Q4 2024 LVMH Moet Hennessy Louis Vuitton SE Earnings Call
[music].
Yes.
For the visa swap was a pleasure for me to be here with you Tonight.
Sure.
Military mentioning formula one because we just signed a contract.
In addition, though we told them what the shuttle.
So tiger Yeah. The answer is simple formula one for 10 years and that just didn't.
Starting with this year.
So that plant I believe it is going quite impactful so are the three relevant brands.
But we didn't.
It shouldn't decline, let's say Tuesday, as you've done.
I mean, I'm not going to roof.
Report record.
Revenue, but it was nonetheless, a robust year and I am rather confident for the year to come in and they say.
Got it.
Speaker Change: C G.
Speaker Change: Indeed in 2020 full we managed to report a little bit of organic gross four of our revenue.
Speaker Change: Despite what some of you because there are a lot of analyst here.
Speaker Change: What what a few of you are expecting it.
Speaker Change: It's on this however, the operating income is going down.
Speaker Change: Let's look at the context that I didn't hear you.
Speaker Change: I'll keep it 1 billion coming from outstanding.
Bruce: Tim It's Bruce.
Speaker Change: No cosmos to be honest it was a few sites.
Speaker Change: 2025 is starting well and I will tell you all about him in a moment.
Speaker Change: So did the robust yeah, hey come into I know you all know you can do this.
Speaker Change: Despite a challenging global.
Speaker Change: Global environment with other shuttle.
Speaker Change: Weaknesses in Asia, except for Japan as soon as that reported strong growth thanks to its currency the United States.
Speaker Change: And so it didn't see me because I'm an engineer so Europe is faring quite well.
Speaker Change: More but all in all I think I'm in the.
Speaker Change: Did you get the context was but a little bit more challenging.
Speaker Change: Nuomi Chi.
Speaker Change: Bianca.
Speaker Change: Don't sit down and I think Judy Denver Kinsey.
Speaker Change: Business groups fared well, especially fashion and leather goods, we saw a lot of innovation in itself. Once you think jewelry fragrances and cosmetic sense do let's.
Speaker Change: Well, we still have a twofold, so world leading fragrances, you've asked about youre in Misdeal Donuts distributions TN in the silver legacy retailing is D. Fas are these gosh retailing.
Speaker Change: Company.
Speaker Change: Oh tucks in charge of distributing their tax free.
Speaker Change: Would it be to try to inspire the context.
Speaker Change: People someplace the currency he needs to geographies.
Speaker Change: Kong or Macau.
Speaker Change: No, but tell me.
Speaker Change: She did.
Speaker Change: Did not enabled a lot of Chinese people since you are shoving you in these areas.
Speaker Change: That was a big gap I mean with the Chinese currency.
Mark Kaye.
Speaker Change: And lucky sit.
Speaker Change: It doesn't cause central hub.
Speaker Change: Known before most of them yet.
Due to our exceptional growth and we're not going to give the figures directly but a great performance from the CFO her remarkable it since we bought this company.
Speaker Change: But anyway it was a while back 1990.
Speaker Change: Eight in 1998, it was about 100 million euros of revenue something folks.
Speaker Change: Close to that and now.
Speaker Change: You said it was revenues stand at more than 10 times that.
Speaker Change: Let me count, yes put up more.
Speaker Change: Yes.
Speaker Change: [laughter] Rishi I Couldnt give you all the figures when you call me because you would not believe them.
Speaker Change: Yes, it could be anywhere what I would like to say it doesn't it.
Speaker Change: It seems as though you probably couldn't 'twenty 'twenty four was a little bit challenging from an economic standpoint, but we stuck to our commitments in terms of diversity and putting them on nuclear about our commitments to support.
Speaker Change: Employees promoting their safety their wellbeing and we also stuck to our environmental commitments.
Michael commitments are at the heart of our amazing creativity.
Speaker Change: Two major events in 2020 full VIP gaming.
Speaker Change: In the past it because we were one of the main sponsors because sedan.
Speaker Change: Team in charge of the Olympic games here Antoine leading the team.
Speaker Change:
Speaker Change: What was able to highlight our brands and I'm sure you've noticed since there's no day highlighted our brand in a surprising way I did enjoy the boat on the river with the Richemont.
Speaker Change: Suitcases he was the first one.
Speaker Change: Was there a third.
Speaker Change: Do you have an opening ceremony outside of the stadium, but we were able to bring some celebrities dressed by the amazing almost and it was really a hit a few seats that visual as you've done.
Speaker Change: Shouldn't it because now this is linked to the drop in recurring operating income because it did cost us a lot of money and we also supported the.
Renovation of knuckle down and we were very proud and there's going to be a restated this week with all of the employees in France.
Speaker Change: I do not know if you invited the analysts maybe not.
Speaker Change: I think two to go to learn about all of the employees have been invited to nurture them.
Speaker Change: I won't blame yeah, but for a special tool.
Speaker Change: It is not fully open to the public but they are going to see.
Speaker Change: The renovation.
Speaker Change: Back to business leaves us really to predict.
Speaker Change: Wines and spirits.
Speaker Change: There's something we can see that demand is normalizing a champagne steel fared well, even though that was a small decreases however.
Speaker Change: Jack and periods.
Speaker Change: Periods.
Speaker Change: Reported a more systems.
Speaker Change: The potential is.
Speaker Change: There is a decrease and endless two years, we expect to see a good recovery, especially since we have a new team at our CFO right here who's been working with me for more than 20 years.
Speaker Change: We are known as a good CFO you know based on the ratings or estimates known because now they.
Speaker Change: They are rating for Cfos.
Speaker Change: So you will see a small E systems. So if I believe the right things because he thinks it alone and since he is very familiar with the wines and spirits.
Speaker Change: I think some of the business groups and he he supported by Alexandre who is very familiar with the wines I'm sure that they will disappear.
Speaker Change: To support the recovery, let's give them two years to see to show them. All so let's give them two years, so that they can show us what they can do a film.
Speaker Change: Now.
Speaker Change: Something that's even more important in terms of revenue for fashion and leather goods, starting with Louise return no major events assumed in curacao.
Speaker Change: Oh, a question by a nickel a share in the Louvre soccer, Louisiana, South fashion show at Genesco.
Speaker Change: So you can see at the end of last year.
Speaker Change: <unk> success.
Speaker Change: With what we called a pop up.
Speaker Change: Can you do it is a pop up that twice the size.
Her previous with the.
Speaker Change: Brick and mortar.
Speaker Change: Store, but it is always full of too many people and since its opening.
Speaker Change: Can we talk about the revenue is it a secret.
