Earnings Release • Jan 27, 2022
Earnings Release
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30 AVENUE MONTAIGNE
PARIS 75008
Paris, January 27 th , 2022
Christian Dior recorded revenue of 64.2 billion euros in 2021, up 44% compared to 2020 and up 20% compared to 2019. Organic revenue growth was 36% compared to 2020 and 14% compared to 2019. The performance for the year confirms a return to strong growth momentum following the severe disruption to the first half of 2020 resulting from the global pandemic.
The Group's organic revenue growth of 22% in the fourth quarter compared to 2019 reflects the accelerated growth of its activities. Fashion & Leather Goods notably reached record levels over the period, recording organic revenue growth of 51% compared to 2019. The United States and Asia rose sharply over the course of the year, while Europe, which is experiencing a gradual recovery, returned to growth in the fourth quarter compared to 2019.
Profit from recurring operations stood at €17 139 million for 2021, more than double 2020, and up 49% compared to 2019. Operating margin reached 26.7%, up 8 points compared to 2020 and 5 points compared to 2019. Group share of net profit amounted to €4 946 million, up 156% compared to 2020 and up 68% compared to 2019. Operating free cash flow, which exceeded €13 billion, was more than twice that of both 2020 and 2019.
Highlights of 2021 include:
| Euro Millions | 2020 | 2021 | Change 2021/2020 |
Change 2021/2019 |
|
|---|---|---|---|---|---|
| Revenue | 44 651 | 64 215 | + 44 % |
+ 20 % |
|
| Profit from recurring operations | 8 300 | 17 139 | + 106 % |
+ 49 % |
|
| Group share of net profit | 1 933 | 4 946 | + 156 % |
+ 68 % |
|
| Operating free cash flow | 6 093 | 13 518 | + 122 % |
+ 117 % |
|
| Net financial debt | 4 213 |
9 521 | + 126 % |
+ 54 % | |
| Total equity | 36 244 | 46 367 |
+ 28 % |
+ 30 % |
| Change | Change | ||||
|---|---|---|---|---|---|
| Euro Millions | 2020 | 2021 | 2021/2020 | 2021/2019 | |
| Reported | Organic* | Organic | |||
| Wines & Spirits | 4 755 | 5 974 |
+ 26 % | + 26 % | + 9 % |
| Fashion & Leather Goods | 21 207 | 30 896 | + 46 % | + 47 % | + 42 % |
| Perfumes & Cosmetics | 5 248 | 6 608 | + 26 % | + 27 % | - 1 % |
| Watches & Jewelry | 3 356 | 8 964 | + 167 % | + 40 % | + 7 % |
| Selective Retailing | 10 155 | 11 754 | + 16 % | + 18 % | - 18 % |
| Other activities and eliminations |
(70) | 19 | - | - | - |
| Total | 44 651 | 64 215 | + 44 % | + 36 % | + 14 % |
* with comparable structure and constant exchange rates. The structural impact for the Group compared to 2020 was +10% mainly related to the consolidation of Tiffany & Co. for the first time. The currency effect was -2%.
| Profit from recurring operations by business group: | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Euro Millions | 2020 | 2021 | Change 2021/2020 |
Change 2021/2019 |
|||||
| Wines & Spirits |
1 388 | 1 863 | + 34 % | + 8 % | |||||
| Fashion & Leather Goods |
7 188 | 12 842 |
+ 79 % | + 75 % | |||||
| Perfumes & Cosmetics |
80 | 684 | x8.6 | 0 % | |||||
| Watches & Jewelry |
302 | 1 679* |
x5.6 | + 128 % | |||||
| Selective Retailing | (203) | 534 | na | - 62 % |
|||||
| Other activities and eliminations | (455) | (463) | - | - | |||||
| Total | 8 300 | 17 139 | + 106 % |
+ 49 % | |||||
| * non-comparable structure. |
The Wines & Spirits business group recorded organic revenue growth of 26% in 2021 compared to 2020 and 9% compared to 2019. Profit from recurring operations was up 34% compared to 2020. The rebound in consumption, in an environment which was already seeing supply constraints, brought further impetus to the strategy of value creation. Champagne volumes were up compared to 2019. Growth was particularly strong in the United States and Europe, which benefited from the reopening of restaurants and the gradual recovery in regional tourism. The year marked the integration, from the third quarter onwards, of the prestigious Champagne House Armand de Brignac, in which LVMH holds a 50% stake. Hennessy cognac performed well with an increase in volumes compared to 2019, despite supply constraints. China and the United States experienced a strong rebound. Within the flourishing market for high-end rosé wines, Château d'Esclans enjoyed rapid growth and Château Galoupet continued its conversion to organic viticulture.
