Clichy, July 30, 2015 at 6:00 pm
First-half 2015 results
STRONG SALES INCREASE: +14.7%
12.82 billion
euros, i.e. +3.8% like-for-like and +5% at
constant exchange rates
STRONG OPERATING PROFIT GROWTH: +14.5%
2.32 billion
euros, at 18.1% of sales
STRONG RISE IN NET EPS*: +18.9% at 3.47 euros
-
Very positive currency
effect
-
Gradual improvement in sales in
Western Europe and North America
-
Solid sales in New Markets
excluding Brazil
Commenting on the figures, Mr
Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal,
said:
"At the end of
June, our reported growth is the strongest recorded for the last
twenty years, with a very positive currency effect.
All Divisions are
growing. L'Oréal Luxe is significantly outperforming a dynamic
worldwide market with a double-digit growth of its brands Giorgio
Armani, Yves Saint Laurent and Kiehl's. Professional Products are
showing a clear rebound thanks to the performance at L'Oréal
Professionnel and the success of Redken. The Active Cosmetics
Division is also greatly strengthening its worldwide position,
driven in particular by its La Roche-Posay brand, whose success is
continuing in all regions. Finally, growth in the Consumer Products
Division is improving slightly, due especially to the renewed
dynamism of its make-up brand Maybelline.
Among the
geographic zones, sales are improving in Western Europe and North
America. The New Markets are experiencing solid momentum, excluding
Brazil where the economic context is very unfavourable.
The strong
increase in sales has been achieved alongside good quality
first-half results. As announced, operating profit growth is very
strong and our operating profitability is practically stable at a
high level. We are continuing to make significant investments in
accelerating the digital transformation and in the development of
our brands. In all, the EPS increased +18.9%.
Thanks in
particular to a rich innovation portfolio, prospects of rapid
e-commerce growth and the continuing roll-out of recently acquired
brands, we are projecting an acceleration in growth in the second
half. We are confident in our ability to outperform the beauty
market and achieve a year of significant growth in both sales and
profits."
* Diluted earnings per share of
continuing operations, after non-controlling interests, excluding
non-recurring items.
A - First-half 2015 sales
Like-for-like, i.e. based on a comparable structure and
identical exchange rates, sales growth
was +3.8%.
The net impact of changes in the scope of
consolidation was +1.2%.
Growth at constant exchange rates was
+5.0%.
Currency fluctuations had a positive impact of
+9.7%. If the exchange rates at June 30, 2015, i.e.
€1 = $1.119, are extrapolated up to December 31, the impact of
currency fluctuations on sales would be approximately +7.8% for the
whole of 2015.
Based on reported figures, the Group's sales
at June 30, 2015 amounted to 12.82 billion euros, up by +14.7%.
Sales by operational Division and geographic
Zone
| |
2nd quarter
2015 |
1st half
2015 |
| |
|
Growth |
|
Growth |
| |
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
| By operational Division |
|
|
|
|
|
|
|
Professional Products |
887.7 |
3.5% |
15.3% |
1,740.3 |
3.5% |
15.6% |
| Consumer
Products |
3,083.0 |
2.0% |
13.2% |
6,161.4 |
1.9% |
12.4% |
| L'Oréal
Luxe |
1,732.9 |
5.8% |
20.1% |
3,486.7 |
6.7% |
20.1% |
| Active
Cosmetics |
459.4 |
6.5% |
11.1% |
1,018.6 |
7.1% |
10.6% |
| Cosmetics Divisions total |
6,163.1 |
3.6% |
15.2% |
12,407.0 |
3.8% |
14.8% |
| By
geographic Zone |
|
|
|
|
|
|
| Western
Europe |
2,060.4 |
2.6% |
5.1% |
4,160.9 |
1.9% |
4.5% |
| North
America |
1,704.3 |
2.9% |
28.4% |
3,326.3 |
2.7% |
26.8% |
| New
Markets, of which: |
2,398.4 |
5.1% |
16.4% |
4,919.9 |
6.3% |
16.9% |
| - Asia, Pacific |
1,311.8 |
4.1% |
24.3% |
2,787.9 |
5.0% |
25.5% |
| - Latin America |
489.9 |
1.5% |
5.1% |
950.1 |
5.3% |
8.3% |
| - Eastern Europe |
406.6 |
10.0% |
2.3% |
803.2 |
9.7% |
-2.6% |
| - Africa, Middle East |
190.1 |
13.2% |
34.5% |
378.8 |
12.3% |
33.1% |
| Cosmetics Divisions total |
6,163.1 |
3.6% |
15.2% |
12,407.0 |
3.8% |
14.8% |
| The Body
Shop |
219.5 |
1.5% |
17.1% |
411.9 |
2.8% |
13.2% |
| Group total |
6,382.6 |
3.6% |
15.3% |
12,818.9 |
3.8% |
14.7% |
PROFESSIONAL PRODUCTS
At the end of
June, the Professional Products Division posted growth of +3.5%
like-for-like and +15.6% based on reported figures, with
improvements particularly in the United States.
-
Haircare, the number one contributor to growth,
is being driven by the success of Thérapiste
at Kérastase, Frizz
Dismiss at Redken, Biolage Cleansing Conditioner at Matrix and the very good start made by Pro Fiber at L'Oréal
Professionnel. Hair colour is benefiting from the strong
momentum of Redken and Matrix and the solid sales of Majirel and Inoa at L'Oréal Professionnel. Essie is
growing strongly in Europe. Growth in professional skincare with
Carita and Decléor is
promising in Western Europe.
