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Richemont
 

COMPANY ANNOUNCEMENT

 

22 May 2015

 

Richemont, the Swiss luxury goods group, announces its audited consolidated results for the year ended 31 March 2015 and proposed cash dividend

 

Financial highlights of continuing operations

  • Sales grew by 4 % to € 10 410 million; and by 1 % at constant exchange rates
  • Solid growth in Europe, the Middle East and the Americas offset by weaker trading in the Asia Pacific region
  • Operating profit growth of 10 % including an investment property disposal gain
  • Profit for the year down by 35 % to € 1 334 million, primarily due to mark-to-market losses on cash
  • Solid cash flow from operations of € 2 387 million
  • Net cash position of € 5 419 million not impacted by mark-to-market losses
  • Proposed dividend of CHF 1.60 per share, an increase of 14 %
 

Key financial data (audited)

for year ended 31 March

 

 

2015(1)

2014(1)

Change

Sales

10 410 m

€ 10 023 m

+ 4 %

Gross profit

6 876 m

€ 6 491 m

+ 6 %

Gross margin

66.1 %

64.8 %

+ 130 bps

Operating profit

2 670 m

€ 2 427 m

+ 10 %

Operating margin

25.6 %

24.2 %

+ 140 bps

Loss for the year from discontinued operations

(2) m

€ (12) m

+ 83 %

Profit for the year

1 334 m

€ 2 067 m

- 35 %

Earnings per share, diluted basis

2.356

€ 3.676

- 36 %

Cash flow generated from operations

2 387 m

€ 2 875 m

€ (488) m

Net cash position

5 419 m

€ 4 659 m

€ 760 m

 

 

Note (1): the income statement has been re-presented to reflect discontinued operations (The Net-A-Porter Group) in both years

 

This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont’s forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group’s control. Richemont does not undertake to update, nor does it have any obligation to provide updates of, or to revise, any forward-looking statements.

 

 

Chairman’s commentary

 

Overview of results

Richemont’s results for the year were resilient, despite a difficult situation in Hong Kong and Macau, a demanding basis for comparison in Japan, and the generally volatile economic environment experienced by our customers and retail distribution partners.

 

In such an environment, Richemont’s Maisons responded well. Excluding the gain realised on the sale of an investment property, operating profit was stable. The Jewellery Maisons and Specialist Watchmakers delivered sales growth and broadly maintained their operating margins through successful product launches and, in certain markets, price increases. Lower precious metal prices and cost containment measures helped mitigate the single-digit sales growth and the impact of foreign exchange rate movements. Montblanc and the Group’s other businesses, including the fashion Maisons, reported 2 % sales growth.

 

A key external event during the year was the decision made by the Swiss National Bank in January 2015 to end the ‘peg’ of the Swiss franc to the euro. As a consequence, the Swiss franc dramatically appreciated from the pegged level of 1.20 to the euro to 1.04 at 31 March 2015. That has had a short-term impact on Richemont during the year under review and has the potential to impact the Group on a longer-term basis, depending on how exchange rates develop.

 

In the short term, the revaluation of the franc against the euro resulted in a loss of some € 686 million for the Group, recorded as part of net financial expense in the profit and loss account. This was principally attributable to losses on Richemont’s cash and financial investments. In addition, foreign exchange forward contracts taken out in line with the established hedging policy of the Group also lost value as a result of the euro’s devaluation. Overall, exchange losses resulted in the 35 % drop in reported net profit for the year.

 

Richemont reports in euros and holds the bulk of its cash in euros and euro-denominated short-term money-market funds, which are managed centrally precisely to avoid any exposure to overall exchange losses. However, these assets are held in Swiss franc-denominated companies. Those companies recorded losses in Swiss franc terms when the euro assets held on their books were marked down to market at the 31 March exchange rates. Those losses automatically flow through to the consolidated profit and loss for the Group as a whole. These exchange losses in the profit and loss account are compensated by gains recorded in equity in the consolidated balance sheet when those same Swiss franc companies are translated back into euros at the year-end rate. Accounting rules do not allow the exchange losses and the translation gains to be directly offset.

