Chapters
Annual Report 2020

4.2 Financial review

Summarized consolidated income statement

in millions of EUR

2020

% of revenue

2019

% of revenue

Revenue

3,481

100%

4,039

100.0%

Cost of sales and direct related expenses

- 988

-28%

- 1,110

-27.5%

Gross profit

2,493

72%

2,930

72.5%

Selling and marketing costs

- 1,808

-52%

- 2,028

-50.2%

General and administrative costs

- 624

-18%

- 578

-14.3%

Share of result of associates

- 1

0%

- 1

0.0%

Operating result

60

2%

324

8.0%

Net financial result

- 50

-1%

- 49

-1.2%

Result before tax

9

0%

275

6.8%

Income tax

- 54

-2%

- 79

-2.0%

Result for the period

- 45

-1%

195

4.8%

Result attributable to equity holders

- 67

-2%

178

4.4%

Result attributable to non-controlling interests

22

1%

17

0.4%

Net financial result

Net financial result was broadly in line with the previous year, reporting a slight decrease from EUR -49 million in 2019, to EUR -50 million in 2020.

Income tax

Income tax decreased from EUR 79 million in 2019, to EUR 54 million in 2020. The effective tax rate (ETR) in 2019 was 28.9%. The ETR for 2020 was 584.5%.

In 2020, the ETR indicator was not comparable with previous years due to the different weights of profits and losses in relation to the COVID-19 pandemic in the markets where we operate and changes to the relevant tax rates.

Net result for the period

Reported net result decreased from EUR 195 million in 2019 to EUR -45 million in 2020, as a result of the strong negative impact in the spring from temporary store closures, which resulted in lower sales and adjusted EBITA and higher impairment charges.

Net result attributable to equity holders decreased to EUR -67 million in 2020 from EUR 178 million in 2019.

Earnings per share (EPS)

Adjusted EPS, which excludes non-recurring items, was EUR -0.07 in FY20 (FY19: EUR 0.91). Earnings per share basic and diluted decreased by 137.5% to EUR -0.26 in FY20 (FY19: EUR 0.70).

The average number of shares outstanding was 253,714,180 in FY20 (FY19: 253,693,611).