Earnings Release • Feb 9, 2023
Earnings Release
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Clichy, 9 February 2023 at 6.00 p.m.
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal, said: "We achieved a remarkable performance this year, thanks to our innovation leadership, our highly desirable brands, our operational agility and the tremendous commitment of our teams. Comparable growth vs. 2019 accelerated quarter after quarter and reached +23% over the full year. Our balanced growth across Divisions and regions once again demonstrates the relevance of our multipolar model: strategically centralised and operationally decentralised with a strong entrepreneurial mindset, this model is ideally suited to the current environment. We have emerged stronger from 2022 and reinforced our position as the world's leading beauty company. These high-quality results allow us to consistently support our social and environmental commitments, in line with our dual ambition of economic and corporate performance. Mindful of the current uncertainties, we remain ambitious for the future, optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming the market and achieve in 2023 another year of growth in sales and profits."
1 Like-for-like: based on a comparable scope of consolidation and identical exchange rates.
2 Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests. 3 To be proposed at the Annual General Meeting of 21 April 2023.
Meeting on 9 February 2023, under the chairmanship of Jean-Paul Agon, the Board of Directors decided to propose to the Annual General Meeting of 21 April 2023 the renewal of the tenure of Ms Sophie Bellon and Ms Fabienne Dulac as directors for a term of four years.
If the Annual General Meeting approves the proposed resolutions, the Board of Directors will continue to comprise 16 directors, i.e. 14 directors appointed by the AGM and two directors representing the employees.
The Board decided to review the composition of the Committees, which is set out in detail in the table below. This will take effect at the end of the Annual General Meeting, subject to renewal of the tenures as directors of Ms Sophie Bellon and Ms Fabienne Dulac.
| BOARD COMMITTEES | |||||||
|---|---|---|---|---|---|---|---|
| Expiry date of term of office |
Strategy and Sustainability |
Audit | Nominations & Governance |
HR & Remuneration |
|||
| Mr Jean-Paul Agon | Chairman | 2026 | C | ||||
| Mr Nicolas Hieronimus | CEO | 2025 | |||||
| Ms Françoise Bettencourt Meyers | Vice-President | 2025 | |||||
| Mr Paul Bulcke | Vice-President | 2025 | |||||
| Ms Sophie Bellon | 2027 | C | |||||
| Mr Patrice Caine | 2026 | с | |||||
| Ms Fabienne Dulac | 2027 | ||||||
| Ms Belén Garijo | 2026 | ||||||
| Ms Béatrice Guillaume-Grabisch | 2024 | ||||||
| Mr Thierry Hamel | Director repr. employees | 2026 | |||||
| Ms Ilham Kadri | 2024 | ||||||
| Mr Jean-Victor Meyers | 2024 | ||||||
| Mr Nicolas Meyers | 2024 | ||||||
| Ms Virginie Morgon | 2025 | C | |||||
| Mr Alexandre Ricard | 2025 | ||||||
| Mr Benny de Vlieger | Director repr. employees | 2026 |
Sales amounted to 38.26 billion euros at 31 December 2022, up by +18.5% reported.
Like-for-like, i.e. based on a comparable scope of consolidation and identical exchange rates, the growth of L'Oréal group sales was +10.9%.
The net impact of changes in the scope of consolidation was +0.4%. At the end of 2022, currency fluctuations had an impact of +7.2%.
| 4th quarter 2022 | At 31 December 2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Growth | Growth | |||||||
| €m | Like-for-like | Reported | €m | Like-for-like | Reported | |||
| By Division | ||||||||
| Professional Products | 1,218.6 | +8.1% | +15.0% | 4,476.8 | +10.1% | +18.3% | ||
| Consumer Products | 3,678.6 | +7.5% | +11.8% | 14,021.3 | +8.3% | +14.6% | ||
| L'Oréal Luxe | 4,154.2 | +5.5% | +10.7% | 14,638.1 | +10.2% | +18.6% | ||
| Active Cosmetics | 1,267.7 | +19.4% | +28.0% | 5,124.5 | +21.9% | +30.6% | ||
| Group total | 10,319.1 | +8.1% | +13.5% | 38,260.6 | +10.9% | +18.5% | ||
| By Geographic Zone | ||||||||
| Europe | 2,990.8 | + 8.1% | +8.4% | 11,436.7 | +11.6% | +12.3% | ||
| North America | 2,690.9 | +9.4% | +23.5% | 10,164.0 | +10.4% | +24.6% | ||
| North Asia | 3,290.9 | +4.9% | +8.7% | 11,321.4 | +6.6% | +14.8% | ||
| SAPMENA – SSA4 | 771.3 | +13.4% | +16.6% | 2,962.4 | +22.0% | +28.1% | ||
| Latin America | 575.3 | +13.8% | +23.1% | 2,376.2 | +18.6% | +34.1% | ||
| Group total | 10,319.1 | +8.1% | +13.5% | 38,260.6 | +10.9% | +18.5% |
http://www.loreal-finance.com/ 4 SAPMENA – SSA: South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa
The Division strengthened its position in the professional beauty market, maintaining its growth momentum across all geographic Zones, with outstanding performances in mainland China, India and Brazil. It continued to perform in all distribution channels – in salons, in its SalonCentric network in the United States and in e-commerce – again confirming the success of its omnichannel strategy.