 

I can reassure shareholders that the Group’s overall financial position and its cash reserves have not been negatively affected by the impact of the devaluation of the euro against the Swiss franc during the year.

 

In the longer term, we face the question of whether the euro will settle at the current level against the Swiss franc, recover somewhat or potentially weaken further. Given the extent of the Group’s activities here in Switzerland, with more than 8 700 employees in our manufacturing, distribution and head office functions, the strengthening of the Swiss franc inevitably means that our costs, measured in euros, will increase. In line with our competitors in the Swiss luxury watchmaking industry, removing these functions from Switzerland is not an alternative open to Richemont. Therefore, we have already implemented certain efficiency measures across the Group and are evaluating other courses of action. Where appropriate, retail prices for our Swiss-made products have already been or will in due course be adjusted to reflect the new exchange rate environment.

 

Business developments

During the year, our Maisons continued to implement their differentiated strategies and planned investment programmes. Those investments, in the Maisons’ respective manufacturing facilities and distribution networks, are complemented by Richemont’s shared service platforms in Switzerland and around the world. The manufacturing investment programmes of our Maisons are now nearing conclusion. These provide the Maisons with state-of-the-art manufacturing facilities, which will lead to enhanced internal production capacity and greater production flexibility.

 

On 31 March 2015, Richemont announced the planned merger of The Net-A-Porter Group with the YOOX Group, which is expected to be completed in September this year. Thereafter, Richemont will own 50 % of the enlarged YOOX Net-A-Porter Group with voting rights limited to 25 %. Based on information available at the end of March 2015, this transaction will generate a significant one-off, non-cash pre- and post-tax accounting gain of some € 300 million. The actual gain will be subject to market-related factors prevailing when the merger is completed. The merger of the two businesses will create a stronger and more diversified independent platform for a sophisticated clientele seeking luxury fashion online. Moreover, as established business models are disrupted by the technological giants, we believe that it is important to increase scale to protect the uniqueness of the luxury industry.

 

Dividend

Based upon the results for the year and in keeping with its stated objective to grow dividends steadily over the long term, the Board has proposed a dividend of CHF 1.60 per share; up from CHF 1.40 per share last year.

 

Annual General Meeting

At the Annual General Meeting in September, shareholders will be asked to approve a number of compliance-related matters arising from the Swiss Ordinance against Excessive Compensation in Listed Stock Corporations. Those matters include revisions to the Company’s Articles of Incorporation and binding shareholder resolutions in respect of annual compensation. Further details will be published in due course.

 

Outlook

Compared to the same month last year, sales in April increased by 9 % at actual exchange rates: at constant exchange rates, sales decreased by 8 %. At actual rates, all regions reported sales growth except for Asia Pacific, which continues to be affected by a difficult trading environment in Hong Kong and Macau. The retail channel grew and significantly outperformed wholesale, where anticipation of worldwide pricing adjustments in May slowed purchases by our wholesale partners. The first two weeks of May indicated some normalisation of the wholesale market.

 

We believe that long-term demand for high-quality products will continue to grow around the world. Richemont is committed to supporting its Maisons to conceive, develop, manufacture and market products of beauty, individuality and the highest quality. These values are enduring and will see Richemont well positioned to benefit from an expanding market in the years to come. Meanwhile, the Group’s cash flows will continue to be preserved through cost control measures combined with prudent investment in the Maisons’ working capital and capital expenditures.

 

The combination of these factors allows us to look to the future positively.

