Earnings Release • Feb 10, 2011
Earnings Release
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The Board of Directors of L'Oréal met on February 10th, 2011 under the chairmanship of Sir Lindsay Owen-Jones and in the presence of the Statutory Auditors. The Board closed the consolidated financial statements and the financial statements for 2010.
Commenting on the figures, Mr Jean-Paul Agon, Chief Executive Officer of L'Oréal, said: "In the context of an upturn in the cosmetics market, L'Oréal achieved strong sales growth. The group advanced in all zones, all channels and all business segments; more dynamic than the market, it bolstered its position as the world number one in beauty.
2010 was a year of conquests for the group, with several of our brands achieving spectacular breakthroughs: L'Oréal Professionnel with its hair colourant Inoa, Maybelline in mass-market make-up, Yves Saint Laurent which is experiencing a true renaissance, and La Roche-Posay which is continuing its expansion.
The group is growing in Western Europe, clearly improving its positions in North America, and continuing its conquest of the new strategic markets, particularly in Asia and Latin America. In 2010, L'Oréal China became the group's number three cosmetics subsidiary, with sales of more than one billion euros.
These performances confirm the relevance of the strategic thrusts adopted at the end of 2008: accessible innovation, new product categories, accelerated globalisation of our brands, and strengthening of our R&D and advertising & promotional investments.
2010 was also a year of strong profit growth; the actions taken over the last two years to improve operating efficiency are continuing to pay off.
Well prepared to seize all strategic opportunities, and driven by the ambition of winning a further one billion new consumers, L'Oréal is turning a new page in its history: the page of universalisation and beauty for everyone.
Supported by an encouraging start to the year, we are confident in the group's ability to achieve a new year of sales and profit growth in 2011."
Furthermore, the Board of Directors has decided to propose to the Annual General Meeting on April 22nd, 2011 the payment of a dividend of 1.80 euro per share, an increase of +20% compared with 2009.
The Board will also propose to the Annual General Meeting on April 22nd 2011 the renewal of the terms of office of Mrs Liliane BETTENCOURT, Mrs Annette ROUX and Mr Charles-Henri FILIPPI.
At the end of the board meeting, Sir Lindsay Owen-Jones said: "With this level of growth and results, the group produced a good performance in 2010. Thanks to their drive and imagination, Jean-Paul Agon and his teams have succeeded in opening up new areas for growth and profitability, which are also paving the way for the future. The proposal by the Board of Directors to pay a dividend of 1.80 euro is an expression of our confidence in the group's solidity and dynamism."
* diluted net earnings per share, based on net profit excluding non-recurring items attributable to the group.
** proposed at the Annual General Meeting of April 22nd, 2011.
Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales trend of the L'Oréal group was +5.6%.
The net impact of changes in consolidation amounted to +0.4%.
Currency fluctuations had a positive impact of +5.6%.
Growth at constant exchange rates was +6.0%.
Based on reported figures, the group's sales, at December 31st, 2010, amounted to 19.496 billion euros, an increase of +11.6%.
| 4th quarter 2010 | At December 31st 2010 | |||||||
|---|---|---|---|---|---|---|---|---|
| €m | Growth Like-for-like |
Reported | €m | Growth Like-for-like |
Reported | |||
| By operational division(1) | ||||||||
| Professional Products | 670.3 | 3.0% | 15.3% | 2,717.1 | 4.1% | 13.8% | ||
| Consumer Products | 2,315.4 | 4.6% | 11.6% | 9,529.9 | 5.5% | 11.4% | ||
| Luxury Products | 1,258.3 | 4.0% | 9.8% | 4,506.6 | 7.0% | 11.5% | ||
| Active Cosmetics | 304.6 | 5.9% | 11.3% | 1,385.6 | 4.7% | 8.9% | ||
| Cosmetics total | 4,548.5 | 4.3% | 11.6% | 18,139.1 | 5.6% | 11.6% | ||
| By geographic zone(2) | ||||||||
| Western Europe | 1,753.3 | 1.5% | 2.7% | 7,181.0 | 1.7% | 2.6% | ||
| North America | 1,043.3 | 2.6% | 15.0% | 4,291.5 | 4.1% | 12.5% | ||
| New Markets, of which: | 1,752.0 | 8.2% | 19.8% | 6,666.6 | 11.3% | 22.4% | ||
| - Asia, Pacific - Eastern Europe |
843.3 374.7 |
8.5% 6.9% |
23.1% 11.6% |
3,192.2 1,398.9 |
11.2% 8.1% |
22.9% 15.3% |
||
| - Latin America | 402.6 | 13.0% | 25.3% | 1,517.7 | 17.5% | 32.6% | ||
| - Africa, Middle East | 131.5 | -2.4% | 8.9% | 557.8 | 4.1% | 13.8% | ||
| Cosmetics total | 4,548.5 | 4.3% | 11.6% | 18,139.1 | 5.6% | 11.6% | ||
| The Body Shop | 248.5 | -3.0% | 3.1% | 754.9 | -1.1% | 3.9% | ||
| Dermatology(3) | 180.3 | 10.9% | 19.2% | 601.7 | 16.1% | 23.0% | ||
| Group total | 4,977.3 | 4.1% | 11.4% | 19,495.8 | 5.6% | 11.6% |
On January 1st, 2010, the divisions and geographic zones were reclassified as stated below. All figures for earlier periods have been restated to allow for these changes.