Growth in the premiumising haircare market was largely driven by the performance of Kérastase, whose sales exceeded the symbolic one-billion-euro mark for the first time, and Série Expert by L'Oréal Professionnel, with the success of the Metal Detox innovation. The Division also achieved growth in hair colour, with its iconic lines Shades EQ by Redken and Inoa by L'Oréal Professionnel.
As the industry leader, the Division continued to involve all its partner hairstylists in the sustainable transition with the rollout of its "Hairstylists for the Future" programme.
The Consumer Products Division posted its best growth in 20 years: +8.3% like-for-like and +14.6% reported. The Division's growth was driven by innovation and sound valorisation, without sacrificing volume. All major brands outperformed the market, thanks to successful initiatives in the different categories.
The Division achieved sustained growth in haircare, with Elvive Hyaluron Plump confirming its worldwide success. Makeup was the Division's fastest growing category, with successful launches including Superstay Vinyl Ink by Maybelline New York the first long-wear, shiny, liquid lipstick as well as Bare With Me concealer and Jumbo False Eyelashes by NYX Professional Makeup. In skincare, Garnier was the Division's top growth contributor, with its Vitamin C Brightening Serum a standout success.
North America and Europe saw very robust performances. At the same time, growth accelerated significantly in Latin America and SAPMENA-SSA, with remarkable performance in high-potential countries such as Mexico, India and Brazil. This more than compensated for the challenging market conditions in China, where the Division accelerated its market share gains in the fourth quarter.
L'Oréal Luxe recorded strong growth, at +10.2% like-for-like and +18.6% reported, outperforming a global luxury beauty market that proved dynamic again this year.
L'Oréal Luxe strengthened its leadership in fragrance, the fastest-growing category in the selective market. This performance was driven by global bestsellers, such as Libre by Yves Saint Laurent, La Vie Est Belle by Lancôme and Acqua di Gio by Armani, as well as launches that had an impressive start, including Prada Paradoxe. In skincare, the Division grew three times faster than the market, spurred by the ultra-premium segment, with a spectacular performance from Helena Rubinstein, cutting-edge innovations such as Lancôme's Rénergie H.C.F Triple Serum, and the success of recent acquisitions including the Japanese brand Takami. The Division also grew in makeup, thanks to the initiatives of Yves Saint Laurent and Urban Decay.
In an unsettled environment, particularly in the second half of the year with the drastic slowdown of the Chinese market, the Division confirmed the strength of its geographic footprint which has allowed it to reinforce its global market share since 2019. The Division grew in step with the market in Europe and significantly increased its position in North Asia.
Reinforcing its medical prescription leadership, the Active Cosmetics Division strengthened its recommendation-based model and grew twice as fast as the dermocosmetics market. The Division posted double-digit growth in all Zones, with a remarkable performance in North America, SAPMENA–SSA and mainland China. La Roche-Posay and CeraVe contributed equally to the Division's growth. La Roche-Posay, the Division's biggest brand, sustained its outstanding momentum, driven by its main pillars Cicaplast and Effaclar, and by the success of the UVMune 400 breakthrough innovation in sun protection. CeraVe continued to expand internationally, achieving spectacular growth in both the United States and the rest of the world. Vichy maintained its strong momentum thanks to Dercos and the Capital Soleil UV franchise in both seasonal and daily sun protection. On the aesthetic front, SkinCeuticals recorded double-digit growth, fuelled by the excellent performance of A.G.E Interrupter anti-wrinkle cream. The newly acquired brand Skinbetter Science, integrated into the Division in the fourth quarter, showed promising potential.
The European beauty market grew beyond pre-pandemic levels, driven by fragrance, makeup and sun protection. It remained dynamic during the second half of the year despite rising inflation. L'Oréal again significantly outperformed the market thanks to its diversified offering, which meets the needs of all consumer segments, and its valorisation strategy, allowing Europe to be the Group's number one growth contributor this year. L'Oréal outperformed in the majority of countries, especially Germany, the United Kingdom and Spain. The Central European countries posted very strong growth. L'Oréal also continued to outperform in e-commerce.
The Consumer Products Division achieved its strongest growth of the last few years, driven by its makeup rebound and highly successful launches. Leading the fragrances category, L'Oréal Luxe had further success. The Active Cosmetics Division outperformed across the Zone thanks to the success of La Roche-Posay and CeraVe, which continued to expand rapidly. Finally, the Professional Products Division successfully pursued its valorisation strategy, significantly contributing to the growth of premium haircare in the Zone.
The Zone ended the year at +10.4% like-for-like and +24.6% reported, reaching the 10 billion euro mark in sales. Strong innovation, operational agility and well-executed valorisation of the offer amid rising inflation were instrumental in achieving this milestone.