 

Johann Rupert

Chairman

 

Compagnie Financière Richemont SA

Geneva, 22 May 2015

 

 

Financial review
 

Re-presentation and discontinued operations

As a consequence of the planned merger of The Net-A-Porter Group with the YOOX Group announced in March 2015, Richemont’s interest in The Net-A-Porter Group has been reclassified as held for sale as at 31 March 2015. Accordingly, the after-tax results of that business for the year are reported within ‘Loss for the year from discontinued operations’. The following commentary refers to the figures in the income statement, which, other than net profit, have been re-presented to exclude the results of The Net-A-Porter Group.

 

Sales

The 4 % increase in sales at actual exchange rates and 1 % at constant exchange rates reflected growth in jewellery, haute horlogerie and steel watches, as well as growing demand in Europe, the Middle East and the Americas. Further details of sales by region, distribution channel and business area are given in the Review of Operations from page 6.

 

Gross profit

Gross profit increased by 6 %, despite currency headwinds for much of the year. In particular, the increase in the value of the Swiss franc versus other currencies, which occurred towards the end of the financial year, was partly compensated by the favourable impact on imported precious materials, in particular gold and diamonds. The gross margin percentage was 130 basis points higher at 66.1 % of sales. The increase reflected product pricing and the growing proportion of sales made through the Maisons’ own boutiques.

 

Operating profit

Operating profit was 10 % above the prior year at € 2 670 million. Excluding the one-time gain from the sale of an investment property, operating profit would have been € 2 436 million, broadly in line with the prior year; the operating margin for the year would have declined by 80 basis points to 23.4 %.

 

The increase in gross profit was offset by planned growth in operating expenses. Selling and distribution expenses were 11 % higher, including depreciation charges linked to the opening of new boutiques and increases in fixed rental costs. Communication expenses rose by 9 % and continued to represent between 9 % and 10 % of sales. Administration and other expenses grew by 6 %.

 

Profit for the year

Profit for the year decreased by 35 % or € 733 million to € 1 334 million. In value terms, the significant decrease in net profit primarily reflects non-cash, mark-to-market losses on cash, short-term money market investments and derivative instruments relating to the Group’s ongoing foreign exchange hedging activities. These are recorded within net finance costs and included:

  • € 686 million of net foreign exchange losses on monetary items (2014: net losses of € 123 million); and
  • € 217 million of mark-to-market losses in respect of currency hedging activities (2014: gains of € 214 million).

 

Earnings per share on a diluted basis decreased by 36 % to € 2.356.

 

To comply with the South African practice of providing headline earnings per share (‘HEPS’) data, the relevant figure for headline earnings for the year ended 31 March 2015 would be € 1 208 million (2014: € 2 078 million). Basic HEPS for the year was € 2.143 (2014: € 3.721). Diluted HEPS for the year was € 2.133 (2014: € 3.687). Further details regarding earnings per share and HEPS, including an itemised reconciliation, may be found in note 29 of the Group’s consolidated financial statements.

 

Cash flow

Cash flow generated from operations was € 2 387 million, € 488 million below the prior year. The lower cash generation principally reflected working capital movements, primarily due to planned increases in jewellery inventories to support the development of the jewellery activity across the Group.

 

The net acquisition of tangible fixed assets amounted to € 585 million, reflecting selective investment in the Group’s worldwide network of boutiques and further investment in manufacturing facilities, largely in Switzerland. Those investments followed the Maisons’ manufacturing integration and capacity-building strategies.

 

The 2014 dividend, at CHF 1.40 per share, was paid to ‘A’ shareholders in September 2014. The cash outflow in the year amounted to € 650 million.

 

During the year, the Group acquired 1.6 million ‘A’ shares to hedge executive stock options. The cost of these purchases was partly offset by proceeds from the exercise of stock options by executives and other activities linked to the hedging programme, leading to a net cash outflow of € 65 million.

