COMPAGNIE FINANCIERE RICHEMONT SA - Richemont announces strong underlying performance for the six-month period ended 30 September 2023

Richemont announces strong underlying performance for the six-month period ended 30 September 2023

Compagnie Financière Richemont SA
("Richemont" or "the Company" or "the Group")
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0210483332


AD HOC ANNOUNCEMENT PURSUANT TO ART. 53LR
10 NOVEMBER 2023

RICHEMONT ANNOUNCES STRONG UNDERLYING PERFORMANCE
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023


Group highlights 

* Sales and operating profit from continuing operations of € 10.2 billion and
€ 2.7 billion, respectively, notwithstanding uncertain macroeconomic and
geopolitical environments, demanding comparatives and significant adverse
foreign currency movements 
* Clearance obtained from all regulatory authorities on agreement with FARFETCH
and Alabbar to sell a controlling interest in YNAP to create a neutral 
industry-wide platform
* Continued progress on ESG matters: first ESG Report in accordance with GRI
Standards and strengthened governance with two new board members and two new 
SEC members


Financial highlights

* Sales increase of 6% at actual exchange rates (+12% at constant exchange
rates) fuelled by almost all regions and distribution channels 
* Growth led by Asia Pacific, with sales up 14% at actual exchange rates
(+23% at constant exchange rates), and Jewellery Maisons, with sales up 
10% at actual exchange rates (+16% at constant exchange rates) 
* Continued outperformance of retail, up 9% at actual exchange rates (+16% at
constant exchange rates), representing 69% of Group sales
* Operating profit from continuing operations down by 2% at actual exchange
rates (+15% at constant exchange rates) with a 26.0% operating margin
(28.5% at constant exchange rates, a 90 basis-point increase) reflecting:
* Jewellery Maisons achieving 10% sales growth at actual exchange rates (+16% at
constant exchange rates) and delivering a 35.5% operating margin
* Specialist Watchmakers contracting sales by 3% at actual exchange rates
(+3% at constant exchange rates) and achieving a 19.7% operating margin
* 'Other' business area (predominantly F&A Maisons) reducing sales by 1% at
actual exchange rates (+3% at constant exchange rates); a
€ 6 million loss overall, with F&A Maisons posting a 2.1% operating margin
* 3% increase in profit for the period from continuing operations to
€ 2.2 billion; € 0.7 billion loss from discontinued operations primarily
resulting from € 0.5 billion non-cash write-down of YNAP net assets
* Solid net cash position of € 5.8 billion, with increased € 1.7 billion cash
flow generated from operating activities




Key financial data (unaudited)
+-------------------------------+------------+--------------+-----------+
|Six months ended 30 September  |        2023| 	        2022|     change|
+-------------------------------+------------+--------------+-----------+
|Sales                    	| EUR 10 221m|	  EUR 9 676m|        +6%|
+-------------------------------+------------+--------------+-----------+
|Gross profit                   |  EUR 6 973m| 	  EUR 6 667m|        +5%|
+-------------------------------+------------+--------------+-----------+
|Gross margin                   |       68.2%|         68.9%| 	  -70bps|
+-------------------------------+------------+--------------+-----------+
|Operating profit               |  EUR 2 655m| 	  EUR 2 723m|        -2%|
+-------------------------------+------------+--------------+-----------+
|Operating margin               |       26.0%|         28.1%|    -210bps|
+-------------------------------+------------+--------------+-----------+
|Profit for the period from     |            |              |           |
|continuing operations          |  EUR 2 160m|    EUR 2 105m|        +3%|
+-------------------------------+------------+--------------+-----------+
|Loss for the period from       |            |              |           |
|discontinued operations        |  EUR (655)m|  EUR (2 871)m|           |
+-------------------------------+------------+--------------+-----------+
|Profit/(loss) for the period 	|   EUR 1505m|    EUR (766)m|           |
+-------------------------------+------------+--------------+-----------+
|Earnings per 'A' share/        |            |              |           |
|10 'B' shares, diluted basis 	|   EUR 2.601|   EUR (1.337)|           |
+-------------------------------+------------+--------------+-----------+
|Earnings per 'A' share/        |            |              |           |
|10 'B' shares, basic 		|   EUR 2.643| 	 EUR (1.337)|           |
+-------------------------------+------------+--------------+-----------+
|Headline earnings per 'A'      |            |              |           |
|share/10 'B' shares, basic 	|   EUR 3.577|     EUR 3.396|           |
+-------------------------------+------------+--------------+-----------+
|Cash flow generated from       |            |              |           | 
|operating activities 	        |  EUR 1 666m|    EUR 1 540m|      +126m|
+-------------------------------+------------+--------------+-----------+
|Net cash position              |  EUR 5 785m|    EUR 4 763m|           |
+-------------------------------+------------+--------------+-----------+

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/2023/JSE/ISSE/CFR/H1FY24.pdf and on the
Group's website: https://www.richemont.com/news-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.

Richemont 'A' shares issued by Compagnie Financière Richemont SA are listed and
traded on the SIX Swiss Exchange, Richemont's primary listing
(Reuters 'CFR.S' / Bloomberg 'CFR:SW' / ISIN CH0210483332). They are included in
the Swiss Market Index ('SMI') of leading stocks and the MSCI Switzerland IMI
ESG Leaders Index. The 'A' shares are also traded on the Johannesburg Stock
Exchange, Richemont's secondary listing
('CFRJ.J' / Bloomberg 'CFR:SJ' / ISIN CH0210483332)


Sponsor:
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Email: sponsorteam@rmb.co.za


Date: 10-11-2023 08:00:00
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