €885 million
on the date of the announcement).
April 4, 2024 – Kering announced the acquisition of the company
that owns the iconic building located at 8 Via Monte Napoleone in
Milan, for a consideration of approximately €1.3 billion. This
18th-century building is located on the most prestigious corner of
Milan’s Quadrilatero della Moda fashion district. It has
five floors and gross floorspace of approximately 127,000 sq.
ft, or 11,800 sq. m.
These two investments form part of Kering’s selective real-estate
strategy aimed at securing key locations that are highly desirable
for its Houses.
“Triple A” CDP score for Kering's
climate commitments
February 6, 2024 – Kering is one of only 10 companies worldwide to
achieve a score of AAA following the Carbon Disclosure Project’s
annual assessment, which covers more than 21,000 companies. Kering
is the only company in its sector to earn this distinction,
confirming its leadership in terms of transparency and performance
as regards protecting the climate, forests and water.
Dual-tranche bond issue for a total
amount of €1.75 billion
March 5, 2024 – Kering carried out a dual-tranche bond issue for a
total of €1.75 billion, consisting of:
- a €1 billion tranche with an 8-year maturity and a 3.375% coupon;
and
- a €750 million tranche with a 12-year maturity and a 3.625%
coupon.
The issue forms part of the Group’s active liquidity management and
increases Kering's financial flexibility.
Creation of a tool to measure ecological
impact in Asia-Pacific in partnership with the National University
of Singapore
May 13, 2024 – Kering and the National University of Singapore
(NUS) officially announced that they were forming a partnership as
part of a research project. The aim of the project is to develop a
reference framework for measuring the impact of sustainability
strategies adopted by large corporations in Asia-Pacific. Over a
three-year period, the project will look at those corporations'
ecological transition strategies and environmental reports and
prepares a baseline study. That study is intended for business
leaders, investors, institutional investors and NGOs, and will be a
useful resource for measuring progress made by industries in the
region.
APPOINTMENTS SINCE JANUARY 1,
2024
Appointments to Kering’s Executive
Committee
April 2, 2024 – Kering announced the appointment of Mélanie
Flouquet, Chief Strategy Officer, and Armelle Poulou, Chief
Financial Officer, to the Group’s Executive Committee.
June 6, 2024 – Kering announced the appointment of Laurent Claquin
as its Chief Brand Officer and a member of the Executive Committee,
effective July 1, 2024.
Appointments to Kering’s Board of
Directors
April 25, 2024 – The Annual General Meeting has approved the
appointment of three new independent directors on the
recommendation of the Board of Directors and its Appointments and
Governance Committee: Rachel Duan, Giovanna Melandri and Dominique
D’Hinnin.
Appointment of Ewa Abrams as President
of Kering Americas
July 15, 2024 – Ewa Abrams, currently General Counsel of Kering
Americas, has been appointed as President of Kering Americas
effective August 1, 2024. She will report directly to Jean-Marc
Duplaix, Deputy CEO in charge of Operations and Finance.
CONSOLIDATED INCOME STATEMENT
(in € millions) |
First half 2024 |
First half 2023 |
CONTINUING OPERATIONS |
|
|
Revenue |
9,018 |
10,135 |
Cost of sales |
(2,310) |
(2,405) |
Gross margin |
6,708 |
7,730 |
Other personnel expenses |
(1,547) |
(1,505) |
Other recurring operating income and expenses |
(3,579) |
(3,486) |
Recurring operating income |
1,582 |
2,739 |
Other non-recurring operating income and expenses |
(13) |
- |
Operating income |
1,569 |
2,739 |
Financial result |
(288) |
(204) |
Income before tax |
1,281 |
2,535 |
Income tax expense |
(345) |
(692) |
Share in earnings (losses) of equity-accounted companies |
4 |
3 |
Net income from continuing operations |
940 |
1,846 |
o/w attributable to the Group |
878 |
1,785 |
o/w attributable to minority interests |
62 |
61 |
DISCONTINUED OPERATIONS |
|
|
Net income (loss) from discontinued
operations |
- |
- |
o/w attributable to the Group |
- |
- |
o/w attributable to minority interests |
- |
- |
GROUP TOTAL |
|
|
Net income of consolidated companies |
940 |
1,846 |
o/w attributable to the Group |
878 |
1,785 |
o/w attributable to minority interests |
62 |
61 |
(in € millions) |
First half 2024 |
First half 2023 |
Net income attributable to the Group |
878 |
1,785 |
Basic earnings per share (in €) |
7.16 |
14.60 |
Diluted earnings per share (in €) |
7.16 |
14.59 |
Net income from continuing operations attributable to the
Group |
878 |
