Hermès International: 2022 Half year Results
2022 FIRST HALF RESULTS
HERMES
Half-year information report as at the end of June 2022
Very strong growth and exceptional results in the first half
Revenue increased 29% at current exchange rates and 23% at constant exchange rates
Recurring operating margin reached 42% of sales
Net profit reached €1,641 million, up 40%
Paris, 29 July 2022
The group's consolidated revenue amounted to €5,475 million in the first half of 2022, up 29% at current exchange rates and 23% at constant exchange rates compared to the same period in 2021. Recurring operating income amounted to €2,304 million (42% of sales). Net profit (group share) reached €1,641 million (30% of sales).
Sales in the second quarter reached €2,710 million (+26% at current exchanges rates, and +20% at constant exchange rates), with a high level of activity in all the business lines.
Axel Dumas, Executive Chairman of Hermès, said: “The very dynamic results over the first six months of the year testify to the growth across our 16 métiers and the strong desirability of our objects, designed by craftsmen with a sustainable approach, without compromising on quality. In a still unstable context, we are moving forward with confidence, faithful to our role as a responsible and committed company to our employees and our partners.”
Sales by geographical area at the end of June
(at comparable exchange rates, unless otherwise indicated)
Over the first half of 2022, all the geographical areas posted strong growth, with strong resilience from Asia despite the sanitary context in China. Sales in the group's stores (+23%) benefitted from the strengthening of the exclusive omnichannel network and online sales. Wholesale activities growth (+25%), resulted notably from the resumption of travel retail.
Asia excluding Japan (+15%) was driven by a high level of activity across the region and by sustained sales in Singapore, Australia and Korea. Greater China strongly bounced back in June after being penalised by sanitary restrictions and store closures in April and May, especially in Shanghai and Beijing. After the reopening of the renovated Pacific Place store in Hong Kong and One Central store in Macao at the beginning of the year, a new store was successfully launched in Zhengzhou at the end of March, in the Henan province in China.
Japan (+20%) posted a remarkable performance, thanks to the loyalty of local clients. In June, the first edition of the exhibition La Fabrique de la légèreté, based on the year’s theme, was held in Tokyo.
America (+34%) continued its strong momentum at the end of June. In the United States, a new store opened in Austin in April, the third store of the house in Texas. The Hermès in the Making exhibition, presenting the house’s artisanal know-how, was held in Detroit in June.
Europe excluding France (+34%) and France (+41%) recorded sustained growth, thanks to the loyalty of local clients and the return of tourists, particularly in France, the United Kingdom and Italy.
Sales by business line at the end of June
(at comparable exchange rates, unless otherwise indicated)
At the end of June 2022, all the business lines confirmed their high levels of sales, with a remarkable increase in Silk, Ready-to-wear and Accessories, Watches and Other Hermès Business Lines (Jewellery and Homeware) underlying the huge desirability of the house Hermès.
The growth of the Leather Goods and Saddlery division (+12%) is driven by sustained demand and the increase in production capacities, in line with the annual objective. The Rolling Mobility Suitcase (R.M.S), customisable and the result of exceptional know-how and multiple innovations, received a warm welcome. Five new workshops are in project for the next five years, with the Louviers (Eure) and Sormonne (Ardennes) sites in 2023 and the Riom (Puy-de-Dôme) site in 2024. The sites in L’Isle-d’Espagnac (Charente) and Loupes (Gironde) have been announced for 2025 and 2026. Hermès thus continues to strengthen its local presence in France and to create jobs.
The Ready-to-Wear and Accessories division (+36%) pursued its dynamic growth, thanks to the success of the ready-to-wear, fashion accessories and footwear collections. The women’s autumn-winter 2022 fashion show held in March at the Garde républicaine in Paris met with great success, as did the men's spring-summer 2023 collection revealed at the manufacture des Gobelins in June. New creations such as the Rivale micro bracelet, the single earing Olympe or the Enid sandal were very successful, alongside the house’s iconic creations with the Hapi, clic H bracelets and the Kelly belt.
The Silk and Textiles business line (+29%) achieved excellent growth, with collections combining diversity of materials, formats and new uses, and supported by the development of production capacities at the Pierre-Bénite site near Lyon.
Perfume and Beauty (+23%) gained from the successful launches of the new chapter of Beauty, Hermès Plein Air, dedicated to complexion, as well as of infused care oil for lips, Hermèsistibles. Perfume launched a fresh and powerful creation, Terre d’Hermès Eau Givrée and a new light and airy fragrance joined the colognes collection in June, Eau de Basilic Pourpre.
