Earnings Release • Jan 31, 2017
Earnings Release
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4,351 stores in 64 markets
& Other Stories
"2016 was an eventful year which included many positive things but also challenges for us as well as for the industry. During the year, we opened 427 new stores net worldwide and added three new markets, and we also rolled out our online store to 11 additional markets. This means that H&M is now present in 64 markets of which 35 offer e-commerce. We welcomed more than 13,000 new colleagues which means there are now more than 161,000 colleagues in the group.
Our sales increased by 7 percent in local currencies to SEK 223 billion - our highest annual turnover to date - although sales performance was lower than planned, which led to increased mark-downs. This, combined with the fact that the strong US dollar made our purchases more expensive, had a negative impact on our profit development for the full year. However, profits improved in the fourth quarter.
The year was characterised by the shift in the industry towards an ever growing online market and by digitalisation. We are very pleased that our online business developed very well for all our brands, both as regards sales and profitability. From an already high level we took further market share, which clearly proves that our investments in our online business have been successful. Our brands COS, & Other Stories, Monki, Weekday and H&M Home had apart from strong online sales growth also very good store sales.
It is also positive that sales developed well for H&M in our well-established markets such as Sweden and the other Scandinavian countries and in Russia, Turkey and Canada, but also in our newer markets such as India, Australia, South Africa, Mexico, Chile and Peru.
For fashion retail in general, 2016 was at the same time a challenging year in which various external factors - including geopolitical events - had a negative impact on retail trade in many markets. This was particularly visible in France, Germany, Switzerland and Italy as well as in the US and in China. Since these markets represent a large share of our sales, this consequently had a great impact on our overall sales development. However, during the year we also identified areas within our customer offering, store experience and supply chain where we could have done better – and where we are now methodically ensuring improvements.
We have a highly developed online business model and today our online sales already represent a significant share of our total sales in several markets. We are in an exciting development phase as we continue with the investments that we have been making for the past few years in digitalisation and infrastructure in the following focus areas:
The investments in these areas ensure that we are well positioned for continued long-term and profitable growth. This also includes our strong expansion both through new stores and new online markets.
H&M
In the light of this development, it is natural for us to rephrase our growth target. This means that our previous target of increasing the number of stores by 10 to 15 percent per year will instead become a sales target that includes both stores and online sales. Our new growth target which applies for 2017 and going forward is for the H&M group's sales to increase by 10 to 15 percent in local currencies per year with continued high profitability.
Today we have a strong store portfolio with more than 4,300 stores which gives us a unique proximity to our customers. Being close to the customers is key to success and even more important as the physical and the digital world become increasingly integrated. The stores that we are opening have very favourable and flexible leases, are in good locations and are profitable with a short payback period. In view of this, it is only natural for us to continue expanding with our physical stores too.
In 2017 we plan to open approximately 430 new stores net. We will enter five new bricks-andmortar markets – Kazakhstan, Colombia, Iceland, Vietnam and Georgia – and six new H&M online markets – Turkey, Taiwan, Hong Kong, Macau, Singapore and Malaysia.
Alongside opening new stores, we will also review the existing store portfolio to make sure that we have the optimal mix of brands, space and number of stores in each market. This will lead to re-locations, adding new store space and also closures. Most of the new stores in 2017 will be H&M stores and approximately 70 to 80 stores will consist of our other brands.
H&M Home is developing very well and has great potential for further growth. Going forward we will therefore open standalone H&M Home stores and profile H&M Home even more as a standalone brand.
In 2017 we are looking forward to delivering strong collections and customer experiences and launching one or two new brands. This, combined with the ongoing improvements and our investments in the omni-channel offering, the supply chain and advanced analytics make us positive towards our opportunities for reaching our newly rephrased growth target, both in 2017 and going forward."
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK m | 2016 | 2015 | 2016 | 2015 |
| Net sales | 52,720 | 48,694 | 192,267 | 180,861 |
| Gross profit | 30,027 | 27,997 | 106,177 | 103,167 |
| gross margin, % | 57.0 | 57.5 | 55.2 | 57.0 |
| Operating profit | 7,354 | 7,084 | 23,823 | 26,942 |
| operating margin, % | 13.9 | 14.5 | 12.4 | 14.9 |
| Net financial items | 55 | 64 | 216 | 300 |
| Profit after financial items | 7,409 | 7,148 | 24,039 | 27,242 |
| Tax | -1,495 | -1,622 | -5,403 | -6,344 |
| Profit for the period | 5,914 | 5,526 | 18,636 | 20,898 |
| Earnings per share, SEK | 3.57 | 3.34 | 11.26 | 12.63 |
The H&M group's sales in local currencies including VAT increased by 7 percent in the fourth quarter and by 7 percent in the financial year 2016.
(56,477) in the fourth quarter. Sales including VAT in the financial year 2016 increased by 6 percent and amounted to SEK 222,865 m (209,921).
Sales including VAT converted into SEK increased by 8 percent to SEK 61,098 m
Sales excluding VAT increased by 8 percent to SEK 52,720m (48,694) in the fourth quarter and by 6 percent to SEK 192,267 m (180,861) in the financial year 2016.
The difference between the sales increase in SEK and in local currencies is due to how the Swedish krona has developed against the overall basket of currencies in the group compared to the same period last year.
Currency translation effects arise when sales and profits in local currencies are translated into the company's reporting currency, which is SEK. A negative currency translation effect arises when the Swedish krona strengthens and a positive currency translation effect arises when the Swedish krona weakens.
| 2016 | 2015 | Change in % | 30 Nov - 16 | 2016 | ||
|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | Number of | New stores | |
| inc. VAT | inc. VAT | currency | stores | (net) | ||
| Germany | 37,174 | 36,943 | 1 | 0 | 459 | 10 |
| USA | 26,874 | 25,135 | 7 | 5 | 468 | 53 |
| UK | 15,058 | 16,001 | -6 | 3 | 281 | 17 |
| France | 13,559 | 13,579 | 0 | -1 | 238 | 16 |
| China | 10,842 | 10,559 | 3 | 7 | 444 | 91 |
| Sweden | 10,151 | 9,495 | 7 | 7 | 176 | 0 |
| Italy | 9,081 | 8,644 | 5 | 4 | 166 | 16 |
| Netherlands | 7,898 | 7,521 | 5 | 5 | 145 | 6 |
| Spain | 7,894 | 7,736 | 2 | 1 | 169 | 4 |
| Switzerland | 6,328 | 6,844 | -8 | -7 | 98 | 2 |
| Others* | 78,006 | 67,464 | 16 | 17 | 1,707 | 212 |
| Total | 222,865 | 209,921 | 6 | 7 | 4,351 | 427 |
| * Of which franchises | 4,808 | 4,494 | 7 | 5 | 188 | 32 |
H&M Sport
Gross profit SEK m
H&M's gross profit and gross margin are a result of many different factors, internal as well as external, and are mostly affected by the decisions that H&M takes in line with its strategy to always have the best customer offering in each individual market – based on the combination of fashion, quality, price and sustainability.