 

Financial structure and balance sheet

Inventories at the year-end amounted to € 5 438 million (2014: € 4 455 million). The increase included both planned increases in jewellery inventories and a significant revaluation impact stemming from the Swiss franc’s significant appreciation against the euro. The underlying inventory rotation rate remained stable, reflecting disciplined management by all Maisons. However, the appreciation of the Swiss franc had a negative impact on the reported rotation rate: the year-end inventory position represented 23 months of gross inventories.

 

At 31 March 2015, the Group’s net cash position amounted to € 5 419 million (2014: € 4 659 million). The net cash position includes short-term liquid funds as well as cash, cash equivalents and all borrowings. Liquid funds and cash balances were primarily denominated in euros and Swiss francs, whereas borrowings to finance local operating assets are denominated in the currencies of the countries concerned. Richemont’s financial structure remains strong, with shareholders’ equity representing 71 % of total equity and liabilities.

 

Proposed dividend

The Board has proposed a cash dividend of CHF 1.60 per share.

 

The dividend will be paid as follows :

 

Gross dividend

Swiss withholding

Net payable

 

per share

tax @ 35 %

per share

Cash dividend

CHF 1.60

CHF 0.56

CHF 1.04

 

The dividend will be payable following the Annual General Meeting, which is scheduled to take place in Geneva on Wednesday, 16 September 2015.

 

The last day to trade Richemont ‘A’ shares and Richemont South African Depository Receipts cum-dividend will be Thursday, 17 September 2015. Both will trade ex-dividend from Friday, 18 September 2015.

 

The dividend on the Compagnie Financière Richemont ‘A’ shares will be paid on Tuesday, 22 September 2015. The dividend in respect of the ‘A’ shares is payable in Swiss francs.

 

The dividend in respect of Richemont South African Depository Receipts will be payable on Friday, 2 October 2015. The South African Depository Receipt dividend is payable in rand to residents of the South African Common Monetary Area (‘CMA’) but may, dependent upon residence status, be payable in Swiss francs to non-CMA residents. Further details regarding the dividend payable to South African Depository Receipt holders, including information relating to withholding taxes, may be found in a separate announcement dated 22 May 2015 on SENS, the Johannesburg stock exchange news service.


 

Review of operations

 

Sales by region

 

 

 

 

Movement at:

 

 

 

Constant

Actual

in € millions

31 March 2015
 

31 March 2014
re-presented

exchange
rates*

exchange
rates

Europe

3 067

2 886

+ 7 %

+ 6 %

Middle East and Africa

841

705

+ 13 %

+ 19 %

Asia Pacific

4 100

4 139

- 6 %

- 1 %

Americas

1 588

1 405

+ 8 %

+ 13 %

Japan

814

888

- 6 %

- 8 %

 

10 410

10 023

+ 1 %

+ 4 %

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2014.

 

Europe

Europe accounted for 30 % of overall sales. Sales grew in the region by 6 % sustained by the jewellery category. Tourism flows were volatile throughout the year due to the exchange rate environment. The highest rates of growth were in the Maisons’ own boutiques located in popular tourist destinations, including Paris, Milan, Madrid and Munich.

 

Middle East and Africa

Markets in the Middle East and Africa continued to report strong, double-digit growth and now account for 8 % of Group sales.

 

Asia Pacific

Sales in the Asia Pacific region accounted for 39 % of the Group total. Decreases in Hong Kong/Macau, the Group’s largest market, were particularly acute in the second half of the year under review, most notably affecting the watch category and wholesale channel. However, those decreases were partly offset by growth in other markets. The jewellery category was resilient, achieving stable sales at constant exchanges rates.

 

Americas

The Americas region, which accounted for 15 % of Group sales, reported robust domestic demand for jewellery, with other products categories showing positive momentum.

 

Japan

In Japan, cautious consumer sentiment after the 47 % increase in sales enjoyed in the last quarter of the prior financial year dampened sales in the year under review, as expected. Notwithstanding these negative effects, sales to tourists visiting Japan increased during the year, especially in the second half of the year following the further Yen depreciation versus the US dollar zone.

