Full-year (
- The
H&M group's net sales in SEK increased by 6 percent in the 2023 financial year toSEK 236,035 m (223,553). ExcludingRussia andBelarus the increase was 8 percent in SEK and 1 percent in local currencies. - Sales for Portfolio brands in the financial year increased by 15 percent in SEK and by 9 percent in local currencies.
-
Gross profit increased by 7 percent to
SEK 120,896 m (113,370). This corresponds to a gross margin of 51.2 percent (50.7). -
Operating profit including allocation to the
H&M Incentive program (HIP) increased toSEK 14,537 m (7,169), corresponding to an operating margin of 6.2 percent (3.2). Operating profit amounted toSEK 14,714 m (7,169) excluding allocation to HIP. This corresponds to an operating margin of 6.2 percent (3.2). -
The result after tax increased by 145 percent to
SEK 8,723 m (3,566), corresponding toSEK 5.35 (2.16) per share. -
Cash flow from operating activities increased by 37 percent to
SEK 33,949 m (24,745). -
Financial net cash amounted to
SEK 9,316 m (10,929). Cash and cash equivalents plus undrawn credit facilities wereSEK 44,570 m (39,176). -
The year's increase in profit means that
SEK 177 m (0) has been allocated to HIP, which is for all employees.
Fourth quarter (
- The
H&M group's net sales amounted toSEK 62,650 m (62,433). ExcludingRussia andBelarus the increase was 3 percent in SEK and decreased by 1 percent in local currencies. -
Gross profit increased by 8 percent to
SEK 33,657 m (31,104). This corresponds to a gross margin of 53.7 percent (49.8). -
Operating profit amounted to
SEK 4,509 m (821), excluding allocation to HIP. This corresponds to an operating margin of 7.2 percent (1.3). Operating profit including allocation to HIP increased toSEK 4,332 m (821). This corresponds to an operating margin of 6.9 percent (1.3). -
The result after tax increased to
SEK 1,576 m (-864), corresponding toSEK 0.97 (-0.53) per share. -
Currency adjusted the stock-in-trade decreased by 13 percent compared with the previous year. Converted into Swedish kronor the stock-in-trade decreased by 12 percent to
SEK 37,358 m (42,495). -
In the fourth quarter cash flow from operating activities improved by 41 percent to
SEK 9,207 m (6,524).
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-
The
H&M group's sales decreased by 4 percent in local currencies in the period1 December 2023 -29 January 2024 compared with the same period the previous year. -
CapEx in comparable currency is planned to amount to
SEK 11-12 billion (9,0) for 2024, corresponding to an increase of up to around 30 percent compared with 2023. -
The board of directors is proposing to the 2024 annual general meeting that an unchanged ordinary dividend of
SEK 6.50 per share is paid in two instalments. - The board of directors will also ask the annual general meeting for a general authorisation allowing the board to choose to buy back the group's own B shares.
"Operating profit has been positively impacted by a stronger gross margin, the cost and efficiency programme, and good cost control. The
*Refers to science-based targets for own operations (scope 1 & 2) and for the company's entire value chain (scope 3), and excludes the use of sold products.
Comments by
In 2023 we took important steps towards our long-term goals. Our improvement work in the supply chain and continued normalisation of the external factors that influence purchasing costs resulted in a stronger gross margin. A focus on cost control, profitability and increased inventory productivity also contributed to improved cash flow that is financing increased reinvestments in the business. For many consumers the year was marked by lower purchasing power because of high inflation and high interest rates. Despite this, our net sales in comparable markets increased in relation to 2022. The fourth quarter started with unusually hot weather in several of our important European markets. From mid-October sales recovered as more normal autumn weather returned, with well-received collections.
The
Portfolio brands - COS, Monki, Weekday, & Other Stories and Arket - continue to develop well. Sales at COS, Arket and Weekday have developed particularly strongly over the year, and these brands are contributing more and more to the group's profitability development.
New growth and ventures. We are creating new revenue streams through a variety of strategic partnerships and new circular business models, and we see great potential in the companies that we invest in. One example is Sellpy, which is growing rapidly in 24 European markets as demand for second-hand fashion continues to increase. Our investments in innovation also mean we are taking important steps on our journey towards circularity. Through greater use of recycled and more sustainably produced materials we are moving closer to our long-term sustainability goals.
Our climate goals are set high, and preliminary results show that we reduced greenhouse gas emissions by more than 20 percent compared with our 2019 baseline*. This takes us even closer to our science-based targets, which are some of the most ambitious in our industry.
The
* For own operations (scope 1 & 2) and for the rest of our value chain (scope 3) and excluding use of sold products.
Communication in conjunction with the full-year report
The full-year report for the 2023 financial year, i.e.,
A telephone conference for the financial market and media will be held in English at
To book interviews in conjunction with the full-year report on
Contact
SE-106 38 Stockholm
Phone: +46-8-796 55 00, e-mail: info@hm.com
Registered office:
Information in this full-year report is that which
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