Wrap Text
Trading update for the third quarter ended 31 December 2014
Compagnie Financière Richemont SA Depositary Receipts
issued by Richemont Securities SA ("Richemont Securities" or "Richemont")
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE
TRADING UPDATE FOR THE THIRD QUARTER ENDED 31 DECEMBER 2014
Financial highlights
* Sales in the quarter were flat at constant exchange rates; sales increased at 4 % at actual rates
* Performance varied across regions and product lines
* Growth in Europe/Middle East and the Americas was offset by a significant decline in Asia Pacific
+-----------------+--------+--------+------------------+----------------+
| |October-|October-|Change at constant|Change at actual|
| |December|December|exchange rates |exchange rates |
| |2014 |2013 |versus prior |versus prior |
| | | |period |period |
| |EUR m |EUR m |(%) |(%) |
+-----------------+--------+--------+------------------+----------------+
|Sales by region | | | | |
+-----------------+--------+--------+------------------+----------------+
|Europe | 1 192| 1085| + 9 %| + 10 %|
+-----------------+--------+--------+------------------+----------------+
|Asia Pacific | 1 070| 1 131| - 12 %| - 5 %|
+-----------------+--------+--------+------------------+----------------+
|Americas | 547| 480| + 7 %| + 14 %|
+-----------------+--------+--------+------------------+----------------+
|Japan | 242| 245| + 2 %| - 2 %|
+-----------------+--------+--------+------------------+----------------+
|Sales by | | | | |
|distribution | | | | |
|channel | | | | |
+-----------------+--------+--------+------------------+----------------+
|Retail | 1 744| 1 660| + 2 %| + 5 %|
+-----------------+--------+--------+------------------+----------------+
|Wholesale | 1 307| 1 281| - 2 %| + 2 %|
+-----------------+--------+--------+------------------+----------------+
|Sales by | | | | |
|business area | | | | |
+-----------------+--------+--------+------------------+----------------+
|Jewellery Maisons| 1 565| 1 521| - 1 %| + 3 %|
+-----------------+--------+--------+------------------+----------------+
|Specialist | 816| 817| - 4 %| 0 %|
|Watchmakers | | | | |
+-----------------+--------+--------+------------------+----------------+
|Other | 670| 603| + 7 %| + 11 %|
+-----------------+--------+--------+------------------+----------------+
| | | | | |
+-----------------+--------+--------+------------------+----------------+
|Total Sales | 3 051| 2 941| 0 %| + 4 %|
+-----------------+--------+--------+------------------+----------------+
Review of trading in the three-month period ended 31 December 2014 at constant exchange rates
Overall, third quarter trading was below the first six months of the year.
In Asia Pacific, the decline in sales reflected an unfavourable basis of comparison and a difficult trading environment in most markets, primarily in Hong Kong and Macau.
European sales benefitted from strong domestic sales and a return of visitors in the main tourist destinations, helped by favourable exchange rates.
The Americas region continued to report good growth, albeit at a slower pace than in the first six-month period. Sales were particularly driven by jewellery and the Net-a-Porter Group.
Soft domestic demand in Japan partly reflected the continued impact of the surge in purchases made ahead of the April 2014 sales tax increase. That surge led to a 47 % sales increase in the final quarter of the comparative financial year.
The period's overall performance reflected demand for jewellery, particularly through the retail channel.
Retail continued to outperform the wholesale channel. Retail sales were supported by selective store openings, jewellery sales and Net-a-Porter.
The Jewellery Maisons reported satisfactory sales growth in their own boutique networks. The retail network performance benefitted from jewellery sales in particular.
The decline in sales by the Group's Specialist Watchmakers reflected both caution on the part of business partners in the wholesale channel and a lower performance of some retail locations, most notably in Hong Kong and Macau.
In the Group's other businesses, the Net-a-Porter Group continued to report growth well above the Group average.
The Group's net cash position at 31 December 2014 amounted to EUR 4.9 billion (2013: EUR 4.3 billion).
Trading in the nine-month period ended 31 December 2014
Sales growth over the nine-month period to December was 2 % at constant exchange rates or 3 % at actual rates. Sales for the nine months ended 31 December 2014 are presented in Appendix 1a.
Corporate calendar
The Group's results for the current financial year will be announced on Friday, 22 May 2015.
The Company's annual general meeting will be held in Geneva on Wednesday, 16 September 2015.
Disclaimer
The financial information contained in this announcement is unaudited.
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
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 and Arpels; Specialist watchmakers, being A. Lange and Söhne, Baume and Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewellerry joint venture and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc 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 2014, Richemont reported sales of EUR 10 649 million. Operating profit for the year amounted to EUR 2 419 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 2014
+-----------------+--------+--------+------------------+----------------+
| |April- |April- |Change at constant|Change at actual|
| |December|December|exchange rates |exchange rates |
| |2014 |2013 |versus prior |versus prior |
| | | |period |period |
| |EUR m |EUR m |(%) |(%) |
+-----------------+--------+--------+------------------+----------------+
|Sales by region | | | | |
+-----------------+--------+--------+------------------+----------------+
|Europe | 3 320| 3 087| + 7 %| + 8 %|
+-----------------+--------+--------+------------------+----------------+
|Asia Pacific | 3 153| 3 255| - 4 %| - 3 %|
+-----------------+--------+--------+------------------+----------------+
|Americas | 1 406| 1 264| + 11 %| + 11 %|
+-----------------+--------+--------+------------------+----------------+
|Japan | 602| 659| - 4 %| - 9 %|
+-----------------+--------+--------+------------------+----------------+
|Sales by | | | | |
|distribution | | | | |
|channel | | | | |
+-----------------+--------+--------+------------------+----------------+
|Retail | 4 595| 4 407| + 4 %| + 4 %|
+-----------------+--------+--------+------------------+----------------+
|Wholesale | 3 886| 3 858| 0 %| + 1 %|
+-----------------+--------+--------+------------------+----------------+
|Sales by | | | | |
|business area | | | | |
+-----------------+--------+--------+------------------+----------------+
|Jewellery Maisons| 4 248| 4 188| + 1 %| + 1 %|
+-----------------+--------+--------+------------------+----------------+
|Specialist | 2 441| 2 404| + 1 %| + 2 %|
|Watchmakers | | | | |
+-----------------+--------+--------+------------------+----------------+
|Other | 1 792| 1 673| + 6 %| + 7 %|
+-----------------+--------+--------+------------------+----------------+
| | | | | |
+-----------------+--------+--------+------------------+----------------+
|Total Sales | 8 481| 8 265| + 2 %| + 3 %|
+-----------------+--------+--------+------------------+----------------+
Appendix 1b: Foreign exchange rates
+---------------------------------------+--------------+--------------+
|Average exchange rates against the euro|April-Dec 2014|April-Dec 2013|
+---------------------------------------+--------------+--------------+
|United States dollar |1.31 |1.33 |
+---------------------------------------+--------------+--------------+
|Japanese yen |140 |132 |
+---------------------------------------+--------------+--------------+
|Swiss franc |1.21 |1.23 |
+---------------------------------------+--------------+--------------+
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 2014 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.
COMPAGNIE FINANCIÈRE RICHEMONT SA
50, CHEMIN DE LA CHÊNAIE CP30 1293 BELLEVUE - GENEVA SWITZERLAND
TELEPHONE +41 (0)22 721 3500 TELEFAX +41 (0)22 721 3550
WWW.RICHEMONT.COM
15 January 2014
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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