Speaker Change: Photoshop mortality twice the revenue of the previous store. So this is working quite well.
Speaker Change: Uh huh.
Speaker Change: T shirts, the whole Clinton will decide to produce a lot of our new products are never fully inside out this PD benign.
Speaker Change: Total electric.
Speaker Change: And the fantastic.
Speaker Change: The case is because if we.
Speaker Change: We don't it's not a fashion brand.
Speaker Change: Is that because <unk> is a.
Speaker Change: Bachelor and so I always liked the structure of my message.
If you don't sit on novel kidney, we don't mix leather goods. This serious disease like gosh. They are experts in food travels to.
Speaker Change: The culture and poetry poetry, Mason suddenly months old and I introduced fashion in the 19 nineties seem to Louisville.
Speaker Change: Talking about it is fashion the fashion aspect is an accessory designer.
Speaker Change: Designers are not here. So we can say, but we did say it when they were part of the meeting neutral economy zone. So another major maids' own Christiane deal.
The city formidable fantastic fashion shows as well the one in New York.
Speaker Change: One because on a cruise in Scotland.
Speaker Change: Scotland ecosystem that fashion show in Scotland was fantastic I do not know if you're familiar with Scotland, but usually it rains.
Speaker Change: It was a mirror colder weather was fantastic for all these fashion show.
Speaker Change: Good day.
Speaker Change: So that was a blessing.
Speaker Change: Then.
Speaker Change: Jewelry broke all records a store in Geneva, and well she visits.
Speaker Change: To go if you go to Geneva. It is quite surprising it was designed by Chris jump on top.
Speaker Change: It is really outstanding and it is quite successful.
Speaker Change: And this year. So in 2025, we're going to reopen the New York store.
Speaker Change: And a store in Beverly Hills as well.
Speaker Change: Zero.
Speaker Change: She is in blue.
We also have a lot of projects for exhibitions and fashion shows in 'twenty to 'twenty four we organize a fantastic exhibition in Saudi Arabia.
Speaker Change: Firstly, let me some deal hand in hand, with our Saudi friends and they contributed actively asphalt the other amazing almost they are also reports they got a good results or loro piana, great success, the digital cluster double digit Roes, even with this still lean of liver fat Indeed mall.
Speaker Change: Jack ups or remove as well that as well.
Speaker Change: Putting good result, and bellucci, because we put forth.
Speaker Change: [noise] fragrances and cosmetics.
Speaker Change: Yeah, certainly book, we did upfront.
Speaker Change: Great contribution from this business groups, we have a strong momentum in fragrance hair, we've got survives and missed your Oh boy.
Speaker Change: These nets and even at <unk>, we don't see you know the fragrance is only sold in really don't aren't quite successful I'm not going to give you any figures, but you would be surprised.
Speaker Change: It is a quite a high figure I thought the other fragrance.
Speaker Change: Brands, while the economy is good.
Joan: Our coke Joan it's smaller, but it's a fantastic creator who is also in charge of designing that your perfumes and he has his own brand and we are partners.
Speaker Change: Working rather well as well.
Speaker Change: So not sure fragrances are working well then moving on to watches and jewelry.
Speaker Change: It did not for watches and jewelry, we had exceptional brown brands at Tiffany.
Speaker Change: Default at XOMA.
Speaker Change: I recall it.
Speaker Change: With its landmark in New York.
Speaker Change: Uh huh.
Speaker Change: I don't pretend as clean as possible.
Speaker Change: Q4, 2024, they had great results. Some people said that the revenue was not very good but we did had a 9% organic growth which is not bad.
Speaker Change: Just as much as the largest jewelry brands.
Speaker Change: Just want to do.
Speaker Change: Yeah.
Speaker Change: Illegals or high jewelry revenue gallery part, it's great gross same fault bulgari great.
Speaker Change: Results there with some new connections to build gas for example.
Speaker Change: Which is that being presented into Bulgaria store in place Vendome and also in the Beaumont shape also.
Speaker Change: Correct, we took their AR as well Tiger yeah.
Speaker Change: Launched a new watch cool.
Speaker Change: Monaco, you know the Monaco, Washington Square watch that was worn by Health Center. When do you want the Monaco Grand Prix I forgot what yeah.
Speaker Change: More economic but it is one of our Tiger, yes iconic watches.
Speaker Change: Tiger, Yeah, it's going to be the official timekeeper of all Formula one competition this quarter 10 years.
Speaker Change: The effect. So this is going to happen.
Speaker Change: Good impact on the future and we don't we acquired a new brand. It is rather interesting brand zippy. It is called the lipid Google and they design Hot Air Balloons February Sunny days outstanding friction. If you do go and have a look in the Vietnam flagship it is a great craftsmen.
Speaker Change: A question, rather impressive distribution citic, Ts last but not least our selective retailing as I said in my introduction I'm D. Fas has been challenged.
Speaker Change: But outstanding results positive for Ohio.
Speaker Change: Antarctic team no.
Speaker Change: The book was at the Geneva politically.
Speaker Change: Politically Linda plenty of synergies we are in the first part.
Speaker Change: Perfume and cosmetics.
Speaker Change: Cosmetics retailer in the U S for selected retailing in the U S and in many countries. So we have a an exceptional team.
Speaker Change: Akshay the asphalt liberum akshay, so in Paris, well multiple they reported good results as well.
Speaker Change: The boomers citizen continued growth and good results for 2024, I also need to mention.
Speaker Change: That activity do something this rather yes.
Speaker Change: Our training program. Our training is an interesting results were good and the.
Speaker Change: Sits a man the excellence.
Speaker Change: Profession institutes.
Speaker Change: Person welcomed 4500.
Speaker Change: <unk> 4500 people advocated for to start a new one.
Speaker Change: A year.
Speaker Change: Of training.
Speaker Change: The songs.
Speaker Change: <unk>.
Speaker Change: Is that in.
Corn prices you won't but he is going to be about an assumed high precision crossman ship.
Speaker Change: Different businesses will be involved in.
Speaker Change: We're going to train the best craft people.
Speaker Change: And the objective is to recruit them when the group at what different positions <unk> well for sure.
Speaker Change: No eminent contract short term contract he don't cause.
Speaker Change: I think too so.
Speaker Change: Should one SKU.
<unk>.
Speaker Change: To listen to continuing.
Speaker Change: And if you.
Speaker Change: Look some trainees, but all in all in 2025, we have everything where it needs to continue being the leader in the luxury industry and as I said earlier in 2025 2025, he's talking rather well.
Speaker Change: With us as well.
Speaker Change: Quite a few companies I mean.
Speaker Change: It is January end of January so to speak.
