Excellent first half for Christian Dior
Excellent first half for Christian
Dior
Paris, July 26, 2022
The Christian Dior group recorded revenue of
€36.7 billion in the first half of 2022, up 28% compared to the
same period in 2021. Organic revenue growth was 21%. All business
groups achieved double-digit organic revenue growth over the
period.
In the second quarter, revenue increased by 27%
against a particularly high basis of comparison. Organic revenue
growth was 19%, in line with trends seen in the first quarter.
Europe and the United States have been up sharply since the start
of the year, while Asia saw a lower level of growth due to the new
health restrictions in China.
Profit from recurring operations was up 34% at
€10 232 million for the first half of 2022. Operating margin
reached 27.9% of revenue, up 1.3 points compared to the first half
of 2021. Group share of net profit was €2 678 million, up 24%
compared to the first half of 2021.
Highlights of the first half of 2022
include:
- An excellent first half in a still disrupted environment,
- Double-digit organic revenue growth for all business
groups,
- Strong growth in Europe, Japan and the United States,
- Exceptional momentum in champagne and cognac,
- Remarkable performance by the Fashion & Leather Goods
business group, particularly Louis Vuitton, Christian Dior, Fendi,
Celine, Loro Piana and Loewe,which gained market share across the
board and achieved new record highs for profitability,
- Rapid growth in fragrances and skincare,
- Continued creative momentum within all our Watches &
Jewelry Maisons, particularly Tiffany, Bulgari and TAG Heuer,
- Strong rebound from Sephora,
- Recovery in hotel activities,
- Operating free cash-flow of more than €4 billion.
Key figures
Euro millions |
First half 2021* |
First half 2022 |
% change |
Revenue |
28 665 |
36 729 |
+ 28 % |
Profit from recurring operations |
7 612 |
10 232 |
+ 34 % |
Group share of net profit |
2 169 |
2 678 |
+ 24 % |
Operating free cash flow |
5 290 |
4 043 |
- 24 % |
Net financial debt |
15 349 |
10 885 |
- 29 % |
Total equity |
40 128 |
50 324 |
+ 25% |
Revenue by business group:
Euro millions |
First half 2021* |
First half 2022 |
% change Reported Organic** |
Wines & Spirits |
2 705 |
3 327 |
+ 23 % |
+ 14 % |
Fashion & Leather Goods |
13 863 |
18 136 |
+ 31 % |
+ 24 % |
Perfumes & Cosmetics |
3 025 |
3 618 |
+ 20 % |
+ 13 % |
Watches & Jewelry |
4 023 |
4 909 |
+ 22 % |
+ 16 % |
Selective Retailing |
5 085 |
6 630 |
+ 30 % |
+ 22 % |
Other activities and eliminations |
(36) |
109 |
- |
- |
Total |
28 665 |
36 729 |
+ 28 % |
+ 21 % |
Profit from recurring operations
by business group:
Euro millions |
First half 2021* |
First half 2022 |
% change |
Wines & Spirits |
924 |
1 154 |
+ 25 % |
Fashion & Leather Goods |
5 660 |
7 509 |
+ 33 % |
Perfumes & Cosmetics |
393 |
388 |
- 1 % |
Watches & Jewelry |
783 |
987 |
+ 26 % |
Selective Retailing |
131 |
367 |
+ 181 % |
Other activities and eliminations |
(279) |
(173) |
- |
Total |
7 612 |
10 232 |
+ 34 % |
* The financial statements as of June 30, 2021
have been restated to reflect the purchase price allocation of
Tiffany.
** With comparable structure and constant exchange
rates. The structural impact for the Group compared to the first
half of 2021 was zero and the currency effect was +7 %.
Wines & Spirits: strong growth in
Champagne and good progress of Hennessy
The Wines & Spirits
business group recorded organic revenue growth of 14% in the first
half of 2022. Profit from recurring operations was up 25% compared
to the first half of 2021. Against a backdrop of strong demand,
champagne volumes were up 16% compared to the first half of 2021,
leading to increasing pressure on supplies. Momentum was
particularly good in Europe, the United States and Japan. For
Hennessy, the impact of health restrictions in China and logistical
disruptions in the United States was offset by the strong rebound
in the second quarter linked to a catch-up in deliveries to the
United States and a firm policy of price increases. Moët Hennessy
strengthened its global portfolio of exceptional wines with the
signing of an agreement to acquire the Joseph Phelps Vineyards, one
of the most renowned wine properties in Napa Valley,
California.