1,785 |
Basic earnings per share (in €) |
7.16 |
14.60 |
Diluted earnings per share (in €) |
7.16 |
14.59 |
Net income from continuing operations (excluding
non‑recurring items) attributable
to the Group |
888 |
1,789 |
Basic earnings per share (in €) |
7.24 |
14.63 |
Diluted earnings per share (in €) |
7.24 |
14.62 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
(in € millions) |
First half 2024 |
First half 2023 |
Net income |
940 |
1,846 |
o/w attributable to the Group |
878 |
1,785 |
o/w attributable to minority interests |
62 |
61 |
Change in currency translation adjustments relating to
consolidated
Subsidiaries |
11 |
(95) |
change in currency translation adjustments |
11 |
(95) |
amounts transferred to the income statement |
- |
- |
Change in foreign currency cash flow hedges |
(63) |
119 |
change in fair value |
(16) |
204 |
amounts transferred to the income statement |
(52) |
(79) |
tax effects |
5 |
(6) |
Change in other comprehensive income (loss) of
equity‑accounted
Companies |
- |
- |
change in fair value |
- |
- |
amounts transferred to the income statement |
- |
- |
Gains and losses recognized in equity, to be transferred to the
income statement |
(52) |
24 |
Change in provisions for pensions and other post-employment
benefits |
(6) |
(2) |
change in actuarial gains and losses |
(8) |
(2) |
tax effects |
2 |
- |
Change in financial assets measured at fair
value |
15 |
16 |
change in fair value |
13 |
22 |
tax effects |
2 |
(6) |
Gains and losses recognized in equity, not to be
transferred to the income
Statement |
9 |
14 |
Total gains and losses recognized in equity |
(43) |
38 |
o/w attributable to the Group |
(44) |
40 |
o/w attributable to minority interests |
1 |
(2) |
COMPREHENSIVE INCOME |
897 |
1,884 |
o/w attributable to the Group |
834 |
1,825 |
o/w attributable to minority interests |
63 |
59 |
CONSOLIDATED BALANCE SHEET
Assets
(in € millions) |
June 30, 2024 |
Dec. 31, 2023 |
Goodwill |
7,090 |
7,112 |
Brands and other intangible assets |
8,185 |
8,178 |
Lease right-of-use assets |
5,098 |
4,984 |
Property plant and equipment |
6,314 |
5,341 |
Investments in equity-accounted companies |
1,775 |
1,750 |
Non-current financial assets |
483 |
536 |
Deferred tax assets |
1,507 |
1,520 |
Other non-current assets |
35 |
16 |
Non current assets |
30,487 |
29,437 |
Inventories |
4,346 |
4,550 |
Trade receivables and accrued income |
1,155 |
1,151 |
Current tax receivables |
762 |
765 |
Current financial assets |
64 |
136 |
Other current assets |
1,404 |
1,406 |
Cash and cash equivalents |
3,934 |
3,922 |
Current assets |
11,665 |
11,930 |
Assets held for sale |
- |
- |
TOTAL ASSETS |
42,152 |
41,367 |
Equity and liabilities
(in € millions) |
June 30, 2024 |
Dec. 31, 2023 |
Equity attributable to the Group |
14,901 |
15,212 |
Equity attributable to the minority interests |
849 |
798 |
Equity |
15,750 |
16,010 |
Non-current borrowings |
11,018 |
10,026 |
Non-current lease liabilities |
4,593 |
4,511 |
Non-current financial liabilities |
7 |
13 |
Non-current provisions for pensions and other post-employment
benefits |
78 |
68 |
Non-current provisions |
27 |
21 |
Deferred tax liabilities |
1,793 |
1,776 |
Other non-current liabilities |
433 |
311 |
Non current liabilities |
17,949 |
16,726 |
Current borrowings |
2,838 |
2,400 |
Current lease liabilities |
914 |
884 |
Current financial liabilities |
58 |
588 |
Trade payables and accrued expenses |
2,132 |
2,200 |
Current provisions for pensions and other post-employment
benefits |
13 |
12 |
Current provisions |
135 |
163 |
Current tax liabilities |
743 |
536 |
Other current liabilities |
1,620 |
1,848 |
Current liabilities |
8,453 |
8,631 |
Liabilities associated with assets held for
sale |
- |
- |
TOTAL EQUITY AND LIABILITIES |
42,152 |
41,367 |
CONSOLIDATED STATEMENT OF CASH FLOWS
(in € millions) |
First half 2024 |
First half 2023 |
Net income from continuing operations |
940 |
1,846 |
Net recurring charges to depreciation, amortization
and provision on non-current operating assets |
1,013 |
878 |
Other non-cash (income) expenses |
10 |
(139) |
Cash flow received from operating activities |
1,963 |
2,585 |
Interest paid (received) |
229 |
173 |
Dividends received |
(2) |
(7) |
Current tax expense |
312 |
684 |
Cash flow received from operating activities before
tax
dividends and interests |
2,502 |
3,435 |
Change in working capital requirement |
44 |
(419) |
Income tax paid |
(100) |
(419) |
Net cash received from operating activities |
2,446 |
2,597 |
Acquisitions of property, plant and equipment and intangible
assets |
(1,391) |
(1,891) |
Disposals of property, plant and equipment and intangible
