Hermès International: 2023 Full-Year Results
Source: GlobeNewswireOutstanding sales and results in 2023
Revenue amounted to €13.4 billion
(+21% at constant exchange rates and +16% at current exchange rates)
Recurring operating income reached €5.7 billion (+20%)
Net profit amounted to €4.3 billion (+28%)
Paris, 9 February 2024
The group’s consolidated revenue amounted to €13,427 million in 2023, up 21% at constant exchange rates and 16% at current exchange rates compared to 2022. Recurring operating income amounted to €5,650 million, i.e. 42.1% of sales. Net profit group share reached €4,311 million, an increase of 28%.
In the fourth quarter 2023, sales reached €3,364 million, up 18% at constant exchange rates and 13% at current exchange rates, despite the particularly high comparison base in America and in Asia. The group pursued the trend seen over the third quarter, thanks to sustained sales.
Axel Dumas, Executive Chairman of Hermès, said: “In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base. These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly.”
Sales by geographical area at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December, all the geographical areas posted a solid performance with homogeneous growth of around 20%. Sales increased both in the group’s stores (+20%), which benefitted from a strong demand and the reinforcement of the exclusive distribution network, and in wholesale activities (+24%), driven by the travel retail business.
Asia excluding Japan (+19%) pursued its strong growth, with significant increases in sales in all the countries of the region. A second store opened in October in Chengdu, the capital city of the province of Sichuan, becoming the house’s thirty-third address in Mainland China, following the opening of a store in Tianjin in July. In Korea, the store at the Shilla Hotel in Seoul reopened in December after renovation and extension work.
Japan (+26%) recorded a steady and sustained increase in sales. The Daimaru Sapporo store on Hokkaido island and the Takashimaya store in the centre of Kyoto were inaugurated in October and November, after renovation and expansion.
America (+21%) confirmed an outstanding performance, in particular in the second half of the year. After being renovated and expanded, the Chicago store was inaugurated at the end of October, and the Bellagio store reopened in Las Vegas in December, following the store openings of Naples on the Gulf of Mexico in February, Aspen in June and Los Angeles Topanga in July. The Hermès in the Making travelling exhibition which showcases the know-how of the House, met with great success in Chicago in October.
Europe excluding France (+20%) and France (+20%) recorded robust growth, thanks to the loyalty of local clients and to the dynamic of tourists flows. Following renovation, the Crans-Montana store in Switzerland reopened in December, after the store located in the historic centre of Bordeaux in November and the Vienna store in Austria in September. The Silk event Par un beau soir de carrés, staged in Brussels in November, attracted great attention.
Sales by sector at the end of December
(at constant exchange rates unless otherwise indicated)
At the end of December 2023, all the métiers confirmed their solid momentum, with Ready-to-wear and Accessories, Watches and Other Hermès Sectors achieving a remarkable increase.
The Leather Goods and Saddlery métier (+17%), which demand is very sustained, saw a strong increase. The Maximors bag, with its sterling work, and Della Cavalleria Élan and Arçon bags have been unveiled. Finally, the models displaying exceptional savoir-faire in an Arts & Craft’s spirit around the Haut à Courroies notably have met with great success.
In 2023, Hermès inaugurated the leather goods workshops in Louviers and la Sormonne, the first two industrial buildings in France to carry the E4C2 label that assesses environmental performance based on energy consumption and carbon emissions. Production capacities continue to grow with four leather goods workshop projects over the next four years: Riom (Puy-de-Dôme) in 2024, L’Isle-d’Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 and Charleville-Mézières (Ardennes) scheduled for 2027, which will reinforce the nine centres of expertise located all over France. Hermès continues to reinforce its local anchoring in France in regions with strong manufacturing know-how, while also developing employment and training.
The Ready-to-wear and Accessories sector (+28%) pursued its strong growth, thanks to the success of the ready-to-wear and footwear collections. The men’s and women’s spring-summer 2024 collections were very well received when they were presented at fashion shows in June and September respectively.
The Silk and Textiles sector (+16%) recorded a solid performance, supported by the success of the collections which feature exceptional materials and unique craftsmanship. Production capacities continue to expand, notably with the set-up of a new printing line at the Pierre-Bénite site in Lyon.