Speaker Change: Let's not anticipate too much but we have quite a few companies had reported double digit growth to leave we don't since you are here.
Speaker Change: Tiffany.
Tiffany: Which both reported a double digit growth since the beginning of the year.
That is it.
Speaker Change: I think Mr. Gillani is now going to take the floor to to tell you more about that some figures I imagine that this is what interests you visit more than my explanation. Thank you very much.
Speaker Change: [noise] most of our Tus.
Speaker Change: Good afternoon, good evening can Krishna.
Speaker Change: A couple of figures for you.
That you can see on the screen. These are the major development trends for the year as a Miss your analysts said revenue is fairly wide.
Speaker Change: Stable on as he took a beautiful.
Speaker Change: Any growth for instance.
Speaker Change: Sounds good and operating income is impacted by the difference between organic growth and the impact of minus 14% was multi value. When you would catch one of your thought of and these are we are back to where we were on Covid and satisfaction.
Speaker Change: Do the needs for prophylactic HAE programs. This time personnel were also up 70%.
Speaker Change: In giving you shown you asked you donate market has gone down as you can see.
Speaker Change: The.
Speaker Change: Walker do quite behind our investments are still high because we want to invest in the future and I'll come back to that later.
Speaker Change: Look at.
Speaker Change: Sales faster than revenue.
Speaker Change: $4 6 billion.
Speaker Change: In our revenue I'll tell you more about 1% to four organic growth of 1% for the scope that so negligible and 2% on Forex, which is nothing.
Speaker Change: But it is impactful as you will see.
Nicky Ito: Nicky Ito the volt.
Speaker Change: Okay.
Speaker Change: The revenue mix has.
Speaker Change: I'm not really sure what the point yeah.
Speaker Change: My screen is perfectly legible, so I'll just.
Speaker Change: Oh go on what I remember Europe and U S. A both at 25% is more or less so in Asia, 28% are then is slightly lower than last year, which was around 31% and Japan is in situ Dupont on top if you said two percentage points from seven to nine.
Speaker Change: <unk> percent again.
Speaker Change: Because of the way revenue has happened and I think I'll tell you more about it on the next slide.
Speaker Change: Who would have shown previously they would go on to the bus.
Speaker Change: Quarter by quarter.
Speaker Change: Say it was in revenue in the various geographies what can you see well if you look at the left first the U S.
Speaker Change: So slightly up at the end of the year not that it is obvious given the numbers journey, but it is slightly more favorable than at the end of the year, but I'm Israel, both in quality and quantity and if you look at the numbers at the beginning of the year.
Speaker Change: And you'll see they were significantly influenced.
Speaker Change: You'll see by.
Speaker Change: Sephora has in literally minutes, whereas at Q4.
Speaker Change: It's far more balanced fashion jewelry, and sephora fueled both contribute to that.
Speaker Change: Seeing our business grow in North America, and the U S. More specifically you can see that in Japan, there's a bit of a slowdown or is it really a slowdown I mean, we are at 28% this year and 28% last year. So the.
Speaker Change: Starting point was high as people are remote but it was.
Speaker Change: Very.
Speaker Change: There's high at the end of the year, hence the only 8% increase Asia is still pretty difficult all year round.
Speaker Change: That's true across Asia, including mainland, China, roughly 10% drop over the year as for Europe similar to what you saw in the U S.
Speaker Change: Slight improvement and at the end of the year, mainly in fashion and leather goods bubbled. Their GDP. If you look at the different business groups, who didn't get easier, but he has undergone she can we get to see composted well. There again you have great variety as was the case with the geographies some businesses.
Speaker Change: Pretty much a balanced look at for instance, fashion in leather goods at minus one sub organic Ruth watches and jewelry also pretty stable between 24% increase in that's noteworthy on perfumes and cosmetics.
Speaker Change: And are even more noteworthy for selective retailing anymore, but there was no sort of get it all you'll need to tailor the 50 Soufan only button.
Speaker Change: You have seen.
Speaker Change: Defense and Sephora and you're going to have two very contrasting situations and then wines and spirits. In this saga difficult situation will come back to that later, but or the organic growth is actually negative opinions paying more for.
Speaker Change: Yeah.
Speaker Change: Does he will issue quarterly trends good news as well, but nothing really dramatically posted them on Q4, I'm, sorry, and the numbers are pretty much close to the yearly average.
Speaker Change: It was implemented.
Speaker Change: There's a bit of a dip in Q.
Speaker Change: Q3, that's particularly true for the group in one of those periods. So you haven't got more of a dip. It just stay I mean, not very good bang down the bottom fashion and leather goods you do have the dip.
Speaker Change: Sure absolutely more measures are no major changes.
Speaker Change: Quarter after quarter, but things are improving.
Speaker Change: But michelle, especially for watches and jewelry. Thanks to Tiffany has missed it I don't know.
Speaker Change: Who has said.
Speaker Change: Before we move to <unk>.
Speaker Change: The man power group the communities casually Fac next slide let me just look at the next.
Speaker Change: In our communities.
Speaker Change: Operating margin by the long term business as well as I.
Speaker Change: I told you we had.
Speaker Change: You can stable revenue, let's say organic and Tokyo overrule not so nothing tremendously bad there, but we have had to look at Argos from their costs and as you will see our operating costs have increased 2%, which is more than the increase in revenue and therefore.
Speaker Change: Has led to negative leverage.
Speaker Change: Meaning that the current operating margin has actually gone down more than revenue. So from a management point of view that was a bit of a dilemma for critical insofar as we could have been more active on taking.
Speaker Change: Taking that conflict.
Speaker Change: And that would have meant that we say, we're saying that the crisis was.
Speaker Change: Contractual but it isn't it isn't it.
Speaker Change: Circumstantial and.
Speaker Change: We have to be able to react and we wouldn't want to damage our potential budget or marketing budgets for later, so we have to strike a balance I think when you sort of manage this process and we have contained.
She cost is increasing although not quite to the same tune eyes.
Speaker Change: The drop in revenue, which has led to some.
Speaker Change: Profit dropped in some businesses, but it's not that bad overall look at the specifics wines and spirits.
Speaker Change: Drop is fairly considerable here minus 36% Nobody's emotional who this is June not to cost increases are indeed, all costs for wines and spirits I've gone down between over 'twenty 'twenty four but we are seeing a envisaged.
Speaker Change: In volume a drop again.
Speaker Change: Prices and the drop in mix, which explains this difference then DFS take on PA just connectivity as you know most of that business is in Hong Kong and Michael Kelly.
Speaker Change: And that is the currency is pegged to the U S dollar high compared to the renminbi, meaning that for mainland Chinese.
