After disappointing bank accounts BNP Paribas, other negative results from France arrive in the morning. First of all, it is the Pernod Ricard group of wines and spirits, which on the occasion of the publication of the six-monthly, has sounded a warning about financial targets for the year, due to an approximately 20% decline in activity in China and announced a plan to cut 150 million euros over three years. The transalpine group has now revised its growth to between 1% and 3% of its current operating income, against an increase of 4-5% previously expected and 6% last year. In the semester (July-December) sales fell by 7% to 4,57 billion and the net result fell by 2% to 839 million.
Renault is also suffering, aiming to achieve a turnover of 50 billion euros and an operating margin of more than 5% of turnover in 2017, with a positive cash flow every year. These are the forecasts that the French automotive group reserves for the second part of its strategic plan. For the plan to 2013 the group has not achieved its targets of sales of 3 million cars and operating margin above 5% as expected. The group reported a drop in net profit by a third to $586 million from $1,75 billion last year, mostly due to the shutdown in Iran, while revenue remained nearly stable at $40,9 billion. For 2014 we expect an improvement in operating profit and turnover.
Record-breaking performance instead for the luxury brand Hermes, one of the symbols of French style, which closed 2013 with record sales of 3,75 billion euros, up 7,8% on last year and in line with market expectations. The group announced that its operating margin is expected to be "slightly above" its 2012 peak of 32,1 percent. At constant exchange rates, Hermes sales increased by 13 percent.
Hermes has announced the payment of an interim dividend of 1,5 euros per share.
