Kering: Press release - 2024 Annual Results

Kering Press Release - Annual Results 2024 - 110225

 

PRESS RELEASE

February 11, 2025

             
2024 ANNUAL RESULTS

Revenue: €17,194 million
down 12% as reported and on a comparable basis

Recurring operating income: €2,554 million

Net income attributable to the Group: €1,133 million
Proposed ordinary dividend: €6 per share

"In a difficult year, we accelerated the transformation of several of our Houses and moved determinedly to strengthen the health and desirability of our brands for the long term. Across the Group, and at Gucci first and foremost, we made critical decisions to raise the impact of our communications, sharpen our product strategies, and heighten the quality of our distribution, all in the respect of the creative heritage that distinguishes our brands. We secured our organization, made key hirings, sped up execution, and intensified the efficiency of our operations. Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilization, from which we will gradually resume our growth trajectory.”

François-Henri Pinault, Chairman and Chief Executive Officer

• Kering’s revenue amounted to €17.2 billion in 2024, down 12% both as reported and on a comparable basis.
  • Sales from the directly operated retail network, including e-commerce, fell 13% on a comparable basis, affected by lower store traffic in adverse market conditions.
  • Wholesale revenue of the Houses was down 22% on a comparable basis, as they continued to heighten the exclusivity of their distribution. At Group level, Wholesale and Other revenue was down 9% on a comparable basis.

• In the fourth quarter of 2024, revenue was down 12% both as reported and on a comparable basis. Sales from the directly operated retail network decreased 13% on a comparable basis. Trends improved sequentially in all regions, except Japan. Wholesale and Other revenue was down 10% overall on a comparable basis, and Wholesale revenue was down 25% for the Houses.

• Recurring operating income totaled €2.6 billion in 2024, down 46% from the 2023 level. Recurring operating margin was 14.9% in 2024 versus 24.3% in 2023.

Net income attributable to the Group amounted to €1.1 billion in 2024, and recurring net income attributable to the Group was €1.3 billion.

• Free cash flow from operations was €1.4 billion in 2024. Excluding real estate transactions, it amounted to €3.6 billion, an increase of 7% compared to 2023. Good management of operating working capital contributed €0.7 billion to this performance.

Financial indicators

(in € millions)		2024	2023	Change
Revenue		17,194	19,566	-12%
Comparable change (1)				-12%
Recurring operating income		2,554	4,746	-46%
% of revenue		14.9%	24.3%
EBITDA		4,667	6,569	-29%
% of revenue		27.1%	33.6%
Net income attributable to the Group		1,133	2,983	-62%
Recurring net income attributable to the Group (2)		1,310	3,061	-57%

1. Change on a comparable scope and exchange rate basis.
2. Recurring net income attributable to the Group: net income from continuing operations attributable to the Group, excluding non-recurring items.

Operating performance

Revenue (in € millions)		2024	2023	Reported change	Comparable change (1)
Gucci		7,650	9,873	-23%		-21%
Yves Saint Laurent		2,881	3,179	-9%		-9%
Bottega Veneta		1,713	1,645	+4%		+6%
Other Houses		3,221	3,514	-8%		-7%
Kering Eyewear and Corporate		1,941	1,568	+24%		+8%
Eliminations		(212)	(213)	–		–
KERING		17,194	19,566	-12%		-12%

1. Change on a comparable scope and exchange rate basis.

  

Recurring operating income (in € millions)		2024	2023	Change
Gucci		1,605	3,264	-51%
Yves Saint Laurent		593	969	-39%
Bottega Veneta		255	312	-18%
Other Houses		(9)	212	N/A
Kering Eyewear and Corporate		112	(7)	N/A
Eliminations		(2)	(4)	–
KERING		2,554	4,746	-46%

Gucci 

Gucci’s 2024 revenue amounted to €7.7 billion, down 23% as reported and down 21% on a comparable basis.
Sales from the directly operated retail network, accounting for 91% of the total, were down 21% on a comparable basis. Wholesale revenue was down 28% on a comparable basis.

In the fourth quarter of 2024, Gucci’s revenue decreased 24% on a comparable basis. Sales from the directly operated retail network were down 21% on a comparable basis, with a slight sequential improvement in North America and Asia-Pacific. The performance of new Leather Goods lines as well as iconic Gucci lines – such as the Jackie handbag and its new interpretations – is highly encouraging. Wholesale revenue decreased 53% on a comparable basis in the fourth quarter, partly reflecting increased selectivity of distribution partners.

