CHRISTIAN DIOR SE FINANCIAL RELEASE
RESULTS AS OF DECEMBER 31, 2015
I - PERIOD FROM JANUARY 1 TO DECEMBER 31, 2015 (12 CALENDAR MONTHS)
In the period from January 1 to December 31, 2015, the Christian Dior group recorded revenue of 37.5 billion euros, up 16% at actual exchange rates and 6% at constant structure and exchange rates. Profit from recurring operations was 6.8 billion euros, up 16%.
The Group share of net profit was 1 537 million euros. Excluding the impact of the exceptional distributions in kind of Hermès shares in December 2014, the Group share of net profit was up 20% compared to the same period in 2014.
The Group's performance showed strong momentum in Europe, the United States and Japan, while other Asian countries experienced mixed trends.
The financial highlights of the period are as follows:
| Consolidated financial highlights (a) (EUR millions) | December 31, 2015 (12 calendar months) | December 31, 2014 (12 calendar months) | Change | ||
| Revenue | 37,511 | 32,215 | +16% | ||
| Profit from recurring operations | 6,827 | 5,898 | +16% | ||
| Net profit | 4,074 | 6,115 3,494 | (b) (c) | -33% +17% | (b) (c) |
| Net profit, Group share | 1,537 | 2,335 1,282 | (b) (c) | -34% +20% | (b) (c) |
| Free cash flow (d) | 3,607 | 2,772 | +30% | ||
| Net financial debt | 5,841 | 6,318 | -8% | ||
| Total equity | 27,638 | 24,662 | +12% | ||
| (a) Figures for the 12 calendar months (from January 1 to December 31, 2015) underwent limited review procedures with no report issued by the Statutory Auditors (b) Including the impact of the exceptional distributions in kind of Hermès shares in December 2014 (c) Excluding the impact of the exceptional distributions in kind of Hermès shares in December 2014 (d) Before financial investments, transactions relating to equity and financing activities | |||||
For the 12-month calendar year from January 1 to December 31, 2015, Christian Dior Couture posted revenue of 1,872 million euros, up 17% at actual exchange rates and 7% at constant exchange rates versus the same period in 2014. Retail sales revenue growth was up 19% at actual exchange rates and 8% at constant exchange rates. Profit from recurring operations was 240 million euros, up 21%.
LVMH recorded revenue of 35.7 billion euros in 2015, up 16% at actual exchange rates and 6% at constant structure and exchange rates with respect to 2014. Profit from recurring operations was 6,605 million euros, an increase of 16%, to which all business groups contributed.
Revenue and profit from recurring operations by business group for the Christian Dior group for the 12-month calendar year ended December 31, 2015 were as follows:
REVENUE
| (EUR millions) | December 31, 2015 (12 calendar months) | December 31, 2014 (12 calendar months) | Change at actual exchange rates | Organic growth (a) |
| Christian Dior Couture | 1,872 | 1,599 | +17% | +7% |
| Wines and Spirits | 4,603 | 3,973 | +16% | +6% |
| Fashion and Leather Goods | 12,369 | 10,828 | +14% | +4% |
| Perfumes and Cosmetics | 4,517 | 3,916 | +15% | +7% |
| Watches and Jewelry | 3,308 | 2,782 | +19% | +8% |
| Selective Retailing | 11,233 | 9,534 | +18% | +5% |
| Other activities and eliminations | (391) | (417) | - | - |
| Total | 37,511 | 32,215 | +16% | +6% |
| (a) At constant structure and exchange rates. The exchange rate impact was +11%. | ||||
PROFIT FROM RECURRING OPERATIONS
| (EUR millions) | December 31, 2015 (12 calendar months) | December 31, 2014 (12 calendar months) | Change |
| Christian Dior Couture | 240 | 199 | +21% |
| Wines and Spirits | 1,363 | 1,147 | +19% |
| Fashion and Leather Goods | 3,505 | 3,189 | +10% |
| Perfumes and Cosmetics | 525 | 415 | +26% |
| Watches and Jewelry | 432 | 283 | +53% |
| Selective Retailing | 934 | 882 | +6% |
| Other activities and eliminations | (172) | (217) | - |
| Total | 6,827 | 5,898 | +16% |
II - FIRST HALF OF THE 2015/2016 FISCAL YEAR
In the first half of the 2015/2016 fiscal year, the Christian Dior group recorded revenue of 19.9 billion euros, up 14% at actual exchange rates and 6% at constant structure and exchange rates. Profit from recurring operations was 3.8 billion euros, up 16%.
