In 2021, the Group's consolidated revenue reached €8,982 million, up 42% at constant exchange rate and 41% at current exchange rate compared to 2020. Over two years, this increase was 33% at regular exchange rate in the first and the second half of the year. Recurring operating income was up 78% and amounted to €3,530 million (39.3% of sales). Net profit (Group share) reached €2,445 million, up 77% compared to 2020.
Hermès' Executive Chairman said that in 2021, his team created jobs not only in France but worldwide and the company continued to develop its distribution network and increased online sales.
Asia excluding Japan continued to post a dynamic growth, thanks to the sustained performance in Greater China, Australia and Singapore, and new stores opened in Macao and Shenzhen. Europe excluding France announced a steady increase in local customer traffic.
The Hermès business lines continue to grow, with the Watches and Other Hermès Business Lines also increasing significantly. Sales were exceptional in the Leather Goods and Saddlery division (+29% and +23% over two years). Demand for new bags like Della Cavalleria and 24/24 was sustained, and new production capacity was added at the Louviers, Sormonne and Riom sites.
The Ready-to-wear and Accessories business line (+59% and +44% over two years) continued to grow, thanks to the success of the collections. The Silk and Textiles business line (+49% and +15%) also performed well. Perfumes and Beauty (+47% and +19% over two years) benefitted from the successful launches of the H24 fragrance and Twilly Eau Ginger. The Watches business line (+73% and +77% over two years) confirmed growth, rcoming from the exceptional watch-making expertise and the success of the new men's watch H08 alongside other house classics.
Recurring operating income amounted to €3,530 million, rising 78% from €1,981 million in 2020. Thanks to the collections remarkable sell-through and an exceptional leverage effect, the recurring operating margin reached a historical high of 39% of sales, up 8 points compared to 2020 and 5 points compared to 2019. Consolidated net profit (Group share) amounted to €2,445 million (27% of sales), up 77% from €1,385 at the end of December 2020.
The Hermès Group has recruited and added nearly 1,000 people this year, and in 2022 will give €3,000 bonuses to all employees. Also, The Group scored an "A" rating in 2021, as evidenced by the improvement of its non-financial ratings. It was included in the CAC40 ESG index, as well as Sustainalytics and the CDP rating.
Hermès Group reaffirms its commitment to fight climate change by reducing emissions by 50,4% and 58,1% between 2018 and 2030.
Hermès is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication, despite current global economic, geopolitical and monetary uncertainties.
In February 2021, Executive Management presented to the Supervisory Board the audited financial statements for 2021. In March 2022, the complete consolidated financial statements will be made available.