Gucci’s recurring operating income totaled €1.6 billion in 2024. Recurring operating margin was 21.0%, with lower sales resulting in negative operational leverage, although that was mitigated by major efforts to streamline the cost base.

Yves Saint Laurent 

Yves Saint Laurent’s 2024 revenue amounted to €2.9 billion, down 9% both as reported and on a comparable basis.
Sales from the directly operated retail network were down 7% while Wholesale revenue fell 25%, both on a comparable basis.

In the fourth quarter of 2024, sales were down 8% on a comparable basis. Sales from the directly operated retail network, down 7% on a comparable basis, posted a notable improvement in North America and Asia-Pacific. New Leather Goods products and reinterpretation of Yves Saint Laurent’s iconic handbags were very well received. Wholesale revenue was down 35% in the fourth quarter, due in part to efforts to streamline that distribution channel.

Yves Saint Laurent achieved recurring operating income of €593 million in 2024 and its recurring operating margin was 20.6%, reflecting the House’s investments in its collections, stores and clienteling events.

Bottega Veneta

In 2024, Bottega Veneta’s revenue amounted to €1.7 billion, up 4% as reported and up 6% on a comparable basis. Sales from the directly operated retail network rose 10% on a comparable basis. Wholesale revenue was down 15% on a comparable basis, due to the House’s highly selective approach to partners.

Sales in the fourth quarter of 2024 were up 12% on a comparable basis with a 17% increase in the directly operated retail network, driven by outstanding performances in North America and Western Europe. Trends in Asia-Pacific improved. The House’s leather goods offer remains highly successful, underscoring the immense desirability of the Bottega Veneta brand. Wholesale revenue was down 10% on a comparable basis.

Bottega Veneta’s recurring operating income totaled €255 million in 2024, yielding a recurring operating margin of 14.9%, as the House continued to make significant investments in its communications and store network.

Other Houses 

Revenue from Other Houses amounted to €3.2 billion in 2024, down 8% as reported and down 7% on a comparable basis. On a comparable basis, sales from the directly operated retail network were down 4%, while Wholesale revenue was down 17%.

In the fourth quarter of 2024, sales of the Other Houses were down 4% on a comparable basis. Sales from the directly operated retail network were down 7%, while Wholesale revenue was up 9%. Balenciaga’s leather goods continued to be well received, while sales at Alexander McQueen suffered from its transition currently underway. Brioni achieved double-digit growth. Jewelry Houses continued to make progress, with a particularly healthy performance at Boucheron.

The recurring operating loss of the Other Houses amounted to €9 million in 2024, due to negative operational leverage at Couture and Leather Goods Houses.

Kering Eyewear and Corporate

In 2024, total revenue of the Kering Eyewear and Corporate segment, which includes Kering Beauté, amounted to €1.9 billion, up 24% as reported and up 8% on a comparable basis.

Kering Beauté’s revenue amounted to €323 million in 2024, as Creed was consolidated over the full year.

Kering Eyewear, which celebrated its 10th anniversary, generated revenue of €1.6 billion in 2024, an increase of 6% on a comparable basis. In the fourth quarter, sales totaled €326 million, up 8% as reported and up 7% on a comparable basis, driven by all regions as well as the main brands in its portfolio.

Kering Eyewear’s recurring operating income amounted to €277 million in 2024.

Taking into account the contribution of Kering Beauté, including the full-year consolidation of Creed, and Corporate costs, the Kering Eyewear and Corporate segment generated recurring operating income of €112 million.

Financial performance

In 2024, Kering’s net financial expense totaled €614 million.

The effective tax rate on recurring income was 27.1%.

Net profit attributable to the Group was €1.1 billion.

Earnings per share amounted to €9.2.

Cash flow and financial position

The Group’s free cash flow from operations was €1.4 billion in 2024. Excluding real estate transactions, it was €3.6 billion, up 7% compared to 2023.

As of December 31, 2024, Kering’s net debt amounted to €10.5 billion.

