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COMPAGNIE FINANCIERE RICHEMONT SA - Trading statement for the third quarter ended 31 December 2012

Release Date: 21/01/2013 09:59
Code(s): CFR     PDF:  
Wrap Text
Trading statement for the third quarter ended 31 December 2012

Compagnie Financière Richemont SA Depositary Receipts
issued by Richemont Securities SA
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR

COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE


TRADING STATEMENT FOR THE THIRD QUARTER ENDED 31 DECEMBER 2012

Financial highlights


* Sales in the quarter increased by 5 % at constant exchange rates and 9 % at actual rates
* Solid growth in the Americas, lower growth rates in other regions
* Retail outperformed wholesale


+-------------+-------------+-------------+--------------+--------------+
|             |October-      |October-      |Change at     |Change at     |
|             |December 2012|December 2011|constant        |actual        |
|             |EUR m         |EUR m         |exchange rates|exchange rates|
|             |              |              |versus prior |versus prior |
|             |              |              |year (%)      |year (%)      |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |              |              |              |              |
|region       |              |              |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Europe       |         1 013|           914| + 9 %        | + 11 %       |
+-------------+-------------+-------------+--------------+--------------+
|Asia-Pacific |         1 116|         1 051|   -          | + 6 %        |
+-------------+-------------+-------------+--------------+--------------+
|Americas     |           452|           382| + 13 %       | + 18 %       |
+-------------+-------------+-------------+--------------+--------------+


                                                   1
|Japan        |          281|          272| + 2 %        | + 3 %        |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |             |             |              |              |
|distribution |             |             |              |              |
|channel      |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Retail       |        1 554|        1 371| + 9 %        | + 13 %       |
+-------------+-------------+-------------+--------------+--------------+
|Wholesale    |        1 308|        1 248| + 2 %        | + 5 %        |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |             |             |              |              |
|business area|             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Jewellery    |        1 477|        1 363| + 4 %        | + 8 %        |
|Maisons      |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Specialist   |          784|          697| + 9 %        | + 13 %       |
|Watchmakers |              |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Montblanc    |          227|          220|   -          | + 3 %        |
|Maison       |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Other        |          374|          339| + 6 %        | + 10 %       |
+-------------+-------------+-------------+--------------+--------------+
|             |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Total Sales |         2 862|        2 619| + 5 %        | + 9 %        |
+-------------+-------------+-------------+--------------+--------------+


***

Review of trading in the three-month period

The following comments refer to changes at constant exchange rates.


                                                 2
The performance was highlighted by robust jewellery sales and continued retail channel momentum.
This was offset by a relatively weak wholesale channel, reflecting a cautious approach by the
Group’s retail partners in the watch business.

In Europe, the performance was satisfactory: the growth in retail sales moderated during the quarter
compared to the first six months of the financial year, whereas the wholesale trend seen in the
first six months continued.

Following several years of exceptional growth in the Asia Pacific region, in particular China, sales
were flat compared to the demanding comparative figures for the same quarter last year. While
wholesale sales growth was lower than in the first six months and in the comparative period due to
the cautious approach taken by the Group’s retail partners in Hong Kong and mainland China, boutique
openings contributed to the positive trend in retail sales.

Sales growth in the Americas region improved further, with both retail and wholesale channels
reporting solid demand.

Sales in Japan grew by 2 %; a slightly lower rate than that seen during the first six months of the
year.

At this stage, it is unclear how business patterns may develop and how the business in the Asia
Pacific region will evolve in the near future. Richemont takes a long-term view in managing its
business and will continue to invest in the development of its Maisons.

Retail sales growth slowed compared to the 15 % growth rate seen in the six months to September.

Wholesale sales also slowed compared to the 8 % rate of the first six months, reflecting the caution
of our retail partners and the less favourable retail environment, particularly in the Asia Pacific
region.

Compared to the first six months, all business areas saw lower rates of growth.

The Jewellery Maisons reported good sales growth in their own boutique networks. The retail network
performance benefitted from strong jewellery sales.


