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CFR - Compagnie Financiere Richemont SA Depositary Receipts -
Richemont reports five months sales at Annual General Meeting
Compagnie Financiere Richemont SA Depositary Receipts
issued by Richemont Securities AG
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
RICHEMONT REPORTS FIVE MONTHS SALES AT ANNUAL GENERAL MEETING
Ahead of its Annual General Meeting to be held later today in Geneva, Richemont
announces that its sales for the five months ended 31 August 2010 increased by
37 per cent at actual exchange rates. At constant exchange rates and excluding
the impact on sales of the acquisition of NET-A-PORTER.COM in April 2010, sales
increased by 22 per cent.
Change at actual Change at constant
exchange rates exchange rates
versus prior year versus prior year
(%) (%)
Sales by region
Europe + 27 % + 23 %
Asia-Pacific + 51 % + 36 %
Americas + 52 % + 38 %
Japan + 22 % + 4 %
Sales by distribution channel
Retail + 47 % + 34 %
Wholesale + 30 % + 21 %
Sales by business area
Jewellery Maisons + 32 % + 21 %
Specialist Watchmakers + 40 % + 30 %
Writing Instruments Maison
+ 28 % + 20 %
Other + 62 % + 51 %
The strong growth in sales reflects, in part, the low comparative figures
reported in the prior period.
Europe, including the Middle East, remains the most important region for the
Group with sales accounting for 41 per cent of overall sales. At constant
exchange rates and excluding new businesses, sales in the European region
increased by 15 per cent. The Asia-Pacific region, including China, continued to
report strong sales growth. The Americas region also reported strong growth,
albeit compared to very weak comparative figures. Sales growth in Japan was
largely due to favourable exchange rate effects.
Excluding the acquisition of NET-A-PORTER, retail sales increased by 24 per cent
at constant exchange rates, reflecting strong growth in all regions. The Group`s
wholesale business, which suffered in particular during the comparative period
due to de-stocking by business partners in some markets, also reported strong
growth. The proportion of retail sales has increased from 43 per cent in the
comparative period to 47 per cent in the period under review.
All Maisons have benefited from the improvement in the economic climate. The
significant sales increase in the `Other` segment principally reflected the
acquisition of NET-A-PORTER, as well as positive momentum of the Group`s fashion
and accessories Maisons, primarily at the retail level.
Commenting on the first five months sales, Executive Chairman and Group Chief
Executive Officer, Mr. Johann Rupert, made the following statement:
"The improved trading environment is certainly welcomed. However, it is far too
soon to draw any conclusions about the sustainability of the economic recovery
or whether the recession is truly behind us.
This time last year we were still seeing falling sales. This year, with double-
digit sales growth already in hand, Richemont will report significantly higher
first half profit. However, the rest of the year is less straightforward. In the
second half of last year, we saw some recovery in sales, setting higher
comparative figures against which sales in the six months from October to March
will be measured. Relative to the present conditions, those comparative figures
were achieved with a weaker euro against the dollar and yen. Compared to the
second half of last year, the current strength of the Swiss franc will be
negative for the cost of sales.
While sales in the growth markets of Asia-Pacific and the Middle East continue
to expand, sales in other regions remain below the record levels. This reflects
the continuing difficulties in Western economies. These sales results highlight
our Maisons` strength in growth markets.
The Group is in a strong financial position. The net cash position at 31 August
2010 was Euro 1 900 million; broadly in line with the level at the beginning of
the current financial year, despite our acquisition of NET-A-PORTER.
Our strong balance sheet, continuing discipline and powerful Maisons allow us to
face the foreseeable future with a degree of optimism."
Richemont`s interim results for the six-month period to 30 September 2010 will
be released on 12 November 2010.
Internet: www.richemont.com
Press enquiries Analysts` enquiries
Alan Grieve Sophie Cagnard
Director of Corporate Affairs Head of Investor Relations
Tel: +41 22 721 3507 Tel: +33 1 58 18 25 97
E-mail: pressoffice@cfrinfo.net E-mail:
investor.relations@cfrinfo.net
Richemont owns a portfolio of leading international brands or `Maisons`, which
are managed independently of one another, recognising their individuality and
uniqueness. The businesses operate in four areas: Jewellery Maisons, being
Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre,
Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange &
Sohne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint
venture; the Writing Instrument Maison Montblanc; and Other, being Alfred
Dunhill, Lancel, NET-A-PORTER and Chloe as well as other smaller Maisons and
watch component manufacturing activities for third parties.
For its financial year ended 31 March 2010, Richemont reported sales of Euro 5
176 million. Operating profit for the year amounted to Euro 830 million.
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Compagnie Financiere Richemont SA
50, Chemin de la Chenaie 1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550
www.richemont.com
8 SEPTEMBER 2010
Date: 08/09/2010 07:37:25 Supplied by www.sharenet.co.za
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