Dividend

In its February 10, 2025, meeting, Kering’s Board of Directors resolved to ask shareholders to approve a cash dividend of €6.00 per share at the Annual General Meeting to be held on April 24, 2025, to approve the financial statements for the year ended December 31, 2024.
An interim dividend of €2.00 per share was paid on January 16, 2025. If approved, a final dividend of €4.00 will be paid on May 7, 2025, on positions determined on the evening of May 6, 2025. The ex-date for the final dividend payment will be the morning of May 5, 2025.

Outlook

To achieve its long-term vision, Kering invests in the development of its Houses, so that they continuously strengthen their desirability and the exclusivity of their distribution, strike a perfect balance between creative innovation and heritage, and achieve the highest standards in terms of quality, sustainability and experience for their customers.

In an economic and geopolitical environment that remains uncertain, Kering continues to deploy its strategy with the aim of achieving a profitable long-term growth trajectory.

The Group is stepping up the initiatives needed to support the development and growth of its Houses, while implementing with determination the actions required to increase its efficiency. These actions imply particular vigilance with regards to financial discipline related to control of the Group’s cost base, selectivity of its investments, and management of its balance sheet.

***

At its February 10, 2025, meeting, Kering’s Board of Directors, chaired by François-Henri Pinault, approved the consolidated financial statements for 2024. The consolidated financial statements have been audited and are in the process of being certified.

WEBCAST

Kering will present its 2024 results in a webcast, which can be accessed here at 8.30am (CET) on Tuesday, February 11, 2025.

The presentation will be followed by a Q&A session for analysts and investors.

The slides (in PDF format) will be available ahead of the webcast from the www.kering.com/en/finance/ website.

A replay of the webcast will also be available at www.kering.com/en/finance.

The notes to the consolidated financial statements are included in the 2024 financial document available at www.kering.com.

About Kering

A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: "Empowering Imagination”. In 2024, Kering had 47,000 employees and revenue of €17.2 billion.

Contacts

Press
Emilie Gargatte	+33 (0)1 45 64 61 20	emilie.gargatte@kering.com
Marie de Montreynaud	+33 (0)1 45 64 62 53	marie.demontreynaud@kering.com
Analysts/investors
Claire Roblet	+33 (0)1 45 64 61 49	claire.roblet@kering.com

ANNEXES   EXCERPT FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION RELATING TO THE 2024 ANNUAL RESULTS   POSITION AS OF DECEMBER 31, 2024   AUDITED FINANCIAL STATEMENTS, CERTIFICATION IN PROGRESS
	Contents		Page
	Highlights and announcements since January 1, 2024		8
	Consolidated income statement		10
	Consolidated statement of comprehensive income		11
	Consolidated balance sheet		12
	Consolidated statement of changes in equity		13
	Consolidated statement of cash flows		14
	Revenue by quarter		15
	Main definitions		16

HIGHLIGHTS AND ANNOUNCEMENTS SINCE JANUARY 1, 2024

Acquisition of strategic real estate assets in New York and Milan
In 2024, Kering acquired prestigious real estate assets in New York and Milan as part of its selective real estate strategy aimed at securing key highly desirable locations for its Houses.
In New York City, the acquisition of the property located at 715-717 Fifth Avenue, totaling approximately 115,000 sq. ft, or 10,700 sq. m. for a price of $963 million (€885 million on the date of the announcement) was finalized on January 22, 2024.
In Milan, Kering acquired the company that owns the building located at 8 Via Monte Napoleone with a gross floorspace of approximately 127,000 sq. ft, or 11,800 sq. m. The acquisition was finalized on July 18, 2024, for a consideration of approximately €1.3 billion.

Obtention of "Triple A” CDP score for Kering's climate commitments
On February 6, 2024, Kering became one of only 10 companies in the world to achieve a score of AAA following the Carbon Disclosure Project’s annual assessment, which covers more than 21,000 companies. Kering is the only company in the luxury sector to earn this distinction, confirming its leadership in terms of transparency and performance as regards the protection of the climate, forests, and water.

Bond issues
As part of the Group’s active liquidity management, Kering carried out bond issues in 2024, enabling it to enhance its financial flexibility.
On March 5, 2024, Kering carried out a dual-tranche bond issue for a total of €1.75 billion, consisting of:

• a €1 billion tranche with an 8-year maturity and a 3.375% coupon;
• a €750 million tranche with a 12-year maturity and a 3.625% coupon.