(1) The Roger & Gallet activity has been transferred from the Luxury Products Division to the Active Cosmetics Division.
(2) The Travel Retail business of YSL Beauté, which was previously recorded 100% under Western Europe, has now been broken down between the Western Europe, North America and New Markets zones.
The Rest of the World zone has become the New Markets zone with the following distribution:
Australia, India and New Zealand, which were previously in the Africa, Orient, Pacific zone have been included in the Asia zone which has become the Asia, Pacific zone. The Africa, Orient, Pacific zone has become the Africa, Middle East zone. (3) Group share, i.e. 50%.
In a hairdressing market which picked up slightly, the Professional Products Division achieved growth in 2010 of +4.1% like-for-like, and +13.8% based on reported figures. Its initiatives, rolled out through a portfolio of highly complementary brands, enabled the conversion of more than 35,000 new salons. More than ever before, the division is asserting its role as the unchallenged leader in this channel.
In 2010, the initiatives introduced in technical products brought decisive success.
In hair colourants, Inoa by L'Oréal Professionnel is a worldwide success, both in recruiting consumers and hairdressers and winning their loyalty. Repositioned at a more accessible price per application, SoColor by Matrix is conquering many salons in Europe, while Wonderbrown, a colourant for dark hair, is expanding in the United States.
In textures, Optistraight by Matrix and Dulcia Advanced perm by L'Oréal Professionnel are winning over Asia. In the West, X-Tenso Moisturist by L'Oréal Professionnel is driving the worldwide development of "Brazilian straightening".
Haircare is growing, supported by innovative launches: Kérastase Chronologiste, a luxury haircare line with caviar, L'Oréal Professionnel Fiberceutic with intracylane and Colourist Solutions by Pureology.
L'Oréal Professionnel and Matrix are driving the division's growth; Kérastase is gradually accelerating, while Redken is strengthening its leadership in the United States.
In Western Europe, the division is winning market share, with significant growth in Germany, the United Kingdom, Sweden and France. In North America, 2010 saw a return to growth for Matrix, and dynamic growth for Mizani and Pureology. The acquisition of two distributors, CB Sullivan and Peel's, has completed the SalonCentric network.
The New Markets are dynamic, with strong growth rates in India, China, Indonesia, and also in the Middle East and Brazil, where L'Oréal Professionnel is helping to build the professional markets of the future by opening its first institute for the training of young hairdressers.
The Consumer Products Division recorded growth of +5.5% like-for-like and +11.4% based on reported figures. It is winning market share in North America and the New Markets. The dynamism of the make-up market, the number one category in this division, stimulated growth across all zones. All the brands are growing, and above all Maybelline which achieved growth of +13.3% likefor-like.
L'Oréal Paris had a good year in haircare with strong growth in Latin America, the United States and Asia. In skincare, Youth Code achieved good scores. In make-up, Volume Million Lashes mascara proved to be a worldwide success.
Garnier is strengthening its leadership in the facial skin cleanser segment for young people with the launch of Pure Active Exfo-Brusher. The brand is continuing its progress in the new category of deodorants: it is consolidating the positions it has won in Latin America and in Eastern Europe, and is moving into Western Europe.
Maybelline is growing strongly in all regions. It became the make-up market leader in the United States thanks to the success of Falsies mascara and Instant Age Rewind The Eraser foundation. In Asia, the tinted skincare line BB Cream is proving highly successful.
Finally, the division is making considerable progress in the men's skincare category, particularly in Western Europe where Men Expert is now number 1 in the market, and in Asia where the Garnier Men launch complements the L'Oréal Paris Men Expert range.
In Western Europe, in a sluggish market, the division advanced thanks to make-up, haircare and deodorants, particularly in the United Kingdom, Germany and Scandinavia.
