Results for the
first half of 2017
In the first half of 2017, the
Christian Dior group recorded revenue of 20.7
billion euros, up 15% at actual exchange rates and 12% on a
constant consolidation scope and currency basis.
During the first half of the year,
the Group benefited from a favorable comparison base, particularly
in Asia but also in France, where activity was affected last year
by a decline in tourism. The trend currently observed cannot
reasonably be extrapolated to the full year.
Profit from recurring operations
was 3.7 billion euros, up 24%.
The Group share of net profit was
0.9 billion euros.
Cash from operations before
changes in working capital was 4.7 billion euros, up 24%.
Free cash flow before financial
investments, transactions relating to equity and financing
activities was 1.2 billion euros.
The net financial debt to equity
ratio was 17% as of June 30, 2017.
The financial highlights of the period were as
follows:
Consolidated financial highlights
(EUR millions) |
First half of
2017 (a) |
Half-year from
January 1, 2016 to
June 30, 2016 (b) |
Change |
Revenue |
20,744 |
18,065 |
+15% |
Profit
from recurring operations |
3,738 |
3,014 |
+24% |
Net
profit |
2,377 |
1,870 |
+27% |
Net
profit, Group share |
900 |
706 |
+27% |
Cash from
operations before changes in working capital |
4,684 |
3,782 |
+24% |
Free cash
flow (c) |
1,184 |
699 |
+69% |
Net
financial debt |
5,258 |
6,777 |
-22% |
Equity |
30,774 |
28,129 |
+9% |
Net
financial debt to equity ratio |
17% |
24% |
- |
(a)
Limited review procedures; Statutory Auditors'
report in the process of being issued
(b)
Limited review procedures without a report issued
by the Statutory Auditors
(c)
Before financial investments, transactions
relating to equity and financing activities
In the first half of 2017,
Christian Dior Couture posted revenue of 1,047
million euros, up 17% at both actual and constant exchange rates.
The Ready-to-Wear, Leather Goods, Accessories and Jewelry
collections were a success, thanks to the creativity of the House
of Dior's design teams and its exceptional expertise. Retail sales
revenue from directly operated boutiques grew by 19% at actual
exchange rates and 18% at constant exchange rates. All regions
contributed to this growth. Christian Dior Couture posted
first-half profit from recurring operations of 117 million euros,
up 58%.
In the first half of 2017,
LVMH recorded revenue of 19.7 billion euros,
up 15% at actual exchange rates and 12% on a constant consolidation
scope and currency basis compared to the first half of 2016. All
geographic regions remained well on track.
Profit from recurring operations for the first half of 2017 was
3,640 million euros, up 23%. The current operating margin was
18.5%, an increase of 1 percentage point. The Group's share of net
profit was 2,119 million euros, up 24%.
For LVMH, the highlights of the
first half of 2017 included:
-
double-digit increases in revenue and profit
from recurring operations;
-
good growth in Europe, Asia and the United
States;
-
a good start to the year for Wines and
Spirits;
-
outstanding momentum at Louis Vuitton, with
profitability remaining at an exceptional level;
-
integration of Rimowa, a leader in premium-class
luggage;
-
success of the new products at Parfums Christian
Dior;
-
growth at Bvlgari;
-
excellent response to TAG Heuer's new
products;
-
continued strengthening of Sephora's omnichannel
strategy.
Revenue and profit from recurring
operations by business group for the Christian
Dior group were as follows:
REVENUE
(EUR millions) |
First half of
2017 (a) |
Half-year from
January 1, 2016 to
June 30, 2016 (b) |
Change at actual exchange rates |
Organic
growth (c) |
Christian Dior
Couture |
1,047 |
893 |
+17% |
+17% |
Wines and Spirits |
2,294 |
2,056 |
+12% |
+10% |
Fashion and Leather
Goods |
6,899 |
5,885 |
+17% |
+14% |
Perfumes and
Cosmetics |
2,670 |
2,337 |
+14% |
+12% |
Watches and
Jewelry |
1,838 |
1,609 |
+14% |
+13% |
Selective
Retailing |
6,280 |
5,480 |
+15% |
+12% |
Other
activities and eliminations |
(284) |
(195) |
- |
- |
Total |
20,744 |
18,065 |
+15% |
+12% (d) |
(a)
Limited review procedures; Statutory Auditors'
report in the process of being issued
(b)
Limited review procedures without a report issued
by the Statutory Auditors
(c)
On a constant consolidation scope and currency
basis
(d)
Exchange rate impact: 2%; impact of changes in
scope: 1%
PROFIT FROM
RECURRING OPERATIONS
(EUR millions) |
First half of
2017 (a) |
Half-year from
January 1, 2016 to
June 30, 2016 (b) |
Change |
Christian Dior
Couture |
117 |
74 |
+58% |
Wines and Spirits |
681 |
565 |
+21% |
Fashion and Leather
Goods |
2,192 |
1,630 |
+34% |
Perfumes and
Cosmetics |
292 |
272 |
+7% |
Watches and
Jewelry |
234 |
205 |
+14% |
Selective
Retailing |
441 |
410 |
+8% |
Other
activities and eliminations |
(219) |
(142) |
- |
Total |
3,738 |
3,014 |
+24% |
(a)
Limited review procedures; Statutory Auditors'
report in the process of being issued
(b)
Limited review procedures without a report issued
by the Statutory Auditors
Events subsequent
to June 30, 2017
On July 3, 2017, as part of the
recent transactions to simplify the Group's structure and pursuant
to the terms of the memorandum of understanding signed on April 24,
2017, Christian Dior SE sold 100% of its Christian Dior Couture
branch (including Grandville and its subsidiary Christian Dior
Couture) to LVMH for a net amount of 6 billion euros, based on an
enterprise value of 6.5 billion euros. The sale price was paid by
LVMH on July 26, 2017.
