Kering: 2020 Annual Results
PRESS RELEASE2020 annual results |
February 17, 2021 |
SOLID PERFORMANCES
KERING READY TO LEVERAGE THE
REBOUND
Consolidated revenue: €13,100.2
milliondown 17.5% reported and 16.4%
comparable
Recurring operating income: €3,135.2
millionRecurring operating margin: 23.9%Net income
attributable to the Group: €2,150.4 millionRecurring net
income attributable to the Group1: €1,972.2 million
Recommended ordinary dividend stable at €8.00 per
share
Kering Press release - Full year results 2020_17 02 2021
« In a year of disruption, Kering demonstrated
remarkable resilience and agility. We achieved a solid top-line
recovery in the second half, we protected our margins while
continuing to invest in our Houses and growth platforms, our cash
flow generation remained elevated, and we further strengthened the
Group’s financial structure. This year, safeguarding the health and
safety of our employees and customers was our first priority. I am
grateful for the resourcefulness and commitment of all Kering
people. I am proud of the solidarity our Group has shown in this
unprecedented environment. More than ever, I am convinced that our
strategy and business model are perfectly in sync with the current
and future trends of the Luxury universe. We are emerging from the
crisis stronger and better positioned to leverage the rebound. We
invest in all our brands to maximize their potential, and to resume
our profitable growth journey. »
François-Henri Pinault, Chairman and
Chief Executive Officer
- 2020 consolidated revenue: €13,100.2 million, down 17.5% as
reported and 16.4% on a comparable basis.
- Sales generated by the retail network down 15.9% on a
comparable basis in 2020 owing to store closures and the halt in
tourism; sharp rebound in the second half led by North America and
Asia-Pacific.
- Further sharp acceleration in online sales, up 67.5% over the
year. Online sales accounted for 13% of total sales generated by
the retail network.
- Sales generated through the wholesale network down 17.4% on a
comparable basis.
- Resilient profitability, with recurring operating income of
€3,135.2 million, yielding a solid recurring operating margin of
23.9%. Further investment in the Houses and growth platforms.
Key financial indicators
(in € millions) |
|
2020 |
2019 |
Change |
|
|
|
|
|
Revenue |
|
13,100.2 |
15,883.5 |
-17.5% |
Comparable change |
|
|
|
-16.4% |
Recurring operating
income |
|
3,135.2 |
4,778.3 |
-34.4% |
as a % of revenue |
|
23.9% |
30.1% |
-6.2 pts |
EBITDA |
|
4,574.2 |
6,023.6 |
-24.1% |
as a % of revenue |
|
34.9% |
37.9% |
-3.0 pts |
|
|
|
|
|
Net income attributable to the Group |
|
2,150.4 |
2,308.6 |
-6.9% |
|
|
|
|
|
Recurring net income attributable to the
Group(1) |
|
1,972.2 |
3,211.5 |
-38.6% |
(1) Recurring net income
attributable to the Group: net income from continuing operations
attributable to the Group, excluding non‑current items.
Operating performance
Revenue(in € millions) |
|
2020 |
2019 |
Reported
change |
Comparable change(1) |
|
|
|
|
|
|
Total Luxury Houses |
|
12,676.6 |
15,382.6 |
-17.6% |
-16.5% |
Gucci |
|
7,440.6 |
9,628.4 |
-22.7% |
-21.5% |
Yves Saint Laurent |
|
1,744.4 |
2,049.1 |
-14.9% |
-13.8% |
Bottega Veneta |
|
1,210.3 |
1,167.6 |
+3.7% |
+4.8% |
Other Houses |
|
2,281.3 |
2,537.5 |
-10.1% |
-9.4% |
|
|
|
|
|
|
Corporate and other |
|
423.6 |
500.9 |
-15.4% |
-14.6% |
|
|
|
|
|
|
KERING |
|
13,100.2 |
15,883.5 |
-17.5% |
-16.4% |
(1) Comparable Group structure
and exchange rate basis.