The Consumer Products Division strengthened its position, outperforming the makeup market led by NYX Professional Makeup and Maybelline New York. L'Oréal Luxe outperformed the market in fragrance, thanks to its unique portfolio and key launches like Prada Paradoxe and Viktor & Rolf Good Fortune. The Professional Products Division remained strong in the salon channel and through the SalonCentric platform, significantly outpacing the market; it performed particularly well in haircare, with Pureology and Kérastase. The Active Cosmetics Division closed the year with strong double-digit growth, well ahead of the dermocosmetics market. CeraVe and La Roche-Posay maintained good momentum; the acquisition of the US skincare brand Skinbetter Science got off to a strong start.
L'Oréal's unique brand portfolio and its digital excellence were once again key drivers to outperform throughout the Zone, in all markets and all channels. The Professional Products and Active Cosmetics Divisions continued their double-digit growth, leveraging their premium brand portfolio. The Consumer Products Division capitalised on L'Oréal Paris' notable success in the skincare and haircare categories, and on 3CE Stylenanda growth momentum. L'Oréal Luxe achieved robust growth in a negative market; this remarkable performance was driven by premium skincare, fragrance and the strong acceleration of Yves Saint Laurent across the Zone.
In mainland China, the beauty market was clearly affected by the public health restrictions. In this challenging context, L'Oréal grew appreciably, with a double-digit increase in online sales. Leveraging brand love and operational agility, L'Oréal succeeded in providing consumers with quality premium and innovative products. This remarkable success resulted in strong offline and online market share gains throughout the year, as well as during Double 11, the world's biggest shopping festival; L'Oréal brands topped the rankings for each beauty category on Tmall, further consolidating the Group's leadership, notably in luxury, where L'Oréal surpassed 30% of market share in 2022.
L'Oréal recorded double-digit growth in Japan and Korea, where it outperformed the beauty market, which bounced back strongly in 2022.
All L'Oréal sites in the North Asia Zone became "carbon neutral"5 in 2022.
In SAPMENA, the Group achieved solid growth across all markets despite sourcing challenges. Consumers returned to stores and L'Oréal recorded booming sales in the brick-and-mortar channel. In the Pacific, growth was mainly driven by the fragrance and skincare categories, notably with the expansion of La Roche Posay and CeraVe. Maybelline New York makeup and Garnier skincare both fuelled progression across South-East Asia. The spectacular growth in India was spurred by the success of the Professional Products Division and the Consumer Products Division across all categories. Growth in the Gulf States continued to gather momentum.
In Sub-Saharan Africa (SSA), L'Oréal significantly outperformed the market thanks to the dynamism of all Divisions, with the Active Cosmetics Division achieving spectacular growth following the successful launch of CeraVe in the region.
L'Oréal recorded double-digit growth in key countries and gained market share. All Divisions contributed to this impressive performance, led by the Consumer Products Division, which saw spectacular growth. The Group continued to increase the weight of sales in e-commerce, while also enjoying double-digit growth in brick-and-mortar thanks to a winning omnichannel activation strategy.
The skincare category drove very strong growth in Mexico, while Brazil's performance was propelled by the remarkable growth of the Consumer Products Division and L'Oréal Luxe.
5 A site can claim "carbon neutral" status if it meets the following requirements: • Direct CO2 (Scope 1) = 0, with the exception of: the gas used for catering, the fuel oil used for sprinkler tests, fossil energy consumptions during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2eq./year; and •Indirect CO2 Market Based (Scope 2) = 0. The renewable energy sources must be located on site or less than 500 kilometres from the site, and be connected to the same distribution network. The "carbon neutral" status, as defined above, is achieved without carbon offsetting.
6 SAPMENA – SSA: South Asia Pacific, Middle East, North Africa and Sub-Saharan Africa
7 A site can claim "carbon neutral" status if it meets the following requirements: • Direct CO2 (Scope 1) = 0, with the exception of: the gas used for catering, the fuel oil used for sprinkler tests, fossil energy consumptions during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2eq./year; and •Indirect CO2 Market Based (Scope 2) = 0. The renewable energy sources must be located on site or less than 500 kilometres from the site, and be connected to the same distribution network. The "carbon neutral" status, as defined above, is achieved without carbon offsetting.
Audited financial statements, certification in progress.
| 2021 | 2022 | ||||
|---|---|---|---|---|---|
| €m | % sales | €m | % sales | ||
| Sales | 32,287.6 | 100,0% | 38,260.6 | 100,0 % | |
| Cost of sales | -8,433.3 | 26.1% | - 10,577.4 | 27.6 % | |
| Gross profit | 23,854.3 | 73.9% | 27,683.3 | 72.4 % | |
| R&I expenses | -1,028.7 | 3.2% | - 1,138.6 | 3.0 % | |
| Advertising and promotion | -10,591.0 | 32.8% | - 12,059.0 | 31.5 % | |
| Selling, general and administrative expenses | -6,074.2 | 18.8% | -7,028.8 | 18.4 % | |
| Operating profit | 6,160.3 | 19.1% | 7,456.9 | 19.5 % |
Consolidated profit and loss accounts: from sales to operating profit.
