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RICHEMONT DELIVERS STRONG PERFORMANCEFOR THE YEAR ENDED 31 MARCH 2022

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·45-min read
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Compagnie Financière Richemont SA / Key word(s): Annual Results

20-May-2022 / 07:31 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

 

Group highlights

  • Significant step change in Group sales and operating profit, reaching € 19 181 million and € 3 390 million, respectively

  • Increased proposed dividend of CHF 2.25 per 1 ‘A’ share / 10 ‘B’ shares and additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares

  • Strengthened sustainability focus with Science-Based Targets commitment and appointment of Chief Sustainability Officer

Financial highlights

Compared to the year ended 31 March 2021

  • Sales up by 46% at actual exchange rates and by 44% at constant exchange rates, with double-digit increases across all business areas, regions and channels; growth momentum led by retail and the Americas

  • Operating profit more than doubled to € 3 390 million, delivering improved operating margin of 17.7% driven by:

    • Jewellery Maisons with 49% sales growth at actual exchange rates (+47% at constant rates) and 34.3% operating margin;

    • Specialist Watchmakers growing by 53% at actual exchange rates (+50% at constant exchange rates) and achieving 17.3% operating margin;

    • Online Distributors growth of 27% at actual exchange rates (+26% at constant exchange rates), YNAP stand-alone EBITDA at breakeven before exceptional reward payment; ongoing discussions with Luxury New Retail (‘LNR’) partners;

    • Other business area with strong growth (+53% at actual exchange rates, +51% at constant exchange rates) and significantly reduced operating loss;

    • Suspension of commercial activities in Russia resulting in € 168 million negative operating result impact.

  • Profit for the year rose by 61% to € 2 079 million

  • 55% increase in net cash position to € 5 251 million, supported by strong cash flow from operating activities and strict working capital management

Compared to the year ended 31 March 2020

  • Sales up by 35% at actual exchange rates and 37% at constant exchange rates

  • Broad-based growth in terms of business areas led by retail and online retail channels

  • Significant 700 basis point improvement of operating contribution

Key financial data (audited)

 

 

 

% change 2022

 

 2022

 2021

 2020

 vs 2021  

 vs 2020  

Sales

 € 19 181 m

 € 13 144 m

 € 14 238 m

+46%

+35%

Gross profit

 € 12 027 m

 € 7 861 m

 € 8 611 m

+53%

+40%

Gross margin

 62.7%

59.8%

60.5%

+290 bps

+220 bps

Operating profit

 € 3 390 m

 € 1 478 m

 € 1 518 m

+129%

+123%

Operating margin

 17.7%

 11.2%

 10.7%

+650 bps

+700 bps

Profit for the year

 € 2 079 m

 € 1 289 m

 € 931 m

+61%

+123%

Earnings per A share/10 B shares, diluted basis

 € 3.611

 € 2.296

 € 1.646

+57%

+119%

 

 

 

 

 

 

Cash flow generated from operating activities

 € 4 638 m

 € 3 218 m

 € 2 370 m

 +€ 1 420 m

 +€ 2 268 m

Net cash position

 € 5 251 m

 € 3 393 m

 € 2 395 m

+€ 1 858 m

+€ 2 856 m

 

Chairman’s commentary

Overview of results

The financial year ended 31 March 2022 saw Richemont report another strong set of results.  Increased inflationary pressures and repeated temporary store closures due to health protection measures, were offset by relatively improved economies up until February 2022.  The Group’s strong sales, profit and cash flows confirm the strong appeal of our Maisons and relevance of our long-term strategy.

Sales during the year under review reached an all-time high of € 19.2 billion, a 46% increase over last year (+35% on a two-year comparative period) with all Maisons, channels and regions achieving double-digit growth, led by retail and the Americas (+79%). Sales in Asia Pacific rose by 32%, with mainland China sales growing by 20% compared to the prior year. The strong European client base more than offset subdued inbound tourism, leading to a 51% sales increase, while in the Middle East and Africa sales grew at a similar pace, surpassing Japan as the Group's fourth largest market, where sales rose albeit by 28%.

