• Hermès International: 2024 Full-Year Results

    Источник: Nasdaq GlobeNewswire / 14 фев 2025 02:00:00   America/New_York

    Outstanding results in 2024

    Revenue amounted to €15.2 billion
    (+15% at constant exchange rates and +13% at current exchange rates)
    Recurring operating income reached €6.2 billion, representing 40.5% of sales
    Adjusted free cash flow amounted to €3.8 billion, up by 18%

    Paris, 14 February 2025

    The Group’s consolidated revenue amounted to €15.2 billion in 2024, up by 15% at constant exchange rates and by 13% at current exchange rates compared to 2023. Recurring operating income reached €6.2 billion (40.5% of sales) and net profit (group share) reached €4.6 billion (30.3% of sales).

    In the fourth quarter, sales reached €4.0 billion, increasing by 18% at constant exchange rates and current exchange rates. All the geographical areas confirmed solid growth, with a strong performance of the Americas in particular.

    Axel Dumas, Executive Chairman of Hermès, said: “In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house’s teams, whom I thank warmly. While preserving the group’s major balances and its responsibility as an employer, the house is staying the course, attached more than ever to its fundamental values of quality, creativity and savoir-faire.”

    Sales by geographical area at the end of December
    (at constant exchange rates, unless otherwise indicated)

    At the end of December 2024, all the geographical areas posted growth. Hermès continued the qualitative development of its exclusive distribution network.

    • Asia excluding Japan (+7%) recorded a remarkable increase, thanks to solid sales in all the countries in the area. Growth reached 9% in the fourth quarter, despite the downturn in traffic in Greater China since the end of the first quarter. In China, the store in Shenyang’s MixC mall reopened in December after expansion work, following the Shenzhen Luohu store in October and the Beijing SKP store in May. In Singapore, the newly renovated and extended Takashimaya store also reopened in October.

    • Japan (+23%) achieved a regular and sustained growth, driven by the loyalty of local clients. A new store was opened in the Ginza district of Tokyo in June, following the Azabudai Hills store which opened in February.

    • The Americas (+15%) confirmed excellent growth in 2024. In the United States, the Atlanta store reopened in October after being renovated and expanded, following the April inauguration of the store in Princeton, New Jersey. An event showcasing the petit h creations was staged in New York’s Madison store in October.

    • Europe excluding France (+19%) and France (+13%) both performed well, supported by robust demand and the loyalty of local clients, as well as dynamic tourist flows. In November, a new store was inaugurated in Lille, after the June reopening of the renovated and expanded store in Nantes. The newly renovated and extended store in Naples reopened in December.

    Sales by sector at the end of December
    (at constant exchange rates, unless otherwise indicated)

    At the end of December 2024, all métiers except Watches posted solid growth, supported by the house’s value strategy.

    • Leather Goods and Saddlery (+18%) achieved a remarkable performance, thanks to the increase in production capacities and particularly strong demand. The collections were enhanced in particular with the Arçon and Hermès Della Cavalleria Élan models. The travel universe unfolded around an R.M.S. Cargo suitcase and weekend bags. The increase in production capacities continued with the September opening of the twenty-third leather goods workshop in Riom (Puy-de-Dôme). Three new workshops will open in the coming three years: L’Isle-d'Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 and Charleville-Mézières (Ardennes) in 2027. Hermès continues to develop both employment and training in its nine regional centres of expertise located across the national territory.

    • The Ready-to-wear and Accessories sector (+15%) continued its solid momentum thanks to the success of the ready-to-wear and shoe collections, blending the house’s abundant know-how with its boundless creativity. The men’s and women’s spring-summer 2025 collections, unveiled at the Palais d’Iéna in June and at the Garde Républicaine in September respectively, were very well received.

    • The Silk and Textiles sector (+4%) benefited from the diversity of creations, materials and formats in both the women’s and men’s collections.