Recurring operating income(in € millions) |
|
2020 |
2019 |
Change(in €m) |
Change(%) |
|
|
|
|
|
|
Total Luxury Houses |
|
3,367.1 |
5,042.0 |
(1,674.9) |
-33.2% |
Gucci |
|
2,614.5 |
3,946.9 |
(1,332.4) |
-33.8% |
Yves Saint Laurent |
|
400.0 |
562.2 |
(162.2) |
-28.9% |
Bottega Veneta |
|
172.0 |
215.2 |
(43.2) |
-20.1% |
Other Houses |
|
180.6 |
317.7 |
(137.1) |
-43.2% |
|
|
|
|
|
|
Corporate and other |
|
(231.9) |
(263.7) |
31.8 |
+12.1% |
|
|
|
|
|
|
KERING |
|
3,135.2 |
4,778.3 |
(1,643.1) |
-34.4% |
Total revenue generated by Kering’s
Houses in 2020 amounted to €12,676.6 million, down
17.6% as reported and 16.5% on a comparable basis. While the health
crisis and lockdown measures took a heavy toll on the Houses’
first-half sales (down 30.2%), the situation improved significantly
in the second half (down 3.3%), despite new restrictions towards
the end of the year in certain regions.In the retail network,
comparable sales declined 15.9% over the year and were nearly
stable in the second half (down 1.5%). E-commerce sales further
accelerated (up 67.5%), accounting for 13% of total sales generated
by the retail network in the year.Wholesale revenue was down 17.4%
on a comparable basis, in line with the Group’s strategy to
streamline and make this channel more exclusive.
In the fourth quarter, total
revenue generated by the Houses contracted 4.8% on a comparable
basis, including a 2.9% decrease for the retail network.
Recurring operating income for
the Houses totaled €3,367.1 million in 2020, resulting in a
recurring operating margin of 26.6%.
Gucci: solid performances and
fundamentals
Gucci posted revenue of
€7,440.6 million in 2020, down 22.7% as reported
and 21.5% on a comparable basis. Sales generated in directly
operated stores fell 19.5% on a comparable basis, with a
significant improvement in the second half (down 5.9%). Despite the
store closures resulting from the pandemic, Gucci recovered a
robust and encouraging sales momentum with local customers,
especially in Mainland China, which benefited from repatriation of
demand. Online sales continued to enjoy fast-paced growth, up
nearly 70% for the year. Wholesale revenue dropped 33.4% based on a
comparable basis, reflecting Gucci’s strategy of continuing to
enhance its distribution network’s exclusivity.
In the fourth quarter, revenue
was down 10.3% on a comparable basis, including a 7.5% decrease for
the retail network.
Gucci’s recurring operating
income in 2020 totaled €2,614.5 million. Recurring
operating margin was extremely resilient, at 35.1% for the
year, reaching 38.6% in the second half, while the House pursued
its investments.
Yves Saint Laurent: resilience and
return to growth in the second half
Yves Saint Laurent posted
revenue of €1,744.4 million in
2020, down 14.9% as reported and 13.8% on a
comparable basis. After a sharp contraction in the first half, the
House’s revenue returned to growth in the second half, growing by
2.1% on a comparable basis. In the full year, revenue from directly
operated stores retreated 13.4% on a comparable basis, while online
sales surged, up nearly 80%, and wholesale revenue dropped 13.7% on
a comparable basis.
Yves Saint Laurent put in a solid performance in
the fourth quarter (up 0.5% on a comparable
basis), with favorable sales momentum in Asia-Pacific, North
America and Japan.
Recurring operating income
totaled €400.0 million in the year, yielding a recurring
operating margin of 22.9%.
Bottega Veneta: a remarkable year fueled by an
exceptional creative drive
Bottega Veneta posted revenue
of €1,210.3 million in 2020, up 3.7% as reported
and 4.8% on a comparable basis. After a mixed first-half
performance, sales in the second half were strong, up 18.0% on a
comparable basis. Comparable revenue in directly operated stores
contracted 5.3% in the full year but rose 7.2% in the second half,
buoyed by robust sales momentum in the Asia-Pacific region as well
as by e-commerce. Wholesale grew sharply (up 48.5%), thanks to the
successful collections of the House which remains very exclusive in
its selection of wholesale partners.
Trends were positive in all distribution
channels in the fourth quarter, with revenue up
15.7% on high bases of comparison.
Bottega Veneta posted recurring
operating income of €172.0 million for 2020 for a
recurring operating margin of 14.2%. The House delivered recurring
operating income growth of 15.4% in the second half of the
year.