H&M
Gross profit increased to SEK 30,027 m (27,997) in the fourth quarter, corresponding to a gross margin of 57.0 percent (57.5). For the financial year, gross profit increased to SEK 106,177 m (103,167), corresponding to a gross margin of 55.2 percent (57.0).
Mark-downs in relation to sales increased by 0.6 percentage points in the fourth quarter 2016 compared to the corresponding quarter in 2015. The increase in Q4 is mostly explained by increased mark-down activities for autumn garments that did not sell as well as planned due to the warm start of the autumn.
Overall, the market situation as regards external factors such as cost inflation and purchasing currencies continued to be slightly negative during the purchasing period for the fourth quarter compared to the corresponding purchasing period in the previous year.
For purchases made for the first quarter 2017, the overall market situation for the external factors is again considered slightly negative overall compared to the corresponding purchasing period the previous year.
Cost control in the group remains good. For the fourth quarter of 2016, selling and administrative expenses increased by 8 percent in SEK and by 7 percent in local currencies compared to the fourth quarter last year.
Selling and administrative expenses for the full-year increased by 8 percent in SEK and by 9 percent in local currencies.
&Other Stories
Profit after financial items in the fourth quarter 2016 increased to SEK 7,409 m (7,148). Profit after financial items in the full-year amounted to SEK 24,039 m (27,242).
Mark-downs increased during the year due to a lower sales increase than planned. In addition, the strong US dollar made the group's purchases more expensive. However, in the fourth quarter earnings improved.
No new allocation has been made to the H&M Incentive Program (HIP) – which is aimed at all employees of the H&M group, in all countries, working in all positions and at all pay levels – for full-year 2016. Allocations are made to the programme if there has been an increase in the company's profits after tax between two consecutive financial years. Since HIP's assets are invested in H&M shares, the participants in HIP – i.e. H&M's employees - benefit each year from the dividend paid to the company's shareholders. HIP holds approximately 7 million H&M shares in total.
Stock-in-trade amounted to SEK 31,732 m (24,833), an increase of 28 percent in SEK and 26 percent in local currencies compared to the same time the previous year.
The increase in the stock-in-trade is explained by the group's continued strong expansion, but is also due to the fact that the sales development was lower than planned. This led to that the stock-in-trade as of 30 November 2016 being too high, which is expected to result in costs for mark-downs increasing by approximately 0.5 percentage points in relation to sales in the first quarter of 2017 compared to the corresponding quarter of 2016. Apart from these factors, the composition of the stockin-trade is deemed to be good.
The stock-in-trade amounted to 16.5 percent (13.7) of sales excluding VAT and 32.2 percent (28.9) of total assets.
In the light of the development phase that the industry and the H&M group is going through with an ever growing online market and digitalisation, it is natural to rephrase the previous growth target. This means that the previous target of increasing the number of stores by 10 - 15 percent per year will instead become a sales target that includes both stores and online sales. The new growth target which applies for the financial year of 2016/2017 and going forward is that the H&M group's sales shall increase by 10 - 15 percent in local currencies per year with continued high profitability.
In 2017 the H&M group plans to open approximately 430 new stores net and enter five new markets – Kazakhstan, Colombia, Iceland, Vietnam and Georgia – and continue its online roll-out to six new online markets: Turkey, Taiwan, Hong Kong, Macau, Singapore and Malaysia.
Most of the new stores in 2017 will be H&M stores and approximately 70 to 80 stores will consist of the other brands in the group.
H&M Home will also continue its rapid expansion, with approximately 50 new H&M Home departments planned for 2017. Today H&M Home is present in more than 40 markets in a total of 269 H&M stores.
COS
| Number of | Expansion | Expansion | ||
|---|---|---|---|---|
| markets | 2016* | 2017 | ||
| Brand | Store | Online | New markets | New markets |
| H&M | 64 | 35 | Store: Puerto Rico, New Zealand, Cyprus Online: Slovenia, Croatia, Estonia, Latvia, Lithuania, Luxembourg, Ireland, Japan, Greece, Canada, South Korea |
Store: Kazakhstan, Colombia, Iceland, Vietnam, Georgia Online: Turkey, Taiwan, Hong Kong, Macau, Singapore, Malaysia |
| COS | 33 | 19 | Store: Czech Republic, Romania, Latvia |
Store: Malaysia**, Israel (franchise) |
| Monki | 13 | 19 | Store: Austria | - |
| Weekday | 7 | 18 | Store: Austria, Belgium | Store: UK |
| & Other Stories | 11 | 14 | Store: Poland Online: Poland |
Store: Ireland**, Finland, South Korea, United Arab Emirates (franchise) |
| Cheap Monday | 3 | 18 | - | - |
* Opened by 30 Nov - 2016, during the year Puerto Rico has been redefined to be a separate online market.