-
All the geographic Zones are growing. The main
contributors to growth are the United States, India and the United
Kingdom.
CONSUMER PRODUCTS
In the first
half, the Consumer Products Division recorded growth of +1.9%
like-for-like and +12.4% based on reported figures. Excluding
Brazil, the Division is accelerating, from +1.7% in the first
quarter to +2.9% in the second quarter.
-
The Division is boosting its growth in make-up
with the launches of Infallible Gloss and
False Lash Superstar by L'Oréal Paris, with eyebrow make-up and palettes by
Maybelline. In addition, NYX is expanding very quickly.
In haircare, the globalisation of L'Oréal
Paris is continuing thanks to the successful launches of
Hyaluron Moisture in China and Nutri-Gloss in Western Europe and North America.
Ultra Doux by Garnier is
maintaining its winning momentum.
The men's skincare ranges L'Oréal Men Expert
and Garnier Men are growing in Asia.
In hair colour, the successful launch of Excellence Age Perfect by L'Oréal
Paris shows it is well suited to the senior target group.
L'ORÉAL LUXE
L'Oréal Luxe
posted solid growth at +6.7% like-for-like and +20.1% based on
reported figures. The Division is continuing to win market
share.
- Lancôme is expanding thanks
to the successes of its fragrances "La vie est
belle" and La Nuit Trésor, its innovative
Miracle Cushion foundation launched all over
the world, Grandiôse mascara and the relaunch
of the star skincare Génifique. Giorgio Armani is posting double-digit growth thanks to
the upsurge in its fragrances Sì Eau de Toilette and Acqua di Giò Profumo. Yves Saint
Laurent is growing very quickly thanks to Black Opium and the quality of its make-up initiatives.
Urban Decay is now being rolled out
internationally. The American skincare brand Kiehl's is maintaining a very high growth level,
confirming the relevance of its business model. Shu Uemura is successfully developing its Asian make-up
artistry concept.
- L'Oréal Luxe is outperforming the world market,
particularly in Western Europe, in Asia thanks to the strategically
important Chinese market, in the Middle East and in Latin America.
Travel Retail also remains very robust.
ACTIVE COSMETICS
At +7.1%
like-for-like and +10.6% based on reported figures, the Active
Cosmetics Division is continuing to grow very strongly and
reinforcing its worldwide position.
-
Vichy is boosting its
Idealia franchise with the successful launch
of Idealia Skin Sleep and is strengthening its
position in the body care segment with the success of Ideal Body.
La Roche-Posay is demonstrating its great
vitality with double-digit growth in all Zones, building on the
success of its franchises Lipikar in body care
and Anthelios in sun protection.
SkinCeuticals is gaining share in all
geographic Zones.
Roger & Gallet has successfully launched
its perfume Fleur de Figuier.
Multi-division summary by geographic Zone
WESTERN EUROPE
Growth amounted to +1.9%
like-for-like and +4.5% based on reported figures. L'Oréal Luxe
made a major contribution to this performance by outstripping the
growth of the dynamic selective channel. In a mass-market channel
which remains lacklustre, the Consumer Products Division is making
progress in the haircare, and skincare and facial cleansing
categories. Both Divisions are making large market share gains in
Germany and the United Kingdom.
NORTH
AMERICA
L'Oréal recorded +2.7% like-for-like and +26.8% based on reported
figures. L'Oréal Luxe and the Active Cosmetics and Professional
Products Divisions are driving growth, with several brands -
including Kiehl's, Giorgio
Armani and La Roche-Posay - posting an
increase of more than 10%. The Consumer Products Division is
continuing to strengthen its positions in make-up. Meanwhile, its
two recent acquisitions NYX and Carol's Daughter are maintaining momentum with market
share gains.
NEW
MARKETS
-
Asia, Pacific:
L'Oréal recorded growth of +5.0% like-for-like and +25.5% based on
reported figures. Despite a slowdown in Hong Kong, L'Oréal Luxe
posted good growth, still driven by Kiehl's,
Yves Saint Laurent and Giorgio Armani, and by the dynamism of the Japanese
market. The Consumer Products Division remains dynamic in the
countries of South-East Asia. In China, L'Oréal
Paris is growing thanks to the success of its launches. Another
highlight of the first half was the very good performance of Active
Cosmetics Division, thanks to La
Roche-Posay.
-
Latin America:
Sales grew by +5.3% like-for-like and +8.3% based on reported
figures. Excluding Brazil, sales achieved double-digit growth,
thanks to L'Oréal Paris, Maybelline and
Lancôme. In a difficult economic environment,
the Brazilian market is also being held back by the recent reform
of the IPI (Tax on Industrialised Products).
-
Eastern Europe:
The Zone posted +9.7% like-for-like and -2.6% based on reported
figures, with an acceleration in the second quarter, reflecting
good performances from the Consumer Products and Professional
Products Divisions. The four Divisions are gaining market share.
Russia and Turkey, whose sales rose by more than 10% over the
period, are the largest contributors to growth.
-
Africa, Middle
East: Growth amounted to +12.3%
like-for-like and +33.1% based on reported figures. The Group is
outperforming the market in the Zone, and posting strong market
share gains in Saudi Arabia, South Africa and Pakistan.
This performance is being driven by Elvive by
L'Oréal Paris, Color
Naturals by Garnier and Maybelline in Consumer Products Division. In other
Divisions, the fragrances of Giorgio Armani,
the brands Yves Saint Laurent, Kérastase, Vichy and La Roche-Posay are achieving double-digit
growth.