The Watches business line (+55%) achieved an outstanding performance thanks to the development of timepieces with exceptional know-how such as the watch Arceau Le temps voyageur, and the success of iconic models such as Heure H and Cape Cod.
The Other Hermès business lines (+33%) kept up their momentum, thanks to Homeware and Jewellery. Homeware was presented in June at the Milan Design Week, with textile new creations and the Soleil d’Hermès tableware collection. The seventh haute bijouterie collection called Les jeux de l’ombre, featuring innovative shapes and know-how pushed to the highest standard, was presented at the Faubourg Saint-Honoré store in Paris.
Outstanding results in the first half of 2022
Recurring operating income was up 34% and amounted to €2,304 million compared to
€1,722 million in the first half of 2021. Thanks to the leverage effect generated by the strong sales increase and the collections exceptional sell-through rates, the recurring operating margin reached an historical high of 42% compared to 41% at the end of June 2021.
Consolidated net profit (group share) amounts to €1,641 million (30% of sales) compared to €1,174 million in the first half of 2021.
Operational investments represented €190 million and adjusted free cash flow reached €1,421 million.
After distribution of the ordinary dividend (€837 million) and inclusion of share buybacks (€115 million for 103,368 shares excluding the liquidity contract), the restated net cash position increased by €615 million to €7,685 million compared to €7,070 million as at 31 December 2021.
A responsible, sustainable model
The Hermès group continued to recruit and added more than 800 people to its workforce over the first six months. At the end of June 2022, the group employed 18,400 people, including 11,500 in France. True to its commitment as a responsible employer, Hermès paid an exceptional €3,000 bonus in February 2022, in respect of 2021, to all employees of the group to reward them for their engagement, as well as a rise of €100 gross per month in January in France, on top of the usual rises. In June, a second rise of €100 gross per month was announced for all European employees, starting in July.
Hermès is stepping up its commitments in the areas of education and knowledge transfer with the launch of the École des Artisans de la Vente in April. The group continues to roll out the École Hermès des savoir-faire with the opening of a new Apprentice Training Centre in Charleville-Mézières, in the Ardennes division.
The employment of people with disabilities reached 6.4%, which reflects the house's commitment to inclusion.
On 4 July, Hermès International received the Grand Prix de la Transparence 2022 for all categories, now renamed Transparency Awards, which recognise the quality of regulated information of
SBF 120 companies.
Outlook
For 2022, the impacts of the health context are still difficult to assess. Our highly integrated craftsmanship model and balanced distribution network, as well as the creativity of the collections and clients' loyalty allow us to look to the future with confidence.
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.
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.
Limited review procedures have been carried out on the condensed interim consolidated financial statements by the Statutory Auditors in accordance with applicable regulations.
The half-year financial report, the press release and the presentation of the 2022 half-year results are available on the group's website: https://finance.hermes.com
Upcoming events:
20 October 2022: Q3 2022 revenue publication
17 February 2023: 2022 full-year results publication
14 April 2023: Q1 2023 revenue publication
20 April 2023: General Meeting of Shareholders
FIRST HALF 2022 KEY FIGURES
In millions of euros | H1 2022 | FY 2021 | H1 2021 |
|
|
|
|
Revenue | 5,475 | 8,982 | 4,235 |
Growth at current exchange rates vs. n-1 | 29.3% | 40.6% | 70.2% |
Growth at constant exchange rates vs. n-1 (1) | 23.2% | 41.8% | 76.7% |
|
|
|
|
Recurring operating income (2) | 2,304 | 3,530 | 1,722 |
As a % of revenue | 42.1% | 39.3% | 40.7% |
|
|
|
|
Operating income | 2,304 | 3,530 | 1,722 |
As a % of revenue | 42.1% | 39.3% | 40.7% |
|
|
|
|
Net profit – Group share | 1,641 | 2,445 | 1,174 |
As a % of revenue | 30.0% | 27.2% | 27.7% |
|
|
|
|
Operating cash flows | 2,001 | 3,060 | 1,487 |
|
|
|
|
Investments (excluding financial investments) | 190 | 532 | 214 |
|
|
|
|
Adjusted free cash flow (3) | 1,421 | 2,661 | 1,236 |
|
|
|
|
Equity – Group share | 10,259 | 9,400 | 8,024 |
|
|
|
|
Net cash position (4) | 7,293 | 6,695 | 5,326 |
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|
|
|
Restated net cash position (5) | 7,685 | 7,070 | 5,521 |
|
|
|
|
Workforce (number of employees) | 18,428 | 17,595 | 16,966 |
(1) Growth at constant exchange rates is calculated by applying the average exchange rates of the previous period to the current period's revenue, for each currency.