In North America, in a market which was also stable, the division significantly improved its positions with market share gains in make-up, hair colourants, haircare and styling.
The New Markets are being galvanised by powerful regional initiatives: in Brazil and Argentina, thanks to L'Oréal Paris haircare and Garnier deodorants, and in China, India, Indonesia and the Philippines thanks to L'Oréal Paris haircare, make-up, and L'Oréal Paris and Garnier men's skincare.
The Luxury Products Division recorded growth of +7% like-for-like and +11.5% based on reported figures. In the context of an upturn in the selective market, the division posted sell-out growth in line with the market trend. It thus consolidated its worldwide positions, and particularly its leadership in Travel Retail. Its major core brands delivered good performances.
Lancôme returned to strong growth, bolstered by the success of its skincare lines, particularly Génifique, but also by the launch of Teint Miracle foundation, the product of ten years of research, which won the Prix d'Excellence Marie-Claire. The fragrance Trésor by Lancôme is growing strongly, thanks to a new advertising campaign and the launch of Trésor in Love.
Yves Saint Laurent is experiencing a renaissance, with double-digit growth: the brand has had a string of successes in fragrances - L'Homme Yves Saint Laurent, La Nuit de L'Homme, the relaunch of Opium and the arrival of Belle d'Opium – and is making a strong comeback in make-up with the launch of Rouge Pur Couture.
Giorgio Armani had a very good year, driven by the success of the new women's fragrance Acqua di Gioia, not forgetting Giorgio Armani Cosmetics, with Eyes to kill Excess mascara proving a hit with consumers.
Lastly, Kiehl's achieved an exceptional breakthrough in 2010 on all continents.
In Western Europe, the division is clearly number one, and sales are in line with the market trend. Its momentum is boosted by France, Germany, the United Kingdom and the Scandinavian countries. The good performances of the Yves Saint Laurent, Kiehl's and Ralph Lauren brands are also worth noting. In North America, the situation is more contrasting, yet the Yves Saint Laurent, Kiehl's and Viktor & Rolf brands are posting strong sales growth. Ralph Lauren showed outstanding performance with The Big Pony Collection.
In the New Markets, the division is growing faster than the market: in Asia, thanks to the dynamism of Travel Retail, China, and the good performances of Lancôme, Kiehl's, Giorgio Armani and Shu Uemura; and in Eastern Europe, where the division is continuing to make conquests.
The annual sales of the Active Cosmetics Division grew by +4.7% like-for-like and +8.9% based on reported figures. All the brands and all the zones achieved growth. Across the world, the division confirmed its position as number one in dermocosmetics.
La Roche-Posay achieved double-digit growth, thanks in particular to Redermic[+], and is winning market share everywhere.
Vichy saw the success of the LiftActiv franchise confirmed in the anti-ageing market on all continents, and particularly in China. Launched at the end of the year in Western Europe, NutriExtra bodycare has been very well received. This initiative is enabling the brand to reinforce its position in bodycare, which is a very strategic segment for pharmacies.
Thanks to a dynamic last quarter in hair products, Innéov strengthened its leadership in Western Europe and achieved a spectacular breakthrough in Brazil.
SkinCeuticals recorded very strong growth, thanks to its roll-out in European markets, and the opening up of China, Canada and Brazil.
The integration of Roger & Gallet into the division is extremely encouraging, and internationalisation has begun in Western Europe and Brazil.
All the zones ended the year with positive growth, and this was particularly clear in Western Europe. The division is accelerating in the New Markets. Latin America produced a good performance, thanks in particular to Brazil.
With performances of +1.7% like-for-like, and +2.6% based on reported figures, the group's growth was very slightly faster than the market trend, particularly in the United Kingdom, Germany, Sweden and France, and in Travel Retail. All divisions recorded positive growth.
2010 brought significant growth, far exceeding the market growth trend, at +4.1% like-for-like and +12.5% based on reported figures. The Consumer Products Division produced a very strong performance, thanks in particular to the excellent results of Maybelline. The Luxury Products Division continued the recovery which began at the end of 2009. The Professional Products Division had a very good year thanks to the success of Inoa.
With growth of +11.3% like-for-like, and +22.4% based on reported figures, the group is growing twice as fast as the market. The main driving forces are Asia and Latin America.
The Body Shop ended the year with like-for-like growth at –1.1%. Retail sales(1) are at -2.6%. The Body Shop had a year of contrasting performances, with trends differing between the developed countries and the New Markets.
2010 was a year of transition for The Body Shop, which completed its strategic reorganisation.
