Wrap Text
Results for the year ended 31 March 2021
Compagnie Financière Richemont SA
Depository Receipts issued by Richemont Securities SA
("Richemont Securities" or "Richemont" or "the Company" or "the Group")
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0045159024
Depository Receipt Code: CFR
COMPANY ANNOUNCEMENT
21 MAY 2021
RICHEMONT ANNOUNCES STRONG FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2021
Financial highlights
• Due to closures of points of sales, logistics centres and manufacturing sites, as well as the halt in international tourism resulting from the Covid-19 pandemic, sales contracted by 25% at constant exchange rates and by 26% at actual exchange rates in the first half of the financial year
• As initial lockdown measures began to ease, sales grew by 17% and by 12% at constant and actual exchange rates, respectively, in the second half of the financial year compared to the same period in the prior year
• Fourth quarter sales growth of 36% and 30% at constant and actual exchange rates, respectively, containing the decline in full year sales to 5% at constant exchange rates and 8% at actual exchange rates
• Strong start into the new financial year, with accelerating trends across all business areas
• Strong performance led by Jewellery Maisons, online retail and Asia Pacific; discipline and agility in exceptional circumstances
• Triple-digit growth at Group Maisons' online retail sales underscores the success of our Maisons' digital transformation; overall online retail sales grew by 6% at actual exchange rates, accounting for 21% of Group sales
• Solid retail sales, up at constant exchange rates, notwithstanding severe disruption from recurring widespread temporary closures of points of sales
• Jewellery Maisons grew sales beyond pre-Covid levels and increased operating margin to 31.0%, supported by strong double-digit sales growth in the second half of the year
• Digital enabling more diverse customer journeys and underpinning retail sales; increased direct engagement with end clients, now accounting for around ¾ of sales
• Strong performance in mainland China contributing to 19% sales growth in Asia Pacific, where year-on-year sales rose by triple digits in the fourth quarter
• Operating margin improved to 11.2% and profit for the year increased to EUR 1 289 million, impacted positively by net finance income
• Significant increase in net cash position to EUR 3 393 million, supported by strong cash flow from operating activities and strict working capital management
• Proposed dividend of CHF 2.00 per 1 A share / 10 B shares
Key financial data (audited)
+--------------------------------+------------+--------------+------------+
| | 2021| 2020| Change|
+--------------------------------+------------+--------------+------------+
|Sales |EUR 13 144 m| EUR 14 238 m| -8%|
+--------------------------------+------------+--------------+------------+
|Gross profit | EUR 7 861 m| EUR 8 611 m| -9%|
+--------------------------------+------------+--------------+------------+
|Gross margin | 59.8 %| 60.5 %| -70 bps|
+--------------------------------+------------+--------------+------------+
|Operating profit | EUR 1 478 m| EUR 1 518 m| -3%|
+--------------------------------+------------+--------------+------------+
|Operating margin | 11.2 %| 10.7 %| +50 bps|
+--------------------------------+------------+--------------+------------+
|Profit for the year | EUR 1 289 m| EUR 931 m| +38%|
+--------------------------------+------------+--------------+------------+
|Dividend per A share/10 B shares| CHF 2.00| CHF 1.00| +100%|
+--------------------------------+------------+--------------+------------+
|Earnings per A share/10 | EUR 2.296| EUR 1.646| +39%|
|B shares, diluted basis | | | |
+--------------------------------+------------+--------------+------------+
|Earnings per A share/10 | EUR 2.302| EUR 1.651| +39%|
|B shares, basic | | | |
+--------------------------------+------------+--------------+------------+
|Headline earnings per A | EUR 2.328| EUR 1.742| +34%|
|share/10 B shares, basic | | | |
+--------------------------------+------------+--------------+------------+
|Cash flow generated | EUR 3 218 m| EUR 2 370 m| +EUR 848 m|
|from operating activities | | | |
+--------------------------------+------------+--------------+------------+
|Net cash position | EUR 3 393 m| EUR 2 395 m| +EUR 998 m|
+--------------------------------+------------+--------------+------------+
Please contact Computershare at Web.Queries@Computershare.co.za if you wish to receive any documents electronically for Richemont.
This short form announcement is the responsibility of the directors of Compagnie Financière Richemont SA and is a summary of the information in the full announcement available on the Stock Exchange News Service ("SENS") at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/CFR/AnnualFY21.pdf; and on the Group's website: https://www.richemont.com/en/home/media/press-releases-and-news/
This announcement does not contain full details and should not be used as a basis for any investment decision in relation to the Company's shares. The full announcement is also available for inspection, at no charge, at the Company's registered office (50 Chemin de la Chênaie, 1293 Bellevue, Geneva, Switzerland) and the office of the Sponsor during standard office hours.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332). South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
Sponsor:
Rand Merchant Bank (A division of First Rand Bank Limited)
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Telephone: (011) 282 8231
COMPAGNIE FINANCIERE RICHEMONT SA
50, CHEMIN DE LA CHENAIE | CASE POSTALE 30 | 1293 BELLEVUE | GENEVA | SWITZERLAND
TELEPHONE +41 (0)22 721 3500
WWW.RICHEMONT.COM
Date: 21-05-2021 07:25:00
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