(2) Recurring operating income is one of the main performance indicators monitored by the group's General Management. It corresponds to the operating income excluding non-recurring items having a significant impact likely to affect the understanding of the group's economic performance.
(3) Adjusted free cash flow corresponds to the sum of operating cash flows and change in working capital requirement, less operating investments and repayment of lease liabilities, as per IFRS cash flow statement.
(4) The net cash position includes cash and cash equivalents on the asset side of the balance sheet, less bank overdrafts presented within the short-term borrowings and financial liabilities on the liability side of the balance sheet. It does not include lease liabilities recognised in accordance with IFRS 16.
(5) The restated net cash position corresponds to the net cash position, plus cash investments that do not meet IFRS criteria for cash equivalents as a result of their original maturity of more than three months, minus borrowings and financial liabilities.
REVENUE BY GEOGRAPHICAL AREA (a)
|
| First half | Evolution /2021 | ||
In millions of Euros |
| 2022 | 2021 | Published | At constant exchange rates |
France |
| 480 | 341 | 40.7% | 40.7% |
Europe (excl. France) |
| 696 | 522 | 33.4% | 33.8% |
Total Europe |
| 1,176 | 863 | 36.3% | 36.5% |
Japan |
| 546 | 469 | 16.4% | 20.4% |
Asia-Pacific (excl. Japan) |
| 2,665 | 2,153 | 23.8% | 14.9% |
Total Asia |
| 3,211 | 2,622 | 22.5% | 15.9% |
Americas |
| 982 | 668 | 47.0% | 34.1% |
Other |
| 106 | 82 | 28.7% | 28.0% |
TOTAL |
| 5,475 | 4,235 | 29.3% | 23.2% |
|
| 2nd quarter | Evolution /2021 | ||
In millions of Euros |
| 2022 | 2021 | Published | At constant exchange rates |
France |
| 266 | 188 | 41.5% | 41.5% |
Europe (excl. France) |
| 369 | 294 | 25.7% | 26.1% |
Total Europe |
| 636 | 482 | 31.9% | 32.1% |
Japan |
| 269 | 228 | 17.9% | 23.4% |
Asia-Pacific (excl. Japan) |
| 1,218 | 1,023 | 19.1% | 9.6% |
Total Asia |
| 1,487 | 1,251 | 18.9% | 12.2% |
Americas |
| 533 | 377 | 41.4% | 26.3% |
Other |
| 55 | 42 | 32.0% | 31.1% |
TOTAL |
| 2,710 | 2,151 | 26.0% | 19.5% |
(a) Sales by destination.
REVENUE BY SECTOR
|
| First half | Evolution /2021 | ||
In millions of Euros |
| 2022 | 2021 | Published | At constant exchange rates |
Leather Goods and Saddlery (1) |
| 2,358 | 1,999 | 18.0% | 12.1% |
Ready-to-wear and Accessories (2) |
| 1,458 | 1,025 | 42.3% | 35.9% |
Silk and Textiles |
| 372 | 274 | 35.6% | 29.0% |
Other Hermès sectors (3) |
| 648 | 462 | 40.2% | 32.5% |
Perfume and Beauty |
| 230 | 184 | 24.9% | 23.3% |
Watches |
| 262 | 159 | 65.2% | 55.3% |
Other products (4) |
| 146 | 132 | 11.1% | 9.1% |
TOTAL |
| 5,475 | 4,235 | 29.3% | 23.2% |
|
| 2nd quarter | Evolution /2021 | ||
In millions of Euros |
| 2022 | 2021 | Published | At constant exchange rates |
Leather Goods and Saddlery (1) |
| 1,162 | 1,011 | 14.9% | 8.5% |
Ready-to-wear and Accessories (2) |
| 748 | 552 | 35.6% | 29.0% |
Silk and Textiles |
| 174 | 126 | 38.4% | 31.1% |
Other Hermès sectors (3) |
| 318 | 234 | 36.1% | 27.8% |
Perfume and Beauty |
| 111 | 85 | 30.7% | 28.9% |
Watches |
| 128 | 81 | 59.0% | 48.9% |
Other products (4) |
| 69 | 63 | 9.3% | 7.1% |
TOTAL |
| 2,710 | 2,151 | 26.0% | 19.5% |
(1) The “Leather Goods and Saddlery” business line includes bags, riding, memory holders and small leather goods.