The brand is stepping up its militant approach to innovation, with launches including Natrulift, a firming skincare line with organic pomegranate, Dreams Unlimited, a fragrance with Community Fair Trade Ecuadorean alcohol and also Rainforest, an eco-conscious haircare range.
Above all, The Body Shop is accelerating its expansion into the New Markets, particularly in Eastern Europe, Asia, and India where the brand has doubled the number of its stores. The brand has also extended its distribution into new channels, such as the Internet and Travel Retail, to increase its reach and its visibility.
Lastly, the actions taken on the operational front continue to deliver: The Body Shop is steadily improving its profitability.
At the end of 2010, The Body Shop has a total of 2,605 stores.
(1) Retail sales: total sales to consumers through all channels, including franchisees.
Galderma achieved record sales, with a like-for-like increase of +16.1% and +23.0% based on reported figures, re-enforcing its position as a worldwide leader in dermatology. The company recorded double-digit growth in all regions across the world.
Sell-out is growing twice as fast as the market.
Strategic prescription brands Epiduo (acne), Oracea (rosacea), Clobex (scalp psoriasis), Metvix (skin cancer), Rozex/Metro (rosacea) and Loceryl (onychomycosis) have all shown excellent results. Galderma also significantly expanded its presence in the corrective and aesthetic dermatology segment. The company continued to successfully launch Azzalure (a botulinum toxin type A developed for use in aesthetic medicine) in several European countries and broadened its product portfolio with the pre-launch of Emervel, a hyaluronic acid dermal filler range.
Audited financial statements, certification in progress.
| 2009 | 2010 | |||
|---|---|---|---|---|
| €m | % sales | €m | % sales | |
| Sales | 17,473 | 100% | 19,496 | 100% |
| Cost of sales | -5,162 | 29.5% | -5,697 | 29.2% |
| Gross profit | 12,311 | 70.5% | 13,799 | 70.8% |
| Research and development expenses | -609 | 3.5% | -665 | 3.4% |
| Advertising and promotion expenses | -5,389 | 30.8% | -6,029 | 30.9% |
| Selling, general and administrative expenses | -3,736 | 21.4% | -4,049 | 20.8% |
| Operating profit | 2,578 | 14.8% | 3,057 | 15.7% |
Gross margin increased by +12.1% and came out at 70.8% of sales, compared with 70.5% in 2009, representing an improvement of 30 basis points.
Several factors had a favourable impact, including:
On the other hand, two factors had an unfavourable impact on this item:
Research and development expenses increased by +9.1% based on reported figures (+8.9% like-for-like) and represented 3.4% of sales.
Advertising and promotion expenses came out at 30.9% of sales.
Selling, general and administrative expenses grew significantly less rapidly than sales, at +2.7% based on a comparable structure and identical exchange rates. They improved by 60 basis points compared with 2009.
Overall, operating profit grew by +18.6% and came out at 3 057 million euros, that is 15.7% of sales, an improvement of 90 basis points compared with 2009.
| 2009 | 2010 | |||
|---|---|---|---|---|
| €m | % sales | €m | % sales | |
| By operational division | ||||
| Professional Products | 477 | 20.0% | 552 | 20.3% |
| Consumer Products | 1,577 | 18.4% | 1,765 | 18.5% |
| Luxury Products(1) | 612 | 15.1% | 791 | 17.5% |
| Active Cosmetics(1) | 255 | 20.0% | 278 | 20.1% |
| Cosmetics divisions total | 2,921 | 18.0% | 3,385 | 18.7% |
| Non-allocated(2) | -482 | -3.0% | -513 | -2.8% |
| Cosmetics branch total | 2,439 | 15.0% | 2,872 | 15.8% |
| The Body Shop | 54 | 7.4% | 65 | 8.7% |
| Dermatology branch(3) | 85 | 17.4% | 119 | 19.8% |
| Group | 2,578 | 14.8% | 3,057 | 15.7% |
(1) At January 1st, 2010, Roger & Gallet was transferred from the Luxury Products Division to the Active Cosmetics Division. Figures for 2009 have been adjusted to allow for this change.
(2) Non-allocated = Central group expenses, fundamental research expenses, stock option expenses and miscellaneous items. As % of total sales.
(3) Group share, i.e. 50%.
All the divisions achieved growth in their operating profitability, particularly the Luxury Products Division, whose operating profit increased from 15.1% to 17.5%.
