Wrap Text
Richemont demonstrates sustained resilience for the six-month period ended 30 September 2024
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. 53 LR
8 NOVEMBER 2024
RICHEMONT DEMONSTRATES SUSTAINED RESILIENCE
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2024
Group highlights
* Sales at EUR 10.1 billion and operating profit from continuing operations at
EUR 2.2 billion in a challenging macroeconomic and geopolitical context,
supported by ongoing investment into distribution and manufacturing assets
* Strategic developments
* Completion of the acquisition of distinctive Italian jewellery Maison Vhernier
* Signature of an agreement by which Mytheresa will acquire YNAP in exchange for
a 33% equity stake in Mytheresa, subject to customary closing conditions
* Strengthened governance with the appointment of new Group CEO; new leadership
in place at Cartier and Van Cleef & Arpels
Financial highlights
* Resilient H1 top-line performance, delivering stable sales at constant exchange
rates, supported by the Group's balanced geographical mix and mid-single digit
growth at Jewellery Maisons; down 1% at actual exchange rates
* Solid growth in sales across all regions, except for Asia Pacific; double-digit
growth in the Americas, reinforcing the US' position as the largest individual
market for the Group
* Continued growth in direct-to-client sales, now accounting for 76% of Group sales
* Operating profit from continuing operations down by 17%, or by 12% at constant
exchange rates, resulting in a 21.9% operating margin
* Continued growth at Jewellery Maisons, with sales up 2% at actual exchange rates
(+4% at constant exchange rates), delivering a 32.9% operating margin
* A decline in sales at Specialist Watchmakers, by 17% at actual exchange rates
(-16% at constant exchange rates) with a 9.7% operating margin
* Sales up 4% in the 'Other' business area, at both actual and constant exchange
rates; EUR 52 million operating loss, with F&A Maisons posting a -2% operating margin
* EUR 1.7 billion profit for the period from continuing operations; EUR 1.3 billion
loss from discontinued operations mainly due to the non-cash write-down of YNAP
* Solid net cash position of EUR 6.1 billion, with EUR 1.2 billion cash flow generated
from operating activities
Key financial data (unaudited)
+-------------------------------+-------------+--------------+-----------+
|Six months ended 30 September | 2024| 2023| change|
+------------------------------ +-------------+--------------+-----------+
|Sales | EUR 10 077m| EUR 10 221m| -1%|
+-------------------------------+-------------+--------------+-----------+
|Gross profit | EUR 6 771m| EUR 6 973m| -3%|
+-------------------------------+-------------+--------------+-----------+
|Gross margin | 67.2%| 68.2%| -100bps|
+-------------------------------+-------------+--------------+-----------+
|Operating profit | EUR 2 206m| EUR 2 655m| -17%|
+-------------------------------+-------------+--------------+-----------+
|Operating margin | 21.9%| 26.0%| -410bps|
+-------------------------------+-------------+--------------+-----------+
|Profit for the period from | | | |
|continuing operations | EUR 1 729m| EUR 2 160m| -20%|
+-------------------------------+-------------+--------------+-----------+
|Loss for the period from | | | |
|discontinued operations | EUR (1 272)m| EUR (655)m| |
+-------------------------------+-------------+--------------+-----------+
|Profit for the period | EUR 457m| EUR 1 505m| |
+-------------------------------+-------------+--------------+-----------+
|Earnings per 'A' share/ | | | |
|10 'B' shares, diluted basis | EUR 0.779| EUR 2.601| |
+-------------------------------+-------------+--------------+-----------+
|Earnings per 'A' share/ | | | |
|10 'B' shares, basic | EUR 0.782| EUR 2.643| |
+-------------------------------+-------------+--------------+-----------+
|Headline earnings per 'A' | | | |
|share/10 'B' shares, basic | EUR 2.862| EUR 3.577| |
+-------------------------------+-------------+--------------+-----------+
|Cash flow generated from | | | |
|operating activities | EUR 1 249m| EUR 1 666m| EUR (417)m|
+-------------------------------+-------------+--------------+-----------+
|Net cash position | EUR 6 108m| EUR 5 785m| |
+-------------------------------+-------------+--------------+-----------+
Please contact Computershare at Web.Queries@Computershare.co.za if you wish to
receive any documents electronically for Richemont.
This results 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/2024/JSE/ISSE/CFR/H1FY25.pdf and on the
Group's website: https://www.richemont.com/news-media/press-releases-and-news/
This results 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).
Notes for South African editors
Acknowledging the interest in Richemont's results on the part of South African
investors, set out below are key figures from the results expressed in rand.
The average euro/rand exchange rate prevailing during the six-month period
ended 30 September 2024 was 19.863; this compares with a rate of 20.297 during
the comparative period.
+--------------------------------+-------------------+-------------------+
|Six months period ended | 30 September 2024| 30 September 2023|
+--------------------------------+-------------------+-------------------+
|in ZAR millions | | |
+--------------------------------+-------------------+-------------------+
|Revenue | 200 159| 207 456|
+--------------------------------+-------------------+-------------------+
|Operating profit | 43 818| 53 889|
+--------------------------------+-------------------+-------------------+
|Profit for the period | 9 077| 30 547|
+--------------------------------|-------------------|-------------------+
|Profit attributable to: | | |
+--------------------------------+-------------------+-------------------+
|Owners of the parent company | 9 097| 30 628|
+--------------------------------+-------------------+-------------------+
|Non-controlling interests | (20)| (81)|
+--------------------------------+-------------------+-------------------+
| | 9 077| 30 547|
+--------------------------------+-------------------+-------------------+
|Earnings per Richemont 'A' | | |
|share - diluted basis in ZAR | 15.4733| 52.7925|
+--------------------------------+-------------------+-------------------+
|Headline earnings per Richemont | | |
|'A' share - diluted basis in ZAR| 56.6294| 71.4454|
+--------------------------------+-------------------+-------------------+
Headline earnings per Richemont 'A' share exclude the impact of net losses
amounting to ZAR 24 213 million (€ 1 219 million). In the comparative period,
headline earnings per Richemont 'A' share excluded the impact of net losses
amounting to ZAR 10 818 million (€ 533 million). Further details of these losses,
which conform to the JSE listing requirements, are presented in note 10.3 of the
unaudited interim consolidated financial statements.
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: 08-11-2024 08:00:00
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