FINANCIAL RELEASE
The Christian Dior group achieved revenue of 31.0 billion euros for the fiscal year from July 1, 2013 to June 30, 2014, generating profit from recurring operations of 6.0 billion euros. Consolidated net profit was 3.9 billion euros and the Group share of net profit was 1.4 billion euros. Free cash flow (before financial investments, transactions relating to equity and financing activities) amounted to 2.4 billion euros for the fiscal year. (a)
Revenue and profit from recurring operations by business group were as follows:
| Revenue (EUR millions) | 1st half-year (July 1 - Dec. 31, 2013)(b)(c) | 2nd half-year (January 1 - June 30, 2014)(b)(d) | 12-month fiscal year (July 1, 2013 - June 30, 2014)(a)(b) | Period from July 1, 2012 to June 30, 2013(b)(e) | Change at actual exchange rates | Organic growth(f) |
| Christian Dior Couture | 758 | 747 | 1,505 | 1,324 | +14% | +19% |
| Wines and Spirits | 2,379 | 1,685 | 4,064 | 4,186 | -3% | +3% |
| Fashion and Leather Goods | 5,171 | 5,030 | 10,201 | 9,981 | +2% | +5% |
| Perfumes and Cosmetics | 1,913 | 1,839 | 3,752 | 3,690 | +2% | +7% |
| Watches and Jewelry | 1,474 | 1,302 | 2,776 | 2,803 | -1% | +5% |
| Selective Retailing | 4,723 | 4,400 | 9,123 | 8,504 | +7% | +12% |
| Other activities and eliminations | (231) | (206) | (437) | (368) | - | - |
| Total | 16,187 | 14,797 | 30,984 | 30,120 | +3% | +7% |
(a) Audit procedures in progress
(b) Figures do not take into account IFRS 10 and 11 (on consolidation) which, for Christian Dior, will apply only as of the fiscal year beginning July 1, 2014 (see Appendix 2 for pro forma figures restated to reflect the application of IFRS 10 and 11)
(c) Figures for the first half of the fiscal year (July 1 - December 31, 2013) underwent limited review procedures with a report issued by the Statutory Auditors on the half-year consolidated financial information
(d) Figures for the second half of the fiscal year (January 1 - June 30, 2014) underwent limited review procedures with no report issued
(e) 12-month pro forma audited figures
(f) With comparable structure and constant exchange rates. The structural impact, essentially linked to the integration of Loro Piana, is +1% and the exchange rate impact is -5%
| Profit from recurring operations (EUR millions) | 1st half-year (July 1 - Dec. 31, 2013)(b)(c) | 2nd half-year (January 1 - June 30, 2014)(b)(d) | 12-month fiscal year (July 1, 2013 - June 30, 2014)(a)(b) | Period from July 1, 2012 to June 30, 2013(b)(e) | Change at actual exchange rates |
| Christian Dior Couture | 108 | 84 | 192 | 139 | +38% |
| Wines and Spirits | 828 | 463 | 1,291 | 1,306 | -1% |
| Fashion and Leather Goods | 1,643 | 1,490 | 3,133 | 3,245 | -3% |
| Perfumes and Cosmetics | 214 | 204 | 418 | 411 | +2% |
| Watches and Jewelry | 219 | 112 | 331 | 331 | - |
| Selective Retailing | 494 | 391 | 885 | 888 | - |
| Other activities and eliminations | (102) | (98) | (200) | (233) | - |
| Total | 3,404 | 2,646 | 6,050 | 6,087 | -1% |
(a) Audit procedures in progress
(b) Figures do not take into account IFRS 10 and 11 (on consolidation) which, for Christian Dior, will apply only as of the fiscal year beginning July 1, 2014 (see Appendix 2 for pro forma figures restated to reflect the application of IFRS 10 and 11)
(c) Figures for the first half of the fiscal year (July 1 - December 31, 2013) underwent limited review procedures with a report issued by the Statutory Auditors on the half-year consolidated financial information
(d) Figures for the second half of the fiscal year (January 1 - June 30, 2014) underwent limited review procedures with no report issued
(e) 12-month pro forma audited figures
Highlights of the second half of the fiscal year (January 1 - June 30, 2014) include:
- Good resilience in Europe and continued growth in the United States and Asia,
- Strong negative exchange rate effect, particularly on Fashion and Leather Goods and on Watches and Jewelry activities,
- Continued exceptional growth for Christian Dior Couture, particularly at its network of directly operated stores (up 19% at constant exchange rates compared to the same period in 2013), thanks to the excellence of its products,
- Wines and Spirits' performance impacted by continued destocking by distributors in China,
- The qualitative development of Louis Vuitton, where profitability remains at an exceptional level,
- Continued investment in the fashion brands,
- Strong innovation momentum at Parfums Christian Dior,
- Sustained investment in communication for Watches and Jewelry,
- Excellent performance of Sephora and continued expansion plan of DFS,
- Cash from operations before changes in working capital of 3.3 billion euros,
- Net debt to equity ratio of 26% as of the end of June 2014.
OUTLOOK
Despite an uncertain European economic environment, the Christian Dior group will continue to gain market share thanks to the numerous product launches planned in the coming months and its geographic expansion in promising markets, while continuing to manage costs.
Our strategy of focusing on quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce once again the Group's global leadership position in luxury goods.