Gross profit, at 27,683.3 million euros, came out at 72.4% of sales, compared with 73.9% in 2021, a difference of 150 basis points.
Research & Innovation expenses, at 3% of sales, increased by more than +10%.
Advertising and promotion expenses accounted for 31.5% of sales, a decrease of 130 basis points.
Selling, general and administrative expenses, at 18.4% of sales, decreased by 40 basis points.
Overall, operating profit increased by +21.0% to 7,456.9 million euros, and amounted to 19.5% of sales, an improvement of 40 basis points.
| 2021 | 2022 | ||||
|---|---|---|---|---|---|
| €m | % sales | €m | % sales | ||
| By Division | |||||
| Professional Products | 806.9 | 21.3% | 953.6 | 21.3% | |
| Consumer Products | 2,466.0 | 20.2% | 2,774.9 | 19.8% | |
| L'Oréal Luxe | 2,816.3 | 22.8% | 3,350.4 | 22.9% | |
| Active Cosmetics | 990.5 | 25.2% | 1,303.0 | 25.4% | |
| Divisions total | 7,079.7 | 21.9% | 8,381.9 | 21.9% | |
| Non-allocated 9 | -919.4 | -2.8% | -925.1 | -2.4% | |
| Group | 6,160.3 | 19.1% | 7,456.9 | 19.5% |
The profitability of the Professional Products Division came out at 21.3%, stable compared with 2021. The profitability of the Consumer Products Division came out at 19.8%, vs 20.2% in 2021.
The profitability of L'Oréal Luxe improved by 10 basis points, at 22.9%.
The profitability of the Active Cosmetics Division increased by 20 basis points to 25.4%.
Non-allocated expenses amounted to 925.1 million euros.
http://www.loreal-finance.com/ 9 Non-allocated = Central Group expenses, fundamental research expenses, free grant of shares expenses and miscellaneous items.
8 In 2022, the operating margin was negatively impacted by -40bp in each division and by -20bp at group level:
a. -20bp in each division, due to the reallocation of certain central costs to divisions, offset by symmetry by a 20bp decline in non-allocated expenses;
b. -20bp in each division and at group level, as the group expensed in 2022 the cost of configuring and customizing software used in Saas mode, in accordance with IFRIC's April 2021 decision.
Consolidated profit and loss accounts: from operating profit to net profit excluding non-recurring items.
| €m | 2021 | 2022 | Growth |
|---|---|---|---|
| Operating profit | 6,160.3 | 7,456.9 | +21.0% |
| Financial revenues and expenses excluding Sanofi dividends |
-59.6 | -73.0 | |
| Sanofi dividends | 378.3 | 468.2 | |
| Profit before tax excluding non-recurring items | 6,478.9 | 7,852.1 | +21.2% |
| Income tax excluding non-recurring items | -1,535.6 | -1,793.4 | |
| Net profit excluding non-recurring items of equity consolidated companies |
+0.6 | +1.5 | |
| Non-controlling interests | -5.5 | -6.1 | |
| Net profit after non-controlling interests excluding non-recurring items |
4,938.5 | 6,054.1 | +22.6% |
| EPS10 (€) | 8.82 | 11.26 | +27.6% |
| Net profit after non-controlling interests | 4,597.1 | 5,706.6 | +24.1% |
| Diluted EPS after non-controlling interests (€) | 8.21 | 10.61 | |
| Diluted average number of shares | 559,791,545 | 537,657,548 |
Sanofi dividends totalled 468.2 million euros. This year, in addition to the annual dividend of 393.7 million euros, Sanofi paid an additional dividend-in-kind in the form of newly listed Euroapi shares for an amount of 74.5 million euros.
Income tax excluding non-recurrent items amounted to 1,793 million euros, representing a tax rate of 22.8%.
Net profit excluding non-recurring items after non-controlling interests stood at 6,054 million euros.
Earnings per share10, at 11.26 euros, increased by +27.6%.
Non-recurring items after non-controlling interests11 amounted to 347 million euros net of tax.
Net profit after non-controlling interests came out at 5,706 million euros, increasing by +24.1%.
Gross cash flow amounted to 7,289 million euros, an increase of +9.8%.
The working capital requirement increased by 1,010 million euros.
At 1,343.2 million euros, investments represented 3.5% of sales.
Net cash flow12, at 4,935 million euros, decreased by 12.7%.
The balance sheet remains strong, with shareholders' equity amounting to 27.2 billion euros.
The Board of Directors has decided to propose a dividend of 6.00 euros per share at the shareholders' Annual General Meeting of 21 April 2023, an increase of +25% compared with the dividend paid in 2022. The dividend will be paid on 29 April 2023 (ex-dividend date 27 April at 0:00am, Paris time).
At 31 December 2022, the capital of the company is formed by 535,186,562 shares.
10 Diluted earnings per share, based on net profit, excluding non-recurring items, after non-controlling interests. 11 Non-recurring items include impairment of assets, capital gains and losses on disposals of long-term assets, restructuring costs and tax effects of non-recurring items.