Speaker Change: There's no point in that and going to Michael you can call me to do their shopping.
Speaker Change: In addition to that the sources of revenue have.
Speaker Change: So just to be sure rather it dried out for the FSA doing any extra so DFS Honda very specifically difficult year with.
Speaker Change: Hundreds of millions of losses on the Pakistan, which brings me now to the income statement as we see.
Speaker Change: Okay.
Speaker Change: Trying to show that you've owned costs have increased slightly faster than revenue, meaning a drop in margins remember revenue minus 2%.
Speaker Change: Gross margin and that was a bit tricky.
You bought one at about 180 basis points, which is a bit more than we had expected to take two factors can explain this festival heartsick mobile commentary, we havent almost happened increased prices last year said, we couldn't offset in gross margin.
Speaker Change: The increase in.
Speaker Change: The price of labor the cost of labor or.
Input began quicker if we weren't also able to drop with hometown topics to cover and offset the drop in hedging. If you continue to get I don't usually paid this but the fact is that we usually get profit from hedges and then when that stop you increased.
Speaker Change: The price is all your products and offset temporary that's what we've been doing for.
Speaker Change: Yes, and yes.
Speaker Change: Seeing as we haven't done this.
Speaker Change: The.
Speaker Change: Forex effect is in fact, particularly negative torno tool that Epsilon do do do is depleted.
Speaker Change: Certainly second explanation is that there have been a number of one offs.
Speaker Change: Tim really gross margin.
Speaker Change: <unk> explains about half of the gross margin going each island sports because we're going to see there's one issue that is very technical you're probably familiar with that and the fact is that the margin on time, you don't own any.
Speaker Change: Champagne grapes is excellent.
Booked the year of the harvest, but we didn't have a much and therefore not a very good margin.
Speaker Change: And indeed, a negative margin as compared to the previous year. So about 100 million unit per city provision then a number of provisions had to be booked not the usual ones about Virginia D.
Speaker Change: Seasonal ones early on between where your.
Speaker Change: Similarly, the factoring in inventory unsold inventory no.
Speaker Change: We're talking about a number of other provisions.
Speaker Change: Put in the tune of a number of dozens of millions and that therefore had an impact on the gross margin more than Newport, So expenses as I said on the whole a 2% increase on expense.
Speaker Change: Expenses for admin and.
Speaker Change: Sales ghansham.
Speaker Change: Sales expenditure up 3% million Theonomy for instance has store openings that have been decided to EMA in 2021 'twenty two 'twenty three.
Speaker Change: Now open.
Speaker Change: Open and that has contributed to the cost base lithium shoes, no marketing or something else is marketing.
Speaker Change: So that's when you really marketing I'm, just going to be we have held back on marketing and bringing down.
Speaker Change: <unk>.
Speaker Change: Our marketing.
Speaker Change: Cost by about 5% you know the old saying that half of your marketing expenses are pointless, but you don't quite know which ones and if so we have increased it.
Speaker Change: General and admin expenses has gone up 9%.
Speaker Change: Therefore, because of a number of nonrecurring events such as the Olympic Games for instance, but also efficiently.
Speaker Change: L. B M H share plan for employees open window for us so well to employees in 2020 for Illinois and booked here under general and admin cost. So all of this means that our recurring operations.
Speaker Change: <unk> has gone down 14% from part if you can share with you aren't they got was it yet there are a number of nonrecurring items calls that are saqib festivals, which were on short video face the restructuring of DFS semi than in <unk>.
Speaker Change: Italy and in France, with the sale of last time I tend to elevate imagewear significant losses then.
Speaker Change: Withdrawal from Stella Mccartney and then the divestment of yourself why SSE and there again, there was a significant loss.
Speaker Change: If you have any specific questions I can.
Speaker Change: Go into greater detail, because it's a real accounting not if but not.
Speaker Change: Real in terms of cash flow to go into here We survey.
Speaker Change: Financial income I'll tell you more about that later always a great pleasure to lead me of Monte on them due to income taxes due to the imposed is that 28% now and then.
Speaker Change: This is the in great part due to Japan.
Speaker Change: And the share of Japan in the group's profit because the income tax rates in Japan is slightly higher than the.
Speaker Change: Average rates across the board so we're talking about billions of dollars.
Speaker Change: <unk> expenses in cash partake more than ample cimelia truly two resort 6 billion every year roughly example.
Speaker Change: Therefore, please ask about the half to increase don't we.
Fees on these exporting companies in France.
Speaker Change: You know what this means news media and we are paying taxes and all in all.
Speaker Change: Net profit is a 12 and a half by colonial.
Speaker Change: Billion down 17% on last year, which was a record high yet if it's just so you remember early on because you don't contribute gmail.
Speaker Change: The Forex impact of exchange rate fluctuations and I told you that we had a bit of a problem offsetting it.
Speaker Change: I'm talking about 1 billion, roughly which is about a third of it would come in an operating profit changes.
Speaker Change: Explained by Nokia and or liquidate.
Rx if like you don't see them clear financial expenses of three two and talking to you on that on to sort of the debt servicing and basically it was a 2.7% last year about three one this year slightly up dip Luca Tvs and lease liability says.
Speaker Change: It was under Ifr 16 that Sue has gone up because the rates have gone down for them and she basically makes the amo.
Speaker Change: Sure you understood me or not well find a way I probably said it wrong.
Speaker Change: Then forex, which is always all do do we have firm you duty shortened our hedging horizons and bring back together, but the puts and calls we've decided therefore to bring down the expenses of our hedging given the.
Speaker Change: Level the number of currencies has reached including bps if you.
Speaker Change: U S dollar and his concerns now places.
Speaker Change: It's not something unusual for a benchmark for us was only prelude let Don.
Speaker Change: Yeah.
Speaker Change: He has only been going to expenses or rather than capital gains or somewhere around 500 million, but it's only later no actually booked more recently stood a we've seen a small increase in your view.
Speaker Change: If people can probably accurate mono inventory a little drop on the put.
Speaker Change: On the debt for Diane shows everyone's mentioned this and it's of course related to the multipliers in a wait and see et cetera.
Speaker Change: I'll come back to that later, maybe on cash through the scrutiny that comes with <unk>. I mean, you said you expect you won't keep cash flow since you bought more into the free cash flow.
Speaker Change: $3 4 billion. Despite the drop in profit, which has highlighted we wont have impact on cash flow why well because working capital requirements.
Speaker Change: Related to inventory, we had not increased.
Speaker Change: Inventory very much this year, we had the previous year, so improvement there and operating expenses.
Speaker Change: Oh, the operating investments rather.