THE BODY SHOP
The Body Shop recorded growth of
+2.8% like-for-like and +13.2% based on reported figures. The
strategy based on innovation, service, digital communication and
point-of-sale optimisation is reaping rewards. Europe, the Americas
and the Middle East are continuing to expand, while growth in some
key Asian countries remains difficult. The integration of the
Australian franchisee and the reorganisation in the United States
are on track.
B - Important events during the period
04/01/15 to 06/30/15
-
On April 16, L'Oréal unveiled the first results
of its Sharing Beauty With All programme for sustainable
development, including a 50% reduction of CO2
emissions from the Group's production in absolute terms, from a
2005 baseline.
-
At the Annual General Meeting on April 22 at the
Palais des Congrès in Paris, L'Oréal shareholders adopted all the
resolutions by a very large majority, including the appointment
of
Mrs Sophie Bellon as a Director, the renewal of the tenure of Mr
Charles-Henri Filippi as a Director and the decision to maintain
simple voting rights. At its meeting at the end of the Annual
General Meeting, the Board of Directors decided to cancel 2,905,000
shares acquired under the buyback programme approved by the Board
on November 29, 2013.
-
On June 3, L'Oréal announced the signing of a
license agreement with Proenza Schouler for
the creation and development of fine fragrances. A New York-based
women's wear brand, Proenza Schouler was
founded by designers Jack McCollough and Lazaro Hernandez in 2002,
and is considered to be one of today's most exciting American
fashion brands.
C - First-half 2015 results
The half-year consolidated accounts have undergone
a limited examination by the Statutory Auditors.
- Operating profitability at 18.1%
of sales
Consolidated profit and loss account: from sales
to operating profit.
| In € million |
06/30/14 |
As % of sales |
12/31/14 |
As % of sales |
06/30/15 |
As % of sales |
Change
H1-2015 vs. H1-2014 |
| Sales |
11,174.6 |
100.0% |
22,532.0 |
100.0% |
12,818.9 |
100.0% |
+14.7% |
| Cost of sales |
-3,151.2 |
28.2% |
-6,500.7 |
28.9% |
-3,630.3 |
28.3% |
|
| Gross profit |
8,023.4 |
71.8% |
16,031.3 |
71.1% |
9,188.6 |
71.7% |
+14.5% |
| R&D expenses |
-367.2 |
3.3% |
-760.6 |
3.4% |
-379.7 |
3.0% |
|
| Advertising and promotion expenses |
- 3,270.9 |
29.3% |
-6,558.9 |
29.1% |
-3,753.3 |
29.3% |
|
| Selling, general and administrative expenses |
-2,356.2 |
21.1% |
-4,821.1 |
21.4% |
-2,732.6 |
21.3% |
|
| Operating profit |
2,029.0 |
18.2% |
3,890.7 |
17.3% |
2,323.0 |
18.1% |
+14.5% |
Gross profit,
at 9,189 million euros, has come out at 71.7% of sales, compared
with 71.8% in the first half of 2014, representing a decrease of 10
basis points. At constant exchange rates, gross profit would have
posted a noticeable increase as a percentage of sales.
Research and
Development expenses, at 380 million euros, i.e. 3.0% of sales,
decreased in relative value due to the impact of currency
conversion, as the largest part of Research is carried out in the
Euro zone.
Advertising and
promotion expenses, at 3,753 million euros, are flat as a
percentage of sales, which corresponds to a stronger investment in
volume.
Selling, general
and administrative expenses have increased in percentage of
sales, due in particular to the acceleration of our digital
transformation.
Overall, the operating profit, at 2,323 million euros, amounted to
18.1% of sales, representing a very strong increase of +14.5%.
- Operating profit by operational
Division
|
|
06/30/14 |
12/31/14 |
06/30/15 |
|
|
€m |
% of sales |
€m |
% of sales |
€m |
% of sales |
| By operational Division |
|
|
|
|
|
|
|
Professional Products |
294.7 |
19.6% |
608.8 |
20.1% |
332.0 |
19.1% |
| Consumer
Products |
1,157.2 |
21.1% |
2,186.2 |
20.3% |
1,313.1 |
21.3% |
| L'Oréal
Luxe |
590.6 |
20.3% |
1,269.2 |
20.5% |
716.0 |
20.5% |
| Active
Cosmetics |
259.5 |
28.2% |
376.4 |
22.7% |
280.2 |
27.5% |
Total Divisions
before non-allocated |
2,302.0 |
21.3% |
4,440.6 |
20.5% |
2,641.3 |
21.3% |
| Non-allocated(1) |
-275.7 |
-2.6% |
-615.2 |
-2.8% |
-311.1 |
-2.5% |
Total Divisions
after non-allocated |
2,026.3 |
18.7% |
3,825.4 |
17.7% |
2,330.2 |
18.8% |
| The Body
Shop |
2.7 |
0.8% |
65.3 |
7.5% |
-7.2 |
-1.8% |
| Group |
2,029.0 |
18.2% |
3,890.7 |
17.3% |
2,323.0 |
18.1% |
(1) Non-allocated
expenses = Central Group expenses, fundamental research expenses,
stock option and free grant of shares expenses and miscellaneous
items. As a % of total Divisions sales.
The Professional
Products Division's profitability has declined from 19.6% to
19.1% following the consolidation of Decléor
and Carita brands.