12 Net cash flow = Gross cash flow + changes in working capital - capital expenditure.
The L'Oréal Board of Directors met on 9 February 2023, under the chairmanship of Jean-Paul Agon and in the presence of the Statutory Auditors. The Board approved the consolidated financial statements and the financial statements for 2022.
"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 website www.loreal-finance.com.
This news release may contain some forward-looking statements. While the Company believes that these statements are based on reasonable assumptions as of the date of publication of this press release, they are by nature subject to risks and uncertainties which may lead to a discrepancy between the actual figures and those indicated or suggested in these statements."
This is a free translation into English of the 2022 Annual Results news release issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.
For over 110 years, L'Oréal, the world's leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 36 international brands and ambitious sustainability commitments in our L'Oréal for the Future programme, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality.
With 87 400 committed employees, a balanced geographical footprint and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, hair salons, branded and travel retail), in 2022 the Group generated sales amounting to 38.26 billion euros. With 20 research centers across 11 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 5 500 tech and digital professionals, L'Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse.
More information on https://www.loreal.com/en/mediaroom
Switchboard +33 (0) 1 47 56 70 00 Pascale Guerin +33 (0)1 49 64 28 89 [email protected]
Françoise Lauvin +33 (0)1 47 56 86 82 [email protected]
Noëlle Camilleri +33 (0)6 79 92 99 39 [email protected]
Christine Burke +33 (0)6 75 54 38 15 [email protected]
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, the website for shareholders and investors, www.loreal-finance.com or the L'Oréal Finance app; alternatively, call +33 (0)1 40 14 80 50.
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| 2021 | 2022 | |||
|---|---|---|---|---|
| €m | €m | Like-for-like evolution |
Reported evolution |
|
| First quarter | 7,614.5 | 9,060.5 | +13.5% | +19.0% |
| Second quarter | 7,582.1 | 9,305.8 | +13.4% | +22.7% |
| First half total | 15,196.6 | 18,366.3 | +13.5% | +20.9% |
| Third quarter | 7,996.6 | 9,575.2 | +9.1% | +19.7% |
| Nine months total | 23,193.1 | 27,941.5 | +12.0% | +20.5% |
| Fourth quarter | 9,094.4 | 10,319.1 | +8.1% | +13.5% |
| Full year total | 32,287.6 | 38,260.6 | +10.9% | +18.5% |
| € millions | 2022 | 2021 | 2020 |
|---|---|---|---|
| Net sales | 38,260.6 | 32,287.6 | 27,992.1 |
| Cost of sales | -10,577.4 | -8,433.3 | -7,532.3 |
| Gross profit | 27,683.3 | 23,854.3 | 20,459.8 |
| Research & Innovation expenses | -1,138.6 | -1,028.7 | -964.4 |
| Advertising and promotion expenses | -12,059.0 | -10,591.0 | -8,647.9 |
| Selling, general and administrative expenses | -7,028.8 | -6,074.2 | -5,638.5 |
| Operating profit | 7,456.9 | 6,160.3 | 5,209.0 |
| Other income and expenses | -241.5 | -432.0 | -709.0 |
| Operational profit | 7,215.4 | 5,728.3 | 4,500.0 |
| Finance costs on gross debt | -70.4 | -38.0 | -79.2 |
| Finance income on cash and cash equivalents | 69.8 | 18.5 | 19.8 |
| Finance costs, net | -0.6 | -19.4 | -59.4 |
| Other financial income and expenses | -72.3 | -40.2 | -36.5 |
| Sanofi dividends | 468.2 | 378.3 | 372.4 |
| Profit before tax and associates | 7,610.6 | 6,046.9 | 4,776.5 |
| Income tax | -1,899.4 | -1,445.4 | -1,209.8 |
| Share of profit in associates | 1.4 | 0.6 | 0.9 |
| Net profit | 5,712.6 | 4,602.2 | 3,567.6 |
| Attributable to: | |||
| • owners of the company | 5,706.6 | 4,597.1 | 3,563.4 |
| • non-controlling interests | 6.0 | 5.1 | 4.2 |