Our Maisons and businesses’ continued focus on client-centric initiatives, resulted in direct-to-client sales further progressing to 76% of Group sales across our directly-operated stores and the online retail channel. We have an improved insight into client profiles, allowing us to better meet expectations, nurture closer relationships and optimise supply chain management. While wholesale sales recovered from last year, direct-to-client sales rose by double digits compared to both the prior year and on a two-year comparative basis. This was further enhanced by the return to in-person high-jewellery events and the long-awaited Watches and Wonders event which opened its physical doors in Geneva for the first time in three years.

Our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, delivered a step-change in performance with combined sales exceeding € 11 billion and the operating margin reaching 34.3% versus 31.0% in the prior year. Cartier and Van Cleef & Arpels posted an outstanding performance, increasing their market leadership. Buccellati also developed successfully, further expanding its international footprint with nine new directly-operated stores.

Another noteworthy achievement relates to the Specialist Watchmakers’ strong sales rebound (+53%) to € 3.4 billion and operating margin recovery to 17.3%, with nearly all Maisons exceeding pre-pandemic sales levels. The Specialist Watchmakers reaped the benefits of direct-to-client sales exceeding 50%, achieved through continuous improvements in distribution, communication, notably on social media, and supply chain management. The increased appeal of high-quality watches to Millennials and Gen-Z is very positive for the future.

At the Group’s Online Distributors, sales rose by 27% and EBITDA reached breakeven before the exceptional reward payments to Group employees and negative contribution of Feng Mao, the Chinese joint-venture with Alibaba. The shift towards a hybrid business model (mix of inventory ownership and e-concessions/marketplace) at NET-A-PORTER and YOOX, as well as localisation efforts, progressed further. Watchfinder consolidated its position as a leader in pre-owned watches in its home market and outside the UK.

The Group’s ‘Other’ business area, mostly composed of the Fashion & Accessories Maisons, posted strong growth, with sales 53% higher than in the prior year, positively impacted by newly appointed creative directors at Alaïa, Chloé and Montblanc as well as by the contribution of Delvaux, the Belgian luxury leather goods Maison, acquired last June. Peter Millar continued to perform strongly, notably through its G/FORE brand, while Alaïa and Chloé enjoyed a good reception of their recent collections. Montblanc's leather collection was successfully launched this March, while lacklustre travel retail continued to weigh on the Maison’s performance. Overall, the business area’s operating loss was significantly reduced to € 47 million.

Discussion with our Luxury New Retail (‘LNR’) partners continues around closer future collaboration. There is considerable complexity, which means the process is inevitably protracted. We look forward to concluding matters in the near future.

At the Group level, operating profit more than doubled to € 3.4 billion and the operating margin strengthened to 17.7%. This significant growth in operating profit, combined with careful management of working capital, led to cash flow from operating activities increasing to € 4.6 billion. Profit for the year rose by 61% to € 2.1 billion and net cash by 55% to € 5.2 billion at the end of March 2022.

 

Dividends

Given the strong performance of the year and robust net cash position of the Group, the Board proposes to pay an ordinary dividend of CHF 2.25 per ‘A’ share (and CHF 0.225 per ‘B’ share), an increase of 13% over the prior year, as well as an additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares, subject to shareholders’ approval at the Annual General Meeting on 7 September 2022. This is a recognition of the excellent profits achieved over the year that we would like to share, not only with all Richemont colleagues through an exceptional reward payment, but also with Richemont’s loyal long-term shareholders.

 

Annual General Meeting and Board changes

The Annual General Meeting (‘AGM’) in September 2021 saw some significant board changes: we were delighted to welcome Patrick Thomas, former Chief Executive Officer of Hermès, who brings unparalleled luxury industry expertise, and Jasmine Whitbread, an experienced director and highly regarded Environmental, Social & Governance expert. Both directors bring very valuable contributions to our Board.

We also bid farewell to two long-serving and valued non-executive directors, Alan Quasha and Gary Saage, who stepped down from the Board; two other respected and experienced non-executive directors, Jan Rupert and Ruggero Magnoni, have also indicated that they will not seek re-election to the Board of Directors at the 2022 AGM having each served for 16 years. They made immeasurable contributions to the development of Richemont and will be sorely missed. I wish to thank each of them for their loyal, insightful and valuable support.