Other Houses: excellent momentum in the Couture &
Leather Goods Division
Revenue of the Other Houses
totaled €2,281.3 million in 2020, down 10.1% as
reported and 9.4% on a comparable basis. Balenciaga and Alexander
McQueen delivered highly satisfactory performances, posting
year‑on-year revenue growth. The Jewelry Houses, penalized by their
exposure to Western Europe, reported strong sales growth in Asia.
Sales at Qeelin were up sharply over the year, buoyed by the strong
recovery in Mainland China. Boucheron also delivered a solid
performance in the Asia-Pacific region. In the full year, revenue
for the Other Houses from the retail network was 4.9% lower, while
wholesale revenue shrank 13.0%.
Sales in the fourth
quarter posted solid growth (up 1.7% on a comparable
basis), buoyed by double‑digit growth in the Couture & Leather
Goods Division.
Recurring operating income for
the Other Houses totaled €180.6 million in the year, yielding a
recurring operating margin of 7.9%.
Corporate and other
The Corporate and other segment delivered €423.6
million in sales, including €398.6 million for Kering Eyewear after
eliminating intra-group sales and royalties paid to the Houses.
Kering Eyewear had total sales
of €487.1 million in 2020, down 17.6% on a
comparable basis. After being hard hit by store closures in the
first half, particularly in travel retail, revenue recovered in the
second half, with a decline of 8.6%.
Net expenses of the Corporate and other segment
totaled €231.9 million in 2020, an improvement of €31.8 million
year on year, thanks mainly to Kering Eyewear, which delivered
positive and higher recurring operating income in the year.
Financial performance
In 2020, other non-recurring operating
income and expenses represented net income of
€163.0 million, including on the one hand the capital gain on
the sale of the Group’s 5.83% stake in PUMA in October 2020,
and on the other hand asset impairment charges.
Net finance costs amounted to
€341.7 million. This total includes the cost of net debt, which
amounted to €43.3 million, 17.2% lower than in the same period of
2019.
Kering’s effective tax rate in
2020 was 25.7%, while its effective tax rate on recurring income
remained stable year on year, at 28.1%.
Cash flows and financial position
The Group’s free cash flow from operations rose
38.4% in 2020, to €2,104.6 million.
As of December 31, 2020, Kering has a very
robust financial structure, with net debt down 23.6%:
(in € millions) |
|
Dec. 31, 2020 |
Dec. 31, 2019 |
Change |
Capital employed |
|
14,183.7 |
13,250.8 |
+7.0% |
o/w Total equity |
|
12,035.0 |
10,438.6 |
+15.3% |
o/w Net debt |
|
2,148.7 |
2,812.2 |
-23.6% |
|
|
2020 |
2019 |
Gearing (net debt/equity) |
|
17.8% |
26.9% |
Dividend
At its February 16, 2021 meeting, the Board of
Directors decided to ask shareholders to approve a €8.00 per-share
cash dividend for 2020 at the Annual General Meeting to be held to
approve the financial statements for the year ended December 31,
2020.An interim cash dividend of €2.50 per share was paid on
January 21, 2021 pursuant to a decision made by the Board on
December 10, 2020.The balance of the dividend for 2020
will be submitted for shareholder approval at the forthcoming
Annual General Meeting to be held on April 22, 2021.
Outlook
Positioned in structurally fast-growing markets,
Kering enjoys very solid fundamentals and a balanced portfolio of
complementary, high-potential brands with clearly focused
priorities. The Group’s strategy is focused on achieving same-store
revenue growth while ensuring the targeted and selective expansion
of the store network in order to sustainably grow its Houses,
strengthen the exclusivity of their distribution and consolidate
their profitability profiles. The Group is also proactively
investing to develop cross-business growth platforms in the areas
of e-commerce, omni-channel distribution, logistics and
technological infrastructure, expertise, and innovative digital
tools.
The health and subsequent economic crises caused
by the COVID-19 pandemic in 2020 have had major consequences on
consumption trends, tourism flows and global economic growth. Along
with the luxury sector, the Group was deeply impacted by the
effects of the pandemic on its customers and its business
operations, primarily in the first six months of the year. More
favorable trends emerged in the second half, although these remain
closely linked to developments in the health situation and
associated restrictions across countries and regions.