| Earnings per share attributable to owners of the company (euros) | 10.65 | 8.24 | 6.37 |
| Diluted earnings per share attributable to owners of the company (euros) | 10.61 | 8.21 | 6.34 |
| Earnings per share attributable to owners of the company, excluding non-recurring items (euros) | 11.30 | 8.86 | 7.33 |
| Diluted earnings per share attributable to owners of the company, excluding non-recurring items (euros) |
11.26 | 8.82 | 7.30 |
| € millions | 2022 | 2021 | 2020 |
|---|---|---|---|
| Consolidated net profit for the period | 5,712.6 | 4,602.2 | 3,567.6 |
| Cash flow hedges | 288.5 | -203.7 | 129.1 |
| Cumulative translation adjustments | 195.1 | 610.5 | -790.2 |
| Income tax on items that may be reclassified to profit or loss (1) | -58.0 | 41.5 | -23.3 |
| Items that may be reclassified to profit or loss | 425.6 | 448.3 | -684.4 |
| Financial assets at fair value through other comprehensive income | 152.1 | 1,192.2 | -1,269.1 |
| Actuarial gains and losses | 395.6 | 585.5 | -225.6 |
| Income tax on items that may not be reclassified to profit or loss (1) | -111.5 | -181.7 | 97.8 |
| Items that may not be reclassified to profit or loss | 436.2 | 1,596.0 | -1,396.9 |
| Other comprehensive income | 861.8 | 2,044.3 | -2,081.3 |
| CONSOLIDATED COMPREHENSIVE INCOME | 6,574.4 | 6,646.5 | 1,486.3 |
| Attributable to: | |||
| • owners of the company | 6,567.6 | 6,641.4 | 1,482.1 |
| • non-controlling interests | 6.8 | 5.1 | 4.2 |
(1) The tax effect is as follows:
| € millions | 2022 | 2021 | 2020 |
|---|---|---|---|
| Cash flow hedges | -58.0 | 41.5 | -23.3 |
| Items that may be reclassified to profit or loss | -58.0 | 41.5 | -23.3 |
| Financial assets at fair value through other comprehensive income | -6.1 | -37.3 | 40.4 |
| Actuarial gains and losses | -105.5 | -144.4 | 57.4 |
| Items that may not be reclassified to profit or loss | -111.5 | -181.7 | 97.8 |
| TOTAL | -169.5 | -140.2 | 74.5 |
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Non-current assets | 32,794.5 | 30,937.6 | 29,046.8 |
| Goodwill | 11,717.7 | 11,074.5 | 10,514.2 |
| Other intangible assets | 3,640.1 | 3,462.8 | 3,356.3 |
| Right-of-use assets | 1,482.7 | 1,507.6 | 1,525.3 |
| Property, plant and equipment | 3,481.7 | 3,266.2 | 3,225.2 |
| Non-current financial assets | 11,652.8 | 10,920.2 | 9,604.8 |
| Investments accounted for under the equity method | 18.4 | 9.9 | 11.1 |
| Deferred tax assets | 801.1 | 696.5 | 809.9 |
| Current assets | 14,049.6 | 12,075.8 | 14,560.1 |
| Inventories | 4,079.4 | 3,166.9 | 2,675.8 |
| Trade accounts receivable | 4,755.5 | 4,021.0 | 3,511.3 |
| Other current assets | 2,423.2 | 2,037.9 | 1,732.7 |
| Current tax assets | 173.9 | 136.2 | 234.4 |
| Cash and cash equivalents | 2,617.7 | 2,713.8 | 6,405.9 |
| TOTAL | 46,844.2 | 43,013.4 | 43,606.9 |
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Equity | 27,186.5 | 23,592.6 | 28,998.8 |
| Share capital | 107.0 | 111.5 | 112.0 |
| Additional paid-in capital | 3,368.7 | 3,265.6 | 3,259.8 |
| Other reserves | 11,675.6 | 19,092.2 | 18,642.5 |
| Other comprehensive income | 6,404.4 | 5,738.6 | 4,304.5 |
| Cumulative translation adjustments | -83.8 | -279.1 | -889.2 |
| Treasury shares | — | -8,940.2 | — |
| Net profit attributable to owners of the company | 5,706.6 | 4,597.1 | 3,563.4 |
| Equity attributable to owners of the company | 27,178.5 | 23,585.7 | 28,993.0 |
| Non-controlling interests | 8.0 | 6.9 | 5.8 |
| Non-current liabilities | 5,937.9 | 2,837.6 | 3,478.0 |
| Provisions for employee retirement obligations and related benefits | 457.9 | 360.6 | 1,013.5 |
| Provisions for liabilities and charges | 67.7 | 63.8 | 56.8 |
| Non-current tax liabilities | 275.6 | 344.8 | 397.9 |
| Deferred tax liabilities | 905.6 | 810.3 | 706.6 |
| Non-current borrowings and debt | 3,017.6 | 10.7 | 8.5 |
| Non-current lease debt | 1,213.5 | 1,247.5 | 1,294.7 |
| Current liabilities | 13,719.6 | 16,583.2 | 11,130.1 |