 

Sales by distribution channel

 

 

 

 

Movement at:

 

 

 

Constant

Actual

in € millions

31 March 2015
 

31 March 2014
re-presented

exchange
rates*

exchange
rates

Retail

5 436

5 223

+ 1 %

+ 4 %

Wholesale

4 974

4 800

+ 1 %

+ 4 %

 

10 410

10 023

+ 1 %

+ 4 %

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2014.

 

Retail

Sales through the Maisons’ directly operated boutiques and e-commerce accounted for 52 % of Group sales. During the year, sales through those channels increased by 4 %.

 

The growth in retail sales partly reflected the addition of 77 internal boutiques to the Maisons’ network, which reached 1 133 stores, and the performance of their e-commerce businesses. The boutique openings during the year were primarily in high-growth markets and tourist destinations. Boutique renovations and enlargements also contributed to growth through this channel.

 

Wholesale

The Group’s wholesale business, including sales to franchise partners, reported resilient growth. The year’s performance reflected the caution of our Maisons’ business partners in general, particularly in Hong Kong and mainland China.

 

 

Sales and operating results by segment

 

Jewellery Maisons

in € millions

31 March 2015

31 March 2014

Change

Sales

5 657

5 438

+ 4 %

Operating results

1 975

1 890

+ 4 %

Operating margin

34.9%

34.8%

+10 bps

 

The Jewellery Maisons – Cartier, Van Cleef & Arpels and Giampiero Bodino – reported a 4 % growth in sales in a challenging environment.

 

The Maisons’ boutique networks benefited from further openings, mitigated by a number of flagship closures for renovation, whereas wholesale sales were lower than the comparative period. Jewellery sales were resilient, but overall demand for watch collections suffered due to a weak Asia Pacific environment. Demand in western markets remained robust.

 

The operating margin was in line with the prior year at 35 %.

 

Specialist Watchmakers

in € millions

31 March 2015

31 March 2014

Change

Sales

3 123

2 986

+ 5 %

Operating results

730

778

- 6 %

Operating margin

23.4%

26.1%

-270 bps

 

The Specialist Watchmakers’ sales increased by 5 % overall.

 

Operating contribution was 6 % lower than the prior year, primarily reflecting cautious sentiment in Hong Kong and mainland China as well as the impact of a strong Swiss franc on the cost of goods sold. The contribution margin for the year was 23 %.

All Maisons showed robust growth, except for Piaget which has a large presence in the Asia Pacific region.

 

Other

in € millions

31 March 2015
 

31 March 2014
re-presented

Change

Sales

1 630

1 599

+ 2 %

Operating results

170

( 29)

n/a

Operating margin

10.4 %

-1.8 %

n/a

 

‘Other’ includes the Group’s Fashion and Accessories businesses, Montblanc and the Group’s watch component manufacturing activities. The operating results for the year included a one-time, pre-tax gain of € 234 million from the disposal of an investment property completed in October 2014.

 

Excluding the above disposal gain, operating losses increased to € 64 million, largely attributable to the performances at Alfred Dunhill and Lancel. For the year, Montblanc reported sales of € 775 million, including higher sales of writing instruments, and an operating contribution of € 49 million. Losses at the Group’s watch component manufacturing facilities were reduced compared to the prior year.

 

The Net-A-Porter Group, reported as a discontinued operation in both years, is no longer within ‘Other’.

 

Corporate costs

in € millions

31 March 2015

31 March 2014

Change

Corporate costs

 (205)

(212)

- 3 %

Central support services

 (190)

 (203)

- 6 %

Other operating income/(expense), net

(15)

(9)

n/a

 

Corporate costs represent the costs of central management, marketing support and other central functions (collectively central support services), as well as other expenses and income which are not allocated to specific business areas. Despite the majority of corporate costs being incurred in Switzerland, central support service expenses were well contained.