Speaker Change: I have been certainly brought down $5 5 billion, although there was a bit less.
Speaker Change: Than expected last year.
Speaker Change: Operating free cash flow was up $3 4 billion always a good thing to have meaning as you can see on the next slide that our daedalus called down from 10, 7% to $9 2 billion in.
Speaker Change: Awesome.
Speaker Change: With a ratio of 13% roughly so fairly low all in all and then dividend payout decision you all do with them.
Speaker Change: We will be suggesting the general assembly adopt a 13 year old.
Speaker Change: Thank you.
Speaker Change: We pay out of 707, and a half euros that would be paid in April after the interim payment of five and a half in December. This is a stable level of dividend we've chosen to keep it.
Speaker Change: The dividend stable.
Speaker Change: In difficult times and make the most of.
Speaker Change: Plentiful periods to increase is down here.
Speaker Change: The payout I must say that this is my 86th and final presentation.
L a M ash.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Okay.
Speaker Change: What we're going to Miss you.
Ladies and gentlemen.
Speaker Change: Luke as John.
Speaker Change: We are here to answer your questions. If you have any.
Speaker Change: That's good.
Speaker Change: I would like yes, we need to make sure that we can see you.
Speaker Change: Otherwise you were all in the dark.
Speaker Change: So the way the new mill.
Speaker Change: Okay. So we should give a number to the people so that we know who they are betsiboka, who.
Speaker Change: Very much Luca <unk> from Bernstein shouldn't can still show.
Speaker Change: They're far more my question has to do.
Speaker Change: With the cyclical demand performance you just.
Speaker Change: Reported.
Speaker Change: Moving performance in Q4.
Speaker Change: Most of the geographies.
Speaker Change: And also an encouraging performance for January 25 players on the nationality and with that ladies could you give us more information about the various geographies and what is happening, especially with the Chinese and American customers.
Speaker Change: That's the same case.
Speaker Change: <unk> per diluted second question.
Speaker Change: About the session and leather goods.
Speaker Change: S lytic level I believe I've read Mr. Hu any statements in the press he talked about eight.
Speaker Change: They are poor performance that was slightly better fault retool and slightly worse for your multiple is that and if.
Speaker Change: We ask that you said there are almost fully satisfy with D or performance or Paul do match eight banks all planned power nonpublic Oh my gosh.
Speaker Change: Not only de la.
Speaker Change: Lamour dancing.
Speaker Change: Superior Dan Flick, it looks like the brand is in an inflection.
Speaker Change: Carried more than a slight decrease if you see what I mean is a huge issue and third question.
Speaker Change: I know we saw you are.
Speaker Change: In the front row at the American President's inauguration.
Speaker Change: To cope also kick off something could you tell us what the group is planning on doing with the U S. In terms of the MH business development.
Speaker Change: Hands off but a geographical repositioning potentially that is when you have to.
Speaker Change: Putting more focus on the U S for sure. When you go to do we have anything to fear in terms of tariffs.
Speaker Change: Thank you.
Speaker Change: Okay, you can start with the customers I mean, no Q&A was Chinese customers.
Speaker Change: From mainland China mobile so.
Speaker Change: For 'twenty 'twenty four for there.
Speaker Change: There remains a stabled she's worth noting of course it was positive in nature. One is slightly as an H. Two however, we can see that as Jason has been improving in Q4. So it is notes outstanding.
Speaker Change: Not decisive it's very difficult to DS he or she can comment that day before Chinese new year, what's going to happen with Chinese customers you need to be careful but generally speaking I'm talking about fashion and leather goods I should've mentioned, but just fall fashion in leather goods.
Speaker Change: Onto the.
Speaker Change: Customers you can see on the reported good performance outside the U S.
Speaker Change: <unk> state of Lukoil men, we share the same observation stable customer base for the year, but negative in H, one and positively in H two.
Nicholas: Does he Nicholas so here again.
Nicholas: Is it got some of them will take that with a pinch yourself because it's not a major gap, we're not going from minus 10 to plus 2025, which would be in denial. You've trained we're talking about small discrepancy small gathering.
Nicholas: About you know something that is slightly negative to something that is slightly positive, but it is still noteworthy.
Arnaud: Mr Arnaud.
Arnaud: Because this is what I can tell you about your.
Speaker Change: There's a lot of money for the group in general.
Arnaud: <unk>.
Arnaud: It always does.
Arnaud: We are fortunate but this is a result of the work that has been done by our teams and I would I would like to congratulate.
Arnaud: All of them mobile DRAM is only part of that quite a few people.
Arnaud: The maiden aunt, who work in factoring and who are here in the front row, and who are reporting outstanding performance here, especially in terms of creativity. So what I would like to say is that we are fortunate to integral because we have the best designers in.
Arnaud: Vehicle sales in Europe, and they are loyal and we keep them in the house for a very long time, which is important.
Speaker Change: I would assume he did because our relationship with.
Speaker Change: With this design is it goes beyond the traditional business relationship that you can see from asos as a victory.
Speaker Change: The same with our employees all employees here in the room in the front row has been with us for a very long time I would say on average 20 years.
Speaker Change: So part of it.
Speaker Change: And I must say they are faring, well and they will fare.
Speaker Change: Well in the future as well.
Speaker Change: This explains the fact that there.
Speaker Change: There is a continuity and it is essential when you have too many changes too fast in these in this industry. It is difficult it is challenging.
Now back to deal.
Speaker Change: Joel.
Speaker Change: Number one.
Speaker Change: French but could you.
Speaker Change: Brand it belongs to a fringe group and it.
Scott: So Scott and his team.
Speaker Change: Okay.
Speaker Change: We're looking at our competitors and it is amazing.
Speaker Change: Reported the best performance in 2024, I'm not going to give you. The figures you won't be surprised because we only give a glue.
Speaker Change: Global figure.
John: Because I know the ardmore <unk>, but so in a more challenging environment. We mentioned it several times in the in my presentation and in John's presentation.
John: So it is a challenging environment, but this maybe a third.
John: The best compare to it.
John: Its competitors and we are hopeful and we're confident.
John: And suck.
John: We believe that for many reasons 2025 is going to.
John: Two C D O N.
John: And <unk> and.
John: Retail was well you know.
John: The automation those are going to pass.
John: This change as well, but I am confident we believe that they are going to be in the spotlight as I am optimistic.
John: You always we always need to be cautious, but I am confident and I am back from the U S. As to your Fad kindly mentioned and I saw the momentum until the momentum of optimism in the country and after having spent a few days in the U S.
John: So do you come back to France, and Italy.
John: It's a little bit of a shock.
