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CFR - Compagnie Financiere Richemont SA Depositary Receipts - Trading statement
for the three months ended 31 December 2010
Compagnie Financiere Richemont SA Depositary Receipts
issued by Richemont Securities SA
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
PRESS RELEASE FOR IMMEDIATE RELEASE
TRADING STATEMENT FOR THE THREE MONTHS ENDED 31 DECEMBER 2010
Financial highlights
* Total sales in the quarter increased by 23 per cent at constant exchange
rates. Excluding the acquisition of NET-A-PORTER.COM and at constant exchange
rates, sales rose by 19 per cent
* Growth was broad-based, with the highest rate reported in the Asia-Pacific
region
* Retail sales increased by 23 per cent at constant exchange rates and excluding
acquisitions
* All business areas reported double-digit sales growth
Oct-Dec Oct-Dec Change at Change at
2010 2009 constant actual
EUR m EUR m exchange exchange
rates versus rates
prior year versus
(%) prior year
(%)
Sales by region
Europe 791 656 + 17 % + 20 %
Asia-Pacific 772 492 + 42 % + 57 %
Americas 311 246 + 17 % + 27 %
Japan 233 191 + 3 % + 21 %
Sales by distribution channel
Retail 1 069 748 + 31 % + 43 %
Wholesale 1 038 837 + 16 % + 24 %
Sales by business area
Jewellery 1 088 837 + 20 % + 30 %
Maisons
Specialist 543 417 + 21 % + 30 %
Watchmakers
Writing 216 183 + 12 % + 19 %
Instruments
Maison
Other 260 148 + 63 % + 75 %
Total Sales 2 107 1 585 + 23 % + 33 %
Commenting on the three months sales, Executive Chairman and Group Chief
Executive Officer, Mr. Johann Rupert, made the following statement:
"Richemont`s Maisons performed well and saw good sales growth, particularly at
the retail level, during the three-month period. Sales in the month of December
grew by 17 per cent at constant exchange rates and excluding the impact of the
NET-A-PORTER.COM acquisition.
As indicated previously, higher comparative figures will make the final quarter
of the financial year ending 31 March 2011 more challenging. Gross margin is
anticipated to be negatively affected by a stronger Swiss franc given the
Group`s Swiss manufacturing base and by the planned changes to product lines at
one of the Group`s Specialist Watchmakers, which will be largely implemented
during the coming quarter."
Review of trading
Sales in Europe were significantly higher than the comparative period, partly
due to the impact of the acquisition of NET-A-PORTER.COM. The growth of sales in
Asia-Pacific reflects a continuation of the Maisons` expansion in that fast-
growing region. The Americas continued to report strong growth, helped by the
impact of NET-A-PORTER.COM. Sales in Japan continued to grow at a low rate in
yen terms.
In terms of sales by distribution channel, the high rate of retail sales growth
partly reflected the acquisition of NET-A-PORTER.COM. Excluding that business,
retail sales increased in the third quarter by 23 per cent at constant exchange
rates.
Demand for the Group`s products was broad-based, with all business areas
reporting double-digit sales growth. This demonstrated our Maisons` strong
position in jewellery, fine watchmaking and premium accessories. The very high
rate of growth reported in `Other` reflects the acquisition of NET-A-PORTER.COM
The Group`s net cash position at 31 December 2010 amounted to some EUR 2.2
billion (2009: EUR 1.4 billion). Linked to this position, it is anticipated that
the strength of the Swiss franc will result in higher non-cash financial charges
for the year.
Sales for the nine months ended 31 December 2010 are presented in Appendix 1a.
Corporate calendar
The Group`s results for the current financial year will be announced on
Thursday, 19 May 2011.
The Compagnie Financiere Richemont SA annual general meeting will be held in
Geneva on Wednesday, 7 September 2011.
Press enquiries
Alan Grieve
Director of Corporate Affairs
Tel: +41 22 721 3507
E-mail: pressoffice@cfrinfo.net
Analysts` enquiries
Sophie Cagnard
Head of Investor Relations
Tel: +33 1 58 18 25 97
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 EUR 5
176 million. Operating profit for the year amounted to EUR 830 million.
Appendix 1a: Sales for the nine months ended 31 December 2010
April-Dec April-Dec Change at Change at
2010 2009 constant actual
EUR m EUR m exchange exchange
rates versus rates
prior year versus
(%) prior year
(%)
Sales by region
Europe 2 051 1 651 + 20 % + 24 %
Asia-Pacific 1 929 1 263 + 38 % + 53 %
Americas 800 570 + 28 % + 40 %
Japan 586 480 + 4 % + 22 %
Sales by distribution channel
Retail 2 591 1 783 + 34 % + 45 %
Wholesale 2 775 2 181 + 18 % + 27 %
Sales by business area
Jewellery 2 707 2 059 + 21 % + 31 %
Maisons
Specialist 1 444 1 072 + 25 % + 35 %
Watchmakers
Writing 519 420 + 16 % + 24 %
Instruments
Maison
Other 696 413 + 57 % + 68 %
Total Sales 5 366 3 964 + 25 % + 35 %
Appendix 1b: Foreign exchange rates
Average exchange rates against the euro April-Dec April-Dec
2010 2009
United States dollar 1.31 1.42
Japanese yen 113 133
Swiss franc 1.35 1.51
Actual exchange rates for the period are calculated using the average daily
closing rates against the euro.
In terms of sales at constant exchange rates, average exchange rates for the
year ended 31 March 2010 are used to convert local currency sales into euros for
the current three-month period, the current nine-month period and comparative
figures. Exchange rate translation effects are thereby eliminated from the
reported sales performance.
17 January 2011
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Compagnie Financiere Richemont SA
50, Chemin de la Chenaie CH-1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550
www.richemont.com
Date: 17/01/2011 08:00:02 Supplied by www.sharenet.co.za
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