Hermes International SCA (EPA: RMS) said on Friday that its net profit in 2020 came in lower than last year as the Coronavirus pandemic weighed on demand. Revenue in the second half, however, returned to growth, the company said.
Hermes shares opened at £847 per share on Friday and closed the regular session a little under 2% down on £833 per share. In comparison, the stock had plummeted to as low as £454 per share in March 2020.
Hermes reports £2.02 billion of full-year operating income
Hermes International said that its net profit in 2020 printed at £1.20 billion. In comparison, its net profit had registered at a higher £1.32 billion in the previous year. At £1.79 billion, the luxury-goods manufacturer’s full-year operating income was lower than £2.02 billion in 2019.
Hermes’ full-year results come only a day after the world’s largest aeroplane manufacturer, Airbus SE, reported £980 million of net loss in 2020 due to the COVID-19-related restrictions on air travel.
The French company valued its revenue at £5.53 billion in 2020 versus the year-ago figure of a higher £5.95 billion. Hermes said that its annual sales jumped 14% in Asia on the back of robust performance in Korea and Greater China.
Analyst Deborah Aitken of Bloomberg commented on Hermes’ financial update on Friday and said:
“Hermes confirmed its superiority to peers in 2020 with the reduction in tourist flows more than offset by a loyal customer base. Asia is showing promise.”
Hermes’ board to propose £3.94 per share of dividend
Hermes said that its board will propose £3.94 per share of dividend in the upcoming general meeting scheduled for 4th May. As per the