(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.
REMINDER – 1ST QUARTER 2022
REVENUE BY GEOGRAPHICAL ZONE (a)
|
| 1st quarter | Evolution /2021 | ||
In millions of euros |
| 2022 | 2021 | Published | At constant exchange rates |
France |
| 214 | 153 | 39.7% | 39.7% |
Europe (excl. France) |
| 327 | 228 | 43.4% | 43.9% |
Total Europe |
| 541 | 381 | 41.9% | 42.2% |
Japan |
| 277 | 241 | 15.0% | 17.4% |
Asia-Pacific (excl. Japan) |
| 1,447 | 1,130 | 28.0% | 19.8% |
Total Asia |
| 1,724 | 1,371 | 25.7% | 19.3% |
Americas |
| 449 | 291 | 54.3% | 44.2% |
Other |
| 51 | 41 | 25.2% | 24.7% |
TOTAL |
| 2,765 | 2,084 | 32.7% | 27.1% |
(a) Sales by destination.
REVENUE BY SECTOR
|
| 1st quarter | Evolution /2021 | ||
In millions of euros |
| 2022 | 2021 | Published | At constant exchange rates |
Leather Goods and Saddlery (1) |
| 1,197 | 988 | 21.1% | 15.8% |
Ready-to-wear and Accessories (2) |
| 710 | 473 | 50.1% | 44.1% |
Silk and Textiles |
| 198 | 148 | 33.3% | 27.3% |
Other Hermès sectors (3) |
| 330 | 228 | 44.4% | 37.4% |
Perfume and Beauty |
| 119 | 99 | 20.0% | 18.4% |
Watches |
| 134 | 78 | 71.5% | 62.0% |
Other products (4) |
| 77 | 69 | 12.8% | 10.9% |
TOTAL |
| 2,765 | 2,084 | 32.7% | 27.1% |
(1) The “Leather Goods and Saddlery” business line includes bags, riding, memory holders and small leather goods.
(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.
APPENDIX – EXTRACT FROM FIRST HALF CONSOLIDATED ACCOUNTS
CONSOLIDATED INCOME STATEMENT
In millions of euros | H1 2022 | 2021 Financial year | H1 2021 |
Revenue | 5,475 | 8,982 | 4,235 |
Cost of sales | (1,586) | (2,580) | (1,207) |
Gross margin | 3,889 | 6,402 | 3,028 |
Sales and administrative expenses | (1,178) | (2,137) | (935) |
Other income and expenses | (406) | (734) | (371) |
Recurring operating income | 2,304 | 3,530 | 1,722 |
Other non-recurring income and expenses | - | - | - |
Operating income | 2,304 | 3,530 | 1,722 |
Net financial income | (35) | (96) | (47) |
Net income before tax | 2,270 | 3,435 | 1,675 |
Income tax | (647) | (1,015) | (511) |
Net income from associates | 25 | 34 | 13 |
CONSOLIDATED NET INCOME | 1,647 | 2,454 | 1,177 |
Non-controlling interests | (6) | (8) | (3) |
NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT | 1,641 | 2,445 | 1,174 |
Basic earnings per share (in euros) | 15.69 | 23.37 | 11.22 |
Diluted earnings per share (in euros) | 15.64 | 23.30 | 11.19 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In millions of euros | H1 2022 | 2021 Financial year | H1 2021 |
|
Consolidated net income | 1,647 | 2,454 | 1,177 |
|
Changes in foreign currency adjustments 1 | 182 | 141 | 35 |
|
Hedges of future cash flows in foreign currencies 1 2 | 10 | (110) | (44) |
|
| (97) | (87) | (19) |
|
| 107 | (23) | (25) |
|
Assets at fair value 2 | - | 87 | 87 |
|
Employee benefit obligations: change in value linked to actuarial gains and losses 2 | 1 | 9 | - |
|
Net comprehensive income | 1,840 | 2,582 | 1,255 |
|
| 1,833 | 2,573 | 1,252 |
|
| 7 | 9 | 3 |
|
(1) Transferable through profit or loss. |
CONSOLIDATED BALANCE SHEET
ASSETS
In millions of euros | 30/06/2022 | 31/12/2021 | 30/06/2021 |
Goodwill | 14 | 42 | 42 |
Intangible assets | 204 | 258 | 236 |
Right-of-use assets | 1,665 | 1,517 | 1,405 |
Property, plant and equipment | 1,916 | 1,881 | 1,665 |
Investment property | 8 | 9 | 75 |
Financial assets | 648 | 617 | 431 |
Investments in associates | 52 | 51 | 49 |
Loans and deposits | 63 | 59 | 57 |
Deferred tax assets | 636 | 546 | 539 |
Other non-current assets | 25 | 22 | 23 |