There were also substantial improvements at the following levels:
| Operating profit | 2009 | 2010 | ||
|---|---|---|---|---|
| €m | % sales | €m | % sales | |
| Western Europe | 1,472 | 21.0% | 1,552 | 21.6% |
| North America | 555 | 14.5% | 709 | 16.5% |
| New Markets | 894 | 16.4% | 1,125 | 16.9% |
| Cosmetics zones total(1) | 2,921 | 18.0% | 3,385 | 18.7% |
(1) Previously non-allocated.
At January 1st, 2010: The Travel Retail sales of YSL Beauté, previously included under Western Europe, have been allocated to the different zones.
The Rest of the World zone has become the New Markets zone.
Figures for 2009 have been adjusted to allow for these changes.
There was an improvement in profitability in all zones.
| €m | 2009 | 2010 |
|---|---|---|
| Operating profit | 2,578 | 3,057 |
| Finance costs | -89 | -36 |
| Sanofi-Aventis dividends | 260 | 284 |
| Pre-tax profit excluding non-recurring items | 2,749 | 3,305 |
| Income tax excluding non-recurring items | -749 | -932 |
| Minority interests | -2.7 | -2.3 |
| Net profit excluding non-recurring items after minority interests(1) | 1,997 | 2,371 |
| EPS(2) (€) | 3.42 | 4.01 |
| Diluted net earnings per share (group share) | 583,797,566 | 591,392,449 |
(1) Net profit excluding non-recurring items after minority interests does not include capital gains and losses on disposals of long-term assets, impairment of assets, restructuring costs, and in 2010 competition litigation, associated tax effects or minority interests.. (2) Diluted net earnings per share excluding non-recurring items after minority interests.
Finance costs amounted to 35.6 million euros, representing a sharp reduction, mainly because of the very significant decrease in net debt.
Dividends received from Sanofi-Aventis amounted to 284 million euros, up by +9.1%.
Tax amounted to 932 million euros, representing a rate of 28.2%, slightly above the 2009 rate which was 27.3%.
Net earnings per share, at 4.01 euros, increased by +17.2%.
| €m | 2009 | 2010 |
|---|---|---|
| Net profit excluding non-recurring items after minority interests | 1,997 | 2,371 |
| Non-recurring items net of tax | -205 | -131 |
| Net profit after minority interests | 1,792 | 2,240 |
| Diluted earnings per share (€) | 3.07 | 3.79 |
Excluding non-recurring items, which amounted to a charge, net of tax, of 131 million euros, net profit amounted to 2,240 million euros, an increase of +25%.
Gross cash flow amounted to 3,171 million euros, up by +15% compared with 2009. There was a very positive change in the working capital requirement, which decreased in 2010, for the second consecutive year, by 132 million euros.
Capital expenditure continued to be contained, at 3.5% of sales.
After dividend payment and purchases of investments, and allowing for the exercise of options, the residual cash flow comes out at 1,891 billion euros.
The balance sheet, whose structure was already robust, has been strengthened, with shareholders' equity representing 62% of total assets.
Net financial debt amounted to 41 million euros, representing 0.3% of shareholders' equity.
The Board of Directors has decided to propose that the Annual General Meeting of Shareholders of April 22nd, 2011 should approve a dividend of 1.80 euro per share, an increase of +20% compared with the dividend paid in 2010. This dividend will be paid on May 4th, 2011 (ex-dividend date April 29th at 0:00 am).
Finally, the Board of Directors has set the amount of the share capital at December 31st, 2010: 600,992,585 shares with a par value of 0.20 euro, representing a total of 120,198,517 euros.
"This news release does not constitute an offer to sell, or a solicitation of an offer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."
Contacts at L'ORÉAL (Switchboard: +33 1 47 56 70 00)
Tel: +33 1 47 56 83 02 Tel: +33 1 47 56 79 15 Tel: +33 1 47 56 76 71
Mr Jean Régis CAROF Mrs Françoise LAUVIN Mrs Stephanie CARSON-PARKER [email protected] [email protected] [email protected]
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, http://www.loreal-finance.com, or its mobile version on your cell phone, http://loreal-finance.mobi; alternatively, call +33.1.40.14.80.50.