At 21.3% of sales, the
profitability of the Consumer Products
Division has further improved by 20 basis points.
L'Oréal Luxe
also improved its profitability by 20 basis points.
The Active
Cosmetics Division, with a profitability of 27.5%, has
re-balanced its profitability which reached a record level of 28.2%
in the first half of 2014.
The Body Shop
is affected by the technical impact of the first time consolidation
of its Australian franchisee.
- Net profit from continuing
operations
Consolidated profit and loss account: from
operating profit to net profit excluding non-recurring items.
| In € million |
06/30/14 |
12/31/14 |
06/30/15 |
Change
H1-2015 vs. H1-2014 |
| Operating profit |
2,029.0 |
3,890.7 |
2,323.0 |
+14.5% |
Financial revenues and expenses
excluding dividends received |
-8.1 |
-24.1 |
-9.8 |
|
| Sanofi
dividends |
331.0 |
331.0 |
336.9 |
|
Profit
before tax and associates
excluding non-recurring items |
2,352.0 |
4,197.6 |
2,650.1 |
+12.7% |
| Income tax excluding non-recurring items |
-575.4 |
-1,069.5 |
-692.1 |
|
Net profit excluding non-recurring items
of equity consolidated companies |
-1.5 |
-3.0 |
- |
|
| Non-controlling interests |
-1.6 |
+0.1 |
-0.6 |
|
| Net profit from continuing operations, excluding
non-recurring items, after non-controlling interests(1) |
1,773.5 |
3,125.3 |
1,957.3 |
+10.4% |
| Net EPS(2)
(€) |
2.92 |
5.34 |
3.47 |
+18.9% |
| Net profit
after non-controlling interests |
1,734.8 |
4,910.2 |
1,882.6 |
|
| Diluted
earnings per share after non-controlling interests (€) |
2.85 |
8.39 |
3.34 |
|
| Diluted average number of shares |
607,667,507 |
585,238,674 |
564,094,688 |
|
(1) Net profit
from continuing operations, excluding non-recurring items after
non-controlling interests does not include capital gains and losses
on disposals of long-term assets, impairment of assets,
restructuring costs, as well as competition litigation, tax effects
and non-controlling interests. (2) Diluted earnings per share of
continuing operations, after non-controlling interests, excluding
non-recurring items.
Overall finance
costs amounted to 9.8 million euros, compared with 8.1 million
euros in the first half of 2014.
Sanofi
dividends amounted to 337 million euros.
Income tax
excluding non-recurring items amounted to 692 million euros,
i.e. a tax rate of 26.1%, slightly above that of the first half of
2014.
Net profit from
continuing operations, excluding non-recurring items, after
non-controlling interests, amounted to 1,957 million euros, up
by 10.4% compared with the first half of 2014.
Net EPS rose
18.9% to 3.47 euros.
Net profit after non-controlling
interests rose 8.5% to 1,883 million euros.
- Operating cash flow and balance
sheet
Gross cash
flow amounted to 2,370 million euros, up by +12.4% compared
with the first half of 2014.
The change in
working capital amounted to 816 million euros. As it is the
case every year, it includes the impact of the seasonality of part
of the business on the trade receivables. In the first half of
2015, it takes also into account the payment of the fine linked
with the decision of the French Competition Authority.
Investments,
at 512 million euros, represented 4% of sales.
Operating cash
flow has come out at 1,042 million euros.
After payment of the dividend and
acquisitions, the residual cash flow amounted
to -701 million euros.
At June 30, 2015, net debt amounted to 1,394 million euros, higher than
the level of December 31, 2014, mainly due, as is the case every
year, to the payment of the annual dividend in the first half.
The balance sheet structure is
particularly solid: shareholders' equity of
22.9 billion euros is stronger than the level at December 31,
2014.
"This news
release does not constitute an offer to sell, or a solicitation of
an offer to buy L'Oréal shares. If you wish to obtain more
comprehensive information about L'Oréal, please refer to the public
documents registered in France with the Autorité des Marchés
Financiers, also available in English on our Internet site
www.loreal-finance.com.
This news release may contain some forward-looking
statements. Although the Company considers that these statements
are based on reasonable hypotheses at the date of publication of
this release, they are by their nature subject to risks and
uncertainties which could cause actual results to differ materially
from those indicated or projected in these statements."
This a free
translation into English of the First-half 2015 results news
release issued in the French language and is provided solely for
the convenience of English speaking readers. In case of discrepancy, the French version
prevails.
Contacts at L'Oréal
(switchboard: +33 1 47 56 70 00)
Individual shareholders and
market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com
Financial analysts and
Institutional investors
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com
Journalists
Mrs Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@loreal.com
For more information, please
contact your bank, broker or financial institution (I.S.I.N. code:
FR0000120321), and consult your usual newspapers, and the Internet
site for shareholders and investors, http://www.loreal-finance.com,
alternatively,call +33 1 40 14 80 50.
