10. Earnings per share
Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the consolidated profit for the period by the weighted average number of shares in issue during the period, excluding the weighted average number of treasury shares.
Diluted earnings per share reflects the effect of dilutive potential (ordinary) shares under the Group’s equity-settled share-based payment plans and arrangements. Awards granted under these equity-settled plans and arrangements have been included in the determination of diluted earnings per share considering the level of achievement of the set targets (see note 31) at the reporting date, and to the extent to which they are dilutive. Awards granted with only a service condition are included in the determination of diluted earnings per share to the extent to which they are dilutive. The dilutive effect of the share-based payment plans and arrangements is mainly related to the management PSU plans.
The following table shows the weighted average number of shares outstanding before and after adjustments for the effect of all dilutive potential shares. The Group issued shares on 22 February 2021, 18 May 2022 and 23 May 2022 (see note 24).
|
|
Weighted average number of ordinary shares |
|---|---|---|
Issued shares as of 1 January 2021 |
|
320,053,240 |
Effect of issue of shares on 22 February 2021 |
|
14,979,092 |
Effect of treasury shares held |
|
(147,880) |
Weighted average number of shares as of 31 December 2021 – basic |
|
334,884,452 |
Effect of share-based payment plans and arrangements |
|
777,937 |
Weighted average number of shares as of 31 December 2021 – diluted |
|
335,662,389 |
Issued shares as of 1 January 2022 |
|
337,520,872 |
Effect of issue of shares on 18 May 2022 |
|
6,871,233 |
Effect of issue of shares on 23 May 2022 |
|
20,619,863 |
Effect of treasury shares held |
|
(903,281) |
Weighted average number of shares as of 31 December 2022 – basic |
|
364,108,687 |
Effect of share-based payment plans and arrangements |
|
466,019 |
Weighted average number of shares as of 31 December 2022 – diluted |
|
364,574,706 |
The following table shows the calculation of basic and diluted earnings per share.
(In € million unless indicated) |
|
Year ended |
|
Year ended |
|---|---|---|---|---|
Profit for the period |
|
37.8 |
|
172.1 |
Weighted average number of shares for the period – basic |
|
364,108,687 |
|
334,884,452 |
Basic earnings per share |
|
0.10 |
|
0.51 |
Profit for the period |
|
37.8 |
|
172.1 |
Weighted average number of shares for the period – diluted |
|
364,574,706 |
|
335,662,389 |
Diluted earnings per share |
|
0.10 |
|
0.51 |
Adjusted earnings per share
Adjusted earnings per share is defined by the Group as adjusted net income divided by the weighted average number of shares. Management believes that adjusted earnings per share is a useful measure as adjusted net income is used to measure performance. Adjusted net income and adjusted earnings per share are not defined performance measures in IFRS (see note 9).
The table below shows the calculation of basic and diluted adjusted earnings per share.
(In € million unless indicated) |
|
Year ended |
|
Year ended |
|---|---|---|---|---|
Adjusted net income |
|
286.8 |
|
265.7 |
Weighted average number of shares for the period – basic |
|
364,108,687 |
|
334,884,452 |
Adjusted earnings per share – basic |
|
0.79 |
|
0.79 |
Adjusted net income |
|
286.8 |
|
265.7 |
Weighted average number of shares for the period – diluted |
|
364,574,706 |
|
335,662,389 |
Adjusted earnings per share – diluted |
|
0.79 |
|
0.79 |