HERMÈS - 2019 Universal Registration Document

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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

COST OF SALES

NOTE 5

Cost of sales mainly comprises purchases, the cost of labour for production, the portion of depreciation that is allocated to the production cost, impairment of inventories, losses on inventories and variable selling expenses.

SELLING, MARKETING AND ADMINISTRATIVE EXPENSES

NOTE 6

2019

2018 restated

In millions of euros Communication

(356.9)

(298.1)

Other selling, marketing and administrative expenses

(1,458.7) (1,815.7)

(1,264.3) (1,562.3)

TOTAL

OTHER INCOME AND EXPENSES

NOTE 7

2019

2018 restated

Notes

In millions of euros

Depreciation of assets

(197.5) (209.4) (406.9)

(181.5) (187.0) (368.5)

Amortisation of right-of-use assets Depreciation and amortisation

Net change in provisions

(14.1) (36.9) (51.0) (28.5)

(18.7) (16.0) (34.7) (70.3) (72.0) (15.6)

Cost of pension plans and other long-term benefits

28

Sub-total

Impairment losses

Expenses linked to free share allocation plans and similar expenses

33

(114.1)

Other expenses Other products

(24.1)

20.5

24.4

Sub-total

(146.1) (604.0)

(133.5) (536.7)

TOTAL

Total depreciation and amortisation of fixed assets included in operating expenses (“Other income and expenses” and “Cost of sales”) amounted to €236.2 million in 2019, compared with €217.0 million in 2018.

Total amortisation of rights of use included in operating expenses (“Other income and expenses” and “Cost of sales”) amounted to €211.6 million in 2019, compared with €188.8 million in 2018.

OTHER NON-RECURRING INCOME AND EXPENSES

NOTE 8

In 2018, other non-recurring income corresponded to the net gains resulting from the disposal of the premises of the former Galleria store in Hong Kong for €52.7 million.

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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