Luxury firm Christian Dior Group has booked a 2% increase in first-half profit, buoyed by a strong performance at its high-end Couture division.

The company, allied to luxury goods giant LVMH Moët Hennessy Louis Vuitton, said profit from recurring operations reached EUR3.40bn (US$4.66bn) for the six months to 31 December, compared to EUR3.33bn in the prior year period.

Total revenue rose 3% to EUR16.12bn from EUR15.78bn last year.

Net profit stood at EUR2.16bn, but the company did not provide a corresponding figure for the year earlier.  

Its Couture business posted a 31% jump in profit from recurring operations to EUR108m, and saw revenue rise by 14% to EUR758m. The growth was driven by momentum in leather goods, men's and women's ready-to-wear, and accessories.

Christian Dior Group's fashion and leather goods division, meanwhile, reported a 6% decline in profit from recurring operations to EUR1.64bn, and a 2% drop in revenue to EUR5.17bn.

The company said it is well-equipped to continue its growth momentum across all business groups this year, despite an uncertain economic and financial environment in Europe.

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Christian Dior : Financial release - First half results as of december 31, 2013

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CHRISTIAN DIOR Euronext FR0000130403
CDI
RELEASE 13 FEB 2014 18:09 CET

FINANCIAL RELEASE
FIRST HALF RESULTS AS OF DECEMBER 31, 2013

This financial release covers the period from July 1 to December 31, 2013 corresponding to the first half of the current fiscal year ending June 30, 2014.

In the period from July 1 to December 31, 2013, the Christian Dior group recorded revenue of 16.2 billion euros, profit from recurring operations of 3.4 billion euros, and a Group share of net profit of 0.8 billion euros. Free cash flow, before financial investments, transactions relating to equity and financing activities was 2.4 billion euros for the period. The Group maintained good momentum in the United States and Asia, and continued to grow in Europe, despite the challenging economic environment.

(EUR millions) Half-year from
July 1 to
December 31, 2013
(6 months)
Fiscal year from
May 1 to
June 30, 2013
(2 months)
Fiscal year from
May 1, 2012 to
April 30, 2013
(12 months)
       
       
Revenue 16,187 4,768 29,881
Profit from recurring operations 3,404 881 6,090
Net profit 2,161 566 3,931
of which: Group share 794 216 1,431
Free cash flow (a) 2,433 40 2,473
 
(a) Before financial investments, transactions relating to equity and financing activities

First half revenue for Christian Dior Couture was 758 million euros, up 14% at actual exchange rates and 20% at constant exchange rates compared with the same period in 2012 (b). Dior`s excellent performance was driven notably by momentum in Leather Goods, men`s and women`s Ready-to-Wear, and Accessories. Profit from recurring operations for the 6-month period was 108 million euros, up 31%. 
Thus, for the 12-month period from January 1 to December 31, 2013, Christian Dior Couture posted revenue of 1,417 million euros, up 14% at actual exchange rates and 18% at constant exchange rates versus the same period in 2012. Profit from recurring operations for this 12-month period was 165 million euros, up 26%.

Half-year revenue for LVMH for the period from July 1 to December 31, 2013 was 15.5 billion euros, reflecting growth of 2% at actual exchange rates compared with the same period in 2012 (b). Profit from recurring operations for the 6-month period was 3.3 billion euros.

(b) Figures for the period from July 1 to December 31, 2012 were not subjected to limited review procedures.
For LVMH, the half-year period was marked by:

  • Solid performance in Wines and Spirits; 

  • The launch of very high quality leather products at Louis Vuitton, whose profitability remains at an exceptional level; 

  • Further investment in fashion brands; 

  • The success of the iconic lines from Parfums Christian Dior; 

  • Excellent results from Bulgari; 

  • Continued progress at Sephora and DFS, driven by innovation in products and services. 

Half-year revenue by business group for the Christian Dior group was as follows:

(EUR millions) Period from
July 1 to
December 31, 2013
(6 months)
Period from
July 1 to
December 31, 2012
(6 months) (a)
Change at actual exchange rates Organic
growth (b)
         
         
Christian Dior Couture 758 665 +14% +20%
Wines and Spirits 2,379 2,378 0% +6%
Fashion and Leather Goods 5,171 5,270 -2% +5%
Perfumes and Cosmetics 1,913 1,886 +1% +7%
Watches and Jewelry 1,474 1,493 -1% +6%
Selective Retailing 4,723 4,289 +10% +16%
Other activities and eliminations (231) (200) - -
         
         
Total 16,187 15,781 +3% +9%
         
(a) Figures not subjected to limited review procedures
(b) At constant structure and exchange rates

Half-year profit from recurring operations by business group for the Group was as follows:

(EUR millions) Period from
July 1 to
December 31, 2013
(6 months)
Period from
July 1 to
December 31, 2012
(6 months) (c)
Change
       
       
Christian Dior Couture 108 82 +31%
Wines and Spirits 828 764 +8%
Fashion and Leather Goods 1,643 1,748 -6%
Perfumes and Cosmetics 214 211 +1%
Watches and Jewelry 219 175 +25%
Selective Retailing 494 481 +3%
Other activities and eliminations (102) (135) -
       
       
Total 3,404 3,326 +2%
       
(c) Figures not subjected to limited review procedures

OUTLOOK

Despite an uncertain economic and monetary environment in Europe, the Christian Dior group is well-equipped to continue its growth momentum across all business groups in 2014. The Group will maintain a strategy focused on developing its brands by continuing to build on its savoir-faire, as well as through strong innovation and expansion in fast growing markets.

Driven by the agility of its organization, the balance of its different businesses and geographic diversity, the Group enters the year with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.

During the period and to date, no events or changes have occurred which could significantly modify the Group`s financial structure.

The Board of Directors of Christian Dior met on February 13, 2014 and decided on the payment, on April 17, 2014, of an interim dividend of a gross amount of 1.20 euros per share.

Limited review procedures were carried out, and the Statutory Auditors` report on the half-year financial information is in the process of being issued.

Original source: https://europeanequities.nyx.com/en/content/christian-dior-financial-release-first-half-results-december-31-2013