LVMH's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

The LVMH group is a major player in the luxury goods industry. On a global level, it is recognised as the number one in the luxury sector. The company has more than 150,000 employees worldwide. In 2020, its activity decreased. This was due in particular to the impact of the Covid-19 health crisis. Here are the highlights of the group's annual results.

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LVMH's market cap, dividends, sales and earnings in 2020
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Overall annual performance of LVMH in 2020

For the full year 2020, the LVMH group recorded sales of 44.7 billion euros, compared with 53.7 billion euros in 2019. They are down by 17% year-on-year. On a like-for-like basis, they were down 16% on the previous year.

For the year 2020, the company generated a current operating profit of €8.3 billion, compared with €11.5 billion a year earlier. It is down 28% compared to 2019. Net income (group share) fell by 34% year-on-year to €4.7 billion in 2020, compared with €7.1 billion the previous year.

In 2020, the gross margin was €28.8 billion, compared with €35.5 billion in 2019. It is therefore down by 19% over the one-year period. The financial result stands at €608 million in 2020, compared to €559 million for the previous year.

 

Detail of the annual balance sheet by group activity

The LVMH Group is organised around five (05) business segments. Here is the performance of each of them in fiscal year 2020.

Wines & Spirits
In 2020, sales for the Wines & Spirits business came to 4.7 billion euros, compared with 5.6 billion euros in 2019. 5.6 billion in 2019. They fell by 14% (on a like-for-like basis) over one year.  The division's current operating income stood at €1.4 billion in 2020, compared with €1.7 billion a year earlier. 1.7 billion a year earlier. It decreased by 20% year-on-year.

In fiscal year 2020, the business line experienced a strong recovery in the United States. In the United States, the Champagne business showed a clear improvement in trends in the second half of the year.

 

Fashion & Leather Goods

The Fashion & Leather Goods division proved resilient in FY2020. It recorded total sales of €21.2 billion, compared with €22.2 billion in 2019. 22.2 billion in 2019, down 3% (like-for-like) year-on-year. The activity took place in a difficult context marked by the closure of shops for several months.

From April 2020, there was a strong recovery in sales in China. This was observed in the United States from July onwards. In addition, the division's profit from recurring operations declined by 2% year-on-year to 7.1 billion euros in 2020, compared to 7.3 billion euros a year earlier.

 

Perfumes and Cosmetics

During 2020, the Perfumes and Cosmetics business experienced continued innovation and rapid advances in online sales. In total, it recorded sales valued at 5.2 billion euros, compared to 6.8 billion euros in 2019. 6.8 billion in 2019. This represents a 22% decline (on a like-for-like basis) over the one-year period.

The downward trend can also be seen in the current operating result. 683 million in the previous year. 683 million in the previous year, a sharp 88% decrease compared to 2019.

 

Watches & Jewellery

For the full twelve months of fiscal year 2020, Watches & Jewelry recorded sales of 3.3 billion euros, compared to 4.4 billion euros in 2019. 4.4 billion in 2019, a 23% year-on-year decline (on a comparable basis and in constant currencies). However, the second half of the year was marked by a strong rebound in China.

In 2020, the current operating income of this business line reached 302 million euros. It fell by 59% compared to 2019 (736 million euros).

 

Selective Retailing

During 2020, the Selective Retailing business was strongly impacted by the discontinuation of international travel on DFS. However, Sephora held up well in the face of the health crisis. This crisis resulted in the closure of most of the company's shops for several months.

For the whole of the financial year 2020, the sales of this division amounted to 10.1 billion euros, compared with 14.8 billion euros in 2019. 14.8 billion in 2019, down 30% year-on-year (on a like-for-like basis). 203 million, compared with €1.4 billion the previous year.

 

Financial situation at the end of the 2020 financial year for LVMH

At the end of fiscal year 2020, the LVMH group has a strengthened financial structure. Free cash flow from operations decreased by 1% to 6.11 billion euros at the end of December 2020, compared to 6.16 billion euros a year earlier.

The company's net financial debt at 31 December 2020 was €4.2 billion, compared to €6.2 billion at the same date last year. At the end of 2020, the company's cash flow is estimated at €13.9 billion, compared with €16.1 billion at the end of December 2019.

The group's equity increased by 1% to €38.8 billion at 31 December 2020, compared to €38.4 billion at the end of 2019.

 

LVMH dividend and market capitalisation in 2020

At the Annual General Meeting of Shareholders held on April 15, 2021, the Board of Directors of the LVMH Group proposed the payment of a dividend of 6 euros per share for the 2020 financial year. Taking into account an interim dividend of 2 euros paid on December 3, 2020, the balance of 4 euros was paid on April 22, 2022.

In addition, the LVMH share is listed on the Paris Stock Exchange. It is part of the CAC 40 stock market index. As of October 2020, the company's market capitalisation is estimated at 207.56 billion euros.

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