| Trade accounts payable | 6,345.6 | 6,068.1 | 4,764.5 |
| Provisions for liabilities and charges | 1,205.6 | 1,223.3 | 1,224.7 |
| Other current liabilities | 4,484.6 | 3,980.8 | 3,682.5 |
| Income tax | 264.2 | 268.9 | 215.1 |
| Current borrowings and debt | 1,012.8 | 4,619.4 | 856.4 |
| Current lease debt | 407.0 | 422.8 | 386.9 |
| TOTAL | 46,844.2 | 43,013.4 | 43,606.9 |
| € millions | Common shares outstanding |
Capital | Additional paid-in capital |
Retained earnings and net profit |
Other comprehensive income |
Treasury shares |
Cumulative translation adjustments |
Equity attributable to owners of the company |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|
| At 31.12.2019 | 558,117,205 | 111.6 | 3,130.2 20,681.0 | 5,595.8 | — | -99.2 | 29,419.3 | 6.7 29,426.0 | ||
| Consolidated net profit for the period | 3,563.4 | — | 3,563.4 | 4.2 3,567.6 | ||||||
| Cash flow hedges | 105.6 | 105.6 | 0.2 | 105.8 | ||||||
| Cumulative translation adjustments | -801.8 | -801.8 | -0.3 | -802.1 | ||||||
| Hyperinflation | 11.9 | 11.9 | 11.9 | |||||||
| Other comprehensive income that may | ||||||||||
| be reclassified to profit and loss | 105.6 | -789.9 | -684.3 | -0.1 -684.4 | ||||||
| Financial assets at fair value | ||||||||||
| through other comprehensive income | -1,228.8 | -1,228.8 | -1,228.8 | |||||||
| Actuarial gains and losses | -168.1 | -168.1 | -168.1 | |||||||
| Other comprehensive income that may not be reclassified to profit and loss |
-1,396.9 | -1,396.9 | -1,396.9 | |||||||
| Consolidated comprehensive income | 3,563.4 | -1,291.3 | -789.9 | 1,482.1 | 4.2 1,486.3 | |||||
| Capital increase | 1,754,375 | 0.4 | 129.6 | -0.2 | 129.8 | 129.8 | ||||
| Cancellation of Treasury shares | — | — | — | |||||||
| Dividends paid | ||||||||||
| (not paid on Treasury shares) | — | — | -2,172.6 | -2,172.6 | -4.9 -2,177.5 | |||||
| Share-based payment | — | — | 129.7 | 129.7 | 129.7 | |||||
| Net changes in Treasury shares | — | — | — | |||||||
| Changes in the scope of consolidation | — | — | — | — — |
— | — | ||||
| Other movements | — | 4.8 | — | — | 4.8 | -0.1 | 4.7 | |||
| At 31.12.2020 | 559,871,580 | 112.0 | 3,259.8 22,206.0 | 4,304.5 | -889.1 | 28,993.0 | 5.8 28,998.8 | |||
| Consolidated net profit for the period | 4,597.1 | — | — 4,597.1 |
5.1 4,602.2 | ||||||
| Cash flow hedges | -161.9 | — -161.9 |
-0.3 | -162.2 | ||||||
| Cumulative translation adjustments | — | 582.4 | 582.4 | 0.3 | 582.7 | |||||
| Hyperinflation | — | 27.8 | 27.8 | 27.8 | ||||||
| Other comprehensive income that may | ||||||||||
| be reclassified to profit and loss | -161.9 | 610.2 | 448.3 | — | 448.3 | |||||
| Financial assets at fair value through | 1,154.9 | — 1,154.9 |
1,154.9 | |||||||
| other comprehensive income | ||||||||||
| Actuarial gains and losses | 441.1 | — 441.1 |
441.1 | |||||||
| Other comprehensive income that may not be reclassified to profit and loss |
1,596.0 | 1,596.0 | 1,596.0 | |||||||
| Consolidated comprehensive income | 4,597.1 | 1,434.1 | 610.2 | 6,641.4 | 5.1 6,646.5 | |||||
| Capital increase | 800,780 | — | 5.8 | — | — 5.8 |
5.8 | ||||
| Cancellation of Treasury shares | — | -0.5 | -1,104.3 | — | 1,104.8 | — — |
— | |||
| Dividends paid | ||||||||||
| (not paid on Treasury shares) | — | — | -2,264.4 | — | — -2,264.4 |
-4.7 -2,269.1 | ||||
| Share-based payment | — | — | 155.2 | — | — 155.2 |
155.2 | ||||
| Net changes in Treasury shares | -25,260,000 | — | — | — | -10,045.0 | — -10,045.0 |
-10,045.0 | |||
| Changes in the scope of consolidation | — | — | — | — | — | |||||
| Other movements (1) | — | — | 99.8 | — | 99.8 | 0.6 | 100.4 | |||
| At 31.12.2021 | 535,412,360 | 111.5 | 3,265.6 23,689.3 | 5,738.6 -8,940.2 | -279.1 | 23,585.7 | 6.9 23,592.6 |
(1) Of which €102.2 million pertaining to the IFRIC 2021 interpretation on IAS19 "Employee Benefits" on Attributing Benefit to Periods of Service.