The Perfume and Beauty sector (+12%) benefitted from the success of both the latest creations and the House’s classics such as Terre d'Hermès, the Jardins collection and Twilly d’Hermès. The Hermès Beauty range was enhanced with a fifth chapter at the end of September, Regard Hermès, inspired by the House’s emblematic shades, as well as with limited editions of Rouge Hermès.
The Watches métier (+23%) confirmed its splendid performance, displaying singular creativity and remarkable watchmaking know-how, in both the complication models and the House’s iconic models. The Hermès H08 line is a great success and welcomed several new models this year.
The Other Hermès sectors (+26%), which include Jewellery and Homeware, recorded strong growth. Jewellery showcased the Chaîne d’ancre design, reinterpreted in a multitude of shapes and materials unveiled at an exhibition at the Faubourg store in Paris in July.
Outstanding results
Recurring operating income increased by 20% to €5,650 million compared to €4,697 million in 2022. Thanks to the strong sales growth and the favourable impact of currency hedging, annual recurring operating profitability reached its highest level ever at 42.1%, up from 40.5% in 2022.
Consolidated net profit group share amounted to €4,311 million (32.1% of sales) compared to €3,367 million in 2022, an increase of 28% resulting from the outstanding operating performance as well as an improved return on cash management.
Operating cash flow was €5,123 million, up 25%. This enabled us to finance €859 million of operating investments and a €794 million increase in working capital requirements, consistent with the strong rise in activity. Adjusted free cash flow reached €3,192 million.
After distribution of the ordinary dividend (€1,359 million) and inclusion of financial investments (€316 million) and treasury share buybacks (€132 million for 74,954 shares outside the liquidity contract), the restated net cash position increased by €1,422 million to €11,164 million compared to €9,742 million as at 31 December 2022.
A sustainable and responsible model
The Hermès group continued to recruit and increased its workforce by around 2,400 people. At the end of 2023, the group had 22,040 employees, including 13,700 in France. Over the past three years, Hermès has created more than 5,400 jobs, including 3,300 in France.
True to its commitment as a responsible employer, and its policy of sharing the fruits of growth with all those who contribute to it on a daily basis, Hermès will pay at the beginning of the year a bonus of €4,000 to all its employees worldwide in respect of 2023, after announcing last July a new plan for the allocation of free shares to all the employees. Hermès is strengthening its commitments in the fields of education and knowledge transmission particularly through the deployment of the École Hermès des savoir-faire, which has extended its leatherwork, cutting and stitching diploma courses in 8 regional training schools in France this year.
In line with the House’s commitments to the fight against climate change, Hermès pursued its actions in line with its emissions reduction targets validated by the Science Based Target initiative (SBTi). Hermès aims to reduce emissions by 50.4% on scope 1 and 2 in absolute value and by 58.1% in intensity on scope 3, over the 2018-2030 period. Pursuing its commitment to quality and the development of sustainable materials for its 16 business lines, the House is continuing its drive to achieve certification for its 44 supply chains by 2024. Thus, at the end of December, more than 80% of the leather goods division’s suppliers were LWG (Leather Working Group) certified.
In 2023, the group has initiated the Science Based Targets for Nature (SBTN) process to set scientific targets for nature, in particular in biodiversity, fresh water, forests and soils. Hermès is one of 120 companies worldwide to have launched this process. Regarding the protection of natural resources, the House also implemented its particularly demanding responsible real estate standard that integrates sustainability issues across the life cycle of real estate projects.
Proposed dividend
At the General meeting to be held on 30 April 2024, a dividend proposal of €15.00 per share will be made. The €3.50 interim dividend that will be paid on 15 February 2024, will be deducted from the dividend approved by the General Meeting. In addition, an exceptional dividend of €10.00 per share will be proposed to the General meeting.
Post-closing event
No significant event has occurred since the closing on 31 December 2023. In line with its distribution network vertical integration strategy, the house has reinforced its relationship with its historical partner in the Middle East. Thus, Hermès became in early 2024 a majority shareholder alongside its partner in the retail activities located in the United Arab Emirates. The latter remains the majority shareholder in the other countries of the region (Qatar, Kuwait, Bahrain). The impact of the change in consolidation method resulting from this acquisition of a majority stake and the amount paid will not be 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.