The Fashion & Leather Goods business group recorded organic revenue growth of 47% in 2021 compared to 2020 and 42% compared to 2019. With organic revenue growth of 51% compared to 2019, the fourth quarter showed a sharp rise compared to previous quarters. Profit from recurring operations was up 79% compared to 2020 and 75% compared to 2019. The end of the year has been marked by the premature passing of Virgil Abloh, Men's Artistic Director of Louis Vuitton since March 2018. The Maison paid tribute to the life and legacy of this creative genius with the Miami fashion show, "Virgil Was Here". Louis Vuitton, which celebrated the 200th anniversary of the birth of its founder, enjoyed a remarkable performance, driven by the success of Nicolas Ghesquière's creations for the feminine universe of the Maison. Christian Dior Couture had an excellent year with exceptional growth in all its product categories among local customers. The latest fashion shows in Athens and Paris, highlighting the inspiring collections of Maria Grazia Chiuri and Kim Jones, received a tremendous reception. Following its huge success in Paris, London and Shanghai, the Christian Dior, Designer of Dreams exhibition was inaugurated in New York. Celine, thanks to Hedi Slimane and to the success of his collections, and Fendi, driven by the success of Kim Jones collections, had a record year. Loewe, energized by the talent of JW Anderson, and Marc Jacobs also performed particularly well.
The Perfumes & Cosmetics business group recorded organic revenue growth of 27% in 2021 compared to 2020. Organic revenue was stable compared to 2019. Profit from recurring operations was nearly nine times higher than 2020 and returned to 2019 levels. In an environment marked by a limited recovery in international travel and the closure of many points of sale over a period of several months, LVMH's major brands chose to maintain a policy of selective distribution, limiting promotions and growing online sales on their own website. Christian Dior benefited from the enormous success of Miss Dior and Sauvage. In 2021, Sauvage became the highest selling fragrance in the world (women's and men's lines included) which is a worldwide first for a male fragrance. The continued growth of the Collection Privée and the skincare lines Prestige,Capture Totale and L'Or de Vie also contributed to the progress of the Maison. Guerlain recorded excellent performance, driven by its Abeille Royale and Orchidée Impériale skincare lines. Maison Francis Kurkdjian continued to enjoy rapid growth momentum thanks to the ongoing success of Rouge 540, particularly in the United States. Officine Universelle Buly, which differentiates itself through its range of valuable, effective, and authentic products, joined LVMH.
The Watches & Jewelry business group recorded revenue growth of 167% in 2021 compared to 2020 thanks to Tiffany, consolidated for the first time. Profit from recurring operations was almost six times higher than in 2020 and up 128% compared to 2019. For its first year in the Group, Tiffany saw record performance in terms of revenue, profits and cash flow, and increased its global attractivity as a result of
its high impact innovations and collaborations. High-end Jewelry sales in particular reached an all-time high with the huge success of its annual High-End Jewelry Blue Book collection. Honouring its long tradition of expressing love and diversity, a global "About Love" campaign featuring Beyoncé and Jay-Z was launched. The revenue and profits achieved a sharp increase compared to 2019. Bvlgari enjoyed good momentum, driven by the growth of the iconic lines in its own stores. The Maison accelerated the selectivity of its multi-brand network distribution and expanded its own boutiques. Chaumet unveiled an exclusive diamond cut, the Taille Impératrice, and showcased its unique heritage through the "Joséphine and Napoléon" exhibition at the heart of the Maison's iconic 12 place Vendôme address in Paris. In watchmaking, TAG Heuer inaugurated a major partnership with Porsche and successfully launched a Super Mario limited edition of its smartwatch for gaming enthusiasts. Hublot had an excellent performance, particularly in the United States and China. Fred continued its strong growth. The new products at Zenith have been highly successful.