After the 2022 AGM and subject to shareholders’ approval, the Board will be reduced to 16 members as we continue to seek an optimal balance between diversity and experience relevant to the business with a Board size which does not over-burden our non-executive directors. Female Board members will represent 31% of the new Board.

PricewaterhouseCoopers (‘PWC’) has been the Group’s external auditor since 1993. Recognising shareholders’ expectations, it has been decided to initiate a tender process which may lead to the appointment of a new Group external auditor.

 

Sustainability

Our vision of sustainable luxury requires that we leave no stone unturned.

One important step is to remove polyvinyl chloride (‘PVC’) from our products and packaging. I am pleased to report that we are on track to achieve this objective by December 2022 and wish to salute the countries that have already banned PVC from their landfills, thus contributing to a healthier planet for humans, fauna and flora.

Another major aspect is to ensure that sustainability is firmly embedded in our governance. With this in mind, Board member Ms Whitbread was appointed in February 2022 to chair Richemont’s Governance and Sustainability Committee, drawing on her experience at Standard Chartered plc and previously at, inter alia, BT Group plc.

In parallel to the enhanced Board expertise and involvement, the Group has continued to raise investment behind sustainability, including appointing its first Chief Sustainability Officer in February 2022 to further advance Richemont’s sustainability vision. The Group will build upon its already strong position in this area, validated by independent authorities such as MSCI (AA rating), Carbon Disclosure Project (A rating) and the Science Based Targets Initiative (targets validated). We were also proud to be rated among the top 2% of companies rated worldwide by Sustainalytics and the World’s Best Employers by Forbes 2021, and to be named as a Financial Times-Statista Climate Leader 2022.

I encourage you to read our 2022 Sustainability Report, to be released shortly, which speaks to many more of our achievements and commitments.



Outlook

As I conclude my comments, I would like to convey our deepest sympathy and compassion to all those affected by the tragic conflict taking place in Ukraine. Richemont and its Maisons have made significant donations to Médecins Sans Frontières to support its relief efforts.

We remain in close contact with our colleagues in Ukraine and Russia, where we have suspended our operations. Their safety and wellbeing are our highest priority.

Even if the worst of Covid is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years. We can, however, take comfort from the strength and enduring appeal of our Maisons as well as their relatively balanced geographic spread. Richemont’s € 5.3 billion net cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the Group is well positioned to benefit from any strength in consumer demand. We will work to maintain the necessary agility and flexibility to manage global uncertainties.

Finally, I would like to thank all our colleagues across the Group for their contribution to the excellent performance delivered with solidarity, empathy, creativity, agility and responsibility. We have seen all our businesses improve and made major strides in our sustainability agenda. We consider ourselves custodians of Richemont’s underlying businesses and the planet for future generations. As such, I would like to reiterate how important it is for us to build brand equity over time, and to do it in a responsible manner.

 

Johann Rupert

Chairman

 

Compagnie Financière Richemont SA

 

Financial review

Any references to Hong Kong, Macau and Taiwan within this financial review are to Hong Kong SAR, China; Macau SAR, China; and Taiwan, China respectively.

Given the magnitude of the impact of the Covid pandemic on the Group’s operations in the comparative year ended 31 March 2021, additional comments are provided on a two-year comparative basis to the year ended 31 March 2020 for a more comprehensive view of performance.

Sales

Compared to the prior year, sales grew by 46% at actual exchange rates and by 44% at constant exchange rates as growth rebounded in all major markets and distribution channels. The strong sales growth rates experienced throughout the first three quarters of the fiscal year continued into the fourth quarter with overall Group sales expanding by 33% at actual exchange rates (and by 27% at constant exchange rates), despite the impact of the conflict in Ukraine and tighter health restrictions in China, leading to temporary distribution network closures in March.

Compared to the year ended 31 March 2020, sales grew by 35% at actual exchange rates and by 37% at constant exchange rates.

In the year under review, double-digit sales growth was seen in all geographies compared to the prior year, led by the Americas at 79%, with Asia Pacific further building on its strong performance in the prior year. On a two-year comparative basis, sales in all regions exceeded pre-pandemic levels on a constant currency basis.