** Opened in December 2016
Store count by brand
In the financial year 2016, the group opened 497 (472) stores and closed 70 (59) stores, i.e. a net increase of 427 (413) new stores. The group had 4,351 (3,924) stores as of 30 November 2016, of which 188 were franchise stores.
| New Stores 2016 (net) | Total No of stores | |||
|---|---|---|---|---|
| Brand | Q4 | Full year | 30 Nov - 2016 | 30 Nov - 2015 |
| H&M | 178 | 352 | 3,962 | 3,610 |
| COS | 17 | 41 | 194 | 153 |
| Monki | 8 | 12 | 118 | 106 |
| Weekday | 5 | 8 | 28 | 20 |
| & Other Stories | 9 | 15 | 45 | 30 |
| Cheap Monday | -1 | -1 | 4 | 5 |
| Total | 216 | 427 | 4,351 | 3,924 |
| New Stores 2016 (net) | Total No of stores | |||
|---|---|---|---|---|
| Region | Q4 | Full year | 30 Nov - 2016 | 30 Nov - 2015 |
| Europe & Africa | 98 | 170 | 2,884 | 2,714 |
| Asia & Oceania | 78 | 182 | 877 | 695 |
| North & South America | 40 | 75 | 590 | 515 |
| Total | 216 | 427 | 4,351 | 3,924 |
H&M Home
The H&M group's final tax rate for the 2015/2016 financial year was 22.5 percent (23.3). The final outcome of the tax rate for the year depends on the results of the group's various companies, the corporate tax rates in each country and any taxes relating to previous years. The H&M group's tax rate is expected to be approximately 22.5 – 23.5 percent for the 2016/2017 financial year. In the first, second and third quarter of 2017 an estimated tax rate of 23.5 percent will be used.
The average number of employees in the group, converted into full-time positions, was 114,586 (104,634), of which 8,933 (8,061) are employed in Sweden.
As previously communicated, sales including VAT in December 2016 increased by 6 percent in local currencies for the H&M group compared to the same month the previous year. Converted into SEK the increase was 10 percent.
The H&M group's sales including VAT in the period 1 January to 29 January 2017 increased by 11 percent in local currencies compared to the same period the previous year. For January as a whole there is a negative calendar effect of approximately 2 percentage points, which occurs at the end of the month.
Since the stock-in-trade as of 30 November 2016 was too high – costs for mark-downs are expected to increase by approximately 0.5 percentage points in relation to sales in the first quarter of 2017 compared to the corresponding quarter of 2016.
H&M's financial goals are to enable the company to continue enjoying good growth and to be ready to exploit business opportunities. It is essential that, as in the past, the expansion proceeds with a continued high degree of financial strength and continued freedom of action. Based on this policy, the board of directors has decided that the total dividend should equal about half of the profit after tax. In addition, the board may propose that any surplus liquidity is also distributed.
The board of directors has decided to propose a dividend of SEK 9.75 (9.75) to the annual general meeting on 10 May 2017, corresponding to 87 percent (77) of the profit after tax.
Many companies in the US and Europe divide their dividends into quarterly or semiannual payments. In Sweden too, there are larger companies which pay their dividend in more than one instalment. Until now H&M has paid its dividends in conjunction with the annual general meeting in the spring. H&M's board of directors is to propose to the annual general meeting that the dividend is paid out semi-annually in future, i.e. one instalment in the spring and one in the autumn, since this is more cost efficient for the company and also simplifies liquidity planning during the year.
The record date proposed for the first dividend payment of SEK 4.90 per share is 12 May 2017. This would then be paid out on 17 May 2017.
The record date proposed for the second dividend payment of SEK 4.85 is 14 November 2017. This would then be paid out on 17 November 2017.
The board of directors is of the opinion that the proposed distribution of earnings is justifiable taking into consideration the financial position and continued freedom of action of the group and the parent company and observing the requirements that the nature and extent of the business, its risks and future expansion plans impose on the group's and the parent company's equity and liquidity.
The 2017 annual general meeting will be held at 3 p.m. on Wednesday 10 May in the Erling Persson Hall, Aula Medica, Karolinska Institutet, Solna.
The Annual Report and the Corporate Governance Report are expected to be published on 31 March 2017 on hm.com and will be sent out by post to shareholders that have so requested. The documents will also be available at the company's head office.
The group applies International Financial Reporting Standards (IFRS) as adopted by the EU. This report has been prepared according to IAS 34 Interim Financial Reporting as well as the Swedish Annual Accounts Act.
The accounting principles and calculation methods applied in this report are unchanged from those used in the preparation of the annual report and consolidated financial statements for 2014/2015 which are described in Note 1 – Accounting principles.
H & M Hennes & Mauritz AB's financial instruments consist of accounts receivable, other receivables, cash and cash equivalents, accounts payable, accrued trade payables, interest-bearing securities and currency derivatives. Currency derivatives are measured at fair value based on input data corresponding to level 2 of IFRS 13. As of 30 November 2016, forward contracts with a positive market value amount to SEK 848 m (707), which is reported under other current receivables. Forward contracts with a negative market value amount to SEK 1,176 m (302), which is reported under other current liabilities. Other financial assets and liabilities have short terms. It is therefore judged that the fair values of these financial instruments are approximately equal to their book values.
The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities, which essentially involves applying IFRS. In accordance with RFR 2, the parent company does not apply IAS 39 to the measurement of financial instruments; nor does it capitalise development expenditure.
For definitions see page 24.
A number of factors may affect H&M's results and business. Many of these can be dealt with through internal routines, while certain others are affected more by external influences. There are risks and uncertainties related to fashion, weather conditions, negative macroeconomic changes, geopolitical risks, sustainability and external factors in production countries, trade interventions, foreign currency and tax but also in connection with expansion into new markets, the launch of new concepts, changes in consumer behaviour and how the brand is managed. There are also some risks related to the group's reputation, so called "reputational risks".
For a more detailed description of risks and uncertainties, refer to the administration report and to note 2 in the annual report and consolidated accounts for 2015.
| 30 March 2017 | Three-month report, 1 Dec 2016 – 28 Feb 2017 |
|---|---|
| 10 May 2017 | Annual General Meeting 2017, in the Erling Persson Hall, Aula Medica, Karolinska Institutet, Solna at 3 p.m. |
| 29 June 2017 | Six-month report, 1 Dec 2016 – 31 May 2017 |
| 28 September 2017 | Nine-month report, 1 Dec 2016 – 31 August 2017 |
Stockholm, 30 January 2017 Board of Directors
Contact Nils Vinge, IR +46-8-796 52 50
Karl-Johan Persson, CEO +46-8-796 55 00 (switchboard) Jyrki Tervonen, CFO +46-8-796 55 00 (switchboard)
Invitation to press and telephone conference in conjunction to the full-year report is available on hm.com.