Non-current assets | 5,232 | 5,002 | 4,522 |
Inventories and work-in-progress | 1,617 | 1,449 | 1,394 |
Trade and other receivables | 464 | 333 | 298 |
Current tax receivables | 8 | 58 | 11 |
Other current assets | 288 | 257 | 228 |
Financial derivatives | 179 | 53 | 80 |
Cash and cash equivalents | 7,293 | 6,696 | 5,352 |
Current assets | 9,850 | 8,845 | 7,362 |
TOTAL ASSETS | 15,082 | 13,847 | 11,885 |
LIABILITIES
In millions of euros | 30/06/2022 | 31/12/2021 | 30/06/2021 |
Share capital | 54 | 54 | 54 |
Share premium | 50 | 50 | 50 |
Treasury shares | (672) | (551) | (552) |
Reserves | 8,735 | 7,142 | 7,077 |
Foreign currency adjustments | 359 | 178 | 72 |
Revaluation adjustments | 93 | 83 | 149 |
Net income attributable to owners of the parent | 1,641 | 2,445 | 1,174 |
Equity attributable to owners of the parent | 10,259 | 9,400 | 8,024 |
Non-controlling interests | 14 | 12 | 10 |
Equity | 10,273 | 9,412 | 8,034 |
Borrowings and financial liabilities due in more than one year | 24 | 24 | 18 |
Lease liabilities due in more than one year | 1,705 | 1,529 | 1,405 |
Non-current provisions | 29 | 26 | 21 |
Post-employment and other employee benefit obligations due in more than one year | 224 | 220 | 284 |
Deferred tax liabilities | 46 | 15 | 17 |
Other non-current liabilities | 48 | 45 | 36 |
Non-current liabilities | 2,076 | 1,860 | 1,781 |
Borrowings and financial liabilities due in less than one year | 14 | 1 | 25 |
Lease liabilities due in less than one year | 272 | 248 | 227 |
Current provisions | 129 | 115 | 108 |
Post-employment and other employee benefit obligations due in less than one year | 40 | 40 | 28 |
Trade and other payables | 536 | 535 | 383 |
Financial derivatives | 213 | 122 | 67 |
Current tax liabilities | 468 | 347 | 311 |
Other current liabilities | 1,063 | 1,168 | 920 |
Current liabilities | 2,733 | 2,575 | 2,070 |
TOTAL EQUITY AND LIABILITIES | 15,082 | 13,847 | 11,885 |
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 | Equity attributable to owners of the parent | Non- controlling interests | Equity | |
Financial investments | Hedges of future cash flows in foreign currencies | |||||||||||
As at 1 January 2021 | 105,569,412 | 54 | 50 | (464) | 7,732 | (135) | 38 | 100 | 5 | 7,380 | 11 | 7,391 |
Net income for the first half of 2021 | - | - | - | - | 1,174 | - | - | - |
| 1,174 | 3 | 1,177 |
Other comprehensive income for the first half of 2021 | - | - | - | - |
| - | 35 | 87 | (44) | 78 | 0 | 78 |
Comprehensive income | - | - | - | - | 1,174 | - | 35 | 87 | (44) | 1,252 | 3 | 1,255 |
Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | - | - |
Purchase or sale of treasury shares | - | - | - | (88) | (69) | - | - | - | - | (158) | - | (158) |
Share-based payments | - | - | - | - | 32 | - | - | - | - | 32 | - | 32 |
Dividends paid | - | - | - | - | (485) | - | - | - | - | (485) | (4) | (489) |
Other | - | - | - | - | 3 | - | - | - | - | 3 | - | 3 |
AS AT 30 JUNE 2021 | 105,569,412 | 54 | 50 | (552) | 8,386 | (135) | 72 | 188 | (39) | 8,024 | 10 | 8,034 |
Net income for the second half of 2021 | - | - | - | - | 1,272 | - | - | - | - | 1,272 | 5 | 1,277 |
Other comprehensive income for the second half of 2021 | - | - | - | - | - | 9 | 106 | - | (66) | 49 | 0 | 50 |
Comprehensive income | - | - | - | - | 1,272 | 9 | 106 | - | (66) | 1,321 | 5 | 1,327 |
Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | - | - |
Purchase or sale of treasury shares | - | - | - | 1 | - | - | - | - | - | 1 | - | 1 |
Share-based payments | - | - | - | - | 27 | - | - | - | - | 27 | - | 27 |
