2016 Annual results
Excellent performances in 2016
Sharp acceleration in growth in the second half
Record-high recurring operating income
Consolidated revenue: €12,385 million, up 6.9% as reported, 8.1% on a comparable basis
Luxury activities: up 7.7% as reported, 7.8% on a comparable basis
Sport & Lifestyle activities: up 5.5% as reported, 9.0% on a comparable basis
Recurring operating income: €1,886 million, up 14.5%
Net income, Group share: €814 million. Recommended dividend of €4.60 per share
"In a sector undergoing far-reaching transformation, our foresight and the quality of execution of our strategy enabled us to outperform our peers and deliver outstanding operating and financial performances. Rewarding our vision of luxury, grounded in powerful creative content and long-lasting stylistic codes, we continue to gain market share, as witnessed by the spectacular performances of Gucci and Yves Saint Laurent last year. In 2017, in an uncertain macroeconomic and geopolitical environment, we will keep concentrating on the organic growth of our Houses and on value creation, so as to intensify our current momentum."
François-Henri Pinault, Chairman and Chief Executive Officer
Strongest year-on-year revenue increase since 2012, driven by organic growth
-Growth accelerated sharply in the second half, coming in at 10.5% on a comparable basis and continuing the strong momentum that started in the first six months, which saw a 5.5% comparable increase.
Significant market out-performance for Luxury activities
- Yves Saint Laurent and Gucci posted exceptional comparable growth (25.5% and 12.7%, respectively).
- Excellent fourth quarter, with revenue up 11.3% comparable (Gucci up 21.4%).
Robust 10.4% comparable growth at Puma
Excellent operating and financial performances
- Recurring operating income jumped 14.5%, reaching a record high of €1,886 million.
- Free cash flow from operations nearly doubled during the year, amounting to €1,189 million.
- Net income, Group share advanced 16.9% to €814 million. Net income from continuing operations (excluding non-recurring items) came to €1,282 million.
- Net debt down to 1.9x 2016 EBITDA.
- Recommended dividend of €4.60 per share (15% year-on-year increase).
Key financial indicators
Consolidated revenue amounted to €12,385 million in 2016, up 6.9% as reported and 8.1% on 2015 based on a comparable Group structure and exchange rates, reflecting the priority given to organic growth. Western Europe and the Asia-Pacific region (excluding Japan) posted double-digit revenue increases on a comparable basis, whereas growth was more moderate in North America and even lacklustre and Japan. Revenue generated outside the eurozone accounted for 78% of the consolidated total in 2016.
The Group's gross margin for 2016 totalled €7,790 million, up 10.1% on the previous year as reported. At €1,886 million, recurring operating income reached a record high and was up 14.5% on 2015 as reported. Consolidated recurring operating margin advanced 1 percentage point to 15.2%. Consolidated EBITDA rose 12.7% to €2,318 million while the EBITDA margin widened by 0.9 of a percentage point to 18.7%.
Net income, Group share climbed 16.9% to €814 million. Net income from continuing operations (excluding non-recurring items) came in at €1,282 million.
Earnings per share amounted to €6.46 in 2016 versus €5.52 for the previous year. Earnings per share from continuing operations totalled €6.55 in 2016, compared with €5.20 for 2015.
A global Luxury group, Kering develops an ensemble of luxury houses in fashion, leather goods, jewellery and watches: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin. Kering is also developing the Sport & Lifestyle brands Puma, Volcom and Cobra. By ‘empowering imagination’, Kering encourages its brands to reach their potential, in the most sustainable manner. The Group generated revenue of €12.385 billion in 2016 and had more than 40,000 employees at year end. The Kering share is listed on Euronext Paris (FR 0000121485, KER.PA, KER.FP).
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