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Richemont announces strong performance for the six-month period ended 30 September 2022
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
AD HOC ANNOUNCEMENT PURSUANT TO ART. 53LR
11 NOVEMBER 2022
RICHEMONT ANNOUNCES STRONG PERFORMANCE
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2022
Group highlights
• Strong sales and operating profit from continuing operations of € 9.7 billion
and € 2.7 billion, respectively
• Agreement with FARFETCH and Alabbar to sell a controlling interest in YNAP
to create a neutral industry-wide platform and advance the realisation of
Maisons’ Luxury New Retail vision; YNAP business reclassified
to ‘discontinued operations’
• Continued progress on sustainability objectives: 10% energy reduction plan
implemented in offices and boutiques across Europe; on track to source 100%
renewable electricity globally before end of 2025
Financial highlights
• Sales up by 24% at actual exchange rates and 16% at constant exchange rates,
with double-digit increases at actual exchange rates across all business areas
and channels
• Improved momentum in Asia Pacific with sales up 3% at actual rates;
double-digit increases in all other regions
• Growth momentum led by retail, up 30% at actual exchange rates and 21% at
constant exchange rates, representing 67% of Group sales
• Operating profit from continuing operations increased by 26%, delivering
improved operating margin of 28.1% driven by:
- Jewellery Maisons achieving 24% sales growth at actual exchange rates
(+16% at constant rates) and delivering a 37.1% operating margin
- Specialist Watchmakers expanding sales by 22% at actual exchange rates
(+13% at constant exchange rates) and achieving 24.8% operating margin
- ‘Other’ business area (predominantly F&A Maisons) growing 27% at actual
exchange rates (+19% at constant exchange rates) and generating a 4.3%
operating margin
• 40% increase in profit for the period from continuing operations to
€ 2.1 billion; € 2.9 billion loss from discontinued operations primarily
resulting from € 2.7 billion non-cash write-down of YNAP net assets
• Strong net cash position of € 4.8 billion, with € 1.5 billion cash flow
generated from operating activities, targeted inventory build-up and
increased dividend
Key financial data (unaudited)
+-----------------------------------+------------+------------+----------+
|Six months ended 30 September | 2022| 2021| change|
| | |represented*| |
+-----------------------------------+------------+------------+----------+
|Sales | EUR 9 676m| EUR 7 787m| +24%|
+-----------------------------------+------------+------------+----------+
|Gross profit | EUR 6 667m| EUR 5 260m| +27%|
+-----------------------------------+------------+------------+----------+
|Gross margin | 68.9%| 67.5%| +140bps|
+-----------------------------------+------------+------------+----------+
|Operating profit | EUR 2 723m| EUR 2 168m| +26%|
+-----------------------------------+------------+------------+----------+
|Operating margin | 28.1%| 27.8%| +30bps|
+-----------------------------------+------------+------------+----------+
|Profit for the period from | | | |
|continuing operations | EUR 2 105m| EUR 1 503m| +40% |
+-----------------------------------+------------+------------+----------+
|Loss for the period from | | | |
|discontinued operations |EUR (2 871)m| EUR (254)m| |
+-----------------------------------+------------+------------+----------+
|(Loss)/profit for the period | EUR (766)m| EUR 1 249m| |
+-----------------------------------+------------+------------+----------+
|Earnings per ‘A’ share/10 ‘B’ | | | |
|shares, diluted basis | EUR (1.337)| EUR 2.145| |
+-----------------------------------+------------+------------+----------+
|Earnings per ‘A’ share/10 ‘B’ | | | |
|shares, basic | EUR (1.337)| EUR 2.176| |
+-----------------------------------+------------+------------+----------+
|Headline earnings per ‘A’ share/ | | | |
|10 ‘B’ shares, basic | EUR 3.396| EUR 2.181| |
+-----------------------------------+------------+------------+----------+
|Cash flow generated from operating | | | |
|activities | EUR 1 540m| EUR 1 781m| -14%|
+-----------------------------------+------------+------------+----------+
|Net cash position | EUR 4 763m| EUR 3 153m| |
+-----------------------------------+------------+------------+----------+
* Prior-year period comparatives have been represented as YNAP results are
presented as ‘discontinued operations’
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 which is available on the Stock Exchange News Service
("SENS") at: https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CFR/H1FY23.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 any investment
decision by investors and/or shareholders in relation to the Company's shares
should be based on a consideration of the full announcement. 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 FirstRand Bank Limited)
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Telephone: (011) 282 8231
Date: 11-11-2022 08:00:00
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