Wrap Text
Richemont announces strong underlying performance for the year ended 31 March 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
17 MAY 2024
RICHEMONT ANNOUNCES STRONG UNDERLYING PERFORMANCE
FOR THE YEAR ENDED 31 MARCH 2024
Group highlights
* Group sales at all-time high of EUR 20.6 billion; Q4 sales down by 1% at actual
exchange rates, up 2% at constant exchange rates
* Operating profit at EUR 4.8 billion, notwithstanding significant adverse foreign
currency movements and non-recurring charges of EUR 58 million net
* Increased proposed dividend of CHF 2.75 per 1 'A' share / 10 'B' shares
* Acquisition of a controlling stake in Gianvito Rossi
* Appointments of Karlheinz Baumann, Group Director of Operations, Boet
Brinkgreve, CEO of Laboratoire de Haute Parfumerie et Beauté, and Swen
Grundmann, Group Company Secretary & Director of Corporate Affairs, to the
Senior Executive Committee
* Milestones on ESG commitments included global gender EQUAL-SALARY certification
Financial highlights
* Sales up by 3% at actual exchange rates and 8% at constant exchange rates,
driven by Jewellery Maisons and retail, each representing 69% of Group sales
* Sales growth across all regions and business areas, at constant exchange rates
* Sales increase led by Asia Pacific (+4% at actual exchange rates; +10% at
constant exchange rates) in value terms and by Japan (+8% at actual exchange
rates; +20% at constant exchange rates) in percentage terms; US now largest
individual market for the Group
* Strongest channel performance from retail (+5% at actual exchange rates; +11%
at constant exchange rates), with growth across all business areas and regions
* Operating profit decreased by 5% (+13% at constant exchange rates) to
EUR 4.8 billion, generating a 23.3% operating margin (26.2% of sales at constant
exchange rates), fuelled by:
* Jewellery Maisons delivering a 33.1% operating margin, with sales up 6% at
actual exchange rates (+12% at constant exchange rates)
* Specialist Watchmakers posting a 15.2% operating margin, with sales down
3% at actual exchange rates (+2% at constant exchange rates)
* 'Other' business area recording a EUR 43 million operating loss overall
(F&A Maisons at breakeven) on sales slightly lower than the prior year
(-2% at actual exchange rates, +1% at constant exchange rates)
* Solid profit for the year from continuing operations of EUR 3.8 billion;
EUR 1.5 billion loss from discontinued operations mainly due to write-down
of YNAP assets
* Strong net cash position of EUR 7.4 billion, with solid increase in cash flow
generated from operating activities to EUR 4.7 billion
Key financial data (audited)
+-------------------------------+-------------+-------------+-----------+
| | 2024| 2023| change|
+-------------------------------+-------------+-------------+-----------+
|Sales | EUR 20 616m| EUR 19 953m| +3%|
+-------------------------------+------------ +-------------+-----------+
|Gross profit | EUR 14 036m| EUR 13 716m| +2%|
+-------------------------------+-------------+-------------+-----------+
|Gross margin | 68.1%| 68.7%| -60bps|
+-------------------------------+-------------+-------------+-----------+
|Operating profit | EUR 4 794m| EUR 5 031m| -5%|
+-------------------------------+-------------+-------------+-----------+
|Operating margin | 23.3%| 25.2%| -190bps|
+-------------------------------+-------------+-------------+-----------+
|Profit for the year from | | | |
|continuing operations | EUR 3 818m| EUR 3 911m| -2%|
+-------------------------------+-------------+-------------+-----------+
|Loss for the year from | | | |
|discontinued operations | EUR (1 463)m| EUR (3 610)m| |
+-------------------------------+-------------+-------------+-----------+
|Profit for the year | EUR 2 355m| EUR 301m| |
+-------------------------------+-------------+-------------+-----------+
|Dividend per 'A' | | | |
|share/10 'B' shares | CHF 2.75| CHF 2.50| +10%|
+-------------------------------+-------------+-------------+-----------+
|Special dividend per 'A' | | | |
|share/10 'B' shares | - | CHF 1.00| |
+-------------------------------+-------------+-------------+-----------+
|Earnings per 'A' share/ | | | |
|10 'B' shares, diluted basis | EUR 4.077| EUR 0.543| |
+-------------------------------+-------------+-------------+-----------+
|Earnings per 'A' share/ | | | |
|10 'B' shares, basic | EUR 4.098| EUR 0.550| |
+-------------------------------+-------------+-------------+-----------+
|Headline earnings per 'A' | | | |
|share/10 'B' shares, basic | EUR 6.398| EUR 6.691| -4%|
+-------------------------------+-------------+-------------+-----------+
|Cash flow generated from | | | |
|operating activities | EUR 4 696m| EUR 4 491m| +EUR 205m|
+-------------------------------+-------------+-------------+-----------+
|Net cash position | EUR 7 450m| EUR 6 549m| |
+-------------------------------+-------------+-------------+-----------+
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 audited
consolidated annual financial statements for the year ended 31 March 2024,
available through the JSE's cloudlink as follows:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/CFR/FY24.pdf and on the Group's
website:
https://www.richemont.com/investors/results-reports-presentations/
This results announcement does not contain full financial details and any
investment decision should be based on the audited consolidated annual
financial statements for the year ended 31 March 2024, which are available
through the links above. The reconciliation of the headline earnings, as required
in terms of the JSE Listing Requirements, is set out in the notes to the
financial statements. PricewaterhouseCoopers SA, the Company's statutory auditor,
has audited the consolidated annual financial statements for the year
ended 31 March 2024 from which this results announcement has been derived and has
expressed an unmodified audit opinion on the consolidated annual financial
statements for the year ended 31 March 2024.