On November 14, 2024, Kering carried out a single-tranche bond issue for a total of €750 million with a 10-year maturity and a 3.625% coupon.
The Group's long-term credit is rated "BBB+” with a stable outlook by Standard & Poor’s.

Adoption of first-ever science-based targets for nature globally
During COP16 on October 30, 2024, Kering set and adopted science-based targets for land and freshwater, becoming the first company globally to adopt such targets.
These advance the Group’s commitment to biodiversity after participating in a year-long pilot with the Science Based Targets Network.

Verification and approval of Kering’s Net-Zero science-based targets by SBTi
On November 1, 2024, Kering took another significant step to strengthen its climate ambitions. The Group has set emission reduction targets across its value chain, both near and long term, in line with climate science and the Science Based Targets initiative (SBTi) net-zero criteria.

Signature of an agreement regarding prime real estate assets in Paris with Ardian
On January 15, 2024, as part of its selective real estate strategy, Kering signed a binding investment agreement with Ardian, a world-leading private investment house, pertaining to three highly prestigious real estate properties in Paris.
Kering will bring these assets into the newly created joint-venture. Ardian will own 60% of this unique property portfolio while Kering retains 40% of the ownership and will receive net proceeds of €837 million.
The deal is expected to close in the first quarter of 2025, pending the fulfillment of customary conditions for real estate transactions.

Kering and Simon announce the completion of the sale of 'The Mall Luxury outlets'
On January 30, 2025, Kering and Simon® announced the finalization of the sale of 100% of The Mall Luxury Outlets entities held by Kering to Simon, the US real estate investment trust engaged in the ownership of premier shopping, dining, entertainment destinations.
The Mall, created in 2001, operates two luxury outlet destinations in Italy. For Kering, the divestment of this non-core asset will generate net proceeds of approximately €350 million.
Kering’s brands will maintain a presence in these two very high-end shopping villages, the strategy implemented by Kering aiming at gradually concentrating its outlet distribution to a limited number of exclusive venues.

APPOINTMENTS AND MOVEMENTS SINCE JANUARY 1, 2024

Changes in the Executive Committee
On April 2, 2024, Kering appointed Mélanie Flouquet, Chief Strategy Officer, and Armelle Poulou, Chief Financial Officer, to the Group’s Executive Committee.
On June 6, 2024, Kering announced the appointment of Laurent Claquin as its Chief Brand Officer and a member of the Executive Committee, effective July 1, 2024.

Changes in the Board of Directors
At the Annual General Meeting held on April 25, 2024, Kering's shareholders approved the appointment of three new directors: Rachel Duan, Giovanna Melandri, and Dominique D’Hinnin. They also ratified the cooption of Maureen Chiquet as Director and the renewal of Jean-Pierre Denis' term of office.

Stefano Cantino appointed CEO of Gucci
On October 8, 2024, Kering announced the appointment of Stefano Cantino as CEO of Gucci, effective January 1, 2025, reporting to Francesca Bellettini, Kering Deputy CEO in charge of Brand Development. Stefano Cantino, who joined Gucci in May 2024 as Deputy CEO, is a member of Kering’s Executive Committee.

Kering appoints new CEOs at Saint Laurent and Balenciaga
On November 18, 2024, Kering announced, the appointment of Cédric Charbit as CEO of Saint Laurent and Gianfranco Gianangeli as CEO of Balenciaga, effective January 2, 2025. Both report to Francesca Bellettini.

Appointment of Louise Trotter as Creative Director of Bottega Veneta
On December 12, 2024, Kering announced the appointment of Louise Trotter as the new Creative Director of Bottega Veneta, marking the opening of an exciting new chapter in the brand’s creative journey. She joined the House in late January 2025.

Gucci ends its collaboration with Sabato De Sarno
On February 6, 2025, Gucci announced the end of its collaboration with Creative Director Sabato De Sarno. The Fall-Winter '25 fashion show in Milan on February 25 will be presented by the Gucci design office. The new Artistic Direction will be announced in due time.