Fashion & Leather Goods: remarkable
performances by Louis Vuitton, Christian Dior, Fendi, Celine, Loro
Piana and Loewe
The Fashion & Leather Goods
business group recorded organic revenue growth of 24% in the first
half of 2022. Profit from recurring operations was up 33%. Driven
as always by an exceptional creativity and with a major cultural
focus, Louis Vuitton had an excellent first half across all its
business activities and maintained its profitability at an
exceptional level. Nicolas Ghesquière presented, for the first time
at the Musée d'Orsay, his Women’s Autumn-Winter 2022 collection and
chose the Salk Institute in San Diego, California, for his 2023
Cruise show. Remarkable renovations continue to be made to the
store network, for example in Lille, where Louis Vuitton Maison has
reopened in the iconic L’Huîtrière (Oyster House). Maintaining its
commitment to the development of high-quality craftsmanship and
artisanal excellence, the Maison inaugurated two new workshops in
France, including one for precious leathers in Vendôme. Christian
Dior continued to enjoy remarkable growth in all its product
categories. The latest fashion shows in Seville and Paris, which
highlighted the inspiring collections of Maria Grazia Chiuri, were
very well received. After three years of renovations, the historic
birthplace of the Maison at 30 Avenue Montaigne in Paris reopened,
celebrating its excellent know-how, its passion for couture, its
elegance and culture, and offering a new holistic experience unique
to Dior. Fendi recorded solid growth, driven by the success of the
Kim Jones collections. Celine saw very strong growth resulting from
the remarkable success of the ready-to-wear and leather goods
created by Hedi Slimane, notably with the new line of high-end
leather goods for its Triomphe and 16 collections. Loewe continued
to show excellent momentum under the impetus of the bold creativity
of J.W.Anderson. Loro Piana and Marc Jacobs also enjoyed an
excellent first half of the year.
Perfumes & Cosmetics: strong
momentum in perfumes, rebound in makeup, impact of health
restrictions in China and commitment to selective
distribution
The Perfumes & Cosmetics
business recorded organic revenue growth of 13% in the first half
of 2022. Profit from recurring operations was down 1% due to its
highly selective policy in distribution and promotions. Parfums
Christian Dior performed remarkably well, strengthening its
leadership in all its key markets. Sauvage confirmed its position
as the world's leading perfume and the iconic women's fragrances
J'adore and Miss Dior saw continued success. Makeup also
contributed to the Maison’s very good results. Guerlain continued
to grow, driven notably by the vitality of its Abeille Royale
skincare, its Aqua Allegoria collection and its Parfumerie l’Art et
la Matière. Parfums Givenchy benefited from the success of its
L’Interdit perfume. Maison Francis Kurkdjian collaborated with the
Château de Versailles as part of its patronage supporting the
creation of a Jardin du parfumeur.
Watches & Jewelry: recovery in
jewelry and watch revenue
The Watches & Jewelry
business achieved organic revenue growth of 16% in the first half
of 2022. Profit from recurring operations was up 26%. In jewelry,
Tiffany & Co. enjoyed an excellent half-year, still driven by
strong momentum in the United States. The new Knot collection
notably benefited from sustained demand, as did the High Jewelry
collection Blue Book, which saw record sales. A pop-up store opened
on Avenue Montaigne in Paris, offering an immersive experience
around the theme of the love story between Paris and Tiffany, while
the Saatchi Gallery in London hosted the "Vision & Virtuosity"
exhibition, celebrating the Maison’s 185th anniversary. At Bulgari,
the Serpenti and Bzero1 Classic lines were important growth
drivers, while new records were set by the recently launched High
Jewelry and High Watchmaking collection Eden: The Garden of Wonders
and its watch lines, including the new Octo Finissimo Ultra watch.
Chaumet and Fred performed very well over the first half. Chaumet's
"Végétal" exhibition at the Palais des Beaux-Arts in Paris has been
a great success. Several watchmaking innovations from TAG Heuer,
Hublot and Zenith were unveiled at the Watches & Wonders Geneva
summit.