Against this backdrop, Kering has taken all
necessary measures to adapt its cost base, limit the decline in its
profitability and preserve its cash flow generation, while
maintaining the expenditure and investments required to protect its
Houses’ market positions and ensure their potential to bounce back.
Kering also continues to resolutely pursue its strategy and will
continue to manage and allocate its resources in order to support
its operating performance, maintain high cash flow generation and
optimize return on capital employed.
Thanks to its strong business model and
structure, along with its robust financial position, Kering remains
confident in its growth potential for the medium and long term.
While the current environment remains subject to a number of
uncertainties, the crisis has not called into question the
structural growth drivers of the worldwide luxury market, fully
validating the pertinence of Kering’s strategy and enabling the
Group to emerge stronger from the crisis.
***
At its meeting on February 16, 2021, the Board
of Directors, under the chairmanship
of
François-Henri Pinault, approved the consolidated financial
statements for 2020. The consolidated financial statements have
been audited and the certification is in progress.
AUDIOCAST
An
audiocast for analysts and investors will be held
at 8.30am (CET) on Wednesday,
February 17, 2021. It may be accessed
here.
The slides (PDF) will
be available ahead of the audiocast at www.kering.com.
A replay of the
audiocast will also be available at www.kering.com.
The 2020 financial document will be 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, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo,
Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear.
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 2020, Kering had over 38,000 employees and revenue
of €13.1 billion.
Contacts
PressEmilie
Gargatte
+33 (0)1 45 64 61
20
emilie.gargatte@kering.comMarie de Montreynaud
+33 (0)1 45 64 62 53
marie.demontreynaud@kering.com
Analysts/investorsClaire Roblet
+33 (0)1 45 64 61
49
claire.roblet@kering.comLaura Levy
+33 (0)1 45 64 60
45
laura.levy@kering.com
APPENDICES EXTRACT
FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL
INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020
AUDITED FINANCIAL STATEMENTS, CERTIFICATION IN
PROGRESS |
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Contents |
|
page |
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|
Highlights and announcements since January 1,
2020 |
9 |
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|
Consolidated income statement |
12 |
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Consolidated balance sheet |
13 |
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Consolidated cash flow statement |
14 |
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Breakdown of revenue |
15 |
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Main definitions |
16 |
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HIGHLIGHTS AND ANNOUNCEMENTS SINCE
JANUARY 1, 2020
Finance and governance
highlights
Revised dividend per share for
2019
April 21, 2020 – In light of the Covid-19
pandemic and its impact on economic activity, the Board of
Directors decided to revise the amount allocated to the 2019
dividend payment and to recommend to shareholders at Kering SA’s
Annual General Meeting on June 16, 2020 that the total dividend
payout should amount to €1,010 million, corresponding to €8
per share. This is €442 million lower than the amount announced
when the Group released its 2019 results on February 12, 2020
(€1,452 million, or €11.50 per share).
Reduction in remuneration for 2020 for
Kering’s executive corporate officers
April 21, 2020 – In light of the Covid-19
pandemic and its impact on business activity, François-Henri
Pinault, Chairman and CEO of Kering, decided to reduce the fixed
portion of his salary from April 1, until the end of 2020. In
addition, François-Henri Pinault and Jean-François Palus, Group
Managing Director, decided to waive the entirety of the variable
portions of their annual remuneration for 2020. These decisions
were approved by Kering’s Board of Directors on April 21, 2020. The
Board therefore submitted a revised 2020 remuneration policy
to the vote of the shareholders at the Annual General Meeting held
on June 16, 2020.
Pro-active management of the Group’s
liquidity – a new bond issue and extension of syndicated loan
facilities
May 5, 2020 – Kering carried out a €1.2 billion
dual-tranche bond issue comprising (i) a €600 million tranche with
a three-year maturity and a 0.25% coupon, and (ii) a €600 million
tranche with an eight-year maturity and a 0.75% coupon. In line
with the Group’s pro-active liquidity management approach, this
issue enables Kering to diversify its sources of financing and
enhance its funding flexibility through refinancing of existing
debt and extending the maturity of its financing facilities.