The Group share of net profit was 863 million euros. Excluding the impact of the exceptional distributions in kind of Hermès shares in December 2014, the Group share of net profit was up 33% compared to the first half of the previous fiscal year.
Free cash flow for the half-year period, before financial investments, transactions relating to equity and financing activities, was 3.0 billion euros.
| Consolidated financial highlights (a) (EUR millions) | December 31, 2015 (6 months) | December 31, 2014 (6 months) | Change | ||
| Revenue | 19,903 | 17,473 | +14% | ||
| Profit from recurring operations | 3,778 | 3,247 | +16% | ||
| Net profit | 2,294 | 4,385 1,763 | (b) (c) | -48% +30% | (b) (c) |
| Net profit, Group share | 863 | 1,704 651 | (b) (c) | -49% +33% | (b) (c) |
| Free cash flow (d) | 2,961 | 2,805 | +6% | ||
| Net financial debt | 5,841 | 6,318 | -8% | ||
| Total equity | 27,638 | 24,662 | +12% | ||
| (a) Limited review procedures have been carried out, and the Statutory Auditors' report on the half-year financial information is in the process of being issued (b) Including the impact of the exceptional distributions in kind of Hermès shares in December 2014 (c) Excluding the impact of the exceptional distributions in kind of Hermès shares in December 2014 (d) Before financial investments, transactions relating to equity and financing activities | |||||
First-half revenue for Christian Dior Couture was 961 million euros, up 12% at actual exchange rates and 5% at constant exchange rates compared with the same period in 2014. Its performance was spurred by the dynamism of Leather Goods, Ready-to-Wear, Accessories and Jewelry. Retail sales revenue growth was up 15% at actual exchange rates and 6% at constant exchange rates. Profit from recurring operations for the first half of the fiscal year was 135 million euros, up 12% compared to 2014.
The revenue of LVMH for the period from July 1 to December 31, 2015 amounted to 19.0 billion euros. It was up 14% at actual exchange rates and 6% at constant structure and exchange rates compared with the same period in 2014. Profit from recurring operations for the six-month period was 3.7 billion euros, up 16%.
For LVMH, the key highlights from the half-year period included:
- Strong progress in Europe, the United States and Japan,
- Good performance of Wines and Spirits in all regions with a progressive normalization of the situation in China,
- The success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level,
- Progress at Fashion brands, in particular Fendi, Céline, Givenchy and Kenzo,
- Remarkable momentum at Parfums Christian Dior, which gained market share globally,
- Excellent results at Bvlgari and success of TAG Heuer's refocusing strategy,
- Exceptional progress at Sephora which strengthened its position in all its markets and in digital.
Half-year revenue and profit from recurring operations by business group for the Christian Dior group were as follows:
REVENUE
| (EUR millions) | December 31, 2015 (6 months) | December 31, 2014 (6 months) | Change at actual exchange rates | Organic growth (a) |
| Christian Dior Couture | 961 | 854 | +12% | +5% |
| Wines and Spirits | 2,673 | 2,296 | +16% | +9% |
| Fashion and Leather Goods | 6,436 | 5,798 | +11% | +3% |
| Perfumes and Cosmetics | 2,358 | 2,077 | +14% | +7% |
| Watches and Jewelry | 1,756 | 1,516 | +16% | +7% |
| Selective Retailing | 5,942 | 5,152 | +15% | +5% |
| Other activities and eliminations | (223) | (220) | - | - |
| Total | 19,903 | 17,473 | +14% | +6% |
| (a) At constant structure and exchange rates. The exchange rate impact was +8%. | ||||
PROFIT FROM RECURRING OPERATIONS
| (EUR millions) | December 31, 2015 (6 months) | December 31, 2014 (6 months) | Change |
| Christian Dior Couture | 135 | 120 | +12% |
| Wines and Spirits | 881 | 686 | +28% |
| Fashion and Leather Goods | 1,844 | 1,702 | +8% |
| Perfumes and Cosmetics | 277 | 211 | +31% |
| Watches and Jewelry | 227 | 176 | +29% |
| Selective Retailing | 506 | 484 | +5% |
| Other activities and eliminations | (92) | (132) | - |
| Total | 3,778 | 3,247 | +16% |
OUTLOOK
Despite a climate of economic, currency and geopolitical uncertainties, the Christian Dior group is well equipped to continue its growth momentum across all business groups in 2016. The Group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and a constant quest for quality in their products and their distribution.