John: So it looks like in the U S people are welcoming you in with open arms talks is all going to go down to 15%.
John: Okay.
John: Yes.
John: So that we can build in the U S.
John: Subsidized in quite a few states and the American President and courage as expected the market is developing.
John: <unk>.
John: Just look at the new store that people opened in New York.
John: With an outstanding success good solid.
John: Lines 100 meters long.
John: Exceptional.
John: And yet it is extremely elated.
Speaker Change: Look you're back in France, and you see that taxes are going to go.
John: Moving to 40% in company's manufacturing in France.
John: Yeah. This is hard to believe.
John: False the made in France is going to be.
John: Well that's.
John: Good way to tame Euro and Susie is a look at is as you'll see what a great idea to encourage people to outsource I do not know if that three complement its ambition, but this is what they are going to achieve.
John: Sticking to the spend and we did come up with alternatives.
John: But.
John: Some of it because of the red tape et cetera, I didn't really why we should just a point of person.
Speaker Change: Scott the red tape.
John: But.
John: I would point to personally in charge offs.
John: Efficiency, but.
John: <unk> doesn't work in France, so taxes, I'd, rather not say anything about taxes I preferred to.
John: Take.
John: Action.
Quietly calmly.
John: Hey, you got.
John: Another question.
John: Boswell.
Antoine Best: Good evening Antoine best from BNP Paribas three questions on my side.
Antoine Best: You mentioned, you've mentioned a slight increase a slight improvement in China.
Speaker Change: The increase in it and one of the foremost one is do you believe that this quote unquote crisis is due to the economic environment and more importantly to us the real estate market do you believe that with.
Speaker Change: With the stimulus plans that have been announced the Chinese governments will be able to.
Speaker Change: Renews to rebuild confidence or do you believe that there is either shift in consumption habits. My second question has to do with our cost management is Jones Act carefully explained that there was a sort of dilemma.
Speaker Change: Pursued it.
Speaker Change: Two options.
Speaker Change: 'twenty 'twenty four for 2025.
Speaker Change: Not no decision given the good figures are good results at the beginning of the year are you planning on investing more continuing investing or are you going to have a.
Speaker Change: Mixed approach before you know.
Speaker Change: No more about these potential acceleration.
Speaker Change: My third question has to do with wines and spirits do zone, you talked about the two years you are getting too used to the new teams. What are the challenges that this team is going to be faced with in this.
Speaker Change: Business groups, what were the mistakes that were made in the past and that led to a change in management.
Speaker Change: Maybe inventory management was an issue to get.
Speaker Change: Maybe enhanced competition for cognac and take care of our Soma.
Speaker Change: Brown alcohol spirits, and if our champagne, maybe someone sparkling wines coming from other countries.
Speaker Change: Excuse me when I called that out and since you mentioned that there were some rumors of divestments or the.
Speaker Change: Division personally I don't believe in it but I would like to know.
Speaker Change: What are what is your take on the matter.
Speaker Change: Also I was hoping to try to fix is more of a shipload of digital.
Speaker Change: It is not on the agenda I can't tell you.
Speaker Change: To realize she also China.
Speaker Change: Oscar.
Speaker Change: So I believe that the Chinese government is now aware.
Speaker Change: So you could have the fact that they need to kickstart the economy, the economy needs to recover and therefore, a few plans have been announced to just ignore.
Speaker Change: Okay.
Speaker Change: Have the economy, that's the first thing the second thing.
Speaker Change: Our high quality products are.
Speaker Change: It's still extremely desirable in China people still want to buy our products submit.
Speaker Change: Nick.
Speaker Change: Michael those are not the old market the covenant.
Speaker Change: This is more cost effective environment was severely impacted by COVID-19 than there was a strong recovery followed by another crisis. The real estate crisis. So it's going to take some time, what I expect is to see a gradual recovery. So we're going to get back to the.
Speaker Change: In a normal situation after two years, it's not going to happen overnight in the U S.
Speaker Change: It's going to be a boom.
Speaker Change: It's growing but he's going to take more time for China to recover fully.
Speaker Change: As for investments.
Speaker Change: Different.
Speaker Change: I don't see when you look at.
Speaker Change: Revenue, it's just the end of January.
Speaker Change: It's not the end of each one.
Speaker Change: But still we are.
Speaker Change: We're still investing we're still communicating we organized fashion shows we have a lot of project too.
Speaker Change: Keep.
Speaker Change: This momentum.
Speaker Change: And I forgot what your third question was.
Speaker Change: It was about the wine and spirits, yet snow divestment.
Speaker Change: Divestments is not on the on the agenda.
Speaker Change: Another question.
Speaker Change: Masa.
Speaker Change: All of the recruiting Antonella <unk> from little nerdy demos.
Speaker Change: We've heard in the news.
Speaker Change: Cheapness challenges of its own financial challenges.
Speaker Change: So if you want.
Speaker Change: Is the financial C.
Speaker Change: Situation really like and are you questioning your choices.
Speaker Change: Any plans to rollout the brand in Europe for example.
Speaker Change: So stay tuned.
Speaker Change: Tiffany was a sleeping beauty.
Speaker Change: She's not dissolve.
Speaker Change: Sure.
Speaker Change: 10 years before the acquisition.
Speaker Change: The stock market was booming.
Speaker Change: Tiffany remained flat because the results did not go up.
Speaker Change: So.
Speaker Change: For example in this acquisition it was excellent for the acquisition because we said that we were going to pay a lot for it but I believe that it was a country.
Speaker Change: Such a prestigious well known brand number one luxury brand in the U S was acquired and wait for an excellent price.
Speaker Change: Now once we acquired it it was a sleeping beauty and we decided to wake her up.
Speaker Change: He said that.
Speaker Change: Yeah.
Speaker Change: And it appears to me and this wake up call.
Speaker Change: Welcome Bye everyone.
Speaker Change: The top me up with when you used to sleeping for 10 years and you'll all of a sudden asks to become.
Speaker Change: No fears.
Speaker Change: Its objectives and when you are expecting to achieve.
Speaker Change: Hi objective.
Speaker Change: Some people count while don't accept that so you are referring to some negative comments that were made.
Speaker Change: Unfortunately, we were not able to keep everyone safe and in passing I'd like to mention that Mr. Zuckerberg, who I talked to last week said that the 5% of Lisa performance from Mitel will be.
Thanks Dahlia made.
Speaker Change: Made redundant or they will be promoted.
So to speak.
Speaker Change: We didn't have a choice at Tiffany we had to let go some people.
Speaker Change: Retailer is sharper assistance et cetera that we're not happy so they made.
Speaker Change: Misread they misrepresented.