D - Appendices
Appendix 1: L'Oréal
Group sales 2014/2015 (€
millions)
| |
2014 |
2015 |
| First
quarter: |
|
|
| Cosmetics
Divisions |
5,462.2 |
6,243.9 |
| The Body
Shop |
176.4 |
192.4 |
| First quarter total |
5,638.6 |
6,436.3 |
| Second
quarter: |
|
|
| Cosmetics
Divisions |
5,348.5 |
6,163.1 |
| The Body
Shop |
187.4 |
219.5 |
| Second quarter total |
5,536.0 |
6,382.6 |
| First
half: |
|
|
| Cosmetics
Divisions |
10,810.8 |
12,407.0 |
| The Body
Shop |
363.8 |
411.9 |
| First half total |
11,174.6 |
12,818.9 |
| Third
quarter: |
|
|
| Cosmetics
Divisions |
5,200.7 |
|
| The Body
Shop |
190.4 |
|
| Third quarter total |
5,391.1 |
|
| Nine
months: |
|
|
| Cosmetics
Divisions |
16,011.4 |
|
| The Body
Shop |
554.2 |
|
| Nine months total |
16,565.7 |
|
| Fourth
quarter: |
|
|
| Cosmetics
Divisions |
5,646.7 |
|
| The Body
Shop |
319.6 |
|
| Fourth quarter total |
5,966.4 |
|
| Full
year |
|
|
| Cosmetics
Divisions |
21,658.2 |
|
| The Body
Shop |
873.8 |
|
| Full year total |
22,532.0 |
|
Appendix 2: Compared consolidated
income statements
| € millions |
1st half
2015 |
1st half
2014 |
2014 |
| Net sales |
12,818.9 |
11,174.6 |
22,532.0 |
| Cost of
sales |
-3,630.3 |
-3,151.2 |
-6,500.7 |
| Gross profit |
9,188.6 |
8,023.4 |
16,031.3 |
| Research
and development |
-379.7 |
-367.2 |
-760.6 |
| Advertising
and promotion |
-3,753.3 |
-3,270.9 |
-6,558.9 |
| Selling,
general and administrative expenses |
-2,732.6 |
-2,356.2 |
-4,821.1 |
| Operating profit |
2,323.0 |
2,029.0 |
3,890.7 |
| Other
income and expenses |
-47.9 |
-48.0 |
-307.2 |
| Operational profit |
2,275.1 |
1,981.1 |
3,583.5 |
| Finance
costs on gross debt |
-13.6 |
-13.0 |
-31.4 |
| Finance
income on cash and cash equivalents |
27.6 |
23.1 |
42.3 |
| Finance costs, net |
14.0 |
10.1 |
11.0 |
| Other
financial income (expenses) |
-23.8 |
-18.2 |
-35.1 |
| Sanofi
dividends |
336.9 |
331.0 |
331.0 |
| Profit before tax and associates |
2,602.2 |
2,304.0 |
3,890.4 |
| Income
tax |
-721.7 |
-607.1 |
-1,111.0 |
| Share of
profit in associates |
2.7 |
-1.5 |
-13.5 |
| Net profit from continuing operations |
1,883.2 |
1,695.4 |
2,765.9 |
| Net profit from discontinued operations |
- |
41.0 |
2,142.7 |
| Net profit |
1,883.2 |
1,736.4 |
4,908.6 |
|
Attributable to: |
|
|
|
| · owners of
the company |
1,882.6 |
1,734.8 |
4,910.2 |
| ·
non-controlling interests |
0.6 |
1.6 |
-1.6 |
| Earnings
per share attributable to owners of the company (euros) |
3.39 |
2.89 |
8.51 |
| Diluted
earnings per share attributable to owners of the company (euros) |
3.34 |
2.85 |
8.39 |
| Earnings
per share of continuing operations attributable to owners of the
company (euros) |
3.39 |
2.82 |
4.79 |
| Diluted
earnings per share of continuing operations attributable to owners
of the company (euros) |
3.34 |
2.79 |
4.73 |
| Earnings
per share of continuing operations attributable to owners of the
company, excluding non-recurring items (euros) |
3.52 |
2.96 |
5.41 |
| Diluted
earnings per share of continuing operations attributable to owners
of the company, excluding non-recurring items (euros) |
3.47 |
2.92 |
5.34 |
Appendix 3: Consolidated
statement of comprehensive income
| € millions |
1st half
2015 |
1st half
2014 |
2014 |
| Consolidated net profit for the period |
1,883.2 |
1,736.4 |
4,908.6 |
| Financial assets available-for-sale |
1,487.3 |
54.4 |
-172.7 |
| Cash flow hedges |
-80.0 |
-73.8 |
-17.2 |
| Cumulative translation adjustments |
507.8 |
69.3 |
584.0 |
| Income tax on items that may be reclassified to profit or
loss (1) |
-35.7 |
18.3 |
7.3 |
| Items that
may be reclassified to profit or loss |
1,879.4 |
68.2 |
401.4 |
| Actuarial gains and losses |