    • Perfume and Beauty (+9%) achieved steady growth. The Perfume collections were enhanced in September with the new women’s perfume, Barénia, named after a natural heritage leather of the house. It is meeting with great success worldwide, alongside classics such as Terre d’Hermès and new creations including Hermessence Oud Alezan and H24 Herbes Vives. The Beauty division continued to expand with the launch of the collection Trait Hermès eye and lip liners.

    • The Watches business line (-4%), penalised by a more challenging context and a high comparison basis, continues its development, displaying singular creativity and remarkable watchmaking know-how. The new complication model Arceau Duc Attelé, the launch of Hermès Cut and the iconic Hermès H08 and Kelly lines have met with great success.

    • The Other Hermès sector (+17%) which include Jewellery and the Home universe, recorded strong growth. The eighth Haute Bijouterie collection, Les formes de la couleur, was presented in Paris, Beijing and Taipei.

    Solid Results

    Recurring operating income amounted to €6.2 billion, up by 9% from €5.7 billion in 2023. Despite the negative impact of currency hedging, recurring operating profitability reached 40.5% compared to 42.1% in 2023, an exceptionally high level.

    Consolidated net profit group share grew by 7% to €4.6 billion, representing a net profitability of 30.3% compared to 32.1% last year.

    The cash flow from operating activities amounted to €5.1 billion and increased by 19%, thanks to a smaller increase in working capital requirements. After operational investments (€1.1 billion) and repayment of lease liabilities, the adjusted free cash flow reached €3.8 billion compared to €3.2 billion last year.

    After distribution of the ordinary and extraordinary dividend of €2.6 billion, the restated net cash position amounted to €12.0 billion at the end of December 2024 compared to €11.2 billion at the
    end of 2023.

    A responsible and sustainable model

    The Hermès group continued to recruit, increasing its workforce by around 2,300 people, including around 1,300 in France. At the end of 2024, the group passed the 25,000 employees milestone, including 15,556 in France. Over the past three years, Hermès has created around 7,000 jobs, including 60% in France. In line with its ambitions to promote diversity, Hermès reaffirms its commitment to the inclusion of people with disabilities. As a result, the direct employment rate has reached 7.12% in France, doubling in 5 years.

    True to its commitment as a responsible employer and its willingness to share the fruits of growth with all those who contribute to it daily, Hermès will be giving out a bonus of €4,500 to all its employees worldwide at the beginning of the year in respect of 2024. Hermès also strengthens its commitments to education and the transmission know-how, particularly with the deployment of the École Hermès des savoir-faire, which has extended its training programs to all 10 training schools in France. The company confirms its commitment to local anchoring by promoting local know-how and employment.

    In line with its commitments to fight climate change, the Hermès group has continued its actions in accordance with its 2030 targets, validated by the Science Based Target initiative (SBTi). Since 2018, the reduction in emissions for scopes 1 and 2 has been 63.7% in absolute terms, and 50.5% in intensity for scope 3.

    The sustainable and responsible dimension of the house’s craftsmanship model was rewarded in July with the Grand Prix in all categories at the Transparency Awards, an 11-point increase in the S&P ESG rating agency’s evaluation, and by the inclusion in the CDP’s “A-list” for the third year in a row. These results reflect the house’s commitments and values.

    Proposed dividend

    At the General Meeting to be held on 30 April 2025, a dividend of €16.00 per share will be proposed. The €3.50 interim dividend, to be paid on 19 February 2025, will be deducted from the dividend approved by the General Meeting. In addition, an exceptional dividend of €10.00 per share will be proposed at the General Meeting.

    Other highlights

    At the end of December 2024, currency fluctuations represented a negative impact of €235 million on revenue.

    During the year, Hermès International redeemed 21,316 shares for €40 million, excluding transactions completed within the framework of the liquidity contract.

    Hermès became a majority shareholder in January 2024 alongside its partner in the Middle East in the retail activities located in the United Arab Emirates. As a reminder, the impact resulting from this acquisition of a majority stake was not significant on the 2024 consolidated financial statements.

