Financial statement 2019-2021 - Christian Dior SE

Extract

[...] Total assets increased by 30% between 2019 and 2021, from €93m in 2019 to €122m in 2021. This increase is mainly due to higher acquisitions of tangible and intangible assets. Christian Dior has maintained its investments at between 24% and 23% of its total expenditure, with a slight decrease between 2020 and 2021. Capital expenditures for fiscal years 2020 and 2019 mainly included investments by the Group's Houses in their distribution networks and investments by the Champagne Houses, Hennessy, Louis Vuitton and Parfums Christian Dior in their production facilities. [...]

[...] The preservation of Dior's financial structure is also made possible by the level of shareholders' equity, which will increase significantly by 8.9 percentage points between 2021 and 2020 and by 527 million euros from 2019 to 2020. In addition, the company has access to a diversified investor base (bonds and short-term private placements) and long-term financing. Also through an increased concentration of the Group's liquidity allowing them to optimize surpluses. Then, debts are more important than Stockholder Equity. It refers to a situation of "high leveraged". The concept of leverage is used by both investors and companies. [...]

[...] This negative profitability remains unchanged from 2019 to 2020 and then falls from 24% to the following year. This negative profit is induced by the decreasing operating results. The ROI is also negative. It confirmes that Christian Dior activity was not profitable. The company is unable to realize investment gains from their projects relative to their costs. However, the profit was less impacted than it could have been because the capital employed is increasing. The capital employed continues to grow from €71m in 2019 to €80m in 2020 and to reach €94m in 2021. [...]

[...] The payout ratio increases from 41% in 2019 to 49% in 2020 and decreases to 29%. Christian Dior dividend policy is to give the dividend to its shareholders. GROSS DIVIDEND PER SHARE (IN EUROS) 2018-2021 IV- WORKING CAPITAL AND LIQUIDITY MANAGEMENT The current ratio is equal to 1 in last three years. Christian Dior's business is solvent and current Assets are just enough to pay down the short term obligations. As mentioned above, the Group's liquidity is based on the size of its investments, its ability to arrange long-term financing, the diversity of its investor base (short-term securities and bonds), and the quality of its banking relationships, whether or not evidenced by confirmed credit lines. [...]