Christian Dior SA (CHDRF.PK,CHDRY.PK) reported a slight growth in fiscal 2011 profit that reflected the absence of a prior year gain. On an adjusted basis, profit climbed 36 percent as all its brands recorded strong revenue growth amid a struggling financial environment in Europe.
The French company which owns the high-fashion clothing producer and retailer Christian Dior Couture, as well as holding 42 percent of LVMH Moët Hennessy Louis Vuitton, the world's biggest luxury goods company, said it expects ongoing growth momentum in 2012 and also announced a 24 percent rise in dividend.
For the year, Christian Dior's net profit grew 5 percent to 3.45 billion euros and group share of net profit edged up 1 percent to 1.28 billion euros from last year's 1.26 billion euros that included a non-recurrent financial gain. Excluding this gain, the growth in Group share of net profit would have been 36 percent.
Profit from recurring operations increased 23 percent to 5.32 billion euros from 4.34 billion euros in 2010. Current operating margin continued to improve, reaching 22 percent in 2011.
Annual revenues climbed 17 percent to 24.63 billion euros from 21.12 billion euros a year ago, with the growth benefited partly by integration of Bulgari following its acquisition in June last year.
Organic revenue growth was 14 percent. The company noted that all business groups saw excellent momentum in Europe, Asia and the United States.
In the last quarter of the year, revenue increased 21 percent on a reported basis and 12 percent organically, in line with the favorable trends observed since the beginning of the year.
LVMH reported total annual revenues of 23.66 billion euros, 16 percent higher than last year. Revenues from Wines & Spirits rose 8 percent, and the growth was 15 percent in Fashion & Leather Goods, 4 percent in Perfumes & Cosmetics, 98 percent in Watches & Jewelry and 20 percent in Selective Retailing.
LVMH profit from recurring operations grew 22 percent to 5.26 billion euros. Christian Dior Couture generated a 21 percent rise in revenues to 1 billion euros as all product categories across the world contributed strongly to the success of the brand. Profit from recurring operations more than doubled reflecting both the momentum in sales and the improvement of the gross margin.
Looking ahead, the company said it is well-equipped to continue its growth momentum across all business groups in 2012 after an exceptional 2011 and despite an uncertain economic environment in Europe.
Its strategy will remain focused on developing brands through strong innovation, quality and expansion in high potential markets, the company added.
Further, Christian Dior said it will propose a dividend of 2.61 euros per share, an increase of 24 percent, at the Annual Shareholders Meeting on April 5.
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