    Outlook

    In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.

    In a more complex economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.

    Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.

    Drawn to craft is the theme of the year. From the saddle stitch to the pencil stroke, everything at Hermès begins with drawing. It’s the link that binds us, the language of a material being shaped. It will carry us – walking, trotting and galloping – along the paths of creation.

    The press release and the presentation of the 2024 results are available on the group’s website: https://finance.hermes.com

    At the Supervisory Board meeting on 13 February 2025, Executive Management presented the audited financial statements for 2024. The audit procedures have been completed and the audit report is under preparation. The procedures for the verification of sustainability information are underway.
    The complete consolidated financial statements will be available by 31 March 2025 at the following address https://finance.hermes.com and on the AMF website: www.amf-france.org

    Upcoming events:

    • 17 April 2025: Q1 2025 revenue publication
    • 30 April 2025: General Meeting of shareholders
    • 30 July 2025: Publication of H1 2025 results


    2024 KEY FIGURES

    In millions of euros20242023
       
    Revenue15,17013,427
    Growth at current exchange rates vs. n-113.0%15.7%
    Growth at constant exchange rates vs. n-1 (1)14.7%20.6%
       
    Recurring operating income (2)6,1505,650
    As a % of revenue40.5%42.1%
       
    Operating income6,1505,650
    As a % of revenue40.5%42.1%
       
    Net profit – Group share4,6034,311
    As a % of revenue30.3%32.1%
       
    Operating cash flows5,3785,123
       
    Investments (excluding financial investments)1,067859
       
    Adjusted free cash flow (3)3,7673,192
       
    Equity – Group share17,32715,201
       
    Net cash position (4)11,64210,625
       
    Restated net cash position (5)12,03911,164
       
    Workforce (number of employees) (6)25,18522,879

    (1)   Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.

    (2)   Recurring operating income is one of the main performance indicators monitored by Group Management. It corresponds to operating income excluding non‑recurring items having a significant impact that may affect understanding of the group’s economic performance.

    (3)   Adjusted free cash flows are the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows).

    (4)           Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16.

    (5)           The restated net cash position corresponds to net cash plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

    (6)   The headcount relates to employees on permanent contracts and those on fixed-term contracts with no seniority requirement (22,037 published at the end of December 2023, excluding fixed-term contracts of less than 9 months prior to the change in CSRD methodology).

                                    REVENUE BY GEOGRAPHICAL AREA (a)

      As of Dec. 31st,Evolution /2023
    In millions of Euros 20242023PublishedAt constant exchange rates
    France 1,4471,27413.5%13.5%
    Europe (excl. France) 2,1471,81818.1%18.9%
    Total Europe 3,5943,09316.2%16.7%
    Japan 1,4371,26014.0%22.5%
    Asia-Pacific (excl. Japan) 6,6486,2736.0%7.4%
    Total Asia 8,0857,5337.3%9.9%
    Americas 2,8652,50214.5%15.5%
    Other (Middle East) 627299109.7%109.6%
    TOTAL 15,17013,42713.0%14.7%


      4th quarterEvolution /2023
    In millions of Euros 20242023PublishedAt constant exchange rates
    France 40135911.8%11.8%
    Europe (excl. France) 59349120.6%20.7%
    Total Europe 99485016.9%17.0%
    Japan 38432119.7%22.4%
    Asia-Pacific (excl. Japan) 1,5431,40110.1%8.9%
    Total Asia 1,9271,72211.9%11.5%
    Americas 87071721.4%22.3%
    Other (Middle East) 17176125.2%123.2%
    TOTAL 3,9623,36417.7%17.6%

    (a) Sales by destination.