 

Bernard Fornas

Co-Chief Executive Officer

Richard Lepeu

Co-Chief Executive Officer

Gary Saage

Chief Financial Officer

 

Compagnie Financière Richemont SA

Geneva, 22 May 2015

 

 

Presentation

 

The results will be presented via a live video webcast on 22 May 2015, starting at 09:00 (CET). The direct link is available from 07:30 (CET) at: https://www.richemont.com. The presentation may be viewed using a mobile device.

 

 

Statutory information

 

The Richemont 2015 Annual Report will be published on 5 June 2015 and will be available for download from the Group’s website at https://www.richemont.com/investor-relations/reports.html. Copies may be obtained from the Company’s registered office or by contacting the Company via the website at https://www.richemont.com/about-richemont/contact.html

 

 

Investor contact

Media contact

Sophie Cagnard

Alan Grieve

Head of Investor Relations

Director of Corporate Affairs

Tel: +33 (0) 1 58 18 25 97

Tel: +41 (0) 22 721 3507

E-mail: investor.relations@cfrinfo.net

E-mail: pressoffice@cfrinfo.net

 

‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing, (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332) and are included in the Swiss Market Index (‘SMI’) of leading stocks. The Swiss ‘Valorennummer’ is 21048333. Richemont’s ‘A’ shares are registered. The share register is managed by SIX SAG AG, the registrar.

 

South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange operated by JSE Limited, the Company’s secondary listing, (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).

 

 

Appendix 1

 

Consolidated statement of comprehensive income for the year ended 31 March

 

 

2015
 

2014
re-presented

 

€ m

€ m

Sales

10 410

10 023

Cost of sales

(3 534)

(3 532)

Gross profit

6 876

6 491

Selling and distribution expenses

(2 554)

(2 309)

Communication expenses

(1 010)

(927)

Administrative expenses

(874)

(827)

Gain on disposal of investment property

234

Other operating (expense)/income

(2)

(1)

Operating profit

2 670

2 427

Finance costs

(972)

(173)

Finance income

19

245

Share of post-tax results of equity-accounted investments

(12)

(5)

Profit before taxation

1 705

2 494

Taxation

(369)

(415)

Profit for the year from continuing operations

1 336

2 079

Loss for the year from discontinued operations

(2)

(12)

Profit for the year

1 334

2 067


Other comprehensive income:

 

 

Items that will never be reclassified to profit or loss

 

 

Defined benefit plan actuarial (losses)/gains

(139)

2

Tax on defined benefit plan actuarial (losses)/gains

29

 

(110)

2

Items that are or may be reclassified subsequently to profit or loss

 

 

Currency translation adjustments

 

 

  - movement in the year

1 971 12

  - reclassification to profit or loss

2
  1 971 14
Other comprehensive income, net of tax 1 861 16
Total comprehensive income 3 195 2 083

Profit attributable to:
   
Owners of the parent company 1 334 2 072
Non-controlling interests (5)
  1 334 2 067

Total comprehensive income attributable to:
   
Owners of the parent company 3 192 2 088

  - continuing operations

3 152 2 105

  - discontinued operations

40

(17)

Non-controlling interests

3

(5)

 

3 195

2 083

 

 

Earnings per share attributable to owners of the parent company during the year

(expressed in € per share)

 

 

 

 

From profit for the year

 

 

Basic

2.367

3.711

Diluted

2.356

3.676

From continuing operations

 

 

Basic

2.370

3.730

Diluted

2.359

3.696

 

 

Consolidated statement of cash flow for the year ended 31 March

 

 

2015

2014

 

€ m

€ m

Operating profit

2 670

2 427

Operating profit/(loss) from discontinued operations

1

(8)

Depreciation of property, plant and equipment

395

339

Depreciation of investment property

1

2

Amortisation of other intangible assets

106

90

Loss on disposal of property, plant and equipment

7

2

Loss on disposal of intangible assets

3

2

Profit on disposal of investment property

(252)