Speaker Change: Yes.
Speaker Change: What happened.
Speaker Change: But.
Speaker Change: This shift was.
Speaker Change: Do you feel of the scale.
Speaker Change: If you look at the figures are very different from what was published.
Speaker Change: In the press and we're quite confident Q4 'twenty to 'twenty four Oh, we announced some decreases but there is a 9% increase.
Speaker Change: And the revenue or the profit from last year was double the.
Speaker Change: Profit from before the acquisition sales in jewelry were much multiply it by four.
Speaker Change: The landmark.
Speaker Change: The landmark.
Speaker Change: Our reported outstanding.
Speaker Change: Outstanding.
Speaker Change: Performance and it is the number one.
Speaker Change: Luxury store here.
The NIH group. So we are very confident.
Speaker Change: If you demo.
Speaker Change: Okay.
Speaker Change: First we still have a lot to do.
Speaker Change: They tend toward it.
Speaker Change: Not going to talk too much about the strategy, but our strategy is about developing icons. We have four icons for main icons that we are developing for this.
Speaker Change: No.
Speaker Change: So siblings and they are growing.
Speaker Change: Substantially and gradually we still have.
Speaker Change: A few stores in the pipeline it requires investments it but every time, we open up a new store or renovate to solve the revenue go up by 25%.
Just curious is this physical fuel.
Speaker Change: I am reasonably confident and.
Speaker Change: The hurdle that I believe that what you've read in the press.
Speaker Change: The objective is not necessarily what does not necessarily reflect reality.
Speaker Change: Any further questions.
Speaker Change: Yes.
Speaker Change: I mean, most of the way that all of our Morgan Stanley at all about from Morgan Stanley regarding the operating income metric you and you mentioned in the past that father fashion in leather goods Division.
Speaker Change: If you have a mid single digit growth of 456%.
Speaker Change: You would.
Speaker Change: Maintain the operating margin at a stable level I just wanted you to confirm that confirm this assumption.
Lift is charged with it so regarding the Forex had a negative forex over 1 billion euros, if I'm not mistaken.
Speaker Change: You mentioned don't keep at the time, if there are no major fluctuations in the breakdown of what are you planning on having in terms of Forex impact asphalt D. F. S. Several articles were published over the past few months had mentioned the fact that you are potentially thinking about dbg amongst courtyard well you have.
Speaker Change: Some strategic decisions to make with their phone. So can we expect some major scope modification for the group in the twin 12, or 24 months to come so any potential divestments basically.
Speaker Change: Right.
Speaker Change: To actually manage money marquee names, so for the margin or fashion in a leather goods I can confirm I believe that the rate could be even a lower capacity a component.
Speaker Change: We can control costs based on the revenue.
Speaker Change: It is all about the timing, sometimes we are caught.
Speaker Change: Well there there is some inertia in fact that is difficult to manage but.
Speaker Change: I believe that we'll be able to manage that the 2025 rigs impact you talked about you said that if there are no fluctuations did you ever see a year, where two physical forex doesn't change the legal noise.
Speaker Change: So theoretically there could be a discrepancy there was a positive forex impact loss to a year less so than in 2023, but if there is a change or an impact it would not be as big as 1 billion that we had.
Speaker Change: Last year.
Speaker Change: And then a question about DFS and some potential strategic changes.
Speaker Change: Well, you won't be surprised but in terms of our strategic options.
Speaker Change: I can't tell you much I cant tell you anything sorry.
Thomas Chavez: Good evening, Thomas Chavez Societe City, the Premier Keystone. My first question is the following project located in a vacuum in the contract you talked about.
Thomas Chavez: Unusual forex impact on gross and operating margin in 2024.
Thomas Chavez: And she can heal because the prices it did not increase by Avalon and he will be subtle, but do you believe that the environment to change favorably in the U S and in Europe do you believe that it is going to offset the impact of inflation on the.
Thomas Chavez: Raw material and labor cost inflation, which can actually control or are you thinking at group level.
Thomas Chavez: About the.
How are you thinking about the pricing power of the industry.
Jim: Jim kits Joe.
Jim: So second question you are the only luxury group two very only on of course you can have.
Speaker Change: It's thinner music's paying ourselves the luxury hospitality is unimportant, it's felt the novotel and departments to acquire new customers in new geographies could you give us an update through regarding the recovery of your Belmont shovel block and Bulgari hotels, whose career distribution and crew.
Speaker Change: Could you tell us more about the Chinese and as well we hear a lot of comments about how Chinese customers are expect changing as they are not necessarily looking for luxury.
Speaker Change: But you know they preferred to buy tangible goods instead of paying for an experience how are you going to address that.
Speaker Change: Watson is joined my third question.
Speaker Change: <unk> well.
Speaker Change: It seemed like just an opportunity for me to you and I wish all the best to challenge Jakob I didn't see a good luck for the challenges.
Speaker Change: Thank you very much for your availability for your professionalism with entities that was mentioned by Mr. Oswald. Thank you very much and I hope I will see you again soon.
Speaker Change: The division's vignettes.
Speaker Change: Okay.
Speaker Change: It also showed up on the casino.
Speaker Change: Right well on the first question, we should make sure.
Speaker Change: You distinguish between inflation and.
The Forex impact on revenue.
Inflation is fairly easy you just need to open increase.
Speaker Change: And it got Singapore.
Speaker Change: Prices of two or three percentage fairly easy because it's no longer a four 5% as was the case in 2021 2022. So we can increase the prices moderately yes, we always have but then there's the.
Speaker Change: Very local factor, which is offsetting.
Speaker Change: Currency.
Speaker Change: It drops by price hikes in email and yelled at them all up we've done that we did that in the <unk> in Japan for instance, last year, but we haven't increased our prices there.
Speaker Change: So as much as the currency has dropped.
Speaker Change: The Forex impact.
Speaker Change: So if we had more.
Speaker Change: Serene.
Speaker Change: Currency problem.
Speaker Change: I'll take the environment it would be easy.
Speaker Change: And we would only have to manage inflation and the 2% price increase would be easily.
Speaker Change: Across the world across the board I mean, but yes.
Speaker Change: Certain additional hotels hotel is not well.
Speaker Change: This is an interesting add onto our he called it.
Speaker Change: Adjusted for so luxury goods manufacturing business rules, they're nukes.
Speaker Change: Insofar as we can manufacture luxury stays.
Speaker Change: We're quite pleased to see that we started from scratch 10 years ago.
Speaker Change: So valid blah was launched in Kosovo.
Speaker Change: And I think nowadays everyone everywhere tells me and rankings confirm that.
Speaker Change: This is the.