Investors’ high take-up rate of the issue confirmed the market’s
confidence in the Group’s creditworthiness. Kering’s long-term debt
is rated “A-” with a stable outlook by Standard & Poor’s. The
Group also extended its credit facilities from its banks in an
aggregate amount of €1,330 million, giving it €4,635 million in
total confirmed credit lines as of December 31, 2020, versus €3,035
million as of December 31, 2019
Jean Liu, Tidjane Thiam and Emma Watson
join the Board of Kering as Directors
June 16, 2020 – Kering’s shareholders approved
the appointment of Jean Liu, Tidjane Thiam and Emma Watson as
Directors during their Annual General Meeting, as proposed by the
Board of Directors at its meeting of March 12, 2020. Emma Watson
was also appointed Chair of the Sustainability Committee of the
Board of Directors, while Tidjane Thiam was appointed Chair of the
Audit Committee.
Kering successfully completes the sale
of 5.83% of its PUMA shares
October 6, 2020 – The Group further reduced its
investment in PUMA by selling a 5.83% stake on
October 8, 2020 through an accelerated bookbuilding
process with qualified investors at a price of €74.50 per share,
corresponding to a total amount of €656 million. Kering has
retained a 9.87% interest in PUMA.
Other highlights
Kering contributes to the worldwide
fight against COVID-19 since January 28:
In China: -
Kering and its Houses announced a donation to the Hubei Red Cross
Foundation to help fight the spread of the virus.In Italy:
- Kering and its Houses made donations to four major foundation
hospitals in Lombardy, Veneto, Tuscany and Lazio.
- Gucci responded to the appeal launched to the fashion industry
by the Tuscany regional authorities, manufacturing 1.1 million
surgical masks and 55,000 medical overalls for health workers.
In France:
- Kering imported 3 million surgical masks from China.
- Kering made a financial donation to Institut Pasteur to support
its research into COVID-19.
- Kering financed the purchase of 60 3D printers for Paris’
Cochin public hospital, so that it can rapidly produce large
quantities of medical components and address the unprecedented
demand for equipment during the COVID-19 epidemic.
- The French workshops of the Balenciaga and Yves Saint Laurent
Houses manufactured officially approved surgical face masks.
In the United
States:- Kering and its Houses
announced a joint donation of USD 1 million to the CDC Foundation,
to support healthcare workers in the Americas. This donation helped
support front-line health workers in the United States – and
particularly the hardest hit States such as New York, New Jersey,
California and Florida – as well as in Brazil.In the United
Kingdom:- Kering donated face
masks to the National Health Service (NHS).
Progress report on the Group’s 2025
sustainability targets
January 30, 2020 – Three years after announcing
its next-generation sustainability strategy, “Crafting Tomorrow’s
Luxury”, Kering published its Sustainability Progress Report. The
Group has made serious progress and is on track to meet its 2025
targets, while setting the foundation to align with a 1.5°C
pathway. Kering has reduced its overall environmental impacts by
14% in terms of EP&L intensity (between 2015 and 2018) and is
on a positive trajectory to reach its 40% reduction target by 2025.
GHG emissions have fallen 77% in intensity in Kering’s own
operations (between 2015 and 2018), with renewable energy use
reaching 100% in seven countries, 78% in Europe and 67% covered
overall, Group-wide. Kering has also reached its target of
purchasing 100% responsible gold for its Jewelry and Watches
Divisions, and is on track to reach 100% sustainable sourcing for
other key raw materials by 2025. In addition, the Group has
attained 88% traceability for its key raw materials.
Kering and its brands stand in
solidarity against racism
June 2, 2020 – Kering and all its brands stand
in solidarity against racism. On behalf of all its brands, Kering
made a donation to the NAACP (National Association for the
Advancement of Colored People), which fights to eliminate
race-based discrimination in the United States, and Campaign Zero,
an organization that aims to reduce police violence in the United
States. The Group and its brands also committed to continue to
develop initiatives and internal programs to foster respect,
equality and fairness, recognizing that it is a journey and we are
committed to continuously doing the work.
Biodiversity strategy
June 30, 2020 – For the first time, Kering
published a dedicated biodiversity strategy with a series of new
targets to achieve a “net positive” impact on biodiversity by 2025,
which included launching a fund to support the fashion industry’s
transition to regenerative agriculture.