Increase in long-term provisions

19

46

Decrease in retirement benefit obligations

(9)

(11)

Non-cash items

24

20

Increase in inventories

(506)

(144)

Decrease/(increase) in trade receivables

8

(53)

Decrease/(increase) in other receivables and prepayments

(81)

5

Increase in current liabilities

16

18

Increase in long-term liabilities

8

22

Increase/(decrease) in derivative financial instruments

(23)

118

Cash flow generated from operations

2 387

2 875

Interest received

16

16

Interest paid

(39)

(34)

Other investment income

2

Taxation paid

(660)

(365)

Net cash generated from operating activities

1 704

2 494

Cash flows from investing activities

 

 

Acquisition of subsidiary undertakings and other businesses, net of cash acquired

(31)

(43)

Acquisition of equity-accounted investments

(100)

Proceeds from disposal of equity-accounted investments

3

Acquisition of property, plant and equipment

(601)

(577)

Proceeds from disposal of property, plant and equipment

16

35

Acquisition of intangible assets

(107)

(98)

Proceeds from disposal of intangible assets

3

Acquisition of investment property

(1)

Proceeds from disposal of investment property

552

Investment in money market and government bond funds

(1 365)

(1 231)

Proceeds from disposal of money market and government bond funds

1 336

1 104

Acquisition of other non-current assets

(67)

(65)

Proceeds from disposal of other non-current assets

18

30

Net cash used in investing activities

(343)

(846)

Cash flows from financing activities

 

 

Proceeds from borrowings

160

58

Repayment of borrowings

(85)

(121)

Dividends paid

(650)

(452)

Payment for treasury shares

(123)

(81)

Proceeds from sale of treasury shares

58

172

Capital element of finance lease payments

(2)

(2)

Net cash used in financing activities

(642)

(426)

Net change in cash and cash equivalents

719

1 222

Cash and cash equivalents at the beginning of the year

2 214

990

Exchange gains on cash and cash equivalents

219

2

Cash and cash equivalents at the end of the year

3 152

2 214

 

 

Consolidated statement of financial position at 31 March

 


 

 

2015

2014

 

€ m

€ m

Assets

 

 

Non-current assets

 

 

Property, plant and equipment

2 446

1 966

Goodwill

320

562

Other intangible assets

461

403

Investment property

70

345

Equity-accounted investments

115

13

Deferred income tax assets

701

479

Financial assets held at fair value through profit or loss

11

9

Other non-current assets

398

315

 

4 522

4 092

Current assets

 

 

Inventories

5 438

4 455

Trade and other receivables

1 071

933

Derivative financial instruments

41

109

Prepayments

140

101

Financial assets held at fair value through profit or loss

2 858

2 839

Cash at bank and on hand

5 654

3 389

Assets of disposal group held for sale

726

 

15 928

11 826

Total assets

20 450

15 918

 

 

 

Equity and liabilities

 

 

Equity attributable to owners of the parent company

 

 

Share capital

334

334

Treasury shares

(364)

(326)

Share option reserve

291

309

Cumulative translation adjustment reserve

3 306

1 338

Retained earnings

10 854

10 309

 

14 421

11 964

Non-controlling interests

(1)

(6)

Total equity

14 420

11 958

 

 

 

Liabilities

 

 

Non-current liabilities

 

 

Borrowings

405

318

Deferred income tax liabilities

71

60

Employee benefits obligation

237

86

Provisions

96

191

Other long-term financial liabilities

133

192

 

942

847

Current liabilities

 

 

Trade and other payables

1 514

1 325

Current income tax liabilities

236

364

Borrowings

186

76

Derivative financial instruments

160

5

Provisions

277

168

Bank overdrafts

2 502

1 175

Liabilities of disposal group held for sale

213

 

5 088

3 113

Total liabilities

6 030

3 960

Total equity and liabilities

20 450

15 918