Kering Sa · EURONEXT:KER
Kering Sa — Kering Sa Ord — H1 2024 Earnings Presentation
40 slides from Kering Sa's earnings presentation, Jul 24, 2024
Slide 1: 2024 First-Half Results
2024 FIRST-HALF RESULTS JULY 24, 2024
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, in the United States of America or in any other jurisdiction. Certain information contained in this presentation may include perspectives and trends or o
Slide 3: Introduction
INTRODUCTION ARMELLE POULOU GROUP CFO
Slide 4: H1 Highlights
H1 HIGHLIGHTS FASHION SHOWS & VISIBILITY PRODUCT OFFER DISTRIBUTION & CLIENT EXPERIENCE DESIRABILITY VISIBILITY EXCLUSIVITY GUCCI MEN’S S/S 2025 FASHION SHOW BALENCIAGA BOTTEGA VENETA RESIDENCE AT TRIENNALE MILANO RODEO BAG VENICE KNOW-HOW KERING BEAUTÉ SUSTAINABILITY & TALENTS CRAFTING CREATING CAR
Slide 5: Analysis of Results
ANALYSIS OF RESULTS
Slide 6: H1 24 Group Revenue
H1 24 GROUP REVENUE H1 REVENUE CHANGE H1 REVENUE BREAKDOWN BY REGION (in €M and comparable change YoY) (as a % of H1 24 total revenue and YoY reported change) -11% reported 10,135 RoW +1% Western Europe 9,018 9% (+2pt) 28% (+1pt) -11% -1% Asia Pacific 32% (-5pt) North America Japan 23% (+1pt) 8% (+1
Slide 7: Q2 and H1 24 Group Revenue
Q2 AND H1 24 GROUP REVENUE REVENUE BREAKDOWN BY SEGMENT (in €M and % YoY change) Q2 Change (%) H1 Change (%) Q1 24 Q2 24 Reported Comp. H1 24 Reported Comp. Gucci 2,079 2,006 -20% -19% 4,085 -20% -18% Saint Laurent 740 701 -9% -9% 1,441 -9% -7% Bottega Veneta 388 448 +2% +4% 836 +0% +3% Other Houses
Slide 8: H1 24 Group Revenue by Channel
H1 24 GROUP REVENUE BY CHANNEL 74% 26% R E T AI L I N C L . E - C O M M ER C E W H O L E S AL E AN D O T H E R -7% -6% -7% -11% -12% -12% Q1 24 Q2 24 H1 24 Q1 24 Q2 24 H1 24 DIRECTLY OPERATED STORES W HOLESALE W HOLESALE ROYALTIES LUXURY BRANDS KERING EYEW EAR & OTHER +16% +16% +16% 1,801 +8% +6% +3
Slide 9: H1 24 Retail Revenue by Region
H1 24 RETAIL REVENUE BY REGION YOY COMPARABLE CHANGE WESTERN EUROPE NORTH AMERICA JAPAN ASIA PACIFIC ROW Q1 24 Q2 24 H1 24 Q1 24 Q2 24 H1 24 Q1 24 Q2 24 H1 24 Q1 24 Q2 24 H1 24 Q1 24 Q2 24 H1 24 +27% +22% +16% +6% +2% -2% -9% -8% -8% -11% -11% -11% -19% -22% -25% % comparable change: at constant sco
Slide 10: Recurring Operating Income, Capex, FCF and Net Debt
RECURRING OPERATING INCOME, CAPEX, FCF AND NET DEBT R E C U R R I N G O P E R AT I N G I N C O M E & M AR G I N ( € M & %) F C F F R O M O P E R AT I O N S ( € M ) -42% ▪ GROSS MARGIN 2,739 DILUTION ON 2,138 ▪ OPERATING WORKING UNFAVORABLE 1,887 CAPITAL AT 18.3% OF REGIONAL AND LTM REVENUE PRODUCT M
Slide 11: Gucci
GUCCI
Slide 12: Gucci H1 Revenue: -20% Reported, -18% Comparable
H1 24 REVENUE: -20% REPORTED, -18% COMPARABLE (€M, and YoY comparable growth in %) 5,128 +5% 4,085 -20% -9% 90% of H1 sales H1 23 Retail Wholesale Royalties H1 24 and others Of which Q2 24 -20% -12% +4% -19% comp growth • Q2 REVENUE -19% COMPARABLE – Retail trends by region broadly similar to Q1 – N
Slide 13: Gucci Key Figures
KEY FIGURES €M H1 2024 H1 2023 Change Revenue 4,085 5,128 -20% Recurring operating income 1,007 1,810 -44% Margin (%) 24.7% 35.3% -10.6pt Gross CAPEX 124 232 -46% As % of revenue 3.0% 4.5% -1.5pt • EBIT MARGIN PRESSURE – Gross m argin down on adverse product and regional m ix, on top of reinvestm en
Slide 14: Saint Laurent
SAINT LAURENT
Slide 15: Saint Laurent H1 Revenue: -9% Reported, -7% Comparable