| Retained | Equity | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Common | Additional | earnings | Other | Cumulative | attributable | Non | ||||
| shares | paid-in | and net | comprehensive | Treasury | translation | to owners of | controlling | Total | ||
| € millions | outstanding | Capital | capital | profit (2) | income | shares | adjustments | the company | interests | equity |
| At 31.12.2021 | 535,412,360 | 111.5 | 3,265.6 | 23,689.3 | 5,738.6 -8,940.2 | -279.1 | 23,585.7 | 6.9 23,592.6 | ||
| Impact of the application of the IFRIC | ||||||||||
| decision on SaaS contracts | -151.2 | -151.2 | — | -151.2 | ||||||
| At 01.01.2022 (2) | 535,412,360 | 111.5 | 3,265.6 | 23,538.1 | 5,738.6 -8,940.2 | -279.1 | 23,434.5 | 6.9 23,441.4 | ||
| Consolidated net profit for the period | 5,706.6 | 5,706.6 | 6.0 5,712.6 | |||||||
| Cash flow hedges | 229.7 | 229.7 | 0.8 | 230.5 | ||||||
| Cumulative translation adjustments | 127.5 | 127.5 | -0.2 | 127.3 | ||||||
| Hyperinflation | 67.8 | 67.8 | — | 67.8 | ||||||
| Other comprehensive income that may | ||||||||||
| be reclassified to profit and loss | 229.7 | 195.3 | 425.0 | 0.6 | 425.6 | |||||
| Financial assets at fair value through | 146.1 | — | 146.1 | 146.1 | ||||||
| other comprehensive income | ||||||||||
| Actuarial gains and losses | 290.0 | — | 290.0 | 0.1 | 290.1 | |||||
| Other comprehensive income that may | ||||||||||
| not be reclassified to profit and loss | 436.1 | 436.1 | 0.1 | 436.2 | ||||||
| Consolidated comprehensive income | 5,706.6 | 665.8 | 195.3 | 6,567.6 | 6.8 6,574.4 | |||||
| Capital increase | 1,317,073 | 0.3 | 103.1 | -0.2 | 103.2 | 103.2 | ||||
| Cancellation of Treasury shares | -4.8 | -9,437.7 | 9,442.5 | — | — | |||||
| Dividends paid | ||||||||||
| (not paid on Treasury shares) | -2,601.2 | -2,601.2 | -4.4 -2,605.6 | |||||||
| Share-based payment | 169.0 | 169.0 | 169.0 | |||||||
| Net changes in Treasury shares | -1,542,871 | -502.3 | -502.3 | -502.3 | ||||||
| Changes in the scope of consolidation | — | — | ||||||||
| Other movements (2) | 7.7 | — | 7.7 | -1.2 | 6.5 | |||||
| At 31.12.2022 | 535,186,562 | 107.0 | 3,368.7 | 17,382.2 | 6,404.4 | — | -83.8 | 27,178.5 | 8.0 27,186.5 |
(2) After taking account of the IFRIC final decision in April 2021 on set-up and customization costs for SaaS-type contracts software.
| € millions | 2022 | 2021 | 2020 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net profit attributable to owners of the company | 5,706.6 | 4,597.1 | 3,563.4 |
| Non-controlling interests | 6.0 | 5.1 | 4.2 |
| Elimination of expenses and income with no impact on cash flows: | |||
| • depreciation, amortisation, provisions and non-current tax liabilities | 1,536.1 | 1,781.0 | 2,028.1 |
| • changes in deferred taxes | -96.5 | 83.6 | -10.1 |
| • share-based payment (including free shares) | 169.0 | 155.2 | 129.7 |
| • capital gains and losses on disposals of assets | 7.6 | 0.5 | 3.6 |
| Other non-cash transactions | -38.7 | 16.5 | 5.8 |
| Share of profit in associates net of dividends received | -0.5 | 1.3 | -0.6 |
| Gross cash flow | 7,289.6 | 6,640.4 | 5,724.1 |
| Changes in working capital | -1,011.3 | 88.0 | 729.2 |
| Net cash provided by operating activities (A) | 6,278.3 | 6,728.4 | 6,453.3 |
| Cash flows from investing activities | |||
| Purchases of property, plant and equipment and intangible assets | -1,343.2 | -1,075.2 | -972.4 |
| Disposals of property, plant and equipment and intangible assets | 9.2 | 14.5 | 26.6 |
| Changes in other financial assets (including investments in non-consolidated companies) | -142.8 | -117.3 | -66.5 |
| Effect of changes in the scope of consolidation | -746.9 | -455.7 | -1,626.8 |
| Net cash from investing activities (B) | -2,223.8 | -1,633.7 | -2,639.1 |
| Cash flows from financing activities | |||
| Dividends paid | -2,689.9 | -2,352.1 | -2,190.6 |
| Capital increase of the parent company | 103.2 | 5.8 | 129.7 |
| Disposal (acquisition) of Treasury shares | -502.3 | -10,060.9 | — |
| Purchase of non-controlling interests | — | — | — |
| Issuance (repayment) of short-term loans | -3,563.8 | 3,939.4 | -74.8 |
| Issuance of long-term borrowings | 3,019.9 | — | — |
| Repayment of long-term borrowings | — | — | -3.6 |
| Repayment of lease debt | -446.9 | -396.4 | -451.8 |
| Net cash from financing activities (C) | -4,079.9 | -8,864.2 | -2,591.1 |
| Net effect of changes in exchange rates and fair value (D) | -70.7 | 77.4 | -103.2 |
| Change in cash and cash equivalents (A+B+C+D) | -96.1 | -3,692.1 | 1,119.9 |
| Cash and cash equivalents at beginning of the year (E) | 2,713.8 | 6,405.9 | 5,286.0 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E) | 2,617.7 | 2,713.8 | 6,405.9 |
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