 

CONSOLIDATED INCOME STATEMENT

(in € millions)	2024	2023
CONTINUING OPERATIONS
Revenue	17,194	19,566
Cost of sales	(4,513)	(4,639)
Gross margin	12,681	14,927
Other personnel expenses	(3,017)	(2,982)
Other recurring operating income and expenses	(7,110)	(7,199)
Recurring operating income	2,554	4,746
Other non-recurring operating income and expenses	(242)	(103)
Operating income	2,312	4,643
Financial result	(614)	(410)
Income before tax	1,698	4,233
Income tax expense	(461)	(1,163)
Share in earnings (losses) of equity-accounted companies	(10)	4
Net income from continuing operations	1,227	3,074
o/w attributable to the Group	1,133	2,983
o/w attributable to minority interests	94	91
DISCONTINUED OPERATIONS
Net income from discontinued operations	–	–
o/w attributable to the Group	–	–
o/w attributable to minority interests	–	–
GROUP TOTAL
Net income of consolidated companies	1,227	3,074
o/w attributable to the Group	1,133	2,983
o/w attributable to minority interests	94	91
(in € millions)	2024	2023
Net income attributable to the Group	1,133	2,983
Basic earnings per share (in €)	9.24	24.38
Diluted earnings per share (in €)	9.24	24.37
Net income from continuing operations attributable to the Group	1,133	2,983
Basic earnings per share (in €)	9.24	24.38
Diluted earnings per share (in €)	9.24	24.37
Net income from continuing operations (excluding non-recurring items) attributable to the Group	1,310	3,061
Basic earnings per share (in €)	10.68	25.02
Diluted earnings per share (in €)	10.68	25.01

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in € millions)	2024	2023
Net income	1,227	3,074
o/w attributable to the Group	1,133	2,983
o/w attributable to minority interests	94	91
Change in currency translation adjustments relating to consolidated subsidiaries:	84	(75)
change in currency translation adjustments	84	(75)
amounts transferred to the income statement	-	-
Change in foreign currency cash flow hedges:	(124)	(4)
change in fair value	(70)	268
amounts transferred to the income statement	(77)	(271)
tax effects	23	(1)
Change in other comprehensive income (loss) of equity-accounted companies:	-	-
change in fair value	-	-
amounts transferred to the income statement	-	-
Gains and losses recognized in equity, to be transferred to the income statement	(40)	(79)
Change in provisions for pensions and other post-employment benefits:	(9)	1
change in actuarial gains and losses	(11)	1
tax effects	2	-
Change in financial assets measured at fair value:	11	(23)
change in fair value	15	(33)
tax effects	(4)	10
Gains and losses recognized in equity, not to be transferred to the income statement	2	(22)
Total gains and losses recognized in equity	(38)	(101)
COMPREHENSIVE INCOME	1,?189	2,973
o/w attributable to the Group	1,088	2,879
o/w attributable to minority interests	101	94

CONSOLIDATED BALANCE SHEET

Assets

(in € millions)	2024	2023
Goodwill	6,277	7,112
Brands and other intangible assets	9,287	8,178
Lease right-of-use assets	5,615	4,984
Property plant and equipment	6,537	5,341
Investments in equity-accounted companies	1,762	1,750
Non-current financial assets	492	536
Deferred tax assets	1,651	1,520
Other non-current assets	27	16
Non current assets	31,648	29,437
Inventories	3,992	4,550
Trade receivables and accrued income	1,003	1,151
Current tax receivables	680	765
Current financial assets	42	136
Other current assets	1,388	1,406
Cash and cash equivalents	3,518	3,922
Current assets	10,623	11,930
Assets held for sale	1,075	–
TOTAL ASSETS	43,346	41,367

Equity and liabilities

(in € millions)	2024	2023
Equity attributable to the Group	14,904	15,212
Equity attributable to the minority interests	826	798
Equity	15,730	16,010
Non-current borrowings	10,556	10,026
Non-current lease liabilities	5,056	4,511
Non-current financial liabilities	13	13
Non-current provisions for pensions and other post-employment benefits	85	68
Non-current provisions	51	21
Deferred tax liabilities	1,985	1,776
Other non-current liabilities	278	311
Non current liabilities	18,024	16,726
Current borrowings	3,479	2,400
Current lease liabilities	1,051	884
Current financial liabilities	343	588
Trade payables and accrued expenses	2,098	2,200
Current provisions for pensions and other post-employment benefits	13	12
Current provisions	191	163
Current tax liabilities	528	536
Other current liabilities	1,889	1,848
Current liabilities	9,592	8,631
Liabilities associated with assets held for sale	–	–
TOTAL EQUITY AND LIABILITIES	43,346	41,367