H1 24 REVENUE: -9% REPORTED, -7% COMPARABLE (€M, and YoY comparable growth in %) 1,576 +24% 1,441 -6% -25% 81% of H1 sales H1 23 Retail Wholesale Royalties H1 24 and others Of which Q2 24 -8% -25% +21% -9% comp growth • Q2 DOWN 9% COMPARABLE – Retail at -8%, deceleration driven by Asia Pacific – Con
Slide 16: Saint Laurent Key Figures
KEY FIGURES €M H1 2024 H1 2023 Change Revenue 1,441 1,576 -9% Recurring operating income 316 481 -34% Margin (%) 22.0% 30.5% -8.5pt Gross CAPEX 107 81 +31% As % of revenue 7.4% 5.1% +2.3pt • EBIT DOWN ON NEGATIVE OPERATING LEVERAGE – Unfavorable regional m ix weighing on gross m argin – Im pact of r
Slide 17: Bottega Veneta
BOTTEGA VENETA
Slide 18: Bottega Veneta H1 Revenue: +0% Reported, +3% Comparable
H1 24 REVENUE: +0% REPORTED, +3% COMPARABLE (€M, and YoY comparable growth in %) +8% 833 n.s. 836 -19% 84% of H1 sales H1 23 Retail Wholesale Royalties H1 24 and others Of which Q2 24 +7% -13% n.s. +4% comp growth • HIGHEST EVER Q2 AND FIRST-HALF REVENUE – Strong Q2 retail perform ance driven by AUR
Slide 19: Bottega Veneta Key Figures
KEY FIGURES €M H1 2024 H1 2023 Change Revenue 836 833 +0% Recurring operating income 121 169 -28% Margin (%) 14.5% 20.3% -5.8pt Gross CAPEX 51 44 +18% As % of revenue 6.1% 5.2% +0.9pt • EBIT DILUTION ON BRAND ELEVATION JOURNEY – Gross m argin up on positive m ix evolution – Sustained investm ent in
Slide 20: Other Houses
OTHER HOUSES
Slide 21: Other Houses H1 Revenue: -7% Reported, -6% Comparable
OTHER HOUSES H1 24 REVENUE: -7% REPORTED, -6% COMPARABLE (€M, and YoY comparable growth in %) 1,856 +1% 1,717 -21% -11% 73% of H1 sales H1 23 Retail Wholesale Royalties H1 24 and others Of which Q2 24 -0% -16% -12% -5% comp growth • CONSISTENT Q1 AND Q2, IMPACTED BY WHOLESALE • RESILIENCE IN RETAIL,
Slide 22: Other Houses Key Figures
OTHER HOUSES KEY FIGURES €M H1 2024 H1 2023 Change Revenue 1,717 1,856 -7% Recurring operating income 44 224 -80% Margin (%) 2.6% 12.1% -9.5pt Gross CAPEX 99 82 +21% As % of revenue 5.7% 4.4% +1.3pt • RECURRING OPERATING INCOME DOWN – Investm ent to fuel sustainable long -term growth at all brands –
Slide 23: Kering Eyewear & Corporate
KERING EYEWEAR C O R P O R AT E
Slide 24: Kering Eyewear and Corporate
KERING EYEWEAR AND CORPORATE H1 24 REVENUE KEY FIGURES (€M, and YoY change in %) +153 1,067 €M H1 2024 H1 2023 +5% +6% 914 Revenue 1,067 869 869 Kering Eyewear 914 869 -1% Other 153 - Recurring operating income 101 63 Kering Eyewear 196 186 Margin (%) 21.4% 21.5% Corporate & other (95) (123) H1 23 K
Slide 25: Financial Performance
FINANCIAL PERFORMANCE €M H1 2024 H1 2023 Revenue 9,018 10,135 Gross margin 6,708 7,730 Recurring operating income 1,582 2,739 Other non-recurring operating income and expenses (13) 0 Financial result (288) (204) Income tax expense (345) (692) Share in earnings of equity-accounted companies 4 3 Net i
Slide 26: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS H1 2024 H1 2023 Excl. real estate Excl. real estate €M acquisition H1 2024 acquisition and disposal H1 2023 Cash flow before taxes, dividends and interests 2,502 2,502 3,435 3,435 Change in working capital requirement (21) 44 (354) (419) Income tax paid (100) (100) (41
Slide 27: Change in Net Financial Debt
CHANGE IN NET FINANCIAL DEBT H1 2024 NET DEBT* BRIDGE In €M and Net Debt / EBITDA** ratio +619 9,922 +1,722 +135 -3 8,504 +832 -1,887 1.3x 1.8x Net debt at FCF from Real estate Dividends paid Net interest paid Lease Net financial Net debt at Dec. 31, 2023 operations excl. acquisition and dividends r
