2014 results - Another year of solid performances
€10,038 million, up 4.5% on a comparable basis
Luxury Activities: €6,759 million, up 4.9% on a comparable basis
Recurring operating income
€1,664 million, up 3% on a comparable basis
Operating margin of 16.6%
Luxury Activities: €1,666 million, up 5.3% on a comparable basis
Net debt of 2.2x EBITDA
Proposed dividend of €4 per share, up 7%
- Sustained, consistent revenue growth throughout the year
- Solid advance in Luxury sales, driven by the directly operated network in mature markets
o New management team in place at Gucci
o Continued strong sales growth at Bottega Veneta
o Yves Saint Laurent revenue doubled over past three years
- Puma sales recovery confirmed
- Sharp increase in free cash flow from operations
- Robust financial position.
François-Henri Pinault, Kering's Chairman and Chief Executive Officer, commented: "The dynamic sales growth and increase in operating income of the Group's Luxury activities confirm the relevance of our multi-brand model and demonstrate our ability to unlock the potential of each our brands, exploit their complementarity, and nurture their development. The transformations carried out in 2014 from both an organisational and operational standpoint have allowed us to step up our responsiveness, and achieve a greater degree of integration and specialisation of our activities. The Group's unique characteristics, as expressed in its strategic vision and management culture, are a key asset to deliver organic growth, our number one priority in 2015, in a macroeconomic and currency environment which remains unsettled. I am confident in the Group's ability to achieve sustainable profitable growth while focusing in the shorter term on our brands’ cash flow generation.”
Consolidated revenue from continuing operations amounted €10,038 million in 2014, up 4% as reported and 4.5% based on a comparable scope and exchange rates. The Group's balance in terms of brand portfolio, geographic presence and distribution channels makes it more resilient to changes in the economic environment despite a difficult global context and the unsettled market conditions that have prevailed for several quarters now. Revenue generated outside the eurozone accounted for 79% of sales in 2014. Revenue growth was sustained in mature markets at 3.8% based on comparable data, driven by Japan and North America. Emerging markets were up 5.6% on a comparable basis, and accounted for 38% of the Group’s total sales.
Kering’s recurring operating income amounted €1,664 million in 2014, up 3.0% on 2013 at comparable exchange rates, and down 5% on a reported basis. The Group's recurring operating margin came out at 16.6%, while gross margin for 2014 amounted €6,296 million, up €255 million or 4.2% on the previous year as reported.
At €1,991 million, EBITDA was 2.6% lower than in 2013, and the EBITDA margin inched down by 1.4 percentage points to 19.8% in 2014 from 21.2% the previous year.
Adjusted from non-recurring items net of tax, net income, Group share from continuing operations totalled €1,177 million.
Earnings per share from continuing operations came to €8.00 in 2014, compared with €6.93 for the previous year. Excluding non-recurring items, earnings per share from continuing operations amounted to €9.35, down 4.4% on the 2013 figure. Earnings per share stood at €4.20 in 2014 versus €0.39 for the previous year.