Kerby Jean-Raymond and Kering launch
“Your Friends in New York”
September 10, 2020 – Kerby Jean-Raymond and
Kering announced the creation of “Your Friends in New York”, a
groundbreaking new platform designed to empower the next generation
of innovators. “Your Friends in New York” will merge music, art,
philanthropy and wellness to form an ecosystem of creativity that
reimagines how consumers discover and interact with brands,
including Jean-Raymond’s own brand, Pyer Moss. Aiming to
participate in this powerful community for new talents and
innovation, Kering will support the project as a partner.
Progress report one year after the
launch of the Fashion Pact October 12, 2020 – One year
after its creation, the Fashion Pact published its first progress
report. The Fashion Pact is a global coalition of companies in the
fashion and textile industry that was created following a mission
given to Kering Chairman and CEO, François-Henri Pinault by French
President, Emmanuel Macron. Today it has 60 members, all
committed to a common core of ambitious key environmental goals in
three areas: mitigating climate change, restoring biodiversity and
protecting the oceans. With the support of some of the best
technical experts, the Fashion Pact’s signatories have identified
seven tangible strategic targets, particularly in areas where
collaborative action is needed to scale solutions and thus achieve
critical impact on a global scale. The coalition has made its first
strides, including implementing an operational structure,
developing a dashboard of KPIs to measure the impact of its joint
efforts, and initiating collaborative work on biodiversity drawing
on the technical skills of industry experts.
Kering and Conservation International
launch the Regenerative Fund for NatureJanuary 28, 2021 –
Kering and Conservation International launched the Regenerative
Fund for Nature to transform one million hectares of farms and
landscapes producing raw materials in fashion’s supply chains to
regenerative agriculture over the next five years. As an important
step in achieving Kering’s commitment to have a net positive impact
on biodiversity by 2025, the one million hectares under the new
Fund is on top of Kering’s goal to protect an additional one
million hectares of critical, “irreplaceable” habitat outside of
its direct supply chain, entailing the transformation of two
million hectares in total.
CONSOLIDATED INCOME STATEMENT
(in € millions) |
2020 |
2019 |
Continuing operations |
|
|
Revenue |
13,100.2 |
15,883.5 |
Cost of sales |
(3,590.6) |
(4,108.5) |
Gross margin |
9,509.6 |
11,775.0 |
Personnel expenses |
(2,070.0) |
(2,290.8) |
Other recurring operating income and expenses |
(4,304.4) |
(4,705.9) |
Recurring operating income |
3,135.2 |
4,778.3 |
Other non-recurring operating income and expenses |
163.0 |
(168.5) |
Operating income |
3,298.2 |
4,609.8 |
Financial result |
(341.7) |
(309.5) |
Income before tax |
2,956.5 |
4,300.3 |
Income tax expense |
(759.2) |
(2,133.7) |
Share in earnings (losses) of equity-accounted companies |
(7.6) |
41.8 |
Net income from continuing operations |
2,189.7 |
2,208.4 |
o/w attributable to the Group |
2,160.2 |
2,166.9 |
o/w attributable to minority interests |
29.5 |
41.5 |
Discontinued operations |
|
|
Net income from discontinued operations |
(9.8) |
125.4 |
o/w attributable to the Group |
(9.8) |
141.7 |
o/w attributable to minority interests |
- |
(16.3) |
Total Group |
|
|
Net income of consolidated companies |
2,179.9 |
2,333.8 |
o/w attributable to the Group |
2,150.4 |
2,308.6 |
o/w attributable to minority interests |
29.5 |
25.2 |
|
|
|
(in € millions) |
2020 |
2019 |
Net income attributable to the Group |
2,150.4 |
2,308.6 |
