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B U S I N E S S A N D S U S T A I N A B L E D E V E L O P M E N T R E P O R T
2010
FINANCIAL
OVERVIEW
RECORD PERfORMANCE
“2010, an excellent year in many ways.
The general economic context last year was more favourable than in 2009: good overall
trading in mature markets, revived consumer spending in most emerging economies,
brisk demand in small domestic equipment, and a rise in the value of most currencies in
relation to the euro. In this favourable environment, our strong world positions, the constant
enrichment and renewal of our product offer, our competitive pricing policy, and reinforced
marketing and advertising campaigns were all decisive in bolstering sales, which recorded
9.6% organic growth. There was also a significant positive exchange effect, in sharp contrast
with the very negative impact in 2009.
Meanwhile, our operating performance saw a further marked improvement, with an
operating margin of €438 million – up 23% due largely to a favourable volume effect and,
to a lesser extent, to a positive exchange impact. The Group achieved this while, at the same
time, it increased its investment for the future in the areas of R&D, marketing, advertising
and sales. With much lower restructuring charges than in 2009, and notwithstanding a rise
in bonus and profit sharing (which reflected good performance levels in France), net income
came to €220 million, which was a year-on-year gain of 51%.
Moreover, cash flow generated by this robust trading
helped us again to reduce our level of debt
by €112 million, thus further strengthening our
balance sheet and giving the Group ample scope
for financial manoeuvre. The acquisition
of the Colombian company, Imusa, finalized on
28 February 2011, offers an ideal opportunity
to expand the Group’s operations in Latin
America.
”
Jean-Pierre Lac,
Senior Executive Vice-President, Finance