In Selective Retailing, organic revenue was up 18% compared to 2020 and down 18% compared to 2019 due to the impact of travel retail. Profit from recurring operations was back in positive territory in 2021. Sephora surpassed its 2019 level of activity, benefiting from the strong rebound in its stores and the continued momentum of its online sales. The expansion of its store network continued, mainly in China and the United States, notably following on from its major partnership with the American retailer Kohl's. In addition to signing a partnership with the European online platform Zalando, Sephora acquired the British online distributor Feelunique, which specialises in prestige beauty. The health crisis continued to weigh on the activities of DFS due to the persistent weakness in the numbers of travelers. The T Gallerias in Macau nevertheless performed well thanks to growing demand from local customers and DFS launched operations in Hainan. La Samaritaine, which reopened in Paris in June after an ambitious renovation, saw an encouraging level of customer traffic. Le Bon Marché continued to develop innovative concepts and benefited from the return of a loyal French customer base. The 24S digital platform recorded strong growth, driven by the unique nature of its selection process and its Parisian market positioning.
Within the context of a gradual recovery from the health crisis, Christian Dior group is confident in its ability to maintain its current growth momentum. The Group will continue to pursue a strategy focused on developing its brands building on strong innovation and investments as well as a constant quest for quality of their products, of their desirability and of their distribution.
Driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across its activities and the geographic areas in which it operates, Christian Dior group enters 2022 with confidence and, once again, sets an objective of reinforcing its global leadership position in luxury goods.
At the Annual General Meeting on April 21, 2022, Christian Dior will propose a dividend of 10 euros per share. An interim dividend of 3 euros per share was paid on December 2 of last year. The balance of 7 euros will be paid on April 28, 2022.
The Board of Directors met on January 27 th to approve the financial statements for 2021. Audit procedures have been carried out and the audit report is being issued. This financial release is available on our website www.dior-finance.com.
"This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in Christian Dior's Annual Report which is available on the website (www.dior-finance.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect Christian Dior's views as of the date of this document, and Christian Dior does not undertake to revise or update these forward looking statements. The forward looking statements should be used with caution and circumspection and in no event can Christian Dior and its Management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in Christian Dior or an invitation or inducement to engage in any other investment activities."
Financial statements for 2021 are included in the PDF version of the press release.
| Year 2021 | Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| First quarter | 1 510 | 6 738 | 1 550 | 1 883 | 2 337 | (59) | 13 959 |
| Second quarter | 1 195 | 7 125 | 1 475 | 2 140 | 2 748 | 23 | 14 706 |
| First half | 2 705 | 13 863 | 3 025 | 4 023 | 5 085 | (36) | 28 665 |
| Third quarter | 1 546 | 7 452 | 1 642 | 2 137 | 2 710 | 25 | 15 512 |
| First nine months | 4 251 | 21 315 | 4 668 | 6 160 | 7 795 | (12) | 44 177 |