Interim
dividend
The Board of Directors of
Christian Dior met on July 26, 2017 and decided on the payment, on
December 7, 2017, of an interim cash dividend of a gross
amount of 1.60 euros per share.
Outlook for
2017
Despite the context of
geopolitical and currency uncertainties, the Christian Dior group will continue to pursue gains in
market share thanks to the numerous product launches planned before
the end of the year and its geographic expansion in promising
markets, while continuing to manage costs.
Our strategy of focusing on
quality across all our activities, combined with the dynamism and
unparalleled creativity of our teams, will enable us to reinforce,
once again in 2017, the Christian Dior group's global leadership
position in luxury goods.
* *
*
This document is a free translation into English
of the original French "Communiqué" dated July
26, 2017. It is not a binding document. In the event of a conflict
in interpretation, reference should be made to the French version,
which is the authentic text.
APPENDIX:
Revenue by business group and by
quarter
This announcement
constitutes regulated information and is available on the Company's
website (www.dior-finance.com).
Some of the
statements contained in this financial release may include or be
based on forward-looking information. Major risk factors,
uncertainties or elements either beyond our control or unable to be
anticipated as of this writing may thus cause actual results to
differ significantly from those expressed or implied by the
forward-looking information in this financial release. The
statements made herein reflect our vision of the Group's business
activities as of the date of this financial release. Accordingly,
readers are cautioned not to place undue reliance on the
information thus provided. Furthermore, it should be noted that we
undertake no obligation to update publicly or otherwise revise any
forward-looking statements.
Christian Dior
group - Revenue by business group and by quarter
First
half of 2017 |
|
|
|
|
|
|
|
|
Revenue (EUR
millions) |
Christian
Dior Couture |
Wines
and
Spirits |
Fashion
and
Leather Goods |
Perfumes
and
Cosmetics |
Watches
and
Jewelry |
Selective
Retailing |
Other
activities and eliminations |
Total |
Quarter from January 1
to March 31, 2017 |
506 |
1,196 |
3,405 |
1,395 |
879 |
3,154 |
(155) |
10,380 |
Quarter
from April 1 to June 30, 2017 |
541 |
1,098 |
(*) 3,494 |
1,275 |
959 |
3,126 |
(129) |
10,364 |
Total |
1,047 |
2,294 |
6,899 |
2,670 |
1,838 |
6,280 |
(284) |
20,744 |
(*) Including all revenue from
Rimowa for the first half of 2017
|
|
|
|
|
|
|
|
|
|
Organic revenue growth (as %) |
Christian
Dior Couture |
Wines
and
Spirits |
Fashion
and
Leather Goods |
Perfumes
and
Cosmetics |
Watches
and
Jewelry |
Selective
Retailing |
Other
activities and eliminations |
Total |
Quarter from January 1
to March 31, 2017 |
+17% |
+13% |
+15% |
+12% |
+11% |
+11% |
- |
+13% |
Quarter
from April 1 to June 30, 2017 |
+16% |
+6% |
+13% |
+13% |
+14% |
+12% |
- |
+12% |
Total |
+17% |
+10% |
+14% |
+12% |
+13% |
+12% |
- |
+12% |
|
Half-year from January 1 to June 30, 2016 |
Revenue (EUR
millions) |
Christian
Dior Couture |
Wines
and
Spirits |
Fashion
and
Leather Goods |
Perfumes
and
Cosmetics |
Watches
and
Jewelry |
Selective
Retailing |
Other
activities and eliminations |
Total |
Quarter from January 1
to March 31, 2016 |
429 |
1,033 |
2,965 |
1,213 |
774 |
2,747 |
(120) |
9,041 |
Quarter
from April 1 to June 30, 2016 |
464 |
1,023 |
2,920 |
1,124 |
835 |
2,733 |
(75) |
9,024 |
Total |
893 |
2,056 |
5,885 |
2,337 |
1,609 |
5,480 |
(195) |
18,065 |
|
Format pdf
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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.
Source: Christian Dior via Globenewswire
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