345.7 |
-139.8 |
-672.7 |
| Income tax on items that may not be reclassified to profit
or loss (1) |
-119.4 |
49.3 |
225.1 |
| Items that
may not be reclassified to profit or loss |
226.3 |
-90.5 |
-447.6 |
| Other comprehensive income |
2,105.7 |
-22.3 |
-46.2 |
| Consolidated comprehensive income |
3,988.9 |
1,714.1 |
4,862.4 |
|
Attributable to: |
|
|
|
| · owners of the company |
3,988.7 |
1,712.2 |
4,864.3 |
| ·
non-controlling interests |
0.2 |
1.9 |
-1.9 |
(1)
The tax effect is as follows:
| € millions |
1st half
2015 |
1st half
2014 |
2014 |
| Financial assets available-for-sale |
-61.5 |
-2.3 |
7.2 |
| Cash flow hedges |
25.8 |
20.6 |
0.1 |
| Items that
may be reclassified to profit or loss |
-35.7 |
18.3 |
7.3 |
| Actuarial gains and losses |
-119.4 |
49.3 |
225.1 |
| Items that
may not be reclassified to profit or loss |
-119.4 |
49.3 |
225.1 |
| Total |
-155.1 |
67.6 |
232.4 |
Appendix 4: Compared consolidated
balance sheets
Assets
| € millions |
06.30.2015 |
06.30.2014
(1) |
12.31.2014
(1) |
| Non-current assets |
25,642.9 |
22,047.0 |
23,284.2 |
|
Goodwill |
8,180.6 |
6,941.6 |
7,525.5 |
| Other
intangible assets |
2,901.9 |
2,157.5 |
2,714.6 |
| Property,
plant and equipment |
3,283.8 |
2,982.6 |
3,141.1 |
| Non-current
financial assets |
10,535.1 |
9,262.1 |
9,069.0 |
| Investments
in associates |
- |
0.8 |
- |
| Deferred
tax assets |
741.5 |
702.4 |
834.0 |
| Current assets |
9,725.5 |
12,026.7 |
8,774.6 |
| Current assets excluding assets held for
sale |
9,725.5 |
11,593.7 |
8,774.6 |
|
Inventories |
2,446.9 |
2,217.4 |
2,262.9 |
| Trade
accounts receivable |
3,980.4 |
3,576.7 |
3,297.8 |
| Other
current assets |
1,410.8 |
1,615.1 |
1,199.3 |
| Current tax
assets |
122.3 |
41.7 |
97.6 |
| Cash and
cash equivalents |
1,765.1 |
4,142.8 |
1,917.0 |
| Assets held for sale |
- |
433.0 |
- |
| Total |
35,368.4 |
34,073.7 |
32,058.8 |
(1)
The balance sheets at June 30th, 2014 and
December 31st, 2014 have
been restated to reflect the change in accounting policies
on recognition of levies resulting from the
application of IFRIC 21.
Equity & liabilities
| € millions |
06.30.2015 |
06.30.2014
(1) |
12.31.2014
(1) |
| Equity |
22,916.1 |
22,921.4 |
20,196.9 |
| Share
capital |
112.2 |
121.7 |
112.3 |
| Additional
paid-in capital |
2,496.5 |
2,222.3 |
2,316.8 |
| Other
reserves |
12,789.9 |
15,739.2 |
9,773.3 |
| Other
comprehensive income |
5,343.9 |
4,278.5 |
3,745.9 |
| Cumulative
translation adjustments |
525.9 |
-497.4 |
17.8 |
| Treasury
stock |
-237.1 |
-685.3 |
-683.0 |
| Net profit
attributable to owners of the company |
1,882.6 |
1,734.8 |
4,910.2 |
| Equity attributable to owners of the company |
22,913.9 |
22,913.8 |
20,193.3 |
|
Non-controlling interests |
2.2 |
7.6 |
3.6 |
| Non-current liabilities |
2,366.0 |
2,014.4 |
2,595.6 |
| Provisions
for employee retirement obligations and related benefits |
1,106.8 |
1,019.4 |
1,479.7 |
| Provisions
for liabilities and charges |
233.5 |
175.8 |
193.6 |
| Deferred
tax liabilities |
954.5 |
733.9 |
855.2 |
| Non-current
borrowings and debt |
71.2 |
85.3 |
67.1 |
| Current liabilities |
10,086.3 |
9,137.9 |
9,266.3 |
| Trade
accounts payable |
3,688.1 |
3,253.1 |
3,452.8 |
| Provisions
for liabilities and charges |
737.1 |
514.7 |
722.0 |
| Other
current liabilities |
2,413.1 |
2,049.0 |
2,403.2 |
| Income
tax |
159.8 |
185.4 |
167.1 |
| Current
borrowings and debt |
3,088.2 |
3,135.7 |
2,521.2 |
| Total |
35,368.4 |
34,073.7 |
32,058.8 |
(1)
The balance sheets at June 30th, 2014 and
December 31st, 2014 have
been restated to reflect the change in accounting policies
on recognition of levies resulting from the
application of IFRIC 21.
