Moncler Group | Annual Report 2024 Consolidated Financial Statements 390 Moncler Group | Annual Report 2024 Consolidated Financial Statements 391
8. Contingent liabilities
As the Group operates globally, it is subject to legal and tax risks
which may arise during the performance of its ordinary
activities. Based on information available to date, the Group
believes that at the date of preparation of this document
there are no further potential liabilities in addition to those
already recorded in the provisions accrued in the Consolidated
Financial Statements.
7. Commitments and guarantees given
7.1 Commitments
The Group does not have signif icant commitments arising
from operating lease contract or other contractual cases
that do not fall within the scope of IFRS 16.
7.2 Guarantees given
As at 31 December 2024 the Group had given
the following guarantees:
Guarantees pertain mainly to lease agreements for the stores.
GUARANTEES AND BAILS GIVEN
EUR/000 31 December 2024 31 December 2023
Guarantees and bails given for the benef it of:
Third parties/companies 62,284 56,615
TOTAL GUARANTEES AND BAILS GIVEN 62,284 56,615
9. Information about f inancial risks
The Group's f inancial instruments include cash and cash
equivalents, loans, receivables and trade payables and
other current receivables and payables and non-current
assets as well as derivatives.
The Group is exposed to f inancial risks related to its
operations: market risk (mainly related to exchange rates
and interest rates), credit risk (associated with both regular client
relations and f inancing activities), liquidity risk (with particular
reference to the availability of f inancial resources and access
to the credit market and f inancial instruments) and capital risk.
Financial risk management is carried out by Headquarters,
which ensures primarily that there are suf f icient f inancial
resources to meet the needs of business development and that
resources are properly invested in income-generating activities.
The Group uses derivative instruments to hedge its exposure
to specif ic market risks, such as the risk associated with
f luctuations in exchange rates and interest rates, on the basis
of the policies established by the Board of Directors.
9.1 Market risk
Foreign exchange rate risk
The Group operates internationally and is exposed to foreign
exchange rate risk primarily related to the U.S. Dollar,
the Japanese Yen and the Chinese Renminbi and to a lesser
extent to the Hong Kong Dollar, British Pound, Korean Won,
Canadian Dollar, Swiss Franc, Taiwan Dollar, Singapore Dollar,
Australian Dollar, Mexican Peso, Norwegian Kroner,
New Zealand Dollar and Swedish Kroner.
The Group regularly assesses its exposure to f inancial market
risks and manages these risks through the use of derivative
f inancial instruments, in accordance with its established risk
management policies.
The Group’s policy permits derivatives to be used only
for managing the exposure to f luctuations in exchange rates
connected with future cash f lows and not for speculative purposes.
During 2024 the Group put in place a policy to hedge
the exchange rates risk on transactions with reference
to the major currencies to which it is exposed USD JPY CNY
HKD GBP KRW CAD CHF TWD SGD AUD MXN
NOK NZD and SEK
The instruments used for these hedges are mainly Currency
Forward Contracts and Currency Option Contracts
The Group uses derivative f inancial instruments as cash
f low hedges for the purpose of redetermining the exchange
rate at which forecasted transactions denominated in foreign
currencies will be accounted for
Counterparties to these agreements are major and diverse
f inancial institutions