The group has moved into 2024 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.
For 2024, the theme will be In the Spirit of the Faubourg. This place, the fruit of Émile Hermès’ dream, is the beating heart of the house. It accompanies Hermès everywhere and inspires the effervescence and joyful spirit so dear to the house.
The press release and the presentation of the 2023 results are available on the group’s website: https://finance.hermes.com
At the Supervisory Board meeting on 8 February 2024, Executive Management presented the audited financial statements for 2023.
The audit procedures have been completed and the audit report is under preparation.
The complete consolidated financial statements will be available by 31 March 2024 at the following address https://finance.hermes.com and on the AMF website: www.amf-france.org
Upcoming events:
- 25 April 2024: Q1 2024 revenue publication
- 30 April 2024: General meeting of shareholders
- 25 July 2024: publication of H1 2024 results (after market)
2023 KEY FIGURES
| In millions of euros | 2023 | 2022 |
| Revenue | 13,427 | 11,602 |
| Growth at current exchange rates vs. n-1 | 15.7 % | 29.2% |
| Growth at constant exchange rates vs. n-1 (1) | 20.6 % | 23.4% |
| Recurring operating income (2) | 5,650 | 4,697 |
| As a % of revenue | 42.1% | 40.5% |
| Operating income | 5,650 | 4,697 |
| As a % of revenue | 42.1% | 40.5% |
| Net profit – Group share | 4,311 | 3,367 |
| As a % of revenue | 32.1% | 29.0% |
| Operating cash flows | 5,123 | 4,111 |
| Operating investments | 859 | 518 |
| Adjusted free cash flow (3) | 3,192 | 3,405 |
| Equity – Group share | 15,201 | 12,440 |
| Net cash position (4) | 10,625 | 9,223 |
| Restated net cash position (5) | 11,164 | 9,742 |
| Workforce (number of employees) (6) | 22,037 | 19,686 |
(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.
(6) The headcount relates to employees on permanent contracts and those on fixed-term contracts lasting more than 9 months.
INFORMATION BY GEOGRAPHICAL ZONE (a)
| As of Dec. 31st | Evolution /2022 | ||||
| In millions of Euros | 2023 | 2022 | Published | At constant exchange rates | |
| France | 1,274 | 1,064 | 19.8% | 19.8% | |
| Europe (excl. France) | 1,818 | 1,536 | 18.4% | 20.2% | |
| Total Europe | 3,093 | 2,600 | 19.0% | 20.0% | |
| Japan | 1,260 | 1,101 | 14.5% | 25.7% | |
| Asia-Pacific (excl. Japan) | 6,273 | 5,556 | 12.9% | 19.1% | |
| Total Asia | 7,533 | 6,657 | 13.2% | 20.2% | |
| Americas | 2,502 | 2,138 | 17.1% | 20.5% | |
| Other | 299 | 207 | 44.4% | 44.0% | |
| TOTAL | 13,427 | 11,602 | 15.7% | 20.6% | |
| 4th quarter | Evolution /2022 | ||||
| In millions of Euros | 2023 | 2022 | Published | At constant exchange rates | |
| France | 359 | 311 | 15.5% | 15.5% | |
| Europe (excl. France) | 491 | 413 | 18.9% | 21.0% | |
| Total Europe | 850 | 724 | 17.4% | 18.6% | |
| Japan | 321 | 279 | 15.0% | 26.2% | |
| Asia-Pacific (excl. Japan) | 1,401 | 1,314 | 6.6% | 12.3% | |
| Total Asia | 1,722 | 1,593 | 8.1% | 14.8% | |
| Americas | 717 | 620 | 15.7% | 21.6% | |
| Other | 76 | 54 | 39.4% | 39.2% | |
| TOTAL | 3,364 | 2,991 | 12.5% | 17.5% | |
(a) Sales by destination.