Basic earnings per share (in €) |
17.20 |
18.40 |
Diluted earnings per share (in €) |
17.20 |
18.40 |
Net income from continuing operations attributable
to the Group |
2,160.2 |
2,166.9 |
Basic earnings per share (in €) |
17.28 |
17.27 |
Diluted earnings per share (in €) |
17.28 |
17.27 |
Net income from continuing operations (excluding
non-recurring items) attributable
to the Group |
1,972.2 |
3,211.5 |
Basic earnings per share (in €) |
15.78 |
25.59 |
Diluted earnings per share (in €) |
15.78 |
25.59 |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
Assets
(in € millions) |
Dec. 31, 2020 |
Dec. 31, 2019 |
Goodwill |
2,452.2 |
2,525.9 |
Brands and other intangible assets |
6,985.8 |
7,260.5 |
Lease right-of-use assets |
3,956.8 |
4,246.7 |
Property, plant and equipment |
2,670.2 |
2,619.3 |
Investments in equity-accounted companies |
36.2 |
1,105.3 |
Non-current financial assets |
1,688.6 |
458.4 |
Deferred tax assets |
1,177.4 |
1,367.6 |
Other non-current assets |
17.4 |
18.8 |
Non-current assets |
18,984.6 |
19,602.5 |
Inventories |
2,845.5 |
2,959.2 |
Trade receivables |
824.2 |
996.0 |
Current tax receivables |
600.5 |
280.7 |
Current financial assets |
158.0 |
38.4 |
Other current assets |
1,149.1 |
979.4 |
Cash and cash equivalents |
3,442.8 |
2,285.9 |
Current assets |
9,020.1 |
7,539.6 |
Assets held for sale |
0.7 |
6.1 |
Total Assets |
28,005.4 |
27,148.2 |
Equity and liabilities
(in € millions) |
Dec. 31, 2020 |
Dec. 31, 2019 |
Equity attributable to the Group |
11,820.9 |
10,278.1 |
Equity attributable to minority interests |
214.1 |
160.5 |
Equity |
12,035.0 |
10,438.6 |
Non-current borrowings |
3,815.3 |
3,122.2 |
Non-current lease liabilities |
3,545.8 |
3,598.6 |
Non-current financial liabilities |
80.0 |
47.9 |
Non-current provisions for pensions and other post-employment
benefits |
107.5 |
106.5 |
Non-current provisions |
18.4 |
15.1 |
Deferred tax liabilities |
1,485.1 |
1,530.4 |
Other non-current liabilities |
183.6 |
141.4 |
Non-current liabilities |
9,235.7 |
8,562.1 |
Current borrowings |
1,776.2 |
1,975.9 |
Current lease liabilities |
538.0 |
720.0 |
Current financial liabilities |
338.1 |
503.2 |
Trade payables |
666.0 |
808.7 |
Current provisions for pensions and other post-employment
benefits |
12.2 |
8.9 |
Current provisions |
212.4 |
216.0 |
Current tax liabilities |
901.3 |
1,361.5 |
Other current liabilities |
2,290.4 |
2,552.5 |
Current liabilities |
6,734.6 |
8,146.7 |
Liabilities associated with assets held for
sale |
0.1 |
0.8 |
Total Equity and Liabilities |
28,005.4 |
27,148.2 |
CONSOLIDATED STATEMENT OF CASH FLOWS
(in € millions) |
2020 |
2019 |
Net income from continuing operations |
2,189.7 |
2,208.4 |
Net recurring charges to depreciation, amortization
and provisions on non-current operating assets |
1,439.0 |
1,245.3 |
Other non-cash (income) expenses |
(282.8) |
(392.4) |
Cash flow received from operating activities |
3,345.9 |
3,061.3 |
Interest paid (received) |
277.4 |
277.1 |
Dividends received |
- |
- |
Current tax expense |
657.0 |
2,597.9 |
Cash flow received from operating activities before tax,
dividends and interest |
4,280.3 |
5,936.3 |
Change in working capital requirement |
44.4 |
(557.5) |
Income tax paid |
(1,436.1) |
(2,903.5) |
Net cash received from operating activities |
2,888.6 |
2,475.3 |
Acquisitions of property, plant and equipment
and intangible assets |
(786.9) |
(955.8) |
Disposals of property, plant and equipment and intangible
assets |
2.9 |
1.2 |
Acquisitions of subsidiaries and associates,
net of cash acquired |
6.2 |
(42.4) |
Disposals of subsidiaries and associates, net of cash
transferred |
656.3 |
0.8 |
Acquisitions of other financial assets |
(267.9) |
(285.6) |