| 2009 | 2010 | |
|---|---|---|
| First quarter: | ||
| Cosmetics | 4,112 | 4,445 |
| The Body Shop | 162 | 164 |
| Dermatology | 96 | 112 |
| First quarter total | 4,370 | 4,722 |
| Second quarter: | ||
| Cosmetics | 4,104 | 4,617 |
| The Body Shop | 161 | 170 |
| Dermatology | 134 | 158 |
| Second quarter total | 4,399 | 4,945 |
| First half: | ||
| Cosmetics | 8,216 | 9,062 |
| The Body Shop | 323 | 334 |
| Dermatology | 230 | 271 |
| First half total | 8,769 | 9,667 |
| Third quarter: | ||
| Cosmetics | 3,965 | 4,529 |
| The Body Shop | 162 | 172 |
| Dermatology | 108 | 151 |
| Third quarter total | 4,235 | 4,852 |
| Nine months: | ||
| Cosmetics | 12,181 | 13,591 |
| The Body Shop | 485 | 506 |
| Dermatology | 338 | 421 |
| Nine months total | 13,004 | 14,518 |
| Fourth quarter: | ||
| Cosmetics | 4,076 | 4,549 |
| The Body Shop | 241 | 249 |
| Dermatology | 151 | 180 |
| Fourth quarter total | 4,469 | 4,977 |
| Full year | ||
| Cosmetics | 16,257 | 18,139 |
| The Body Shop | 726 | 755 |
| Dermatology | 489 | 602 |
| Full year total | 17,473 | 19,496 |
| € millions | 2010 | 2009 | 2008 |
|---|---|---|---|
| Net sales | 19,495.8 | 17,472.6 | 17,541.8 |
| Cost of sales | (5,696.5) | (5,161.6) | (5,187.2) |
| Gross profit | 13,799.3 | 12,311.0 | 12,354.6 |
| Research and development | (664.7) | (609.2) | (587.5) |
| Advertising and promotion | (6,029.1) | (5,388.7) | (5,269.1) |
| Selling, general and administrative expenses | (4,048.6) | (3,735.5) | (3,773.4) |
| Operating profit | 3,056.9 | 2,577.6 | 2,724.6 |
| Other income and expenses | (153.2) | (277.6) | (156.3) |
| Operational profit | 2,903.7 | 2,299.9 | 2,568.3 |
| Finance costs on gross debt | (43.8) | (92.0) | (208.8) |
| Finance income on cash and cash equivalents | 17.2 | 16.0 | 34.6 |
| Finance costs, net | (26.6) | (76.0) | (174.2) |
| Other financial income (expenses) | (9.0) | (13.0) | (7.2) |
| Sanofi-Aventis dividends | 283.8 | 260.1 | 244.7 |
| Profit before tax and non-controlling interests | 3,151.9 | 2,471.0 | 2,631.6 |
| Income tax | (909.9) | (676.1) | (680.7) |
| Net profit | 2,242.0 | 1,794.9 | 1,950.9 |
| attributable to: | |||
| - owners of the Company | 2,239.7 | 1,792.2 | 1,948.3 |
| - non-controlling interests | 2.3 | 2.7 | 2.6 |
| Earnings per share attributable to owners of the Company (€) | 3.82 | 3.07 | 3.31 |
| Diluted earnings per share attributable to owners of the Company (€) | 3.79 | 3.07 | 3.30 |
| Earnings per share attributable to owners of the Company excluding non-recurring items (€) |
4.04 | 3.42 | 3.50 |
| Diluted earnings per share attributable to owners of the Company excluding non-recurring items (€) |
4.01 | 3.42 | 3.49 |
| € millions | 2010 | 2009 | 2008 |
|---|---|---|---|
| Consolidated net profit for the period | 2,242.0 | 1,794.9 | 1,950.9 |
| Financial assets available for sale | (852.3) | 1,142.5 | (2,083.9) |
| Cash flow hedges | (8.0) | (154.3) | 88.3 |
| Actuarial gains and losses | (213.5) | (142.9) | (160.4) |
| Tax effect on items directly recognised in equity (1) | 92.0 | 61.4 | 78.6 |
| Cumulative translation adjustments | 463.3 | 6.5 | (124.5) |
| Changes in gains and losses directly recognised in equity | (518.5) | 913.2 | (2,201.9) |
| Total net profit and gains and losses directly recognised in equity | 1,723.5 | 2,708.1 | (251.0) |
| Attributable to: | |||
| - owners of the Company | 1,721.2 | 2,705.4 | (253.6) |
| - non-controlling interests | 2.3 | 2.7 | 2.6 |
(1) The tax effect is as follows:
| € millions | 2010 | 2009 | 2008 |
|---|---|---|---|
| Financial assets available for sale | 14.6 | (19.8) | 37.7 |