    revenue by sector

      As of Dec. 31stEvolution /2023
    In millions of Euros 20242023PublishedAt constant exchange rates
    Leather Goods and Saddlery (1) 6,4575,54716.4%18.3%
    Ready-to-wear and Accessories (2) 4,4053,87913.6%15.4%
    Silk and Textiles 9509321.9%3.8%
    Other Hermès sectors (3) 1,9091,65315.5%17.1%
    Perfume and Beauty 5354928.7%9.3%
    Watches 577611(5.6%)(4.2%)
    Other products (4) 3373137.7%8.7%
    TOTAL 15,17013,42713.0%14.7%


      4th quarterEvolution /2023
    In millions of Euros 20242023PublishedAt constant exchange rates
    Leather Goods and Saddlery (1) 1,6691,37121.7%21.5%
    Ready-to-wear and Accessories (2) 1,10894517.3%17.4%
    Silk and Textiles 3042856.7%7.3%
    Other Hermès sectors (3) 48841318.0%17.4%
    Perfume and Beauty 14712616.7%16.9%
    Watches 1431383.2%2.6%
    Other products (4) 1048719.1%19.0%
    TOTAL 3,9623,36417.7%17.6%

    (1) The “Leather Goods and Saddlery” business line includes women’s and men’s bags, travel items, small leather goods and accessories, saddles, bridles and all equestrian objects and clothing.
    (2) The “Ready-to-wear and Accessories” business line includes Hermès Ready-to-wear for men and women, belts, costume jewellery, gloves, hats and shoes.
    (3) The “Other Hermès business lines” include Jewellery and Hermès home products (Art of Living and Hermès Tableware).
    (4) The “Other products” include the production activities carried out on behalf of non-group brands (textile printing, tanning…), as well as John Lobb, Saint-Louis and Puiforcat.

    2024 quarterly revenue

      Q1Q2Q3Q42024
    Revenue (in €m) 3,8053,6993,7043,96215,170
    Growth at current exchange rates 12.6%11.5%10.1%17.7%13.0%
    Growth at constant exchange rates 17.0%13.3%11.3%17.6%14.7%

    --------------------------------------------------------------------------

    Extra-financial performances

    RESPONSIBLE EMPLOYER
    +2,300
    jobs created
    including +1,300 in France


    		DIVERSITY AND INCLUSION
    7.12%
    direct disability employment rate in France


    		GENDER EQUALITY
    48%
    of women
    in the top 100





    VERTICAL
    INTEGRATION
    55%
    manufactured in its in-house and exclusive workshops





    LONG-TERM RELATIONSHIPS
    €351M
    of which €235M in incentive schemes and profit-sharing in France and €116M of worldwide bonus


    LOCAL
    ANCHORING
    74%
    objects
    made in France





    CLIMATE
    Scopes 1 & 2 (SBTi)
    -63.7%
    emissions reduction in absolute value vs 2018




    SCOPE 3 (SBTi)
    -50.5%
    emissions reduction in intensity since 2018






    BIODIVERSITY
    SBTN
    Scientific approach for
    nature
    completion of the first two stages





    WATER
    WITHDRAWAL
    -65.4%
    Industrial water intensity
    over 10 years

    APPENDIX – EXTRACT FROM CONSOLIDATED ACCOUNTS

    Financial statements of the year, including notes to the consolidated accounts, will be available at the end of March 2025 on the website https://finance.hermes.com, together with the other chapters of the Annual Financial Report.

    CONSOLIDATED INCOME STATEMENT

    In millions of euros20242023
    Revenue15,17013,427
    Cost of sales(4,511)(3,720)
    Gross margin10,6609,708
    Sales and administrative expenses(3,569)(3,169)
    Other income and expenses(942)(889)
    Recurring operating income6,1505,650
    Other non-recurring income and expenses--
    Operating income6,1505,650
    Net financial income283190
    Net income before tax6,4325,840
    Income tax(1,845)(1,623)
    Net income from associates44105
    CONSOLIDATED NET INCOME4,6314,322
    Non-controlling interests(28)(12)
    NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT4,6034,311
    Basic earnings per share (in euros)43.9341.19
    Diluted earnings per share (in euros)43.8741.12