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Before appropriation of net income (in € millions)	Number of shares outstanding	Share capital	Capital reserves	Kering treasury shares	Cumulative translation adjustments	Remeasure-ment of financial instruments	Other reserves and net income	Group	Minority interests	TOTAL
As of January 1st, 2023	122,220,370	496	1,314	(1,028)	(165)	186	13,195	13,998	785	14,783
Net income							2,983	2,983	91	3,074
Total gains and losses recognized in equity					(78)	(26)		(104)	3	(101)
Comprehensive income					(78)	(26)	2,983	2,879	94	2,973
Change in equity of Kering SA								–	–	–
Change in equity of subsidiaries								–	9	9
Expense related to share-based payments	16,928			10			15	25	–	25
Cancellation of Kering treasury shares		(3)	(330)	333				–	–	–
(Acquisitions) disposals of Kering treasury shares	342,883			230			(217)	13	–	13
Distribution of dividends							(1,705)	(1,705)	(42)	(1,747)
Other changes				5			(3)	2	(48)	(46)
As of Dec. 31, 2023	122,580,181	493	984	(450)	(243)	160	14,268	15,212	798	16,010
Net income							1,133	1,133	94	1,227
Total gains and losses recognized in equity					77	(122)		(45)	7	(38)
Comprehensive income					77	(122)	1,133	1,088	101	1,189
Change in equity of Kering SA								-	-	-
Change in equity of subsidiaries								-	-	-
Expense related to share-based payments	14,762			82			(75)	7	-	7
Cancellation of Kering treasury shares								-	-	-
(Acquisitions) disposals of Kering treasury shares	6,750			3			24	27	-	27
Distribution of dividends							(1,410)	(1,410)	(22)	(1,432)
Other changes							(20)	(20)	(51)	(71)
As of Dec. 31, 2024	122,601,693	493	984	(365)	(166)	38	13,920	14,904	826	15,730

CONSOLIDATED STATEMENT OF CASH FLOW

(in € millions)	2024	2023
Net income from continuing operations	1,227	3,074
Net recurring charges to depreciation, amortization  and provision on non-current operating assets	2,113	1,823
Other non-cash (income) expenses	57	94
Cash flow received from operating activities	3,397	4,991
Interest paid (received)	559	300
Dividends received	(2)	(9)
Current tax expense	526	1,007
Cash flow received from operating activities before tax, dividends and interests	4,480	6,289
Change in working capital requirement	667	(396)
Income tax paid	(438)	(1,434)
Net cash received from operating activities	4,709	4,459
Acquisitions of property, plant and equipment and intangible assets	(3,309)	(2,611)
Disposals of property, plant and equipment and intangible assets	32	135
Acquisitions of subsidiaries and associates, net of cash acquired	(35)	(5,093)
Acquisitions of other financial assets	(83)	(56)
Disposals of other financial assets	140	251
Interest and dividends received	70	76
Net cash received from (used in) investing activities	(3,185)	(7,298)
Dividends paid to shareholders of Kering SA	(1,716)	(1,712)
Dividends paid to minority interests in consolidated subsidiaries	(24)	(42)
Transactions with minority interests	(73)	(24)
(Acquisitions) disposals of Kering treasury shares	2	(10)
Issuance of bonds and bank debt	2,493	6,205
Redemption of bonds and bank debt	(525)	(957)
Issuance (redemption) of other borrowings	(394)	174
Repayment of lease liabilities	(1,049)	(880)
Interest paid and equivalent	(610)	(377)
Net cash received from (used in) from financing activities	(1,896)	2,377
Impact of exchange rate variations on cash and cash equivalents	31	18
Net increase (decrease) in cash and cash equivalents	(341)	(444)
Cash and cash equivalents at opening	3,650	4,094
Cash and cash equivalents at closing	3,309	3,650

 