| Fourth quarter | 1 723 | 9 581 | 1 941 | 2 804 | 3 959 | 30 | 20 038 |
| Total 2021 | 5 974 | 30 896 | 6 608 | 8 964 | 11 754 | 19 | 64 215 |
| Year 2021 | Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| First quarter | + 36 % | + 52 % | + 18 % | + 35 % | - 5 % | - | + 30 % |
| Second quarter | + 55 % | x 2.2 | + 67 % | x 2.2 | + 31 % | - | + 84 % |
| First half | + 44 % | + 81 % | + 37 % | + 71 % | + 12 % | - | + 53 % |
| Third quarter | + 10 % | + 24 % | + 19 % | + 18 % | + 15 % | - | + 20 % |
| First nine months | + 30 % | + 57 % | + 30 % | + 49 % | + 13 % | - | + 40 % |
| Fourth quarter | + 18 % | + 28 % | + 20 % | + 21 % | + 30 % | - | + 27 % |
| Total 2021 | + 26 % | + 47 % | + 27 % | + 40 % | + 18 % | - | + 36 % |
| Year 2021 | Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| First quarter | + 17 % | + 37 % | - 4 % | + 1 % | - 30 % | - | + 8 % |
| Second quarter | + 7 % | + 40 % | - 1 % | + 9 % | - 19 % | - | + 14 % |
| First half | + 12 % | + 38 % | - 3 % | + 5% | - 25 % | - | + 11 % |
| Third quarter | + 7 % | + 38 % | 0 % | + 1 % | - 19 % | - | + 11 % |
| First nine months | + 10 % | + 38 % | - 2 % | + 4 % | - 23 % | - | + 11 % |
| Fourth quarter | + 4 % | + 51 % | + 1 % | + 18 % | - 5 % | - | + 22 % |
| Total 2021 | + 9 % | + 42 % | - 1 % | + 7 % | - 18 % | - | + 14 % |
| Year 2020 | Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| First quarter | 1 175 | 4 643 | 1 382 | 792 | 2 626 | (22) | 10 596 |
| Second quarter | 810 | 3 346 | 922 | 527 | 2 218 | (26) | 7 797 |
| First half | 1 985 | 7 989 | 2 304 | 1 319 | 4 844 | (48) | 18 393 |
| Third quarter | 1 364 | 5 945 | 1 370 | 947 | 2 332 | (3) | 11 955 |
| First nine months | 3 349 | 13 934 | 3 674 | 2 266 | 7 176 | (51) | 30 348 |
| Fourth quarter | 1 406 | 7 273 | 1 574 | 1 090 | 2 979 | (19) | 14 303 |
| Total 2020 | 4 755 | 21 207 | 5 248 | 3 356 | 10 155 | (70) | 44 651 |
| Year 2019 | Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
|---|---|---|---|---|---|---|---|
| First quarter | 1 349 | 5 111 | 1 687 | 1 046 | 3 510 | (165) | 12 538 |
| Second quarter | 1 137 | 5 314 | 1 549 | 1 089 | 3 588 | (133) | 12 544 |
| First half | 2 486 | 10 425 | 3 236 | 2 135 | 7 098 | (298) | 25 082 |
| Third quarter | 1 433 | 5 448 | 1 676 | 1 126 | 3 457 | 176* | 13 316 |
| First nine months | 3 919 | 15 873 | 4 912 | 3 261 | 10 555 | (122) | 38 398 |
| Fourth quarter | 1 657 | 6 364 | 1 923 | 1 144 | 4 236 | (52) | 15 272 |
| Total 2019 | 5 576 | 22 237 | 6 835 | 4 405 | 14 791 | (174) | 53 670 |
* Includes all Belmond revenue for the period from April to September 2019.
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS / IFRS, the Christian Dior group uses alternative performance measures established in accordance with the AMF's position DOC-2015-12.
The table below lists these measures and the reference to their definition and their reconciliation with the aggregates defined by IAS / IFRS in published documents.
| Measures | Reference to published documents |
|---|---|
| Operating free cash-flow | AR (consolidated financial statements, consolidated cash-flow statement) |
| Net financial debt | AR (Notes 1.23 and 19 of the appendix to the consolidated financial statements) |
| Gearing | AR (Part 7, Comments on Consolidated Balance Sheet) |
| Organic growth | AR (Part 1, Comments on the Consolidated Income Statement) |
This document is a free translation into English of the original French financial release dated January 27 th, 2021. It is not a binding document.
In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.