H & M Hennes & Mauritz AB (publ) SE-106 38 Stockholm Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail: [email protected] Registered office: Stockholm, Reg. No. 556042-7220
Information in this full-year report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under Sweden's Securities Market Act and the EU Market Abuse Regulation (596/2014/EU). The information was submitted for publication by the abovementioned persons at 8.00 (CET) on 31 January 2017. This full-year report and other information about H&M, is available at www.hm.com
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. The H&M's business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, Cheap Monday, & Other Stories as well as H&M Home. The H&M group has more than 4,300 stores in 64 markets including franchise markets. In 2016, sales including VAT amounted to SEK 223 billion and the number of employees was more than 161,000. For further information, visit www.hm.com.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Sales including VAT | 61,098 | 56,477 | 222,865 | 209,921 |
| Sales excluding VAT | 52,720 | 48,694 | 192,267 | 180,861 |
| Cost of goods sold | -22,693 | -20,697 | -86,090 | -77,694 |
| GROSS PROFIT | 30,027 | 27,997 | 106,177 | 103,167 |
| Gross margin, % | 57.0 | 57.5 | 55.2 | 57.0 |
| Selling expenses | -20,906 | -19,339 | -75,729 | -70,292 |
| Administrative expenses | -1,767 | -1,574 | -6,625 | -5,933 |
| OPERATING PROFIT | 7,354 | 7,084 | 23,823 | 26,942 |
| Operating margin, % | 13.9 | 14.5 | 12.4 | 14.9 |
| Interest income | 58 | 68 | 224 | 310 |
| Interest expense | -3 | -4 | -8 | -10 |
| PROFIT AFTER FINANCIAL ITEMS | 7,409 | 7,148 | 24,039 | 27,242 |
| Tax | -1,495 | -1,622 | -5,403 | -6,344 |
| PROFIT FOR THE PERIOD | 5,914 | 5,526 | 18,636 | 20,898 |
All profit for the year is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| Earnings per share, SEK* | 3.57 | 3.34 | 11.26 | 12.63 |
|---|---|---|---|---|
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Depreciation, total | 2,070 | 1,691 | 7,605 | 6,399 |
| of which cost of goods sold | 222 | 192 | 847 | 725 |
| of which selling expenses | 1,717 | 1,390 | 6,256 | 5,262 |
| of which administrative expenses | 131 | 109 | 502 | 412 |
* Before and after dilution.
| Q4 2016 |
Q4 2015 |
Full year 2016 |
Full year 2015 |
|
|---|---|---|---|---|
| PROFIT FOR THE PERIOD | 5,914 | 5,526 | 18,636 | 20,898 |
| Other comprehensive income | ||||
| Items that are or may be reclassified to profit or loss | ||||
| Translation differences | 1,022 | 100 | 1,186 | 1,514 |
| Change in hedging reserves | 280 | 462 | -578 | 245 |
| Tax attributable to change in hedging reserves | -67 | -101 | 139 | -59 |
| Items that will not be classified to profit or loss | ||||
| Remeasurement of defined benefit pension plans | -78 | 43 | -78 | 43 |
| Tax related to the above remeasurement | 19 | -11 | 19 | -11 |
| OTHER COMPREHENSIVE INCOME | 1,176 | 493 | 688 | 1,732 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 7,090 | 6,019 | 19,324 | 22,630 |
All comprehensive income is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| ASSETS | 30 Nov - 2016 | 30 Nov - 2015 |
|---|---|---|
| FIXED ASSETS | ||
| Intangible fixed assets | ||
| Brands | 66 | 114 |
| Customer relations | 20 | 32 |
| Leasehold and similar rights | 630 | 660 |
| Capitalised expenditures | 4,567 | 3,245 |
| Goodwill | 64 | 64 |
| 5,347 | 4,115 | |
| Tangible fixed assets | ||
| Buildings and land | 850 | 797 |
| Equipment, tools, fixture and fittings | 37,843 | 32,165 |
| 38,693 | 32,962 | |
| Financial fixed assets | ||
| Long-term receivables | 1,014 | 862 |
| Deferred tax receiveables | 2,862 | 2,338 |
| 3,876 | 3,200 | |
| TOTAL FIXED ASSETS | 47,916 | 40,277 |
| CURRENT ASSETS | ||
| Stock-in-trade | 31,732 | 24,833 |
| Current receivables | ||
| Accounts receivables | 4,881 | 4,021 |
| Tax receivables | - | 379 |
| Other receivables | 2,533 | 1,469 |
| Prepaid expenses | 2,071 | 1,884 |
| 9,485 | 7,753 | |
| Cash and cash equivalents | 9,446 | 12,950 |
| TOTAL CURRENT ASSETS | 50,663 | 45,536 |
| TOTAL ASSETS | 98,579 | 85,813 |
| EQUITY AND LIABILITIES | 30 Nov - 2016 | 30 Nov - 2015 |
|---|---|---|
| EQUITY | ||
| Share capital | 207 | 207 |
| Reserves | 2,651 | 1,904 |
| Retained earnings | 58,378 | 55,938 |
| EQUITY | 61,236 | 58,049 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Provisions for pensions* | 527 | 449 |
| Deferred tax liabilities | 4,898 | 4,378 |
| Other interest-bearing liabilities* | 213 | - |
| 5,638 | 4,827 | |
| Current liabilities | ||
| Accounts payable | 7,262 | 6,000 |
| Tax liabilities | 434 | - |
| Liabilities to credit institutions** | 2,068 | - |
| Interest-bearing liabilities** | 59 | - |
| Other liabilities | 5,036 | 3,192 |
| Accrued expenses and prepaid income | 16,846 | 13,745 |
| 31,705 | 22,937 | |
| TOTAL LIABILITIES | 37,343 | 27,764 |
| TOTAL EQUITY AND LIABILITIES | 98,579 | 85,813 |
* Interest-bearing long-term liabilities amounts to SEK 740 m (449).
