Kering's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1962, Kering is a French company operating in the luxury sector. It owns several brands in the fashion, watchmaking, jewellery and leather goods sectors. In a difficult context marked by the Covid-19 health crisis, the group has shown resilience by limiting the impact on its business in 2020. Here are the key points to remember about the company's financial results for this year and the first three quarters of the 2021 financial year.

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Kering's revenue and market capitalization
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Financial performance in fiscal 2020

For fiscal year 2020, Kering reported annual sales of €13.1 billion, compared to €15.88 billion in 2019. Over the year, it reported a 17.5% decline on a reported basis. On a like-for-like basis, sales were down 16.4% year-on-year.

The market was targeting an average annual turnover of €13.3 billion for this financial year. In 2020, the luxury group generated a current operating income (ROC) of 3.14 billion euros, compared to 4.78 billion euros the previous year. It therefore fell by 34.4% over one year.

The current operating margin contracted to 23.9%. It had reached a record level of 30.1% the year before. For the twelve months of the 2020 financial year as a whole, net income (group share) reached €2.15 billion, compared with €2.31 billion in 2019, a decline of 6.9%.

Recurring net profit (group share) was €1.97 billion in 2020, compared with €3.21 billion a year earlier. 3.21 billion a year earlier, a 38.6% year-on-year drop. For the 2020 financial year, the company recorded an Ebitda of €4.57 billion, compared to €6.02 billion in 2019, a drop of 24.1%.

 

Financial structure at the end of 2020

In 2020, Kering recorded estimated net financial expenses of €341.7 million. 341.7 million, including the cost of net financial debt, which amounted to 43.3 million, down 17.2% on the previous year. The company's free operating cash flow for the financial year 2020 amounted to €2.104 billion, an increase of 38.4%.

At the end of December 2020, the Kering Group's financial structure was very strong. Capital employed amounted to €14.18 billion, compared with €13.25 billion at 31 December 2019. This represents a year-on-year increase of 7.0%.

In addition, the company reduced its net financial debt in the year under review. It stood at €2.148 billion at December 31, 2021, compared with €2.812 billion a year earlier, a decrease of 23.6%.

 

Kering's results for the first half of 2021

For the first six months of the 2021 fiscal year, Kering's revenues amounted to 8,047.2 million euros, compared to 5,378.3 million euros a year earlier (for the same period). It is therefore up by 49.6% over one year. 952.4 million in H1-2020.

952.4 million in H1-2020. This represents strong year-on-year growth of 134.9%. 272.6 million in H1-2020, an increase of 442.6%. 569.3 million in the same period last year.

569.3 million in the same period of the previous year. It increased by 159.5% year-on-year. 2,950.9 million in H1 2021, compared to EUR 1,675.0 million in H1 2020, an increase of 76.2%. 125.6 million, a fall of 13.3%.

It includes in particular the cost of net financial debt which reached 21.7 million euros, down 27.7% compared to H1-2020. In the first half of 2021, Kering posted record free cash flow from operations. 2,353.9 million, up 316.2%.

The group's financial structure also appeared quite solid at the end of the first half of 2021. Capital employed is estimated at 13,385.7 million euros at the end of June 2021, compared to 14,183.7 million euros at 31 December 2020, a decrease of 5.6%.

Net financial debt stood at 619.2 million euros at 30 June 2021, compared to 2,148.7 million euros at the end of the 2020 financial year. 2,148.7 million at the end of the 2020 financial year, a decrease of 71.2% over six months.

 

Quarterly results in the third quarter of 2021

In the third quarter of 2021, Kering's revenue amounted to €4.19 billion. This represents an increase of 12.6% (based on published data) compared to Q3-2020. At constant exchange rates and scope of consolidation, sales grew by 12.2% year-on-year.

For the period as a whole, Gucci's quarterly revenue was €2.18 billion. 2.18 billion. Like-for-like sales fell by 3.8% in the quarter. This decline was due in particular to the disruption caused by the resurgence of the coronavirus pandemic during the summer in Asia. It was also due to the absence of tourists on the European continent.

For its part, Yves Saint Laurent posted a strong increase between July and September 2021. 652.9 million, up 28.1% (like-for-like) compared to Q3-2020.

363.4 million in Q3-2021. 363.4 million in Q3-2021, an increase of 8.9% (like-for-like) year-on-year. Sales of the "other houses", which include watchmaker Ulysse Nardin, jewellers Boucheron and Pomellato and fashion designer Balenciaga, reached €843.7 million, up 26%.

 

About Kering's dividend and market capitalisation

Kering's Annual General Meeting of Shareholders was held on April 22, 2021. At this meeting, the company's Board of Directors proposed to pay a cash dividend of €8.00 per share for the 2020 financial year.

In addition, the company is listed on the Paris Stock Exchange on the Euronext market. It is included in the CAC 40 stock market index. At the beginning of January 2022, its market capitalisation is estimated at more than EUR 80 billion.

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