Appendix 5: Consolidated statements of changes in
equity
| € millions |
Com-
mon
shares
out-
standing |
Share
capital |
Addi-
tional
paid-
in
capi-
tal |
Re-
tained
earn-
ings
and
net
profit |
Other
compre-
hensive
income |
Treas-
ury
stock |
Cumu-
lative
trans-
lation
adjust-ments |
Equity
attribute-
able
to
owners
of
the
com-
pany |
Non-
control-
ling
interests |
Total
equity |
| At 12.31.2013 |
599,794,030 |
121.2 |
2,101.2 |
17,179.0 |
4,370.1 |
-568.1 |
-566.4 |
22,637.0 |
5.8 |
22,642.8 |
Changes in
accounting policies
at 01.01.2014 (1) |
|
|
|
8.2 |
|
|
|
8.2 |
|
8.2 |
| At 01.01.2014 |
599,794,030 |
121.2 |
2,101.2 |
17,187.2 |
4,370.1 |
-568.1 |
-566.4 |
22,645.2 |
5.8 |
22,651.0 |
|
Consolidated net profit for the period |
|
|
|
4,910.2 |
|
|
|
4,910.2 |
-1.6 |
4,908.6 |
| Financial assets available-for-sale |
|
|
|
|
-165.5 |
|
|
-165.5 |
|
-165.5 |
| Cash flow hedges |
|
|
|
|
-17.0 |
|
|
-17.0 |
-0.1 |
-17.1 |
| Cumulative translation adjustments |
|
|
|
|
|
|
584.2 |
584.2 |
-0.2 |
584.0 |
| Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-182.5 |
|
584.2 |
401.7 |
-0.3 |
401.4 |
| Actuarial gains and losses |
|
|
|
|
-447.6 |
|
|
-447.6 |
|
-447.6 |
| Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
-447.6 |
|
|
-447.6 |
- |
-447.6 |
| Consolidated comprehensive income |
|
|
|
4,910.2 |
-630.1 |
|
584.2 |
4,864.3 |
-1.9 |
4,862.4 |
| Capital
increase |
3,828,502 |
0.8 |
215.6 |
-0.1 |
|
|
|
216.3 |
2.3 |
218.6 |
|
Cancellation of Treasury stock |
|
-9.7 |
|
-6,035.9 |
|
6,045.6 |
|
- |
- |
- |
| Dividends
paid (not paid on Treasury stock) |
|
|
|
-1,507.3 |
|
|
|
-1,507.3 |
-2.8 |
-1,510.1 |
| Share-based
payment |
|
|
|
113.5 |
|
|
|
113.5 |
|
113.5 |
| Net changes
in Treasury stock |
-49,380,654 |
|
|
0.2 |
|
-6,160.5 |
|
-6,160.3 |
|
-6,160.3 |
| Purchase
commitments for minority interests |
|
|
|
21.0 |
|
|
|
21.0 |
-2.3 |
18.7 |
| Changes in
scope of consolidation |
|
|
|
|
|
|
|
- |
2.5 |
2.5 |
| Other
movements |
|
|
|
-5.3 |
5.9 |
|
|
0.6 |
|
0.6 |
| At 12.31.2014 |
554,241,878 |
112.3 |
2,316.8 |
14,683.5 |
3,745.9 |
-683.0 |
17.8 |
20,193.3 |
3.6 |
20,196.9 |
|
Consolidated net profit for the period |
|
|
|
1,882.6 |
|
|
|
1,882.6 |
0.6 |
1,883.2 |
| Financial assets available-for-sale |
|
|
|
|
1,425.8 |
|
|
1,425.8 |
|
1,425.8 |
| Cash flow hedges |
|
|
|
|
-54.1 |
|
|
-54.1 |
-0.1 |
-54.2 |
| Cumulative translation adjustments |
|
|
|
|
|
|
508.1 |
508.1 |
-0.3 |
507.8 |
| Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
1,371.7 |
|
508.1 |
1,879.8 |
-0.4 |
1,879.4 |
| Actuarial gains and losses |
|
|
|
|
226.3 |
|
|
226.3 |
|
226.3 |
| Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
226.3 |
|
|
226.3 |
- |
226.3 |
| Consolidated comprehensive income |
|
|
|
1,882.6 |
1,598.0 |
|
508.1 |
3,988.8 |
0.2 |
3,988.9 |
| Capital
increase |
2,533,663 |
0.5 |
179.7 |
|
|
|
|
180.2 |
|
180.2 |
|
Cancellation of Treasury stock |
|
-0.6 |
|
-362.8 |
|
363.4 |
|
- |
|
- |
| Dividends
paid (not paid on Treasury stock) |
|
|
|
-1,511.4 |
|
|
|
-1,511.4 |
-2.7 |
-1,514.1 |
| Share-based
payment |
|
|
|
58.5 |
|
|
|
58.5 |
|
58.5 |
| Net changes
in Treasury stock |
1,021,865 |
|
|
-77.3 |
|
82.5 |
|
5.2 |
|
5.2 |
| Purchase
commitments for minority interests |
|
|
|
-0.9 |
|
|
|
-0.9 |
1.1 |
0.2 |
| Changes in
scope of consolidation |
|
|
|
|
|
|
|
- |
|
- |
| Other
movements |
|
|
|
0.3 |
|
|
|
0.3 |
|
0.3 |
| At 06.30.2015 |
557,797,406 |
112.2 |
2,496.5 |
14,672.5 |
5,343.9 |
-237.1 |
525.9 |
22,913.9 |
2.2 |
22,916.1 |
(1)
Taking into account the change in accounting policies on recognition of levies resulting from the application of
IFRIC 21.
