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CFR - Compagnie Financiere Richemont SA - Richemont reports five months
sales at annual general meeting
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
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 2011
increased by 29 % at actual exchange rates. At constant exchange rates,
sales increased by 35 %.
Change at constant Change at actual
exchange rates exchange rates versus
versus prior year prior year
Sales by region
Europe + 22 % + 21 %
Asia-Pacific + 59 % + 46 %
Americas + 41 % + 26 %
Japan + 8 % + 7 %
Sales by distribution channel
Retail + 44 % + 37 %
Wholesale + 27 % + 22 %
Sales by business area
Jewellery Maisons + 41 % + 34 %
Specialist Watchmakers + 34 % + 28 %
Montblanc Maison + 15 % + 10 %
Other + 30 % + 24 %
Total + 35 % + 29 %
On a region-by-region basis, sales growth in Europe was robust, reflecting
purchases made by local clients as well as travellers. The Asia-Pacific
region continues to report very strong sales growth. This stems from
sustained consumer confidence in that region, further boosted by the
Maisons` investments in their distribution networks. Sales growth in the
Americas was also notable. Sales in Japan increased, despite the aftermath
of the natural disasters which struck that country in March.
Retail sales enjoyed a higher momentum than wholesale sales thanks to a good
performance in the Maisons` boutiques, the expansion of their retail
networks, particularly in the Asia-Pacific region, and strong growth at NET-
A-PORTER.
All Maisons enjoyed solid growth, in particular the Jewellery Maisons with
their well-established retail networks.
Richemont expects its sales and operating profit for the first six months of
this year to be significantly higher than the comparative period.
Based on the strengthening of the Swiss Franc between March 2011 and today,
the Group will incur a significant translation loss on its cash balances.
Further, the accounting gain recognised in the comparative period relating
to the acquisition of Net-A-Porter of EUR 101 million will not re-occur.
Accordingly, Richemont expects attributable profit to be broadly in line
with the prior year despite a significantly higher operating profit.
Mr Johann Rupert, Executive Chairman and Group Chief Executive Officer,
commented:
"The rest of the financial year is difficult to predict. The problems of
fiscal deficits generally and Euro zone difficulties in particular are
likely to act as a drag on business prospects for companies in the period
ahead, especially if the growth markets are affected. To hope for a
continuation of the current good trading levels in such circumstances may be
over-optimistic. In addition, we must keep in mind the demanding comparative
figures against which sales in the coming six months will be measured.
Moreover, the impact of the Swiss franc`s appreciation against the euro and
other major currencies obviously poses a challenge for all Swiss exporters.
For Richemont, with a significant production base, our headquarters and many
of our Maisons located in Switzerland, the stronger Swiss franc will
continue to be negative for our cost of sales and operating expenses,
maintaining negative pressure on our margins.
It is reassuring that our Group continues to enjoy a strong financial
position: the net cash position at 31 August 2011 was EUR 2.6 billion. The
strength of our balance sheet, our continuing cost discipline and the
agility of our Maisons means that we will continue to maintain our
investment plans and face the foreseeable future with cautious optimism."
Richemont`s interim results for the six-month period to 30 September 2011
will be released on 11 November 2011.
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; Montblanc Maison; and
Other, being Alfred Dunhill, Chloe, Lancel and NET-A-PORTER.COM as well as
other smaller Maisons and watch component manufacturing activities for third
parties.
For its financial year ended 31 March 2011, Richemont reported sales of EUR
6 892 million. Operating profit for the year amounted to EUR 1 355 million.
7 September 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: 07/09/2011 07:30:01 Supplied by www.sharenet.co.za
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