Dividends paid | - | - | - | - | - | - | - | - | - | - | (2) | (2) |
Other | - | - | - | - | 27 | - | - | - | - | 27 | (2) | 25 |
As at 31 December 2021 | 105,569,412 | 54 | 50 | (551) | 9,712 | (125) | 178 | 188 | (105) | 9,400 | 12 | 9,412 |
Net income for the first half of 2022 | - | - | - | - | 1,641 | - | - | - |
| 1,641 | 6 | 1,647 |
Other comprehensive income for the first half of 2022 | - | - | - | - | - | 1 | 181 | - | 10 | 191 | 1 | 193 |
Comprehensive income | - | - | - | - | 1,641 | 1 | 181 | - | 10 | 1,833 | 7 | 1,840 |
Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | - | - |
Purchase or sale of treasury shares | - | - | - | (120) | (0) | - | - | - | - | (120) | - | (120) |
Share-based payments | - | - | - | - | 27 | - | - | - | - | 27 | - | 27 |
Dividends paid | - | - | - | - | (845) | - | - | - | - | (845) | (6) | (850) |
Other | - | - | - |
| (36) | - | - | - | - | (36) | - | (36) |
AS AT 30 JUNE 2022 | 105,569,412 | 54 | 50 | (672) | 10,500 | (124) | 359 | 188 | (95) | 10,259 | 14 | 10,273 |
CONSOLIDATED STATEMENT OF CASH FLOWS
In millions of euros | H1 2022 | 2021 Financial year | H1 2021 |
CASH FLOWS RELATED TO OPERATING ACTIVITIES |
|
|
|
Net income attributable to owners of the parent | 1,641 | 2,445 | 1,174 |
Depreciation and amortisation of fixed assets | 160 | 312 | 148 |
Depreciation of right-of-use assets | 127 | 251 | 120 |
Impairment losses | 71 | 65 | 41 |
Mark-to-Market financial instruments | - | (1) | (1) |
Foreign exchange gains/(losses) on fair value adjustments | (24) | (46) | (12) |
Change in provisions | 22 | 28 | 17 |
Net income from associates | (25) | (34) | (13) |
Net income attributable to non-controlling interests | 6 | 8 | 3 |
Capital gains or losses on disposals and impact of changes in scope of consolidation | 7 | (4) | 1 |
Deferred tax expense | (1) | (15) | (14) |
Accrued expenses and income related to share-based payments | 27 | 59 | 32 |
Dividend income | (11) | (10) | (10) |
Other | (0) | (0) | (0) |
Operating cash flows | 2,001 | 3,060 | 1,487 |
Change in working capital requirements | (261) | 346 | 65 |
Change in net cash position related to operating activities (A) | 1,740 | 3,405 | 1,552 |
CASH FLOWS RELATED TO INVESTING ACTIVITIES |
|
|
|
Operating investments | (190) | (532) | (214) |
Acquisitions of consolidated shares | - | (0) | (0) |
Acquisitions of other financial assets | (40) | (198) | (4) |
Disposals of operating assets | 0 | 3 | 2 |
Disposals of consolidated shares and impact of losses of control | - | - | - |
Disposals of other financial assets | 5 | 6 | 3 |
Change in payables and receivables related to investing activities | (18) | 6 | (30) |
Dividends received | 36 | 47 | 26 |
Change in net cash position related to investing activities (B) | (207) | (669) | (217) |
CASH FLOWS RELATED TO FINANCING ACTIVITIES |
|
|
|
Dividends paid | (850) | (490) | (489) |
Repayment of lease liabilities | (128) | (212) | (102) |
Treasury share buybacks net of disposals | (120) | (158) | (159) |
Borrowing subscriptions | - | - | - |
Repayment of borrowings | (0) | (8) | (8) |
Change in net cash position related to financing activities (C) | (1,099) | (869) | (757) |
Foreign currency translation adjustment (D) | 151 | 110 | 32 |
CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D) | 585 | 1,978 | 609 |
Net cash position at the beginning of the period | 6,695 | 4,717 | 4,717 |
Net cash position at the end of the period | 7,280 | 6,695 | 5,326 |
CHANGE IN NET CASH POSITION | 585 | 1,978 | 609 |
Attachment