INFORMATION BY SECTOR
| As of Dec. 31st | Evolution /2022 | ||||
| In millions of Euros | 2023 | 2022 | Published | At constant exchange rates | |
| Leather Goods and Saddlery (1) | 5,547 | 4,963 | 11.8% | 16.7% | |
| Ready-to-wear and Accessories (2) | 3,879 | 3,152 | 23.1% | 28.2% | |
| Silk and Textiles | 932 | 842 | 10.7% | 15.6% | |
| Other Hermès sectors (3) | 1,653 | 1,371 | 20.5% | 25.8% | |
| Perfume and Beauty | 492 | 448 | 9.8% | 11.7% | |
| Watches | 611 | 519 | 17.7% | 23.2% | |
| Other products (4) | 313 | 306 | 2.2% | 5.2% | |
| TOTAL | 13,427 | 11,602 | 15.7% | 20.6% | |
| 4th quarter | Evolution /2022 | ||||
| In millions of Euros | 2023 | 2022 | Published | At constant exchange rates | |
| Leather Goods and Saddlery (1) | 1,371 | 1,300 | 5.4% | 10.4% | |
| Ready-to-wear and Accessories (2) | 945 | 775 | 21.9% | 27.5% | |
| Silk and Textiles | 285 | 263 | 8.3% | 13.3% | |
| Other Hermès sectors (3) | 413 | 348 | 18.9% | 24.4% | |
| Perfume and Beauty | 126 | 105 | 19.9% | 22.2% | |
| Watches | 138 | 118 | 16.7% | 22.0% | |
| Other products (4) | 87 | 82 | 5.6% | 8.8% | |
| TOTAL | 3,364 | 2,991 | 12.5% | 17.5% | |
(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.
2023 quarterly revenue
| Q1 | Q2 | Q3 | Q4 | 2023 | ||
| Revenue (in €m) | 3,380 | 3,317 | 3,365 | 3,364 | 13,427 | |
| Growth at current exchange rates | 22.3% | 22.4% | 7.3 % | 12.5 % | 15.7 % | |
| Growth at constant exchange rates | 23.0% | 27.5% | 15.6 % | 17.5 % | 20.6% |
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Extra-financial performances
| RESPONSIBLE EMPLOYER 2,400 Jobs created | DIVERSITY AND INCLUSION 6.85% Direct disability employment rate | GENDER EQUALITY 60% Women managers in the group |
| VERTICAL INTEGRATION 55% Manufactured in its in-house and exclusive workshops | LONG-TERM RELATIONSHIPS 19 years Average age of supplier relationships (Top 50) | LOCAL ANCHORING 74% Objects made in France |
| CLIMATE Scopes 1 & 2 (SBTi) -30% Emissions reduction in absolute value between in 2023 vs 2022 | BIODIVERSITY SBTN Scientific approach for nature initiated | WATER CONSUMPTION -62% Industrial water intensity over 10 years |
| TRANSPARENCY AWARDS #1 CAC LARGE 60 | COMMITTED TO COMMUNITIES 400 Local actions and partnerships in 2023 | DURABILITY > 200,000 Repairs in workshops |
APPENDIX – EXTRACT FROM CONSOLIDATED ACCOUNTS
Financial statements of the year, including notes to the consolidated accounts, will be available at the end of March 2024 on the website https://finance.hermes.com, together with the other chapters of the Annual Financial Report.