As of this date, no events or changes likely to significantly affect the Group's financial structure took place during the period.
The annual financial statements as of June 30, 2014 will be approved by the Board of Directors at its meeting in October, which will be followed by the publication of a financial release.
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This press release constitutes regulated information, and is available on the Company's website (www.dior-finance.com).
Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors beyond our control or ability to predict, which could cause actual results to differ materially from those anticipated, projected or implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such information, it being also agreed that we undertake no commitment to amend or update it after the date hereof.
- APPENDIX 1 - Revenue by business group and by period, excluding application of IFRS 10 and 11
- APPENDIX 2 - Pro forma revenue and profit from recurring operations by business group and by period, taking into account application of IFRS 10 and 11
APPENDIX 1
Christian Dior group - Revenue by business group and by period, excluding application of IFRS 10 and 11 (*)
IFRS 10 and 11 (on consolidation) will apply, for Christian Dior, only as of the fiscal year beginning July 1, 2014
Fiscal year ended June 30, 2014 (12 months)
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Period from July 1 to September 30, 2013 | 369 | 1,032 | 2,428 | 879 | 677 | 2,101 | (109) | 7,377 |
| Period from October 1 to December 31, 2013 | 389 | 1,347 | 2,743 | 1,034 | 797 | 2,622 | (122) | 8,810 |
| Period from January 1 to March 31, 2014 | 357 | 896 | 2,639 | 941 | 624 | 2,231 | (102) | 7,586 |
| Period from April 1 to June 30, 2014 | 390 | 789 | 2,391 | 898 | 678 | 2,169 | (104) | 7,211 |
| Total | 1,505 | 4,064 | 10,201 | 3,752 | 2,776 | 9,123 | (437) | 30,984 |
Corresponding periods in the previous year
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Period from July 1 to September 30, 2012 | 325 | 1,006 | 2,523 | 898 | 690 | 1,862 | (90) | 7,214 |
| Period from October 1 to December 31, 2012 | 340 | 1,372 | 2,747 | 988 | 803 | 2,427 | (110) | 8,567 |
| Period from January 1 to March 31, 2013 | 316 | 979 | 2,383 | 932 | 624 | 2,122 | (99) | 7,257 |
| Period from April 1 to June 30, 2013 | 343 | 829 | 2,328 | 872 | 686 | 2,093 | (69) | 7,082 |
| Total | 1,324 | 4,186 | 9,981 | 3,690 | 2,803 | 8,504 | (368) | 30,120 |
Fiscal year ended June 30, 2013 (2 months)
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Total | 237 | 541 | 1,600 | 551 | 467 | 1,406 | (34) | 4,768 |
Fiscal year ended April 30, 2013 (12 months)
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Period from May 1 to July 31, 2012 | 323 | 843 | 2,413 | 805 | 733 | 1,834 | (49) | 6,902 |
| Period from August 1 to October 31, 2012 | 309 | 1,177 | 2,463 | 1,000 | 714 | 1,880 | (102) | 7,441 |
| Period from November 1, 2012 to January 31, 2013 | 339 | 1,324 | 2,760 | 951 | 724 | 2,477 | (111) | 8,464 |
| Period from February 1 to April 30, 2013 | 318 | 864 | 2,300 | 922 | 655 | 2,112 | (97) | 7,074 |
| Total | 1,289 | 4,208 | 9,936 | 3,678 | 2,826 | 8,303 | (359) | 29,881 |
(*) Values rounded to the nearest whole number
APPENDIX 2
Christian Dior group - Pro forma revenue and profit from recurring operations by business group and by period (*)
Pro forma figures restated to reflect the application of IFRS 10 and 11 (on consolidation) which, for Christian Dior, will apply only as of the fiscal year beginning July 1, 2014.
REVENUE
Periods from January 1 to June 30, 2014
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Period from January 1 to March 31, 2014 | 357 | 888 | 2,639 | 941 | 609 | 2,222 | (100) | 7,556 |
| Period from April 1 to June 30, 2014 | 390 | 789 | 2,391 | 898 | 663 | 2,160 | (105) | 7,186 |
| Total | 747 | 1,677 | 5,030 | 1,839 | 1,272 | 4,382 | (205) | 14,742 |
Periods from January 1 to June 30, 2013
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Period from January 1 to March 31, 2013 | 316 | 967 | 2,383 | 932 | 610 | 2,113 | (96) | 7,225 |
| Period from April 1 to June 30, 2013 | 343 | 828 | 2,328 | 872 | 670 | 2,085 | (71) | 7,055 |
| Total | 659 | 1,795 | 4,711 | 1,804 | 1,280 | 4,198 | (167) | 14,280 |
PROFIT FROM RECURING OPERATIONS
Period from January 1 to June 30, 2014
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Total | 84 | 461 | 1,487 | 204 | 112 | 398 | (95) | 2,651 |
Period from January 1 to June 30, 2013
| (EUR millions) | Christian Dior Couture | Wines and Spirits | Fashion and Leather Goods | Perfumes and Cosmetics | Watches and Jewelry | Selective Retailing | Other activities and eliminations | Total |
| Total | 57 | 539 | 1,493 | 200 | 155 | 412 | (94) | 2,762 |
(*) Values rounded to the nearest whole number