Selective Retailing: excellent
performance by Sephora; DFS impacted by health restrictions in
China
In Selective Retailing, revenue
was up 22% in the first half of 2022. Profit from recurring
operations was up 181%. Sephora enjoyed an excellent performance
with a strong rebound in its in-store activity. Momentum was
particularly strong in North America, France and the Middle East.
Investments in Sephora's omnichannel strategy continued with the
aim of continuously improving the purchasing experience of its
customers both online and in-store. DFS, for its part, was impacted
during the first half by persistent weakness of international
travel, notably due to the tightening of health restrictions in
China.
Outlook 2022
Given the current geopolitical environment and
taking into account the health situation, The Christian Dior group
will maintain a strategy focused on continuously strengthening the
desirability of its brands, by relying on the exceptional quality
of its products and the excellence of their distribution.
Our strategy of focusing on the highest quality
across all of our activities, combined with the dynamism and
unparalleled creativity of our teams, will enable us to reinforce
Group’s global leadership position in luxury goods once again in
2022.
An interim dividend of €5.00 will be paid on
Monday, December 5, 2022.
This financial release is available on our website
www.dior-finance.com.
Limited review procedures have been carried out,
the related report will be issued following the board meeting.
“This document may contain certain forward
looking statements which are based on estimations and forecasts. By
their nature, these forward looking statements are subject to
important risks and uncertainties and factors beyond our control or
ability to predict, in particular those described in Christian
Dior’s Annual Report which is available on the website
(www.dior-finance.com). These forward looking statements should not
be considered as a guarantee of future performance, the actual
results could differ materially from those expressed or implied by
them. The forward looking statements only reflect Christian Dior’s
views as of the date of this document, and Christian Dior does not
undertake to revise or update these forward looking statements. The
forward looking statements should be used with caution and
circumspection and in no event can Christian Dior and its
Management be held responsible for any investment or other decision
based upon such statements. The information in this document does
not constitute an offer to sell or an invitation to buy shares in
Christian Dior or an invitation or inducement to engage in any
other investment activities.”
ANNEX
The condensed consolidated financial statements
for the first half of 2022 are included in the PDF version of the
press release.
Christian Dior group - Revenue by
business group and by quarter
Revenue first half 2022 (Euro
millions)
2022 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1 638 |
9 123 |
1 905 |
2 338 |
3 040 |
(41) |
18 003 |
Second quarter |
1 689 |
9 013 |
1 714 |
2 570 |
3 591 |
149 |
18 726 |
First half |
3 327 |
18 136 |
3 618 |
4 909 |
6 630 |
109 |
36 729 |
Revenue first half 2022 (organic growth
compared to the first half of 2021)
2022 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
+ 2 % |
+ 30 % |
+ 17 % |
+ 19 % |
+ 24 % |
- |
+ 23 % |
Second quarter |
+ 30% |
+ 19 % |
+ 8 % |
+ 13 % |
+ 20 % |
- |
+ 19 % |
First half |
+ 14 % |
+ 24 % |
+ 13 % |
+ 16 % |
+ 22 % |
- |
+ 21 % |
Revenue first half 2021 (Euro
millions)
2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1 510 |
6 738 |
1 550 |
1 883 |
2 337 |
(59) |
13 959 |
Second quarter |
1 195 |
7 125 |
1 475 |
2 140 |
2 748 |
23 |
14 706 |
First half |
2 705 |
13 863 |
3 025 |
4 023 |
5 085 |
(36) |
28 665 |
Alternative performance
indicators
For the purposes of its financial communication,
in addition to the accounting aggregates defined by IAS/IFRS,
Christian Dior uses alternative performance indicators established
in accordance with AMF position DOC-2015-12.
The table below lists these indicators and the
reference to their definition and their reconciliation with the
aggregates defined by IAS/IFRS standards, in the published
documents.
Indicators |
Reference to published documents |
Free operating cash- flow |
AR (consolidated accounts, consolidated cash flow statement) |
Net Financial debt |
AR (notes 1.23 and 19 of the appendix to the consolidated
accounts) |
Gearing |
AR (part 2, Comments on the consolidated balance sheet) |
Organic Growth |
AR (part 1, Comments on the consolidated income statement) |
AR : 2021 Annual Report
This document is a free translation into English
of the original French financial release dated July 26th, 2022.
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.
- Christian Dior - Communiqué Résultats S1 2022 VA
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