REVENUE FOR THE FIRST, SECOND, THIRD AND FOURTH QUARTERS OF 2024

(in € millions)		Q4 2024		Q4 2023 (1)	Reported change	Comparable change (1)	Q3 2024	Q3 2023 (1)	Reported change	Comparable change (1)	Q2 2024	Q2 2023 (1)	Reported change	Comparable change (1)	Q1 2024	Q1 2023 (1)	Reported change	Comparable change (1)
Gucci		1,924	2,528		-24%	-24%	1,641	2,217	-26%	-25%	2,006	2,512	-20%	-19%	2,079	2,616	-21%	-18%
Yves Saint Laurent		770	835		-8%	-8%	670	768	-13%	-12%	701	770	-9%	-9%	740	806	-8%	-6%
Bottega Veneta		480	431		+11%	+12%	397	381	+4%	+5%	448	438	+2%	+4%	388	395	-2%	+2%
Other Houses		818	853		-4%	-4%	686	805	-15%	-14%	893	966	-8%	-5%	824	890	-7%	-6%
Kering Eyewear and Corporate		434	366		+18%	+10%	440	333	+32%	+7%	531	436	+22%	+5%	536	433	+24%	+9%
Eliminations		(36)	(46)		-	-	(48)	(40)	-	-	(65)	(64)	-	-	(63)	(63)	-	-
KERING		4,390	4,967		-12%	-12%	3,786	4,464	-15%	-16%	4,514	5,058	-11%	-11%	4,504	5,077	-11%	-10%

^{(1) Change on a comparable scope and exchange rate basis.}

MAIN DEFINITIONS

"Reported” and "comparable” growth
The Group’s "reported” growth corresponds to the change in reported revenue (previously referred to as "actual” growth) between two periods.
The Group measures "comparable” growth (also referred to as "organic” growth) in its business by comparing revenue between two periods at constant scope and exchange rates.
Changes in scope are dealt with as follows for the periods concerned:

• the portion of revenue relating to acquired entities is excluded from the current period;
• the portion relating to entities divested or in the process of being divested is excluded from the previous period.

Currency effects are calculated by applying the average exchange rates for the current period to amounts in the previous period.

Recurring operating income
The Group’s operating income includes all revenues and expenses directly related to its activities, whether these revenues and expenses are recurring or arise from non-recurring decisions or transactions.
Other non-recurring operating income and expenses consist of items that, by their nature, amount or frequency, could distort the assessment of the Group’s operating performance as reflected in its recurring operating income. They include changes in scope, the impairment of goodwill and brands and, where material, of property, plant and equipment and intangible assets, capital gains and losses on disposals of non-current assets, restructuring costs and disputes.
"Recurring operating income” is therefore an alternative performance indicator for the Group, defined as the difference between operating income and other non-recurring operating income and expenses. This indicator is intended to facilitate understanding of the operating performance of the Group and its Houses and can therefore be used as a way to estimate recurring performance. It is presented in a manner that is consistent and stable over the long term in order to ensure the continuity and relevance of financial information.

EBITDA
The Group uses EBITDA as an alternative performance indicator to monitor its operating performance. This financial indicator corresponds to recurring operating income plus net charges to depreciation, amortization and provisions on non-current operating assets recognized in recurring operating income.

Free cash flow from operations, available cash flow from operations and available cash flow
The Group uses an intermediate line item, "Free cash flow from operations”, to monitor its financial performance. This financial indicator measures net operating cash flow less net operating investments (defined as acquisitions and disposals of property, plant and equipment and intangible assets).
The Group has also defined a new indicator, "Available cash flow from operations”, in order to take into account capitalized fixed lease payments (repayments of principal and interest) pursuant to IFRS 16, and thereby reflect all of its operating cash flows.
"Available cash flow” therefore corresponds to available cash flow from operations plus interest and dividends received, less interest paid and equivalent (excluding leases).

Net debt
Net debt is one of the Group’s main financial indicators, and is defined as borrowings less cash and cash equivalents. Lease liabilities are not included in the calculation of this indicator. Borrowings include put options granted to minority interests. The cost of net debt corresponds to all financial income and expenses associated with these items, including the impact of derivative instruments used to hedge the fair value of borrowings.

Effective tax rate on recurring income
The effective tax rate on recurring income corresponds to the effective tax rate excluding tax effects relating to other non-recurring operating income and expenses.

                                                                                                                                       

Attachment

• Kering Press Release - Annual Results 2024 - 110225