Driven by the agility of its teams, their entrepreneurial spirit and the balance of its different businesses and geographic diversity, the Christian Dior group enters 2016 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.
The Board of Directors of Christian Dior met on February 11, 2016 and decided on the payment, on April 21, 2016, of an interim cash dividend of a gross amount of 1.35 euros per share.
Limited review procedures have been carried out, and the Statutory Auditors' report on the half-year financial information is in the process of being issued.
During the period and to date, no events or changes have occurred which could significantly modify the Group's financial structure.
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APPENDIX 1: Half-year revenue by business group and by quarter
APPENDIX 2: Revenue by business group and by period (12 calendar months)
This announcement constitutes regulated information and is made 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.
APPENDIX 1
Christian Dior group - Half-year revenue by business group and by quarter
| First half of the 2015/2016 fiscal year | ||||||||
| (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 July 1 to September 30, 2015 | 471 | 1,199 | 2,939 | 1,102 | 852 | 2,614 | (131) | 9,046 |
| Quarter from October 1 to December 31, 2015 | 490 | 1,474 | 3,497 | 1,256 | 904 | 3,328 | (92) | 10,857 |
| Total | 961 | 2,673 | 6,436 | 2,358 | 1,756 | 5,942 | (223) | 19,903 |
| First half of the 2015/2016 fiscal year - Organic revenue growth versus the corresponding period in 2014/2015 | ||||||||
| 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 July 1 to September 30, 2015 | +5% | +16% | +3% | +7% | +11% | +5% | - | +7% |
| Quarter from October 1 to December 31, 2015 | +4% | +4% | +3% | +7% | +3% | +5% | - | +5% |
| Total | +5% | +9% | +3% | +7% | +7% | +5% | - | +6% |
| First half of the 2014/2015 fiscal year | ||||||||
| (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 July 1 to September 30, 2014 | 417 | 948 | 2,647 | 961 | 706 | 2,234 | (114) | 7,799 |
| Quarter from October 1 to December 31, 2014 | 437 | 1,348 | 3,151 | 1,116 | 810 | 2,918 | (106) | 9,674 |
| Total | 854 | 2,296 | 5,798 | 2,077 | 1,516 | 5,152 | (220) | 17,473 |
APPENDIX 2
Christian Dior group - Revenue by business group and by period (12 calendar months)
REVENUE
| Periods from January 1 to December 31, 2015 | ||||||||
| (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 |
| Period from January 1 to March 31, 2015 | 433 | 992 | 2,975 | 1,094 | 723 | 2,656 | (122) | 8,751 |
| Period from April 1 to June 30, 2015 | 478 | 938 | 2,958 | 1,065 | 829 | 2,635 | (46) | 8,857 |
| Period from July 1 to September 30, 2015 | 471 | 1,199 | 2,939 | 1,102 | 852 | 2,614 | (131) | 9,046 |
| Period from October 1 to December 31, 2015 | 490 | 1,474 | 3,497 | 1,256 | 904 | 3,328 | (92) | 10,857 |
| Total | 1,872 | 4,603 | 12,369 | 4,517 | 3,308 | 11,233 | (391) | 37,511 |
| Corresponding periods in the previous year | ||||||||
| (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 |
| Period from January 1 to March 31, 2014 | 356 | 888 | 2,639 | 941 | 607 | 2,222 | (97) | 7,556 |
| Period from April 1 to June 30, 2014 | 389 | 789 | 2,391 | 898 | 659 | 2,160 | (100) | 7,186 |
| Period from July 1 to September 30, 2014 | 417 | 948 | 2,647 | 961 | 706 | 2,234 | (114) | 7,799 |
| Period from October 1 to December 31, 2014 | 437 | 1,348 | 3,151 | 1,116 | 810 | 2,918 | (106) | 9,674 |
| Total | 1,599 | 3,973 | 10,828 | 3,916 | 2,782 | 9,534 | (417) | 32,215 |
This document is a free translation into English of the original French "Communiqué financier" dated February 11, 2016. 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.
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