** Interest-bearing current liabilities amounts to SEK 2,127 m (0).
Since there are no minority interests, all shareholders' equity is attributable to the shareholders of the shareholders of the parent company, H & M Hennes & Mauritz AB.
| Total | |||||
|---|---|---|---|---|---|
| Share capital |
Translation | Hedgings | Retained | shareholders | |
| effects | reserves | earnings | equity | ||
| Shareholder's equity, 1 December 2015 | 207 | 1,663 | 241 | 55,938 | 58,049 |
| Profit for the year | - | - | - | 18,636 | 18,636 |
| Other comprehensive income | |||||
| Translation differences | - | 1,186 | - | - | 1,186 |
| Change in hedging reserves | |||||
| Reported in other comprehensive income | - | - | -223 | - | -223 |
| Transfer to income statement | - | - | -355 | - | -355 |
| Tax attributable to hedging reserves | - | - | 139 | - | 139 |
| Revaluations relating to defined benefit pension | |||||
| plans | - | - | - | -78 | -78 |
| Tax attributable to the above revaluation | - | - | - | 19 | 19 |
| Other comprehensive income | - | 1,186 | -439 | -59 | 688 |
| Total comprehensive income | - | 1,186 | -439 | 18,577 | 19,324 |
| Dividend | - | - | - | -16,137 | -16,137 |
| Shareholder's equity, 30 November 2016 | 207 | 2,849 | -198 | 58,378 | 61,236 |
| Total | |||||
|---|---|---|---|---|---|
| Share | Translation | Hedgings | Retained | shareholders | |
| capital | effects | reserves | earnings | equity | |
| Shareholder's equity, 1 December 2014 | 207 | 149 | 55 | 51,145 | 51,556 |
| Profit for the year | - | - | - | 20,898 | 20,898 |
| Other comprehensive income | |||||
| Translation differences | - | 1,514 | - | - | 1,514 |
| Change in hedging reserves | |||||
| Reported in other comprehensive income | - | - | 1,826 | - | 1,826 |
| Transfer to income statement | - | - | -1,581 | - | -1,581 |
| Tax attributable to hedging reserves | - | - | -59 | - | -59 |
| Revaluation of defined benefit pension plans | - | - | - | 43 | 43 |
| Tax attributable to the above revaluation | - | - | - | -11 | -11 |
| Other comprehensive income | - | 1,514 | 186 | 32 | 1,732 |
| Total comprehensive income | - | 1,514 | 186 | 20,930 | 22,630 |
| Dividend | - | - | - | -16,137 | -16,137 |
| Shareholder's equity, 30 November 2015 | 207 | 1,663 | 241 | 55,938 | 58,049 |
| Full year 2016 | Full year 2015 | |
|---|---|---|
| Current operations | ||
| Profit after financial items* | 24,039 | 27,242 |
| Provisions for pensions | -9 | 28 |
| Depreciation | 7,605 | 6,399 |
| Tax paid | -4,470 | -7,022 |
| Cash flow from current operations before changes in working capital | 27,165 | 26,647 |
| Cash flow from changes in working capital | ||
| Current receivables | -1,817 | -249 |
| Stock-in-trade | -6,511 | -5,105 |
| Current liabilities | 4,938 | 2,774 |
| CASH FLOW FROM CURRENT OPERATIONS | 23,775 | 24,067 |
| Investment activities | ||
| Investment in leasehold and similar rights | -139 | -324 |
| Investments in other immaterial assets | -1,476 | -1,140 |
| Investment in buildings and land | -60 | -2 |
| Investment in fixed assets | -11,671 | -10,593 |
| Change in short-term investments, 4 - 12 months | 0 | 2,602 |
| Other investments | -152 | -153 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | -13,498 | -9,610 |
| Financial activities | ||
| Short-term loans | 2,068 | - |
| Dividend | -16,137 -14,069 |
-16,137 -16,137 |
| CASH FLOW FROM FINANCIAL ACTIVITIES | ||
| CASH FLOW FOR THE YEAR | -3,792 | -1,680 |
| Cash and cash equivalents at beginning of the financial year | 12,950 | 14,091 |
| Cash flow for the year | -3,792 | -1,680 |
| Exchange rate effect | 288 | 539 |
| Cash and cash equivalents at end of the financial year** | 9,446 | 12,950 |
* Interest paid for the group amounts to SEK 8 m (10).
Received interest for the group amounts to SEK 224 m (310).
** Cash and cash equivalents and short-term investments at the end of the fiscal year amounted to SEK 9,446 m (12,950).
| Market | Q4 - 2016 | Q4 - 2015 | Change in % | 30 Nov - 16 | Q4 - 2016 | ||
|---|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | No. of stores | New | Closed | |
| currency | stores | stores | |||||
| Sweden | 2,670 | 2,521 | 6 | 6 | 176 | 6 | 3 |
| Norway | 1,599 | 1,449 | 10 | 5 | 127 | 4 | |
| Denmark | 1,567 | 1,461 | 7 | 4 | 102 | 1 | 1 |
| UK | 4,006 | 4,406 | -9 | 4 | 281 | 12 | 2 |
| Switzerland | 1,673 | 1,726 | -3 | -7 | 98 | 1 | |
| Germany | 10,297 | 9,739 | 6 | 3 | 459 | 8 | 2 |
| Netherlands | 2,231 | 2,037 | 10 | 7 | 145 | 6 | |
| Belgium | 1,172 | 1,081 | 8 | 5 | 90 | 4 | |
| Austria | 1,531 | 1,457 | 5 | 2 | 83 | 2 | |
| Luxembourg | 123 | 118 | 4 | 1 | 10 | ||
| Finland | 737 | 723 | 2 | -1 | 61 | 1 | |