CONSOLIDATED INCOME STATEMENT
| In millions of euros | 2023 | 2022 |
| Revenue | 13,427 | 11,602 |
| Cost of sales | (3,720) | (3,389) |
| Gross margin | 9,708 | 8,213 |
| Sales and administrative expenses | (3,169) | (2,680) |
| Other income and expenses | (889) | (836) |
| Recurring operating income | 5,650 | 4,697 |
| Other non-recurring income and expenses | - | - |
| Operating income | 5,650 | 4,697 |
| Net financial income | 190 | (62) |
| Net income before tax | 5,840 | 4,635 |
| Income tax | (1,623) | (1,305) |
| Net income from associates | 105 | 50 |
| CONSOLIDATED NET INCOME | 4,322 | 3,380 |
| Non-controlling interests | (12) | (13) |
| NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT | 4,311 | 3,367 |
| Basic earnings per share (in euros) | 41.19 | 32.20 |
| Diluted earnings per share (in euros) | 41.12 | 32.09 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| In millions of euros | 2023 | 2022 | |
| Consolidated net income | 4,322 | 3,380 | |
| Changes in foreign currency adjustments 1 | (114) | 126 | |
| Hedges of future cash flows in foreign currencies 1 2 | 7 | 129 | |
| 69 | 23 | |
| (63) | 106 | |
| Assets at fair value 2 | - | 333 | |
| Employee benefit obligations: change in value linked to actuarial gains and losses 2 | 10 | 41 | |
| Net comprehensive income | 4,225 | 4,009 | |
| 4,213 | 3,996 | |
| 13 | 14 | |
| (1) Transferable through profit or loss. (2) Net of tax. | |||
CONSOLIDATED BALANCE SHEET
ASSETS
| In millions of euros | 31/12/2023 | 31/12/2022 |
| Goodwill | 72 | - |
| Intangible assets | 225 | 213 |
| Right-of-use assets | 1,716 | 1,582 |
| Property, plant and equipment | 2,340 | 2,007 |
| Investment property | 7 | 8 |
| Financial assets | 1,141 | 1,109 |
| Investments in associates | 200 | 54 |
| Loans and deposits | 70 | 65 |
| Deferred tax assets | 631 | 555 |
| Other non-current assets | 37 | 39 |
| Non-current assets | 6,438 | 5,630 |
| Inventories and work-in-progress | 2,414 | 1,779 |
| Trade and other receivables | 431 | 383 |
| Current tax receivables | 51 | 19 |
| Other current assets | 300 | 263 |
| Financial derivatives | 188 | 160 |
| Cash and cash equivalents | 10,625 | 9,225 |
| Current assets | 14,008 | 11,828 |
| TOTAL ASSETS | 20,447 | 17,459 |
LIABILITIES
| In millions of euros | 31/12/2023 | 31/12/2022 |
| Share capital | 54 | 54 |
| Share premium | 50 | 50 |
| Treasury shares | (698) | (674) |
| Reserves | 10,744 | 8,795 |
| Foreign currency adjustments | 189 | 303 |
| Revaluation adjustments | 553 | 546 |
| Net income attributable to owners of the parent | 4,311 | 3,367 |
| Equity attributable to owners of the parent | 15,201 | 12,440 |
| Non-controlling interests | 2 | 16 |
| Equity | 15,203 | 12,457 |
| Borrowings and financial liabilities due in more than one year | 50 | 35 |
| Lease liabilities due in more than one year | 1,720 | 1,629 |
| Non-current provisions | 31 | 30 |
| Post-employment and other employee benefit obligations due in more than one year | 151 | 181 |
| Deferred tax liabilities | 2 | 20 |
| Other non-current liabilities | 106 | 103 |
| Non-current liabilities | 2,060 | 1,998 |
| Borrowings and financial liabilities due in less than one year | 1 | 2 |
| Lease liabilities due in less than one year | 289 | 268 |
| Current provisions | 134 | 133 |
| Post-employment and other employee benefit obligations due in less than one year | 16 | 15 |
| Trade and other payables | 880 | 777 |
| Financial derivatives | 45 | 74 |
| Current tax liabilities | 586 | 496 |
| Other current liabilities | 1,233 | 1,239 |
| Current liabilities | 3,183 | 3,004 |
| TOTAL EQUITY AND LIABILITIES | 20,447 | 17,459 |
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 investments | Hedges of future cash flows in foreign currencies | Equity attributable to owners of the parent | Non-controlling interests | Equity | ||||||||
| As at 1 January 2022 | 105,569,412 | 54 | 50 | (551) | 9,712 | (125) | 178 | 188 | (105) | 9,400 | 12 | 9,412 |
| Net income | - | - | - | 3,367 | - | - | - | - | 3,367 | 13 | 3,380 | |
| Other comprehensive income | - | - | - | - | 41 | 125 | 333 | 129 | 628 | 1 | 630 | |