| Cash flow hedges | 1.1 | 39.6 | (17.4) |
| Actuarial gains and losses | 76.3 | 41.6 | 58.3 |
| Total | 92.0 | 61.4 | 78.6 |
| € millions | December 31, 2010 |
December 31, 2009 |
December 31, 2008 |
|---|---|---|---|
| Non-current assets | 17,048.2 | 17,350.4 | 16,380.3 |
| Goodwill | 5,729.6 | 5,466.0 | 5,532.5 |
| Other intangible assets | 2,177.5 | 2,042.4 | 2,038.2 |
| Tangible assets | 2,677.5 | 2,599.0 | 2,753.3 |
| Non-current financial assets | 5,837.5 | 6,672.2 | 5,557.4 |
| Deferred tax assets | 626.1 | 570.8 | 498.9 |
| Current assets | 6,996.3 | 5,941.1 | 6,526.5 |
| Inventories | 1,810.1 | 1,476.7 | 1,635.5 |
| Trade accounts receivable | 2,685.3 | 2,443.3 | 2,694.6 |
| Other current assets | 846.0 | 732.8 | 985.8 |
| Current tax assets | 104.5 | 115.2 | 133.6 |
| Cash and cash equivalents | 1,550.4 | 1,173.1 | 1,077.1 |
| Total | 24,044.5 | 23,291.5 | 22,906.9 |
| € millions | December 31, 2010 |
December 31, 2009 |
December 31, 2008 |
|---|---|---|---|
| Equity | 14,865.8 | 13,598.3 | 11,562.5 |
| Share capital | 120.2 | 119.8 | 120.5 |
| Additional paid-in capital | 1,148.3 | 996.5 | 965.5 |
| Other reserves | 11,107.1 | 10,141.3 | 9,232.1 |
| Items directly recognised in equity | 1,188.1 | 2,169.9 | 1,263.2 |
| Cumulative translation adjustments | (89.6) | (552.9) | (559.4) |
| Treasury stock | (850.9) | (1,071.6) | (1,410.6) |
| Net profit attributable to owners of the Company | 2,239.7 | 1,792.2 | 1,948.3 |
| Equity attributable to owners of the Company | 14,862.9 | 13,595.2 | 11,559.6 |
| Non-controlling interests | 2.9 | 3.1 | 2.8 |
| Non-current liabilities | 2,596.6 | 4,306.6 | 3,978.0 |
| Provisions for employee retirement obligations and related benefits | 1,129.0 | 1,021.4 | 961.6 |
| Provisions for liabilities and charges | 181.3 | 125.6 | 111.4 |
| Deferred tax liabilities | 462.0 | 418.0 | 398.4 |
| Non-current borrowings and debt | 824.3 | 2,741.6 | 2,506.6 |
| Current liabilities | 6,582.1 | 5,386.5 | 7,366.4 |
| Trade accounts payable | 3,153.5 | 2,603.1 | 2,656.6 |
| Provisions for liabilities and charges | 536.9 | 510.0 | 431.1 |
| Other current liabilities | 1,958.1 | 1,750.5 | 1,848.4 |
| Income tax | 166.6 | 133.2 | 159.7 |
| Current borrowings and debt | 767.0 | 389.7 | 2,270.6 |
| Total | 24,044.5 | 23,291.5 | 22,906.9 |
| € millions | Common shares outstanding |
Share capital |
Additional paid-in capital |
Retained earnings and net profit |
Items directly recognised in equity |
Treasury stock |
Cumulative translation adjustments |
Equity to attributable owners of the Company |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|
| At December 31, 2008 | 583,140,468 | 120.5 | 965.5 | 11,180.4 | 1,263.2 | (1,410.6) | (559.4) | 11,559.6 | 2.8 | 11,562.5 |
| Consolidated net profit for the period | 1,792.2 | 1,792.2 | 2.7 | 1,794.9 | ||||||
| Financial assets available for sale | 1,122.7 | 1,122.7 | 1,122.7 | |||||||
| Cash flow hedges | (114.7) | (114.7) | (114.7) | |||||||
| Actuarial gains and losses | (101.3) | (101.3) | (101.3) | |||||||
| Cumulative translation adjustments | 6.5 | 6.5 | 6.5 | |||||||
| Change in gains and losses directly recognised in equity |
906.7 | 6.5 | 913.2 | 913.2 | ||||||
| Total net profit and gains and losses directly recognised in equity |
1,792.2 | 906.7 | 6.5 | 2,705.4 | 2.7 | 2,708.1 | ||||
| Capital increase | 527,200 | 0.1 | 31.0 | 31.1 | 31.1 | |||||
| Cancellation of treasury stock | (0.8) | (271.5) | 272.3 | |||||||
| Dividends paid (not paid on treasury stock) |
(839.7) | (839.7) | (2.4) | (842.1) | ||||||