| France | 3,536 | 3,536 | 0 | -4 | 238 | 7 | |
| USA | 7,294 | 6,777 | 8 | 3 | 468 | 24 | 1 |
| Spain | 2,054 | 2,025 | 1 | -2 | 169 | 4 | 1 |
| Poland | 1,239 | 1,136 | 9 | 8 | 166 | 9 | 1 |
| Czech Republic | 400 | 351 | 14 | 10 | 48 | 2 | |
| Portugal | 335 | 321 | 4 | 0 | 31 | 1 | |
| Italy | 2,561 | 2,451 | 4 | 1 | 166 | 10 | |
| Canada | 1,282 | 1,122 | 14 | 12 | 85 | 8 | 2 |
| Slovenia | 150 | 142 | 6 | 3 | 12 | ||
| Ireland | 294 | 280 | 5 | 1 | 23 | ||
| Hungary | 454 | 375 | 21 | 16 | 42 | 2 | |
| Slovakia | 188 | 172 | 9 | 7 | 19 | 1 | |
| Greece | 526 | 442 | 19 | 15 | 35 | ||
| China | 3,086 | 2,827 | 9 | 11 | 444 | 45 | 1 |
| Hong Kong | 477 | 475 | 0 | -4 | 28 | 1 | |
| Japan | 1,432 | 1,057 | 35 | 14 | 66 | 3 | |
| Russia | 1,165 | 831 | 40 | 33 | 113 | 7 | |
| South Korea | 495 | 353 | 40 | 31 | 35 | 2 | 1 |
| Turkey | 844 | 676 | 25 | 30 | 62 | 8 | |
| Romania | 591 | 522 | 13 | 11 | 52 | 5 | |
| Croatia | 248 | 238 | 4 | 0 | 15 | ||
| Singapore | 256 | 233 | 10 | 4 | 13 | ||
| Bulgaria | 181 | 148 | 22 | 19 | 19 | ||
| Latvia | 96 | 81 | 19 | 15 | 8 | 2 | |
| Malaysia | 289 | 226 | 28 | 21 | 35 | 2 | |
| Mexico | 453 | 334 | 36 | 53 | 25 | 6 | |
| Chile | 340 | 189 | 80 | 73 | 4 | ||
| Lithuania | 87 | 78 | 12 | 7 | 8 | 1 | |
| Serbia | 120 | 87 | 38 | 36 | 9 | ||
| Estonia | 102 | 80 | 28 | 23 | 8 | ||
| Australia | 649 | 363 | 79 | 67 | 22 | 5 | |
| Philippines | 225 | 152 | 48 | 48 | 21 | 5 | |
| Taiwan | 168 | 144 | 17 | 9 | 10 | 1 | |
| Peru | 148 | 104 | 42 | 45 | 6 | 4 | |
| Macau | 41 | 49 | -16 | -21 | 2 | ||
| India | 245 | 77 | 218 | 224 | 12 | 3 | |
| South Africa | 192 | 98 | 96 | 111 | 8 | 3 | |
| Puerto Rico | 38 | 2 | 1 | ||||
| Cyprus | 35 | 1 | 1 | ||||
| New Zealand | 55 | 1 | 1 | ||||
| Franchise | 1,121 | 1,207 | -7 | -1 | 188 | 14 | 2 |
| Total | 61,098 | 56,477 | 8 | 7 | 4,351 | 233 | 1 7 |
| Market | 2016 | 2015 | Change in % | 30 Nov - 16 | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | No. of stores | New | Closed | |
| currency | stores | stores | |||||
| Sweden | 10,151 | 9,495 | 7 | 7 | 176 | 11 | 11 |
| Norway | 5,926 | 5,806 | 2 | 6 | 127 | 7 | 0 |
| Denmark | 5,682 | 5,413 | 5 | 4 | 102 | 1 | 2 |
| UK | 15,058 | 16,001 | -6 | 3 | 281 | 22 | 5 |
| Switzerland | 6,328 | 6,844 | -8 | -7 | 98 | 3 | 1 |
| Germany | 37,174 | 36,943 | 1 | 0 | 459 | 19 | 9 |
| Netherlands | 7,898 | 7,521 | 5 | 5 | 145 | 10 | 4 |
| Belgium | 4,404 | 4,215 | 4 | 4 | 90 | 9 | 4 |
| Austria | 5,557 | 5,361 | 4 | 3 | 83 | 6 | 1 |
| Luxembourg | 464 | 433 | 7 | 6 | 10 | 0 | 0 |
| Finland | 2,866 | 2,805 | 2 | 2 | 61 | 4 | 3 |
| France | 13,559 | 13,579 | 0 | -1 | 238 | 18 | 2 |
| USA | 26,874 | 25,135 | 7 | 5 | 468 | 61 | 8 |
| Spain | 7,894 | 7,736 | 2 | 1 | 169 | 7 | 3 |
| Poland | 4,701 | 4,356 | 8 | 12 | 166 | 14 | 2 |
| Czech Republic | 1,428 | 1,207 | 18 | 16 | 48 | 5 | 1 |
| Portugal | 1,272 | 1,276 | 0 | -1 | 31 | 1 | 0 |
| Italy | 9,081 | 8,644 | 5 | 4 | 166 | 17 | 1 |
| Canada | 4,330 | 3,918 | 11 | 15 | 85 | 9 | 2 |
| Slovenia | 542 | 529 | 2 | 2 | 12 | 0 | 0 |
| Ireland | 1,103 | 1,026 | 8 | 7 | 23 | 1 | 1 |
| Hungary | 1,590 | 1,336 | 19 | 19 | 42 | 3 | 1 |
| Slovakia | 681 | 579 | 18 | 17 | 19 | 1 | 0 |
| Greece | 1,891 | 1,637 | 16 | 15 | 35 | 3 | 0 |
| China | 10,842 | 10,559 | 3 | 7 | 444 | 92 | 1 |
| Hong Kong | 1,919 | 1,870 | 3 | 1 | 28 | 3 | 0 |
| Japan | 4,600 | 3,754 | 23 | 9 | 66 | 11 | 2 |
| Russia | 4,304 | 3,460 | 24 | 38 | 113 | 17 | 0 |
| South Korea | 1,675 | 1,277 | 31 | 32 | 35 | 5 | 1 |
| Turkey | 2,816 | 2,193 | 28 | 41 | 62 | 16 | 0 |
| Romania | 2,102 | 1,796 | 17 | 18 | 52 | 10 | 0 |
| Croatia | 846 | 817 | 4 | 2 | 15 | 0 | 0 |
| Singapore | 1,030 | 970 | 6 | 5 | 13 | 1 | 0 |
| Bulgaria | 641 | 511 | 25 | 25 | 19 | 1 | 0 |
| Latvia | 332 | 309 | 7 | 7 | 8 | 2 | 0 |
| Malaysia | 1,130 | 973 | 16 | 24 | 35 | 6 | 0 |
| Mexico | 1,561 | 1,097 | 42 | 64 | 25 | 9 | 0 |
| Chile | 1,129 | 573 | 97 | 103 | 4 | 0 | 0 |
| Lithuania | 317 | 296 | 7 | 6 | 8 | 1 | 0 |
| Serbia | 369 | 318 | 16 | 17 | 9 | 3 | 0 |
| Estonia | 377 | 312 | 21 | 20 | 8 | 2 | 0 |
| Australia | 1,999 | 1,133 | 76 | 78 | 22 | 12 | 0 |
| Philippines | 869 | 557 | 56 | 60 | 21 | 9 | 0 |
| Taiwan | 665 | 332 | 100 | 101 | 10 | 4 | 0 |
| Peru | 510 | 261 | 95 | 106 | 6 | 4 | 0 |
| Macau | 166 | 89 | 87 | 83 | 2 | 0 | 0 |
| India | 606 | 77 | 687 | 718 | 12 | 10 | 0 |
| South Africa | 645 | 98 | 558 | 671 | 8 | 6 | 0 |
| Puerto Rico | 63 | 2 | 2 | 0 | |||
| Cyprus | 35 | 1 | 1 | 0 | |||
| New Zealand | 55 | 1 | 1 | 0 | |||
| Franchise | 4,808 | 4,494 | 7 | 5 | 188 | 37 | 5 |
| Total | 222,865 | 209,921 | 6 | 7 | 4,351 | 497 | 7 0 |
FIVE YEAR SUMMARY
| 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|
