Latin America
Revenues in Latin America increased 22% on a currency-neutral basis. In euro terms, sales in Latin America improved 9% to € 2,291 million from € 2,104 million in 2022. On a currency-neutral basis, this improvement was driven by strong double-digit growth in both Performance and Lifestyle. Almost all categories grew at strong double-digit rates.
Net sales in Latin America
+22%
C.N.
€ 2,291 million
|
|
2023 |
|
2022 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
2,291 |
|
2,104 |
|
9% |
|
22% |
||||
Gross margin |
|
45.6% |
|
47.4% |
|
(1.8pp) |
|
– |
||||
Segmental operating profit |
|
482 |
|
473 |
|
2% |
|
– |
||||
Segmental operating margin |
|
21.0% |
|
22.5% |
|
(1.5pp) |
|
– |
||||
|
||||||||||||
Gross margin in Latin America decreased 1.8 percentage points to 45.6% (2022: 47.4%). While improved pricing had a significant positive impact on the margin development, significant negative currency developments, higher discounting, and increased supply chain costs weighed on the gross margin development in the region. Operating expenses were up 6% to € 564 million from € 534 million in 2022. This development reflects increases in both marketing expenditures and operating overhead costs. However, operating expenses as a percentage of sales decreased 0.8 percentage points to 24.6% (2022: 25.4%). Operating profit in Latin America increased 2% to € 482 million versus € 473 million in 2022. As a result of the lower gross margin, the operating margin decreased 1.5 percentage points to 21.0% from 22.5% in 2022.
Do you know how treasury manages our cash flows?
More on Treasury