| Share-based payment | 76.7 | 76.7 | 76.7 | |||||||
| Net changes in treasury stock | 1,067,992 | (1.7) | 66.7 | 65.0 | 65.0 | |||||
| Other movements | (2.9) | (2.9) | (2.9) | |||||||
| At December 31, 2009 | 584,735,660 | 119.8 | 996.5 | 11,933.5 | 2,169.9 | (1,071.6) | (552.9) | 13,595.2 | 3.1 | 13,598.3 |
| Consolidated net profit for the period | 2,239.7 | 2,239.7 | 2.3 | 2,242.0 | ||||||
| Financial assets available for sale | (837.7) | (837.7) | (837.7) | |||||||
| Cash flow hedges | (6.8) | (6.8) | (6.8) | |||||||
| Actuarial gains and losses | ||||||||||
| Cumulative translation adjustments | (137.3) | (137.3) | (137.3) | |||||||
| 463.3 | 463.3 | 463.3 | ||||||||
| Change in gains and losses directly recognised in equity |
(981.8) | 463.3 | (518.5) | (518.5) | ||||||
| Total net profit and gains and losses directly recognised in equity |
2,239.7 | (981.8) | 463.3 | 1,721.2 | 2.3 | 1,723.5 | ||||
| Capital increase | 2,520,175 | 0.5 | 151.8 | 152.3 | 152.3 | |||||
| Cancellation of treasury stock | (0.1) | (37.8) | 37.9 | |||||||
| Dividends paid | (878.8) | (878.8) | (2.2) | (881.0) | ||||||
| (not paid on treasury stock) Share-based payment |
84.8 | 84.8 | 84.8 | |||||||
| Net changes in treasury stock | 2,400,068 | 1.1 | 182.8 | 183.9 | 183.9 | |||||
| Purchase of non-controlling interests | (2.9) | (2.9) | (2.9) | |||||||
| Other movements | 7.2 | 7.2 | (0.3) | 6.9 |
| € millions | 2010 | 2009 | 2008 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net profit attributable to owners of the Company | 2,239.7 | 1,792.2 | 1,948.3 |
| Non-controlling interests | 2.3 | 2.7 | 2.6 |
| Elimination of expenses and income with no impact on cash flows: | |||
| • depreciation, amortisation and provisions | 734.2 | 834.0 | 706.1 |
| • changes in deferred taxes | 110.0 | 51.7 | 6.6 |
| • share-based payment | 84.8 | 76.7 | 85.9 |
| • capital gains and losses on disposals of assets | 0.1 | 0.9 | (3.6) |
| Gross cash flow | 3,171.1 | 2,758.2 | 2,745.9 |
| Changes in working capital | 132.5 | 466.3 | (148.8) |
| Net cash provided by operating activities (A) | 3,303.6 | 3,224.5 | 2,597.1 |
| Cash flows from investing activities | |||
| Investments in tangible and intangible assets | (677.9) | (628.0) | (745.9) |
| Disposal of tangible and intangible assets | 18.3 | 27.5 | 9.2 |
| Changes in other financial assets (including investments in non-consolidated companies) |
2.3 | 36.7 | (9.4) |
| Effect of changes in the scope of consolidation | (160.7) | (160.2) | (1,299.1) |
| Net cash (used in) from investing activities (B) | (818.0) | (723.9) | (2,045.2) |
| Cash flows from financing activities | |||
| Dividends paid | (921.6) | (851.5) | (849.2) |
| Capital increase of the parent company | 152.3 | 31.1 | 2.3 |
| Disposal (acquisition) of treasury stock | 184.0 | 65.0 | (912.6) |
| Purchase of non-controlling interests | (8.7) | - | - |
| Issuance (repayment) of short-term loans | (132.6) | (1,886.0) | 1,262.5 |
| Issuance of long-term borrowings | 4.0 | 350.3 | 1.1 |
| Repayment of long-term borrowings | (1,462.5) | (98.4) | (62.8) |
| Net cash (used in) from financing activities (C) | (2,185.1) | (2,389.4) | (558.7) |
| Net effect of changes in exchange rates and fair value (D) | 76.9 | (15.3) | (2.8) |
| Change in cash and cash equivalents (A+B+C+D) | 377.4 | 96.0 | (9.6) |
| Cash and cash equivalents at beginning of the year (E) | 1,173.1 | 1,077.1 | 1,086.7 |
| Cash and cash equivalents at end of the year (A+B+C+D+E) | 1,550.4 | 1,173.1 | 1,077.1 |
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