Slide 28: Conclusion
CONCLUSION
Slide 29: Conclusion
CONCLUSION ▪ ONGOING TRANSITION AGAINST A CHALLENGING BACKDROP ▪ ALL INITIATIVES FOCUSED ON REIGNITING HEALTHY TOP LINE GROW TH ▪ PRODUCT ARCHITECTURE ▪ COMMUNICATIONS AND CLIENTELING ▪ QUALITY OF THE DISTRIBUTION AND INVENTORY MANAGEMENT ▪ STRICT OPEX AND CAPEX ALLOCATION ▪ INVESTMENTS IN A&P, STOR
Slide 30: FREER
Wa. FREER / Ww oo =n [ s. . ell
Slide 31: Appendix
APPENDIX
Slide 32: Gucci H1 2024 Revenue €4,085m
H1 2024 REVENUE €4,085m -20% REPORTED, -18% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of June 30, 24 (net change vs. YE 23) RoW Western Europe Western Europe 65 (-3 net) 105 (+2 net) RoW 25% 8% Asia Pacific North America North America 185 (+2 net) 536 112 (+0 net) Asia Pacif
Slide 33: Saint Laurent H1 2024 Revenue €1,441m
H1 2024 REVENUE €1,441m -9% REPORTED, -7% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of June 30, 24 (net change vs. YE 23) RoW RoW 31 (+5 net) Western Europe 9% Western Europe 71 (+2 net) 32% Asia Pacific Asia Pacific 116 (+2 net) 320 28% North America Japan 25% Japan North A
Slide 34: Bottega Veneta H1 2024 Revenue €836m
H1 2024 REVENUE €836m +0% REPORTED, +3% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of June 30, 24 (net change vs. YE 23) RoW Western Europe RoW 24 (+1 net) 64 (+5 net) 10% Western Europe 28% Asia Pacific North America Asia Pacific 117 (+3 net) 301 32% 53 (+5 net) Japan Japan
Slide 35: Other Houses H1 2024 Revenue €1,717m
OTHER HOUSES H1 2024 REVENUE €1,717m -7% REPORTED, -6% COMPARABLE DIRECTLY OPERATED STORES REVENUE BREAKDOWN BY REGION As of June 30, 24 (net change vs. YE 23) RoW Western Europe RoW 35 (+4 net) 133 (+2 net) 7% Western Europe 30% Asia Pacific 625 North America Asia Pacific 288 (+1 net) 84 (+2 net) 3
Slide 36: Recurring Operating Income
RECURRING OPERATING INCOME €M H1 2024 H1 2023 Reported change % Gucci 1,007 1,810 -44% Saint Laurent 316 481 -34% Bottega Veneta 121 169 -28% Other Houses 44 224 -80% Kering Eyewear and Corporate 101 63 +61% Eliminations (7) (8) n.a. Kering 1,582 2,739 -42% 24.07.2024 36
Slide 37: EBITDA
EBITDA €M H1 2024 H1 2023 Reported change % Gucci 1,389 2,172 -36% Saint Laurent 464 600 -23% Bottega Veneta 215 259 -17% Other Houses 247 404 -39% Kering Eyewear and Corporate 287 190 +52% Eliminations (7) (8) n.a. Kering 2,595 3,617 -28% 24.07.2024 37
Slide 38: Net Financial Costs and Income Tax
NET FINANCIAL COSTS AND INCOME TAX €M H1 2024 H1 2023 Cost of net debt (151) (40) Other financial income and expenses (48) (94) Total financial result (excluding leases) (199) (134) Interest expense on lease liabilities (89) (70) Financial result (288) (204) H1 2024 H1 2023 Income tax expense on rec
Slide 39: Balance Sheet
BALANCE SHEET €M June 30, 2024 Dec. 31, 2023 Goodwill, brands and intangible Assets 15,275 15,290 Lease right-of-use Assets 5,098 4,984 Property, plant and equipment 6,314 5,341 Investments in equity-accounted companies 1,775 1,750 Net other Non-current Assets (Liabilities) (208) (27) Non-current le
Slide 40: Kering brands: Gucci, Saint Laurent, Bottega Veneta and others
Gucci • Saint Laurent • Bottega Veneta • Balenciaga • Alexander McQueen • Brioni Boucheron • Pomellato • Dodo • Qeelin • Ginori 1735 Kering Eyewear • Kering Beauté