| (EUR millions, except for earnings per share) | 2021 | 2020 | 2019 |
|---|---|---|---|
| Revenue | 64,215 | 44,651 | 53,670 |
| Cost of sales | (20,355) | (15,871) | (18,123) |
| Gross margin | 43,860 | 28,780 | 35,547 |
| Marketing and selling expenses | (22,306) | (16,790) | (20,206) |
| General and administrative expenses | (4,427) | (3,648) | (3,877) |
| Income/(loss) from joint ventures and associates | 13 | (42) | 28 |
| Profit from recurring operations | 17,139 | 8,300 | 11,492 |
| Other operating income and expenses | 4 | (333) | (231) |
| Operating profit | 17,143 | 7,967 | 11,261 |
| Cost of net financial debt | 40 | (38) | (116) |
| Interest on lease liabilities | (242) | (281) | (290) |
| Other financial income and expenses | 254 | (292) | (170) |
| Net financial income/(expense) | 52 | (611) | (577) |
| Income taxes | (4,531) | (2,385) | (2,874) |
| Net profit before minority interests | 12,664 | 4,970 | 7,810 |
| Minority interests | 7,718 | 3,037 | 4,872 |
| Net profit, Group share | 4,946 | 1,933 | 2,938 |
| Basic Group share of net earnings per share (EUR) Number of shares on which the calculation is based |
27.41 180,410,580 |
10.72 180,410,580 |
16.29 180,318,638 |
| Diluted Group share of net earnings per share (EUR) | 27.40 | 10.70 | 16.27 |
| Number of shares on which the calculation is based | 180,410,580 | 180,410,580 | 180,318,638 |
| (EUR millions) | 2021 | 2020 | 2019 |
|---|---|---|---|
| Net profit before minority interests | 12,664 | 4,970 | 7,810 |
| Translation adjustments | 2,178 | (1,645) | 298 |
| Amounts transferred to income statement | (4) | (11) | 1 |
| Tax impact | 17 | (10) | 11 |
| 2,191 | (1,666) | 309 | |
| Change in value of hedges of future foreign currency cash flows (a) | 281 | 73 | (16) |
| Amounts transferred to income statement | (303) | (123) | 25 |
| Tax impact | 127 | (112) | (3) |
| 105 | (162) | 6 | |
| Change in value of the ineffective portion of hedging instruments | (375) | (209) | (211) |
| Amounts transferred to income statement | 237 | 232 | 241 |
| Tax impact | 33 | (9) | (7) |
| (105) | 14 | 23 | |
| Gains and losses recognized in equity, transferable to income statement | 2,191 | (1,814) | 338 |
| Change in value of vineyard land | 52 | (3) | 42 |
| Amounts transferred to consolidated reserves | - | - | - |
| Tax impact | (12) | 3 | (11) |
| 40 | - | 31 | |
| Employee benefit obligations: change in value resulting from actuarial gains and losses | 251 | (20) | (167) |
| Tax impact | (58) | 6 | 39 |
| 193 | (14) | (128) | |
| Gains and losses recognized in equity, not transferable to income statement | 233 | (14) | (97) |
| Gains and losses recognized in equity | 2,423 | (1,829) | 240 |
| Comprehensive income | 15,087 | 3,141 | 8,050 |
| Minority interests | 9,180 | 1,926 | 5,019 |
| Comprehensive income, Group share | 5,907 | 1,215 | 3,031 |
(a) In 2021, this amount includes 477 million euros relating to foreign exchange hedges implemented in anticipation of the acquisition of Tiffany shares and included in the value of the investment.
| (EUR millions) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
|---|---|---|---|
| Brands and other intangible assets | 23,684 | 16,143 | 16,335 |
| Goodwill | 24,371 | 14,508 | 14,500 |
| Property, plant and equipment | 19,543 | 17,575 | 17,878 |
| Right-of-use assets | 13,699 | 12,515 | 12,409 |
| Investments in joint ventures and associates | 1,084 | 990 | 1,074 |
| Non‑current available for sale financial assets | 1,363 | 739 | 915 |
| Other non-current assets | 1,054 | 845 | 1,546 |
| Deferred tax | 3,156 | 2,325 | 2,274 |
| Non‑current assets | 87,954 | 65,640 | 66,932 |
| Inventories and work in progress | 16,549 | 13,016 | 13,717 |
| Trade accounts receivable | 3,787 | 2,756 | 3,450 |
| Income taxes | 338 | 401 | 406 |
| Other current assets | 5,606 | 3,846 | 3,264 |
| Cash and cash equivalents | 8,122 | 20,358 | 6,062 |