                                                 3
The Group’s Specialist Watchmakers performed well during the period. Retail sales through the
Maisons’ own boutiques were the principal driver of growth. The overall increase of 9 % reflects
good double-digit growth in most cases, although sales were lower for Maisons which are more focused
on the Asia Pacific region and which had the strongest comparatives in the comparative period.

Sales of the Montblanc Maison were in line with the comparative period, with retail sales growth
offsetting a decrease in sales to retail partners.

In the Group’s other businesses, Net-a-Porter and Chloé reported good growth compared to the prior
period.


Trading in the nine-month period

Sales growth over the nine-month period to December was 9 % at constant exchange rates or 17 % at
actual rates. The weakening of the euro against the dollar, in particular, had a positive impact on
the Group’s reported sales. Sales for the nine months ended 31 December 2012 are presented in
Appendix 1a.

The Group’s net cash position at 31 December 2012 amounted to some EUR 3.0 billion (2011: EUR 2.9
billion).


Corporate calendar

The Group’s results for the current financial year will be announced on Thursday, 16 May 2013.
The Company’s annual general meeting will be held in Geneva on Thursday, 12 September 2013.



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


                                                 4
E-mail: pressoffice@cfrinfo.net      E-mail: investor.relations@cfrinfo.net

About Richemont

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 A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai,
Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint
venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well
as other smaller Maisons and watch component manufacturing activities for third parties.

For its financial year ended 31 March 2012, Richemont reported sales of EUR 8 867 million. Operating
profit for the year amounted to EUR 2 040 million.

Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are
included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository
Receipts are listed in Johannesburg, Richemont’s secondary listing.




Appendix 1a: Sales for the nine months ended 31 December 2012

+-------------+-------------+-------------+--------------+--------------+
|             |April -      |April -      |Change at     |Change at     |
|             |December 2012|December 2011|constant      |actual        |
|             |EUR m        |EUR m        |exchange rates|exchange rates|
|             |             |             |versus prior |versus prior |
|             |             |             |year (%)      |year (%)      |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |             |             |              |              |
|region       |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Europe       |        2 870|        2 428| + 15 %       | + 18 %       |


                                                 5
+-------------+-------------+-------------+--------------+--------------+
|Asia-Pacific |        3 219|        2 769| + 6 %        | + 16 %       |
+-------------+-------------+-------------+--------------+--------------+
|Americas     |        1 150|          984| + 8 %        | + 17 %       |
+-------------+-------------+-------------+--------------+--------------+
|Japan        |          729|          652| + 3 %        | + 12 %       |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |             |             |              |              |
|distribution |             |             |              |              |
|channel      |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Retail       |        4 172|        3 454| + 12 %       | + 21 %       |
+-------------+-------------+-------------+--------------+--------------+
|Wholesale    |        3 796|        3 379| + 6 %        | + 12 %       |
+-------------+-------------+-------------+--------------+--------------+
|Sales by     |             |             |              |              |
|business area|             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Jewellery    |        4 084|        3 528| + 8 %        | + 16 %       |
|Maisons      |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Specialist   |        2 243|        1 868| + 13 %       | + 20 %       |
|Watchmakers |              |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Montblanc    |          595|          554| + 2 %        | + 7 %        |
|Maison       |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Other        |        1 046|          883| + 11 %       | + 19 %       |
+-------------+-------------+-------------+--------------+--------------+
|             |             |             |              |              |
+-------------+-------------+-------------+--------------+--------------+
|Total Sales |         7 968|        6 833| + 9 %        | + 17 %       |
+-------------+-------------+-------------+--------------+--------------+




                                                 6
Appendix 1b: Foreign exchange rates

+---------------------------------------+--------------+--------------+
|Average exchange rates against the euro|April-Dec 2012|April-Dec 2011|
+---------------------------------------+--------------+--------------+
|United States dollar                   |1.28          |1.40          |
+---------------------------------------+--------------+--------------+
|Japanese yen                           |102           |110           |
+---------------------------------------+--------------+--------------+
|Swiss franc                            |1.20          |1.21          |
+---------------------------------------+--------------+--------------+


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
2012 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.




21 January 2013

Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)

Compagnie Financière Richemont SA
50, Chemin de la Chênaie CH-1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550
www.richemont.com




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