The consolidated annual financial statements for the year ended 31 March 2024 have
been prepared in accordance with International Financial Reporting Standards and
IFRS Interpretations Committee interpretations (together 'IFRS').
The detailed ad-hoc results announcement for the year ended 31 March 2024 is
available on the Group's website:
https://www.richemont.com/investors/results-reports-presentations/
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 year ended 31 March 2024
was 20.311; this compares with a rate of 17.688 during the comparative year.
+-------------------------------+- ------------+------------- +-----------+
Financial year ended | 31 March 2024| 31 March 2023| change|
+-------------------------------+--------------+--------------+-----------+
|in ZAR millions | | | |
+-------------------------------+--------------+--------------+-----------+
|Revenue | 418 732| 352 929| +19%|
+-------------------------------+--------------+--------------+-----------+
|Operating profit | 97 371| 88 988| +9%|
+-------------------------------+--------------+--------------+-----------+
|Profit for the period | 47 832| 5 324| +798%|
+-------------------------------+--------------+--------------+-----------+
|Profit attributable to: | | | |
+-------------------------------+--------------+--------------+-----------+
|Owners of the parent company | 47 974| 5 536| +767%|
+-------------------------------+--------------+--------------+-----------+
|Non-controlling interests | (142)| (212)| +33%|
+-------------------------------+--------------+--------------+-----------+
| | 47 832| 5 324| +798%|
+-------------------------------+--------------+--------------+-----------+
|Earnings per Richemont 'A' | | | |
|Share - diluted basis in ZAR | 82.8079| 9.6046| +762%|
+-------------------------------+--------------+--------------+-----------+
|Headline earnings per Richemont| | | |
|A' share - diluted basis in ZAR| 129.2795| 116.7585| +11%|
+-------------------------------+--------------+--------------+-----------+
Headline earnings per Richemont 'A' share exclude the impact of losses amounting to
ZAR 26 932 million (EUR 1 326 million). In the comparative period, headline earnings
per Richemont 'A' share excluded the impact of losses amounting to ZAR 61 802
million (EUR 3 494 million). Further details of these losses, which conform to the
JSE listing requirements, are presented in note 28.3 of the audited annual
consolidated financial statements.
Headline earnings per 'A' share/10 'B' shares
The presentation of headline earnings per 'A' share/10 'B' shares as an alternative
measure to earnings per share is required under the JSE listing requirements.
+----------------------------------------------------+------------- +------------+
| | 2024| 2023|
+----------------------------------------------------+--------------+------------+
|Profit attributable to owners of the parent company | EUR 2 362m| EUR 313m|
+----------------------------------------------------+--------------+------------+
|Loss on disposal of non-current assets | EUR 4 m| EUR (6) m|
+----------------------------------------------------+--------------+------------+
|Impairment of non-current assets | EUR 59 m| EUR 56 m|
+----------------------------------------------------+--------------+------------+
|Write-down of assets held for sale | EUR 1 263 m| EUR 3 444 m|
+----------------------------------------------------+--------------+------------+
|Headline earnings | EUR 3 688 m| EUR 3 807 m|
+----------------------------------------------------+--------------+------------+
|Weighted average number of shares: | | |
+----------------------------------------------------+--------------+------------+
|Basic | 576.4 m| 569.0 m|
+----------------------------------------------------+--------------+------------+
|Diluted | 579.4 m| 576.7 m|
+----------------------------------------------------+--------------+------------+
|Headline earnings per 'A' share/10 'B' shares: | | |
+----------------------------------------------------+--------------+------------+
|Basic | EUR 6.398| EUR 6.691|
+----------------------------------------------------+--------------+------------+
|Diluted | EUR 6.365| EUR 6.601|
+----------------------------------------------------+--------------+------------+
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: 17-05-2024 07:30:00
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