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    In millions of euros20242023 
    Consolidated net income4,6314,322 
    Changes in foreign currency adjustments168(114) 
    Hedges of future cash flows in foreign currencies 1(111)7 
    Items that may be transferable to profit or loss57(107) 
    Assets at fair value 130- 
    Actuarial gains and losses 1(18)10 
    Items that may not be transferable to profit or loss1210 
    Other comprehensive income69(97) 
    NET COMPREHENSIVE INCOME4,7004,225 
    • attributable to owners of the parent
    		4,6704,213 
    • attributable to non-controlling interests
    		2913 
    (1) Net of tax.   
     

    CONSOLIDATED BALANCE SHEET

    ASSETS

    In millions of euros31/12/202431/12/2023
    Goodwill22872
    Intangible assets237225
    Right-of-use assets1,7861,716
    Property, plant and equipment2,9802,347
    Financial assets1,0501,141
    Investments in associates238200
    Deferred tax assets929631
    Other non-current assets159107
    Non-current assets7,6086,438
    Inventories and work-in-progress2,7972,414
    Trade and other receivables478431
    Current tax receivables2851
    Other current assets398300
    Financial derivatives132188
    Cash and cash equivalents11,64210,625
    Current assets15,47614,008
    TOTAL ASSETS23,08420,447

    LIABILITIES

    In millions of euros31/12/202431/12/2023
    Share capital5454
    Share premium5050
    Treasury shares(670)(698)
    Reserves12,46410,744
    Foreign currency adjustments355189
    Revaluation adjustments471553
    Net income attributable to owners of the parent4,6034,311
    Equity attributable to owners of the parent17,32715,201
    Non-controlling interests72
    Equity17,33415,203
    Borrowings and financial liabilities due in more than one year6150
    Lease liabilities due in more than one year1,7811,720
    Non-current provisions3331
    Post-employment and other employee benefit obligations due in more than one year173151
    Deferred tax liabilities52
    Other non-current liabilities69106
    Non-current liabilities2,1202,060
    Borrowings and financial liabilities due in less than one year01
    Lease liabilities due in less than one year332289
    Current provisions96134
    Post-employment and other employee benefit obligations due in less than one year1616
    Trade and other payables832880
    Financial derivatives16145
    Current tax liabilities773586
    Other current liabilities1,4191,233
    Current liabilities3,6293,183
    TOTAL EQUITY AND LIABILITIES23,08420,447

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

    In millions of euros


    		Number of shares


    		Share capital


    		Share premium


    		Treasury shares


    		Consolidated reserves and net income attributable to owners of the parent


    		Actuarial gains and losses


    		Foreign currency adjustments


    		Revaluation adjustments   
    Financial investmentsHedges of future cash flows in foreign currenciesEquity attributable to owners of the parentNon-controlling interestsEquity
    As at 1 January 2023105,569,4125450(674)12,247(85)3035212512,4401612,457
    Net income----4,311----4,311124,322
    Other comprehensive income-----10(115)-7(98)1(97)
    Comprehensive income----4,31110(115)074,213134,225
    Change in share capital and share premiums------------
    Purchase or sale of treasury shares---(24)(105)----(129)-(129)
    Share-based payments----104----104-104
    Dividends paid----(1,376)----(1,376)(10)(1,386)
    Other----(51)----(51)(17)(68)
    As at 31 December 2023105,569,4125450(698)15,130(75)1895213215,201215,203
    Net income ----4,603----4,603284,631
    Other comprehensive income-----(18)16630(111)67269
    Comprehensive income----4,603(18)16630(111)4,670294,700
    Change in share capital and share premiums------------
    Purchase or sale of treasury shares---28(64)----(36)-(36)
    Share-based payments----142----142-142
    Dividends paid----(2,642)----(2,642)(63)(2,705)
    Other----(7)(2)---(9)3930
    AS AT
    31 DECEMBER 2024    		105,569,4125450(670)17,163(95)355551(80)17,327717,334

