Hermes H1 consolidated sales up by 21.9 percent

Hermes International announced its financial

results for the first half of the fiscal 2012. It reported an increase of 21.9 percent in group’s consolidated sales for the first half of 2012 which totaled 1,591.4 million euros (1,989.73 million dollars/Rs 11,0736 crores) at current exchange rates (15.4 percent at constant exchange rates). Its current operating profitability reached 32.1 percent of sales.

In the first half of 2012, all geographical regions contributed to the growth in business. Japan posted a sales growth of 3 percent while other Asian countries (China, Singapore and Hong Kong) recorded a growth of 25 percent. While in France, the sales growth was 10 percent, in rest of Europe it was 21 percent. The Americas too witnessed a positive sales growth of 9 percent.

With the success of the spring-summer ready-to-wear collections and fashion accessories, the clothing and accessories division registered a strong growth of 21 percent. The Silk and Textiles sector grew by 15 percent, Watchmaking by 23 percent and other sectors (Jewellery and Art of Living) by 50 percent.

Operating income was reported to have increased by 22.2 percent to reach 510.9 million euros (638.78 million dollars/Rs 3,555 crores) compared to 418.1 million euros (522.75 million dollars/Rs 2,909 crores) in the first half of 2011. Consolidated net income totaled 335.1 million euros (418.98 million dollars/Rs 2,331 crores) compared to 290.9 million euros (363.71 million dollars/Rs 2,024 crores) in the first half of 2011.

The group’s cash flow totaled 392.5 million euros (491.18 million dollars/Rs 2,733 crores), up by 19 percent. After financing of all operational and financial investments {68.8 million euros (86.02 million dollars/Rs 478 crores), payment of the ordinary dividend and a special dividend, the net cash position (IFRS) was 463.7 million euros (579.76 million dollars/Rs 3,226 crores) on the 30th of June 2012 compared to 1,038.3 million euros (1,299.33 million dollars/Rs 7,231 crores) at the end of 2011.

Given the sales achieved in the first half of the year, the group’s target for annual growth in consolidated sales at constant exchange rates is expected to be around 12 percent.