| Sales including VAT, SEK m | 140,948 | 150,090 | 176,620 | 209,921 | 222,865 |
| Sales excluding VAT, SEK m | 120,799 | 128,562 | 151,419 | 180,861 | 192,267 |
| Change sales excl. VAT from previous year in SEK, % | 10 | 6 | 18 | 19 | 6 |
| Change sales excl. VAT previous year in local currencies, % | 11 | 9 | 14 | 11 | 7 |
| Operating profit, SEK m | 21,754 | 22,090 | 25,583 | 26,942 | 23,823 |
| Operating margin, % | 18.0 | 17.2 | 16.9 | 14.9 | 12.4 |
| Depreciation for the year, SEK m | 3,705 | 4,191 | 5,045 | 6,399 | 7,605 |
| Profit after financial items, SEK m | 22,285 | 22,448 | 25,895 | 27,242 | 24,039 |
| Profit after tax, SEK m | 16,867 | 17,093 | 19,976 | 20,898 | 18,636 |
| Cash and cash equivalents and short-term investments, SEK m | 17,143 | 17,224 | 16,693 | 12,950 | 9,446 |
| Stock-in-trade, SEK m | 15,213 | 16,695 | 19,403 | 24,833** | 31,732** |
| Equity, SEK m | 43,835 | 45,248 | 51,556 | 58,049 | 61,236 |
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Earnings per share, SEK* | 10.19 | 10.33 | 12.07 | 12.63 | 11.26 |
| Equity per share, SEK* | 26.49 | 27.34 | 31.15 | 35.07 | 37.00 |
| Cash flow from current operations | |||||
| per share, SEK* | 11.42 | 14.40 | 14.60 | 14.54 | 14.36 |
| Dividend per share, SEK | 9.50 | 9.50 | 9.75 | 9.75 | 9.75*** |
| Return on equity, % | 38.4 | 38.4 | 41.3 | 38.1 | 31.2 |
| Return on capital employed, % | 50.3 | 50.0 | 53.1 | 49.3 | 39.2 |
| Share of risk-bearing capital, % | 76.1 | 73.0 | 72.5 | 72.7 | 67.1 |
| Equity/assets ratio, % | 72.8 | 68.9 | 68.2 | 67.6 | 62.1 |
| Total number of stores | 2,776 | 3,132 | 3,511 | 3,924 | 4,351 |
| Average number of employees | 72,276 | 81,099 | 93,351 | 104,634 | 114,586 |
* Before and after dilution.
** The booked value of stock-in-trade for 2015 and 2016 is approximately 5 percent higher than previous years as a result of improved invoicing processes. Accounts payable have increased with the corresponding amount.
*** Proposed by the Board of Directors
Definition on key figures see page 24
| 2016 | 2015 | |
|---|---|---|
| Asia and Oceania | ||
| External net sales | 27,416 | 23,610 |
| Operating profit | 1,927 | 1,740 |
| Operating margin, % | 7.0 | 7.4 |
| Assets excluding tax receivables | 14,657 | 11,171 |
| Liabilities excluding tax liabilities | 1,430 | 1,736 |
| Investments | 2,505 | 2,516 |
| Depreciation | 1,169 | 843 |
| Europe and Africa | ||
| External net sales | 132,689 | 128,200 |
| Operating profit | 4,006 | 4,828 |
| Operating margin, % | 3.0 | 3.8 |
| Assets excluding tax receivables | 41,143 | 33,258 |
| Liabilities excluding tax liabilities | 11,975 | 9,950 |
| Investments | 5,787 | 4,845 |
| Depreciation | 3,995 | 3,578 |
| North and South America | ||
| External net sales | 32,162 | 29,051 |
| Operating profit Operating margin, % |
971 3.0 |
619 2.1 |
| Assets excluding tax receivables | 17,369 | 14,157 |
| Liabilities excluding tax liabilities Investments |
5,998 3,360 |
4,712 2,966 |
| Depreciation | 1,791 | 1,547 |
| Group Functions | ||
| Net sales to other segments | 79,284 | 91,297 |
| Operating profit | 16,919 | 19,755 |
| Operating margin, % | 21.3 | 21.6 |
| Assets excluding tax receivables | 22,548 | 24,510 |
| Liabilities excluding tax liabilities | 12,608 | 6,988 |
| Investments | 2,009 | 1,732 |
| Depreciation | 650 | 431 |
| Eliminations | ||
| Net sales to other segments | -79,284 | -91,297 |
| Total | ||
| External net sales | 192,267 | 180,861 |
| Operating profit | 23,823 | 26,942 |
| Operating margin, % | 12.4 | 14.9 |
| Assets excluding tax receivables | 95,717 | 83,096 |
| Liabilities excluding tax liabilities | 32,011 | 23,386 |
| Investments | 13,661 | 12,059 |
| Depreciation | 7,605 | 6,399 |
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| External sales excluding VAT | - | 13 | - | 15 |
| Internal sales excluding VAT* | 1,157 | 1,080 | 3,985 | 3,605 |
| GROSS PROFIT | 1,157 | 1,093 | 3,985 | 3,620 |
| Selling expenses | - | 0 | - | 0 |
| Administrative expenses | -38 | -76 | -173 | -126 |
| OPERATING PROFIT | 1,119 | 1,017 | 3,812 | 3,494 |
| Dividend from subsidiaries | 11,126 | 11,931 | 12,597 | 13,288 |
| Interest income and similar items** | 0 | 126 | 153 | 154 |
| Interest expense | - | 0 | 0 | -7 |
| PROFIT AFTER FINANCIAL ITEMS | 12,245 | 13,074 | 16,562 | 16,929 |
| Year-end appropriations | 18 | 17 | 18 | 17 |
| Tax | -250 | -256 | -876 | -806 |
| PROFIT FOR THE PERIOD | 12,013 | 12,835 | 15,704 | 16,140 |
* Internal sales in the quarter consists of royalty of SEK 1,026 m (932) and other SEK 131 m (148) received from group companies and for the fullyear of royalty of SEK 3,849 m (3,457) and other SEK 136 m (148).