| Current assets | 34,402 | 40,377 | 26,898 |
| Total assets | 122,356 | 106,017 | 93,830 |
| (EUR millions) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
|---|---|---|---|
| Equity, Group share | 15,372 | 11,270 | 10,880 |
| Minority interests | 30,995 | 24,974 | 24,837 |
| Equity | 46,367 | 36,244 | 35,717 |
| Long‑term borrowings | 12,165 | 14,065 | 5,450 |
| Non‑current lease liabilities | 11,887 | 10,665 | 10,373 |
| Non‑current provisions and other liabilities | 3,945 | 3,288 | 3,811 |
| Deferred tax | 6,302 | 5,079 | 5,094 |
| Purchase commitments for minority interests' shares | 13,677 | 10,991 | 10,735 |
| Non‑current liabilities | 47,976 | 44,088 | 35,462 |
| Short‑term borrowings | 8,091 | 11,005 | 7,627 |
| Current lease liabilities | 2,387 | 2,163 | 2,172 |
| Trade accounts payable | 7,086 | 5,098 | 5,814 |
| Income taxes | 1,275 | 721 | 729 |
| Current provisions and other liabilities | 9,174 | 6,698 | 6,308 |
| Current liabilities | 28,013 | 25,685 | 22,651 |
| Total liabilities and equity | 122,356 | 106,017 | 93,830 |
| (EUR millions) | Number of shares |
Share capital |
Share premium account |
Christian Dior treasury shares |
Cumulative translation adjustment |
Revaluation reserves | Net | Total equity | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Available for sale financial assets |
Hedges of future foreign currency cash flows and cost of hedging |
Vineyard land |
Employee benefit commitments |
profit and other reserves |
Group share |
Minority interests |
Total | ||||||
| As of January 1, 2019 | 180,507,516 | 361 | 194 | (34) | 243 | - | (53) | 462 | (35) | 13,090 | 14,228 | 22,115 | 36,343 |
| Gains and losses recognized in equity |
119 | - | 10 | 10 | (46) | - | 93 | 147 | 240 | ||||
| Net profit | 2,938 | 2,938 | 4,872 | 7,810 | |||||||||
| Comprehensive income | - | - | - | 119 | - | 10 | 10 | (46) | 2,938 | 3,031 | 5,019 | 8,050 | |
| Expenses related to bonus shares and similar plans |
34 | 34 | 42 | 76 | |||||||||
| (Acquisition)/disposal of Christian Dior treasury shares |
17 | (12) | 6 | - | 6 | ||||||||
| Capital increase in subsidiaries |
- | - | 95 | 95 | |||||||||
| Interim and final dividends paid |
(6,386) | (6,386) | (2,263) | (8,649) | |||||||||
| Changes in control of consolidated entities |
1 | 1 | 26 | 27 | |||||||||
| Acquisition and disposal of minority interests' shares |
- | - | - | (1) | - | (30) | (30) | 9 | (21) | ||||
| Purchase commitments for minority interests' shares |
(2) | (2) | (206) | (208) | |||||||||
| As of Dec. 31, 2019 | 180,507,516 | 361 | 194 | (17) | 362 | - | (43) | 471 | (81) | 9,632 | 10,880 | 24,837 | 35,717 |
| Gains and losses recognized in equity |
(640) | - | (73) | - | (5) | - | (718) | (1,111) | (1,829) | ||||
| Net profit | 1,933 | 1,933 | 3,037 | 4,970 | |||||||||
| Comprehensive income | - | - | - | (640) | - | (73) | - | (5) | 1,933 | 1,215 | 1,926 | 3,141 | |
| Expenses related to bonus shares and similar plans |
26 | 26 | 36 | 62 | |||||||||
| (Acquisition)/disposal of Christian Dior treasury shares |
- | - | - | - | |||||||||
| Capital increase in subsidiaries |
- | - | 54 | 54 | |||||||||
| Interim and final dividends paid |
(830) | (830) | (1,733) | (2,563) | |||||||||
| Changes in control of consolidated entities |
(13) | (13) | (10) | (23) | |||||||||
| Acquisition and disposal of minority interests' shares |
- | - | - | - | - | (88) | (88) | (29) | (117) | ||||
| Purchase commitments for minority interests' shares |
80 | 80 | (107) | (27) | |||||||||
| As of Dec. 31, 2020 | 180,507,516 | 361 | 194 | (17) | (278) | - | (116) | 471 | (86) | 10,740 | 11,270 | 24,974 | 36,244 |
| Gains and losses recognized in equity |
857 | - | 18 | 12 | 74 | - | 961 | 1,462 | 2,423 | ||||
| Net profit | 4,946 | 4,946 | 7,718 12,664 | ||||||||||
| Comprehensive income | - | - | - | 857 | - | 18 | 12 | 74 | 4,946 | 5,907 | 9,180 15,087 | ||