Speaker Change: The.
Speaker Change: Highest the luxury or the.
Speaker Change: Chain in the World. So five star hotels, not bad for some things started 10 years ago, so to connectivity.
Speaker Change: Meaning that.
Speaker Change: We will invest as much as we can in that business.
Speaker Change: Nor does it mean.
Speaker Change: They are in process of integral as retail deal or Bulgari Nokia.
Speaker Change: But.
Speaker Change: It does mean that our clients.
Speaker Change: Shlomo.
Speaker Change: Can you.
Speaker Change: Get a room experience a stay take the Orient Express.
Speaker Change: In a slightly privileged environment, it's very much the same environment as you said.
Speaker Change: It's experiment or experience based luxury.
Speaker Change: They're not just a product based.
Speaker Change: Two new luxury landscape.
Speaker Change: No.
These are tests in Mississippi, admittedly as we own many of their facilities that requires quite a lot of investments significant long term investment most of the time.
Speaker Change: So.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Investments and expenses that are worthwhile I mean, you know the shovel blow in Paris, it's an extraordinarily well located.
Speaker Change: Hotel It took us some time to.
Speaker Change: Get it up and running and it's a good.
Speaker Change: Diverse way of diversifying our business, which.
Speaker Change: This along with retail why it's not the same thing, but still and it's true that our clients.
Speaker Change: Customers want to diversify their experience I mean, when you buy a 50000 here.
Speaker Change: We don't case.
Speaker Change: And that's the entry level price and use the flight type twos Bend meal, which you play your weekend.
Speaker Change: In the Orient Express from Paris Venice.
Speaker Change: That you Briana in Venice, and then go to the retail store. So it's the same environment at the same.
Speaker Change: Sure.
Speaker Change: Sense of chemicals.
Speaker Change: Luxury and again, we do this with the moderation as we do drink alcohol with moderation.
Speaker Change: All right if there are no further questions.
Speaker Change: There are still some money.
Speaker Change: Two final questions here.
Speaker Change: Hi, Good evening, it's Louis single has from Goldman Sachs and I always apologize for asking a question in English, but there has to be won and just two follow ups for me. If I can do please can you talk to us a little bit about your pricing architecture, and how you evaluate pricing, particularly across our fleet on a deal. It's obviously a lot of debate in the.
Speaker Change: Three about pricing hadn't gone too far, but I presume, there's more opportunity within mix.
Speaker Change: Is price list.
Speaker Change: And secondly, I Wonder if you just think about the U S and the optimism when we think about degree pin 510 Years' time, we've obviously got a very balanced portfolio on the revenue mix today versus pre Covid. How do you. How do you estimate that that will go away do you feel optimism by region as the medium to long term.
Speaker Change: And before I, let go to microphone Andrew says, Okay, Thomas' comments with regards tissue and Jack if I take turnkey.
Speaker Change: Okay.
Speaker Change: Three.
Speaker Change: But please don't.
Speaker Change: Chris well.
Speaker Change: You have to be very careful indeed.
Speaker Change: Consume.
Speaker Change: Customers are increasingly.
Speaker Change: Where is the value of the protect.
Beyond the price if you will.
Speaker Change: Creasing prices is something that.
Speaker Change: Is properly understood by clients. The problem is when you increase your prices, but no. Good reason you have to be able to.
Speaker Change: Justify a price hike more better quality better finish is different.
Speaker Change: Material is used.
Speaker Change: And it is true and I suppose that's why you're asking the question.
Speaker Change: <unk>.
Speaker Change: Houses have unfortunately.
Speaker Change: Again, not all but some have.
Speaker Change: Increased their prices and a somewhat extravagant manner without really giving any justification or having any justification to provide I mean, pushing prices up 15% just doesn't make sense. If theres no change in the product and if that happens then the clients just wonder what's happening and why there.
Speaker Change: Being taken for a ride.
Speaker Change: You have to be realistic.
Speaker Change: It keeps us honest about it and gave the clients high products high quality products.
Speaker Change: Justifiable.
The quality and therefore, just a favorable prices and that's what we try and do and I think we're pretty good at it.
Speaker Change: Zinc is June wisdom shown at <unk>.
Luisa on your question about.
Speaker Change: The geographical balance of revenue in the future well the current geographical breakdown is pretty good 25 in the U S and U K.
Speaker Change: Europe and 30% in.
Speaker Change: Asia, where the rest broken down between Japan, and the Middle East.
Speaker Change: Looks good because it means that we still have a good balance when.
Speaker Change: Things go badly in one area. So could mask what has to be done now is not so much focus on the geographical balance of the whole group, but really do it further.
Speaker Change: And Brian I must say, we retooled Gilles and wines and spirits easy to manage but we really have to make sure that all of our brands manage to have a balanced presence in the U S in Europe and in Asia, and that's not always the case.
Speaker Change: And of course, the brands I was mentioning I know in the ELV MH group.
Speaker Change: Last question here on that side.
Who should get.
Speaker Change: Ladies and gentlemen.
Speaker Change: Good evening as really a gagnon le monde.
Demand.
Speaker Change: King.
Speaker Change: I come back to Tiffany, Pennsylvania could you put an end to the sponsoring contract.
Speaker Change: Tiffany and Jay Z given the.
Speaker Change: Civil case that is being brought against him for.
Speaker Change: Raping and under-age go.
And second question.
Speaker Change: Last time, I need to and if I understand rightly <unk>.
Speaker Change: Bolton Plaza, Merit, and 100% and Couldnt.
Speaker Change: Could you tell us more about what is being said that Latam retail.
Speaker Change: Shows losses to the tune of 90 million euros. Thank you.
Speaker Change: That's helpful.
Speaker Change: Let me start maybe with that last question is on the Portugal noise sources.
Speaker Change: I have no idea where that number figure it comes from.
Speaker Change: Sure.
Speaker Change: Is entirely preposterous cities, but assume.
Speaker Change: Think of them as an hour.
Speaker Change: The operation model, some idea and they say the opposite.
Speaker Change: The management was mainly.
Speaker Change: Focus on Chinese customers.
Speaker Change: And we are taking it out of the DFS group to put it in very much to have a broader opening.
Speaker Change: And broader customer base, but nobody has never been $19 million losses.
Speaker Change: As concerns the unfortunate incident, you mentioned, namely Jay Z being anymore.
Speaker Change: <unk>.
Speaker Change: Oh accused of these facts I must say I do not know where the proceedings have got to and as far as I can tell it until he is innocent until proven guilty.
So says Mr. Byung key contract lapsed in 2022.
Speaker Change: Well. Thank you very much says Mr. Arnaud.