| Comprehensive income | - | - | - | 3,367 | 41 | 125 | 333 | 129 | 3,996 | 14 | 4,009 | |
| Change in share capital and share premiums | - | - | - | - | - | - | - | - | - | - | ||
| Purchase or sale of treasury shares | - | - | (123) | 2 | - | - | - | - | (121) | - | (121) | |
| Share-based payments | - | - | - | 55 | - | - | - | - | 55 | - | 55 | |
| Dividends paid | - | - | - | (845) | - | - | - | - | (845) | (8) | (852) | |
| Other | - | - | - | (44) | - | - | - | - | (44) | (2) | (46) | |
| As at 31 December 2022 | 105,569,412 | 54 | 50 | (674) | 12,247 | (85) | 303 | 521 | 25 | 12,440 | 16 | 12,457 |
| Net income | - | - | - | 4,311 | - | - | - | - | 4,311 | 12 | 4,322 | |
| Other comprehensive income | - | - | - | - | 10 | (115) | - | 7 | (98) | 1 | (97) | |
| Comprehensive income | - | - | - | 4,311 | 10 | (115) | - | 7 | 4,213 | 13 | 4,225 | |
| 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 2023 | 105,569,412 | 54 | 50 | (698) | 15,130 | (75) | 189 | 521 | 32 | 15,201 | 2 | 15,203 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| In millions of euros | 2023 | 2022 |
| Net income attributable to owners of the parent | 4,311 | 3,367 |
| Depreciation and amortisation of fixed assets, rights of use and impairment losses | 772 | 730 |
| Foreign exchange gains/(losses) on fair value adjustments | 56 | 12 |
| Change in provisions | 15 | 12 |
| Net income from associates | (105) | (50) |
| Net income attributable to non-controlling interests | 12 | 13 |
| Capital gains or losses on disposals and impact of changes in scope of consolidation | (14) | (1) |
| Deferred tax expense | (14) | (16) |
| Accrued expenses and income related to share-based payments | 104 | 55 |
| Dividend income | (12) | (11) |
| Other | (0) | (0) |
| Operating cash flows | 5,123 | 4,111 |
| Change in working capital requirements | (794) | 73 |
| CASH FLOWS RELATED TO OPERATING ACTIVITIES (A) | 4,328 | 4,184 |
| Operating investments | (859) | (518) |
| Acquisitions of consolidated shares | (288) | (1) |
| Acquisitions of other financial assets | (52) | (165) |
| Disposals of operating assets | 0 | 1 |
| Disposals of consolidated shares and impact of losses of control | - | 0 |
| Disposals of other financial assets | - | 5 |
| Change in payables and receivables related to investing activities | 93 | 32 |
| Dividends received | 112 | 67 |
| CASH FLOWS RELATED TO INVESTING ACTIVITIES (B) | (995) | (579) |
| Dividends paid | (1,386) | (852) |
| Repayment of lease liabilities | (277) | (261) |
| Treasury share buybacks net of disposals | (130) | (123) |
| Borrowing subscriptions | 0 | 0 |
| Repayment of borrowings | (1) | (0) |
| CASH FLOWS RELATED TO FINANCING ACTIVITIES (C) | (1,794) | (1,237) |
| Foreign currency translation adjustment (D) | (138) | 159 |
| CHANGE IN NET CASH POSITION (A) + (B) + (C) + (D) | 1,402 | 2,528 |
| Net cash position at the beginning of the period | 9,223 | 6,695 |
| Net cash position at the end of the period | 10,625 | 9,223 |
REMINDER
2023 HALF YEAR KEY FIGURES
| In millions of euros | H1 2023 | H1 2022 |
| Revenue | 6,698 | 5,475 |
| Growth at current exchange rates vs. n-1 | 22.3% | 29.3% |
| Growth at constant exchange rates vs. n-1 (1) | 25.2% | 23.2% |
| Recurring operating income (2) | 2,947 | 2,304 |
| As a % of revenue | 44.0% | 42.1% |
| Operating income | 2,947 | 2,304 |
| As a % of revenue | 44.0% | 42.1% |
| Net profit – Group share | 2,226 | 1,641 |
| As a % of revenue | 33.2% | 30.0% |
| Operating cash flows | 2,615 | 2,001 |
| Investments (excluding financial investments) | 249 | 190 |
| Adjusted free cash flow (3) | 1,720 | 1,421 |
| Equity – Group share | 13,249 | 10,259 |
| Net cash position (4) | 9,326 | 7,280 |
| Restated net cash position (5) | 9,848 | 7,685 |
| Workforce (number of employees) (6) | 20,607 | 18,428 |
(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.
(6) The headcount relates to employees on permanent contracts and those on fixed-term contracts lasting more than 9 months.
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