assets |
- |
117 |
Acquisitions of subsidiaries and associates, net of cash
acquired |
(23) |
(55) |
Disposals of subsidiaries and associates, net of cash
transferred |
- |
- |
Acquisitions of other financial assets |
(35) |
(24) |
Disposals of other financial assets |
97 |
96 |
Interest and dividends received |
30 |
14 |
Net cash received from (used in) investing
activities |
(1,322) |
(1,743) |
Increase (decrease) in share capital and other transactions |
- |
- |
Dividends paid to shareholders of Kering SA |
(1,716) |
(1,712) |
Dividends paid to minority interests in consolidated
subsidiaries |
(6) |
(12) |
Transactions with minority interests |
(3) |
(26) |
(Acquisitions) disposals of Kering treasury shares |
3 |
(7) |
Issuance of bonds and bank debt |
1,750 |
1,508 |
Redemption of bonds and bank debt |
(512) |
(658) |
Issuance (redemption) of other borrowings |
153 |
(408) |
Repayment of lease liabilities |
(530) |
(419) |
Interest paid and equivalent |
(254) |
(178) |
Net cash received from (used in) from financing
activities |
(1,116) |
(1,912) |
Net cash received from (used in) discontinued operations |
- |
- |
Impact of exchange rate variations on cash and cash
equivalents |
37 |
14 |
Net increase (decrease) in cash and cash
equivalents |
46 |
(1,044) |
|
|
|
Cash and cash equivalents at opening |
3,650 |
4,094 |
Cash and cash equivalents at closing |
3,696 |
3,050 |
REVENUE FOR THE FIRST AND SECOND
QUARTERS
(in € millions)
|
|
H1 2024 |
H1 2023
|
Reported
change |
Comparable change
(1) |
Q2 2024 |
Q2 2023
|
Reported
change |
Comparable change
(1) |
Q1 2024 |
Q1 2023 |
Reported
change |
Comparable change
(1) |
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Gucci |
|
4,085 |
5,128 |
-20% |
-18% |
2,006 |
2,512 |
-20% |
-19% |
2,079 |
2,616 |
-21% |
-18% |
Yves Saint Laurent |
|
1,441 |
1,576 |
-9% |
-7% |
701 |
770 |
-9% |
-9% |
740 |
806 |
-8% |
-6% |
Bottega Veneta |
|
836 |
833 |
+0% |
+3% |
448 |
438 |
+2% |
+4% |
388 |
395 |
-2% |
+2% |
Other Houses |
|
1,717 |
1,856 |
-7% |
-6% |
893 |
966 |
-8% |
-5% |
824 |
890 |
-7% |
-6% |
Kering Eyewear and Corporate |
|
1,067 |
869 |
+23% |
+7% |
531 |
436 |
+22% |
+5% |
536 |
433 |
+24% |
+9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
(128) |
(127) |
- |
- |
(65) |
(64) |
- |
- |
(63) |
(63) |
- |
- |
KERING |
|
9,018 |
10,135 |
-11% |
-11% |
4,514 |
5,058 |
-11% |
-11% |
4,504 |
5,077 |
-11% |
-10% |
(1) Change on a comparable scope and
exchange rate basis.
MAIN DEFINITIONS
“Reported” and “comparable”
growth
The Group’s “reported” growth corresponds to the change in reported
revenue (previously referred to as “actual” growth) between two
periods.
The Group measures “comparable” growth (also referred to as
“organic” growth) in its business by comparing revenue between two
periods at constant scope and exchange rates.
Changes in scope are dealt with as follows for the periods
concerned:
- the portion of revenue relating to
acquired entities is excluded from the current period;
- the portion relating to entities
divested or in the process of being divested is excluded from the
previous period.
Currency effects are calculated by applying the
average exchange rates for the current period to amounts in the
previous period.
Recurring operating
income
The 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 scope, 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 an alternative
performance indicator for the Group, defined as the difference
between operating income and other non-recurring operating income
and expenses. This indicator is intended to facilitate
understanding of the operating performance of the Group and its
Houses and can therefore be used as a way to estimate recurring
performance. It 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.
EBITDA
The Group uses EBITDA as an alternative performance indicator 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 flow from operations,
available cash flow from operations and available cash
flow
The 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 a new 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 debt
Net debt is one of the Group’s main financial indicators, and is
defined as borrowings less cash and cash equivalents. Lease
liabilities are not included in the calculation of this indicator.
Borrowings include put options granted to minority interests. 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
income
The 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 - First-half 2024 results - 24 07
2024
Grafico Azioni Kering (TG:PPX)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Kering (TG:PPX)
Storico
Da Dic 2023 a Dic 2024