HERMÈS - 2018 Registration document
Comments on the financial year and outlook
Exceptional events
CREATION OF VALUE
4.3
The economic value added (€1,189 million in 2018, versus €1,070 million in 2017) increased by 11%, driven primarily by the improved results. The return on capital employed reached its highest historical level in 2018 at 67%, versus 57% the previous year.
2018
2017
In millions of euros
Recurring operating income Current Group tax rate 1
2,045.0
1,922.0
33.3%
35.4%
Recurring operating income, after tax (I) Capital employed at the end of the period 2 Average capital employed over the period (II) 3
1,364.5 1,966.7 2,029.2
1,241.3 2,091.8 2,171.8
Weighted average cost of capital (III)
8.67%
7.88%
ECONOMIC VALUE ADDED (EVA) = (I) – (II) X (III) RETURN ON CAPITAL EMPLOYED (ROCE) = (I) ÷ (II)
1,188.5
1,070.2
67%
57%
(1) In 2018, the capital gain of €52.7 million realised on the sale of the premises of its Galleria store is non-taxable, and reduces the tax rate by 0.8 points. (2) Corresponds to the sum of non-financial assets and working capital requirements as at 31 December. The reconciliation of this indicator with the Group’s statement of financial position is as follows:
4
2018
2017
In millions of euros
Statement of financial position-assets
7,468.1 (313.9) (3,479.1) 3,675.1 7,468.1 (5,507.8)
6,768.2 (270.9) (2,931.9) 3,565.4 6,768.2 (5,045.5)
Financial assets
s s
s s Cash and cash equivalents
Subtotal I
Statement of financial position-liabilities
Equity
s s
s s Borrowings and financial liabilities
(50.0)
(53.7)
s s Provisions and non-current post-employment and other employee benefit obligations
(201.8) 1,708.4 1,966.7
(195.4) 1,473.7 2,091.8
Subtotal II
CAPITAL EMPLOYED AT THE END OF THE PERIOD (I-II)
(3) Corresponds to the average capital employed at the end of periods n and n-1.
EXCEPTIONAL EVENTS
4.4
No exceptional events occurred in 2018.
2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL
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