| Expenses related to bonus shares and similar plans |
52 | 52 | 80 | 132 | |||||||||
| (Acquisition)/disposal of Christian Dior treasury shares |
- | - | - | - | |||||||||
| Capital increase in subsidiaries |
- | - | 12 | 12 | |||||||||
| Interim and final dividends paid |
(1,263) | (1,263) | (2,498) | (3,761) | |||||||||
| Changes in control of consolidated entities |
(18) | (18) | 373 | 355 | |||||||||
| Acquisition and disposal of minority interests' shares |
- | - | - | 1 | - | (568) | (567) | (947) | (1,514) | ||||
| Purchase commitments for minority interests' shares |
(9) | (9) | (179) | (188) | |||||||||
| As of Dec. 31, 2021 | 180,507,516 | 361 | 194 | (17) | 579 | - | (98) | 484 | (12) | 13,880 | 15,372 | 30,995 46,367 |
| (EUR millions) | 2021 | 2020 | 2019 |
|---|---|---|---|
| I. OPERATING ACTIVITIES |
|||
| Operating profit | 17,143 | 7,967 | 11,261 |
| (Income)/loss and dividends received from joint ventures and associates | 41 | 64 | (10) |
| Net increase in depreciation, amortization and provisions | 3,136 | 3,478 | 2,700 |
| Depreciation of right-of-use assets | 2,691 | 2,572 | 2,408 |
| Other adjustments and computed expenses | (400) | (91) | (266) |
| Cash from operations before changes in working capital | 22,611 | 13,990 | 16,092 |
| Cost of net financial debt: interest paid | 68 | (62) | (137) |
| Lease liabilities: interest paid | (231) | (290) | (239) |
| Tax paid | (4,239) | (2,397) | (2,845) |
| Change in working capital | 426 | (369) | (1,154) |
| Net cash from operating activities | 18,636 | 10,873 | 11,718 |
| II. INVESTING ACTIVITIES | |||
| Operating investments | (2,664) | (2,478) | (3,294) |
| Purchase and proceeds from sale of consolidated investments | (13,226) | (536) | (2,478) |
| Dividends received | 10 | 12 | 8 |
| Tax paid related to non‑current available for sale financial | |||
| assets and consolidated investments | - | - | (1) |
| Purchase and proceeds from sale of non‑current available for sale financial assets | (99) | 63 | (104) |
| Net cash from/(used in) investing activities | (15,979) | (2,939) | (5,869) |
| III. FINANCING ACTIVITIES | |||
| Interim and final dividends paid | (3,967) | (2,685) | (8,796) |
| Purchase and proceeds from sale of minority interests | (1,117) | (163) | (48) |
| Other equity-related transactions | 4 | 39 | 88 |
| Proceeds from borrowings | 251 | 17,499 | 2,837 |
| Repayment of borrowings | (6,763) | (5,024) | (2,310) |
| Repayment of lease liabilities | (2,453) | (2,302) | (2,187) |
| Purchase and proceeds from sale of current available for sale financial assets | (1,393) | 69 | 2,060 |
| Net cash from/(used in) financing activities | (15,438) | 7,433 | (8,358) |
| IV. EFFECT OF EXCHANGE RATE CHANGES | 498 | (1,052) | 39 |
| Net increase/(decrease) in cash and cash equivalents (I+II+III+IV) | (12,283) | 14,315 | (2,469) |
| Cash and cash equivalents at beginning of period | 20,201 | 5,886 | 8,355 |
| Cash and cash equivalents at end of period | 7,918 | 20,201 | 5,886 |
| Total tax paid | (4,465) | (2,527) | (2,997) |
The following table presents the reconciliation between "Net cash from operating activities" and "Operating free cash flow" for the fiscal years presented:
| (EUR millions) | 2021 | 2020 | 2019 |
|---|---|---|---|
| Net cash from operating activities | 18,636 | 10,873 | 11,718 |
| Operating investments | (2,664) | (2,478) | (3,294) |
| Repayment of lease liabilities | (2,453) | (2,302) | (2,187) |
| Operating free cash flow(a) | 13,518 | 6,093 | 6,237 |
(a) Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all lease payments as components of its "Operating free cash flow", whether the lease payments made are fixed or variable. In addition, for its own operational management purposes, the Group treats operating investments as components of its "Operating free cash flow".
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