Changes in first-half 2014
| € millions |
Com-
mon
shares
out-
standing |
Share
capital |
Addi-
tional
paid-
in
capi-
tal |
Re-
tained
earn-
ings
and
net
profit |
Other
compre-
hensive
income |
Treas-
ury
stock |
Cumu-
lative
trans-
lation
adjust-ments |
Equity
attribute-
able
to
owners
of
the
com-
pany |
Non-
control-
ling
interests |
Total
equity |
| At 12.31.2013 |
599,794,030 |
121.2 |
2,101.2 |
17,179.0 |
4,370.1 |
-568.1 |
-566.4 |
22,637.0 |
5.8 |
22,642.8 |
Changes in
accounting policies
at 01.01.2014 (1) |
|
|
|
8.2 |
|
|
|
8.2 |
|
8.2 |
| At 01.01.2014 |
599,794,030 |
121.2 |
2,101.2 |
17,187.2 |
4,370.1 |
-568.1 |
-566.4 |
22,645.2 |
5.8 |
22,651.0 |
|
Consolidated net profit for the period |
|
|
|
1,734.8 |
|
|
|
1,734.8 |
1.6 |
1,736.4 |
| Financial assets available-for-sale |
|
|
|
|
52.1 |
|
|
52.1 |
|
52.1 |
| Cash flow hedges |
|
|
|
|
-53.2 |
|
|
-53.2 |
|
-53.2 |
| Cumulative translation adjustments |
|
|
|
|
|
|
69.0 |
69.0 |
0.3 |
69.3 |
| Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-1.1 |
|
69.0 |
67.9 |
0.3 |
68.2 |
| Actuarial gains and losses |
|
|
|
|
-90.5 |
|
|
-90.5 |
|
-90.5 |
| Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
-90.5 |
|
|
-90.5 |
|
-90.5 |
| Consolidated comprehensive income |
|
|
|
1,734.8 |
-91.6 |
|
69.0 |
1,712.2 |
1.9 |
1,714.1 |
| Capital
increase |
2,397,512 |
0.5 |
121.1 |
|
|
|
|
121.6 |
2.3 |
123.9 |
|
Cancellation of Treasury stock |
|
|
|
|
|
|
|
- |
|
- |
| Dividends
paid (not paid on Treasury stock) |
|
|
|
-1,507.3 |
|
|
|
-1,507.3 |
-2.9 |
-1,510.2 |
| Share-based
payment |
|
|
|
54.5 |
|
|
|
54.5 |
|
54.5 |
| Net changes
in Treasury stock |
-921,177 |
|
|
|
|
-117.2 |
|
-117.2 |
|
-117.2 |
| Purchase
commitments for minority interests |
|
|
|
4.7 |
|
|
|
4.7 |
0.8 |
5.5 |
| Changes in
scope of consolidation |
|
|
|
|
|
|
|
- |
-0.3 |
-0.3 |
| Other
movements |
|
|
|
0.1 |
|
|
|
0.1 |
|
0.1 |
| At 06.30.2014 |
601,270,365 |
121.7 |
2,222.3 |
17,474.0 |
4,278.5 |
-685.3 |
-497.4 |
22,913.8 |
7.6 |
22,921.4 |
(1)
Taking into account the change in accounting policies on recognition of levies resulting from the application of
IFRIC 21.
Appendix 6: Compared consolidated
statements of cash flows
| € millions |
1st half
2015 |
1st half
2014 |
2014 |
| Cash flows from operating activities |
|
|
|
| Net profit
attributable to owners of the company |
1,882.6 |
1,734.8 |
4,910.2 |
|
Non-controlling interests |
0.6 |
1.6 |
-1.6 |
| Elimination
of expenses and income with no impact on cash flows: |
|
|
|
| ·
depreciation, amortisation and provisions |
410.2 |
334.4 |
856.2 |
| · changes
in deferred taxes |
20.6 |
22.6 |
60.0 |
| ·
share-based payment (including free shares) |
58.5 |
54.5 |
113.5 |
| · capital
gains and losses on disposals of assets |
0.2 |
-0.2 |
-0.9 |
| Net profit
from discontinued operations |
- |
-41.0 |
-2,142.7 |
| Share of
profit in associates net of dividends received |
-2.7 |
1.5 |
13.5 |
| Gross cash flow |
2,370.0 |
2,108.2 |
3,808.2 |
| Changes in
working capital |
-815.9 |
-598.0 |
55.9 |
| Net cash provided by operating activities (A) |
1,554.1 |
1,510.2 |
3,864.1 |
| Cash flows from investing activities |
|
|
|
| Purchases
of property, plant and equipment and intangible assets |
-512.0 |
-484.8 |
-1,008.2 |
| Disposals
of property, plant and equipment and intangible assets |
5.7 |
13.1 |
18.7 |
| Changes in
other financial assets (including investments in non-consolidated
companies) |
13.2 |
-143.2 |
403.4 |
| Dividends
received from discontinued operations |
- |
41.7 |
41.7 |
| Effect of
changes in the scope of consolidation |
-412.8 |
-750.4 |
1,194.0 |
| Net cash (used in) from investing activities (B) |
-905.9 |
-1,323.6 |
649.6 |
| Cash flows from financing activities |
|
|
|
| Dividends
paid |
-1,535.0 |
-1,539.8 |
-1,589.3 |
| Capital
increase of the parent company |
180.2 |
121.5 |
216.4 |
| Capital
increase of subsidiaries |
- |
2.3 |
2.3 |
| Disposal
(acquisition) of Treasury stock |
5.2 |
-117.2 |
-6,160.3 |
| Issuance
(repayment) of short-term loans |
553.7 |
2,856.0 |
2,225.0 |
| Issuance of
long-term borrowings |
- |
0.2 |
0.2 |
| Repayment
of long-term borrowings |
-5.9 |
-10.0 |
-13.0 |
| Net cash (used in) from financing activities (C) |
-801.8 |
1,313.0 |
-5,318.7 |
| Net cash (used in) from discontinued
operations (D) |
- |
- |
- |
| Net effect
of changes in exchange rates and fair value (E) |
1.7 |
-16.1 |
62.7 |
| Change in cash and cash equivalents (A+B+C+D+E) |
-151.9 |
1,483.5 |
-742.3 |
| Cash and cash equivalents at beginning of the year
(F) |
1,917.0 |
2,659.3 |
2,659.3 |
| Change in cash and cash equivalents of discontinued
operations (G) |
- |
- |
- |
| Cash and cash equivalents at the end of the period
(A+B+C+D+E+F+G) |
1,765.1 |
4,142.8 |
1,917.0 |
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Read the news release of July 30,
2015
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
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