** Interest income and similar items in the quarter consists of SEK 13 m (17) in interest income and SEK -13 m (109) in translation effects from group companies and in the full-year of SEK 21 m (45) in interest income and SEK 132 m (109) in translation effects from group companies.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| PROFIT FOR THE PERIOD | 12,013 | 12,835 | 15,704 | 16,140 |
| Other comprehensive income | ||||
| Items that have not been and will not be reclassified to profit or loss | ||||
| Remeasurement of defined benefit pension plans | -4 | 37 | -4 | 37 |
| Tax related to the above remeasurement | 1 | -8 | 1 | -8 |
| OTHER COMPREHENSIVE INCOME | -3 | 29 | -3 | 29 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 12,010 | 12,864 | 15,701 | 16,169 |
| 30 Nov - 2016 | 30 Nov - 2015 | |
|---|---|---|
| ASSETS | ||
| FIXED ASSETS | ||
| Tangible fixed assets | ||
| Buildings and land | 127 | 71 |
| Equipment, tools, fixture and fittings | 313 | 435 |
| 440 | 506 | |
| Financial fixed assets | ||
| Shares and participation rights | 588 | 588 |
| Receivables from subsidiaries | 779 | 1,085 |
| Long-term receivables | 11 | 11 |
| Deferred tax receivables | 42 | 43 |
| 1,420 | 1,727 | |
| TOTAL FIXED ASSETS | 1,860 | 2,233 |
| CURRENT ASSETS | ||
| Current receivables | ||
| Receivables from subsidiaries | 16,179 | 14,808 |
| Tax receivables | - | - |
| Other receivables | 7 | 2 |
| Prepaid expenses | 0 | 0 |
| 16,186 | 14,810 | |
| Cash and cash equivalents | 376 | 1,758 |
| TOTAL CURRENT ASSETS | 16,562 | 16,568 |
| TOTAL ASSETS | 18,422 | 18,801 |
| 30 Nov - 2016 | 30 Nov - 2015 | |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| EQUITY | ||
| Restricted equity | ||
| Share capital | 207 | 207 |
| Restricted reserves | 88 | 88 |
| 295 | 295 | |
| Non-restricted equity | ||
| Retained earnings | 861 | 829 |
| Profit for the year | 15,701 | 16,169 |
| 16,562 | 16,998 | |
| TOTAL EQUITY | 16,857 | 17,293 |
| UNTAXED RESERVES | 429 | 447 |
| LIABILITIES | ||
| Long-term liabiliities | ||
| Provisions for pensions | 191 | 195 |
| Short-term liabiliities* | ||
| Accounts payable | 3 | 5 |
| Tax liabilities | 729 | 671 |
| Other liabilities | 206 | 182 |
| Accrued expenses and prepaid income | 7 | 8 |
| 945 | 866 | |
| TOTAL LIABILITIES | 1,136 | 1,061 |
| TOTAL EQUITY AND LIABILITIES | 18,422 | 18,801 |
| Pledged assets | ||
| Contingent liabilities | 13,064 | 14,654 |
* No current liabilities are interest-bearing.
This report contains key financial ratios in accordance with the framework for financial reporting applied by the H&M group, which is based on IFRS. Other key ratios and indicators are also used to follow up, analyse and govern the business and to provide the H&M group's stakeholders with financial information concerning the group's financial position, results and performance in a consistent way.
These other key ratios and indicators are considered necessary in order to be able to monitor performance against the group's financial targets. A combination of continual growth, high profitability, stable cash flow and using capital in the right way is intended to generate a high overall return for the H&M group's shareholders. It is therefore relevant to present key ratios relating to growth, profitability and capital, share-based measurements and terms relating to capital on a continuous basis.
The key ratios and indicators used, referred to and presented in the reporting are defined as shown in the list below.
Change in sales %, local currency: The group's total change in sales in local currency is calculated as the period's net sales (calculated at the same average rate as was used for the same period in the previous year) minus the period's net sales in the previous year, as a percentage of the period's net sales in the previous year
Operating margin: Operating profit as a percentage of net sales for the year
Return on equity: Profit for the year in relation to average shareholders' equity
Return on capital employed: Profit after financial items plus interest expense in relation to average shareholders' equity plus average interest-bearing liabilities
Capital measurements
Equity/assets ratio: Shareholders' equity in relation to total assets
Share of risk-bearing capital, %: Shareholders' equity plus deferred tax liability in relation to total assets
Equity per share: Shareholders' equity divided by the number of shares
Earnings per share: Profit for the period in relation to the number of shares during the period
P/E ratio: Price per share divided by earnings per share
Cash flow from operating activities per share: Cash flow from operating activities for the period divided by the average number of shares during the period
Operating profit: Calculated as profit before financial items and tax
Gross profit: Net sales minus cost of goods sold
Gross margin: Net sales minus cost of goods sold in relation to net sales
Capital employed: Equity plus interest-bearing liabilities
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