    CONSOLIDATED STATEMENT OF CASH FLOWS

    In millions of euros20242023
    Net income attributable to owners of the parent4,6034,311
    Depreciation and amortisation of fixed assets, rights of use and impairment losses844772
    Foreign exchange gains/(losses) on fair value adjustments(56)56
    Change in provisions(29)15
    Net income from associates(44)(105)
    Net income attributable to non-controlling interests2812
    Capital gains or losses on disposals and impact of changes in scope of consolidation(2)(14)
    Deferred tax variation(93)(14)
    Accrued expenses and income related to share-based payments142104
    Dividend income(16)(12)
    Other(0)1
    Operating cash flows5,3785,123
    Change in working capital requirements(239)(794)
    CASH FLOWS RELATED TO OPERATING ACTIVITIES (A)5,1394,328
    Operating investments(1,067)(859)
    Acquisitions of consolidated shares(229)(288)
    Acquisitions of other financial assets(27)(52)
    Disposals of operating assets10
    Disposals of consolidated shares and impact of losses of control--
    Disposals of other financial assets145-
    Change in payables and receivables related to investing activities(49)93
    Dividends received30112
    CASH FLOWS RELATED TO INVESTING ACTIVITIES (B)(1,195)(995)
    Dividends paid(2,705)(1,386)
    Repayment of lease liabilities(305)(277)
    Treasury share buybacks net of disposals(37)(130)
    Borrowing subscriptions--
    Repayment of borrowings(1)(1)
    Other changes in equity2(0)
    CASH FLOWS RELATED TO FINANCING ACTIVITIES (C)(3,046)(1,794)
    Foreign currency translation adjustment (D)119(138)
    CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D)1,0171,402
    Net cash position at the beginning of the period10,6259,223
    Net cash position at the end of the period11,64210,625

    REMINDER

    2024 HALF YEAR KEY FIGURES

    In millions of eurosH1 2024H1 2023
       
    Revenue7,5046,698
    Growth at current exchange rates vs. n-112.0%22.3%
    Growth at constant exchange rates vs. n-1 (1)15.1%25.2%
       
    Recurring operating income (2)3,1482,947
    As a % of revenue42.0%44.0%
       
    Operating income3,1482,947
    As a % of revenue42.0%44.0%
       
    Net profit – Group share2,3682,226
    As a % of revenue31.6%33.2%
       
    Operating cash flows2,8292,615
       
    Operating investments319249
       
    Adjusted free cash flows (3)1,7761,720
       
    Equity – Group share15,05213,249
       
    Net cash position (4)9,4779,326
       
    Restated net cash position (5)10,0339,848
       
    Workforce (number of employees) (6)23,24220,607

    (1)   Growth at constant exchange rates is calculated by applying, for each currency, the average exchange rates of the previous period to the revenue for the period.

    (2)   Recurring operating income is one of the main performance indicators monitored by Group Management. It corresponds to operating income excluding non‑recurring items having a significant impact that may affect understanding of the group’s economic performance.

    (3)   Adjusted free cash flows are the sum of cash flows related to operating activities, less operating investments and the repayment of lease liabilities recognised in accordance with IFRS 16 (aggregates in the consolidated statement of cash flows).

    (4)           Net cash position includes cash and cash equivalents presented under balance sheet assets, less bank overdrafts which appear under short‑term borrowings and financial liabilities on the liabilities side. Net cash position does not include lease liabilities recognised in accordance with IFRS 16.

    (5)           The restated net cash position corresponds to net cash plus cash investments that do not meet the IFRS criteria for cash equivalents due in particular to their original maturity of more than three months, less borrowings and financial liabilities.

    (6)   The headcount relates to employees on permanent contracts and those on fixed-term contracts lasting more than 9 months, prior to the change in CSRD methodology.

    Attachment


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