Hermès: interim profitability boosted by FX factors.
(CercleFinance.com) - Hermès International, the other giant of French luxury after LVMH, this morning released its interim results, which included record operating profitability.
However, this is due to FX hedging, which cannot be extrapolated to the full-year, with net profit that is slightly below expectations. Finally, forecasts, which have not been provided, have been maintained.
It was already known, since 21 July, that the group's H1 upholstery sales increased by 11% to 2.7 trillion euros, i.e. +10% at constant exchange rates.
The group's operating income grew faster: +13% to 931 million euros, bringing its margin to 34.3% (+0.4% over one year), which is a historic record. Explanatory details put forward by management include: "the non-recurrent favourable impact of FX hedges over the first months of the year."
Finally, interim earnings rose 11% to 605 million euros, although the consensus was expecting about 10 million euros more.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
However, this is due to FX hedging, which cannot be extrapolated to the full-year, with net profit that is slightly below expectations. Finally, forecasts, which have not been provided, have been maintained.
It was already known, since 21 July, that the group's H1 upholstery sales increased by 11% to 2.7 trillion euros, i.e. +10% at constant exchange rates.
The group's operating income grew faster: +13% to 931 million euros, bringing its margin to 34.3% (+0.4% over one year), which is a historic record. Explanatory details put forward by management include: "the non-recurrent favourable impact of FX hedges over the first months of the year."
Finally, interim earnings rose 11% to 605 million euros, although the consensus was expecting about 10 million euros more.
Copyright (c) 2017 CercleFinance.com. All rights reserved.