Disposals of other financial assets |
186.0 |
76.6 |
Interest and dividends received |
6.9 |
19.1 |
Net cash received from (used in) investing
activities |
(196.5) |
(1,186.1) |
Dividends paid to shareholders of Kering SA |
(1,000.1) |
(1,320.1) |
Dividends paid to minority interests in consolidated
subsidiaries |
(9.3) |
(21.9) |
Transactions with minority interests |
(27.5) |
(19.2) |
(Acquisitions) disposals of Kering treasury shares |
(54.1) |
(402.1) |
Issuance of bonds and bank debt |
1,443.1 |
644.6 |
Redemption of bonds and bank debt |
(642.3) |
(287.6) |
Issuance (redemption) of other borrowings |
(258.6) |
798.8 |
Repayment of lease liabilities |
(787.3) |
(639.6) |
Interest paid and equivalent |
(287.0) |
(289.9) |
Net cash received from (used in) financing
activities |
(1,623.1) |
(1,537.0) |
Net cash received from (used in) discontinued
operations |
(4.3) |
132.7 |
Impact of exchange rates on cash
and cash equivalents |
97.8 |
116.4 |
Net increase (decrease) in cash and cash
equivalents |
1,162.5 |
1.3 |
Cash and cash equivalents at opening |
1,837.6 |
1,836.3 |
Cash and cash equivalents at closing |
3,000.1 |
1,837.6 |
REVENUE FOR THE FIRST, SECOND, THIRD AND FOURTH QUARTERS
OF 2020
(in
€ millions) |
|
Q4 2020 |
Q4 2019(1) |
Reported change |
Comparable change(1) |
Q3 2020 |
Q3 2019(1) |
Reported change |
Comparable change(1) |
Q2 2020 |
Q2 2019(1) |
Reported change |
Comparable change(1) |
Q1 2020 |
Q1 2019(1) |
Reported change |
Comparable change(1) |
Total Luxury Houses |
|
3,901.0 |
4,240.4 |
-8.0% |
-4.8% |
3,600.1 |
3,777.8 |
-4.7% |
-1.6% |
2,109.8 |
3,716.3 |
-43.2% |
-43.4% |
3,065.7 |
3,648.1 |
-16.0% |
-16.9% |
Gucci |
|
2,280.6 |
2,636.6 |
-13.5% |
-10.3% |
2,087.8 |
2,374.7 |
-12.1% |
-8.9% |
1,268.1 |
2,291.5 |
-44.7% |
-44.7% |
1,804.1 |
2,325.6 |
-22.4% |
-23.2% |
Yves Saint Laurent |
|
552.6 |
569.6 |
-3.0% |
+0.5% |
510.7 |
506.5 |
+0.8% |
+3.9% |
246.5 |
475.5 |
-48.2% |
-48.4% |
434.6 |
497.5 |
-12.6% |
-13.8% |
Bottega Veneta |
|
374.7 |
334.3 |
+12.1% |
+15.7% |
332.5 |
284.3 |
+17.0% |
+20.7% |
229.4 |
300.9 |
-23.8% |
-24.4% |
273.7 |
248.1 |
+10.3% |
+8.5% |
Other Houses |
|
693.1 |
699.9 |
-1.0% |
+1.7% |
669.1 |
612.3 |
+9.3% |
+11.7% |
365.8 |
648.4 |
-43.6% |
-44.0% |
553.3 |
576.9 |
-4.1% |
-5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other |
|
103.2 |
120.1 |
-14.1% |
-11.0% |
117.6 |
106.8 |
+10.1% |
+13.8% |
65.3 |
136.8 |
-52.3% |
-52.5% |
137.5 |
137.2 |
+0.2% |
-1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KERING |
|
4,004.2 |
4,360.5 |
-8.2% |
-5.0% |
3,717.7 |
3,884.6 |
-4.3% |
-1.2% |
2,175.1 |
3,853.1 |
-43.5% |
-43.7% |
3,203.2 |
3,785.3 |
-15.4% |
-16.4% |
(1) On a comparable Group structure 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 2019 revenue
adjusted as follows
by:-
neutralizing the portion of revenue corresponding to entities
divested in
2019;-
including the portion of revenue corresponding to entities acquired
in
2020;-
remeasuring 2019 revenue at 2020 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 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 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.
IAS 17-adjusted financial
indicatorsCertain key indicators such as recurring
operating income and EBITDA may be presented on an adjusted IAS 17
basis, i.e., as if IAS 17 had been applied instead of IFRS 16. In
such cases, the indicator will be followed by the phrase “adjusted
for IAS 17” in brackets.
1 Recurring net income attributable to the Group: net income
from continuing operations attributable to the Group, excluding
non‑recurring items.
- Kering Press release - Full year results 2020_17 02 2021
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