Better or W 2016 EYK 5-2 2017 a. Gross Profit Percentage Return on Sales EYK5-9. Analyzing IFRS Financial Statements The 2017 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C at the end of this book. LVMH is a Paris-based holding company and one of the world's largest and best-known luxury goods com- panies. As members of the European Union, French companies are required to prepare their con- solidated (group) financial statements using International Financial Reporting Standards (IFRS). Using the company's financial statements, calculate the company's (a) gross profit percentage and (b) return on sales ratio for 2016 and 2017. Comment on the trend in the company's profitability over the two-year period. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED B. LANCE SHEET ASSETS EUR millors 2016 2015 13.105 10.401 12 129 Brands and other intangible assets Goodwill Property, plant and equipment Investments in joint ventures and associates Non-current available for sale financial assets Other non-current assets Deferred tax 13.572 10.122 11.157 770 1,739 2058 1965 40,224 47,468 10,908 2737 Non-current assets Inventories and fork in progress Trade accounts receivable Income Other current assets Cash and cash equivalents Current assets 1009 ::: 10546 2.685 2919 3738 2343 3544 19,399 21.082 68,550 59.622 57.601 LIABILITIES AND FOUITY TEL 1.165 1049 17,965 25293 151D 26100 Share capital Share premium account Treasury shares and LVMH share-settled derivatives Cumulative translation adjustment Revaluation reserves Other reserves Net profit, Group share Equity Group share Minority interests Equity Long-term borrowings Non-current provisions Deferred tax Other non-current liabilities Non-current liabilities Short-term borrowings Trade accounts payable Income taxes Current provons Other current liabilities Current liabilities 27.903 3.932 2,342 4511 PERETE 128889832*3!! 7.957 19.103 3.789 Total abilities and equity 15.000 12,810 12.699 68,550 57401 CO S OCONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT IEUR millions, except for earnings per share Notes 2017 2016 2015 Revenue Cost of sales 42,636 (14,7831 27,853 116,395 13.1621 37,600 113.0091 24,561 114,6071 12,9311 35,664 112,5531 23,111 113.8301 12.6631 1131 23-24 8,293 7,026 11221 6,605 12211 11801 6,384 Gross margin Marketing and selling expenses General and administrative expenses Income loss from joint ventures and associates Profit from recurring operations Other operating income and expenses Operating profit Cost of net financial debt Other financial income and expenses Net financial income lexpense) Income taxes Net profit before minority interests Minority interests Net profit, Group share 8,113 162) 1117 6,904 183) 1349) 178 13361 1179) 14321 1614) 11.9691 12.3181 5,616 14871 12.1091 4,363 13821 3.981 4,001 4281 3,573 5.129 7.11 502.395.491 Basic Group share of net earnings per share EURI Number of shares on which the calculation is based Diluted Group share of net earnings per share EURI Number of shares on which the calculation is based 10.21 502412694 10.18 504010,291 7.92 502,911,125 7.89 504,640,459 504,894,946