The Group’s directly-operated stores generated the strongest channel performance with sales up by 53% compared to the prior year and by 51% compared to the year ended March 2020. Online retail and wholesale sales grew by 28% and 46% compared to the prior year, respectively. Excluding Online Distributors, sales through the Maison’s own e-commerce platforms grew by 44%.

All business areas enjoyed double-digit sales increases compared to the prior year and the year ended March 2020. The Jewellery Maisons generated an outstanding 49% sales growth over the prior year and a 54% increase over the two-year period. Sales at the Specialist Watchmakers and the Other business areas each grew by 53%, with all Maisons growing by double digits compared to the prior year. Compared to two years ago, the above business areas grew by 20% and 15%, respectively, with almost all Maisons growing by double digits. Online Distributors posted a 27% sales increase over the prior year and a 15% increase compared to two years ago.

Further details on sales by region, distribution channel and business area are given under Review of Operations.

Gross profit

At € 12 027 million, gross profit increased by 53% compared to the prior year, with a corresponding gross margin increased to 62.7% of sales.

This 290 basis point improvement in gross margin mainly reflected higher manufacturing capacity utilisation, a favourable geographical sales mix, a further shift towards retail sales and targeted price increases. All these positive factors more than offset rising precious material prices, the impact on costs of a strong Swiss franc as well as valuation adjustments of € 70 million for inventories held in Russia, due to the current suspension of commercial activities in this market.

Operating profit

Operating profit more than doubled compared to the prior year, increasing by 129% to € 3 390 million, or 17.7% of sales, constituting a 650 basis point improvement.

Overall, operating expenses grew by 35% over the prior year, well below the 46% sales progression rate. This increase in operating expenses partly reflected higher sales as well as the non-recurrence of one-off rental concessions and government employment support received in the prior year. The increase also included additional reward payments to Group employees to recognise the strong contribution to the exceptional performance of the Group during the year.

The further expansion of the Group’s retail network contributed to an increase in selling and distribution expenses. As a percentage of sales, they improved to 21.8% in the current year from 24.7% a year ago.

Communication investment across the Group increased to € 1 865 million and included the impact of the resumption of in-person events such as Watches & Wonders Geneva which opened in March 2022. As a percentage of sales, communication expenses were in line with pre-pandemic levels at 9.7%. Expenses related to the fulfilment of online retail orders grew by 37% whilst increases in administrative expenses were limited to 18%.

The decision by the Group to suspend its commercial activities in Russia, which accounted for less than 2% of Group sales, and the resulting current uncertainty surrounding future operations in the country, led to a charge of € 98 million in operating expenses.

Profit for the year

Profit for the year amounted to € 2 079 million, an increase of 61% over the prior year. Net finance costs of € 844 million for the year included non-cash fair value losses of € 538 million arising from the Group’s investments in a Farfetch convertible note and an option to purchase additional Farfetch China shares, as well as the Group’s investments in externally managed bond funds. In addition, it included a € 194 million impact of foreign exchange losses on monetary items. Interest charges on the Group’s outstanding corporate bonds amounted to € 95 million while lease interest charges amounted to € 65 million for the year.

Earnings per share reached € 3.611 on a diluted basis, up 57% over the prior year. To comply with the South African practice of providing headline earnings per share (‘HEPS’) data, the relevant figure for the year ended 31 March 2022 was € 2 132 million (2021: € 1 316 million). Basic HEPS for the year were € 3.762 (2021: € 2.328 ), diluted HEPS for the year were € 3.712 (2021: € 2.322 ). Further details regarding earnings per share and HEPS, including an itemised reconciliation, can be found in note 30 of the Group’s consolidated financial statements.

Cash flow

Cash flow from operating activities amounted to € 4 638 million, a 44% increase on the prior year, reflecting the significant growth in operating profit coupled with a measured increase in net working capital, with increases in inventories and receivables largely offset by additional liabilities.

Net investments in tangible fixed assets amounted to € 736 million, as the Group supported its growth momentum with increased investments primarily in its internal boutique network as well as increased manufacturing investments at the Jewellery Maisons and additional technology investments at the Online Distributors.

Investments in associates included an increase of the Group’s investment into Kering Eyewear and the previously announced investment of $ 250 million into Farfetch China.

The 2021 dividend of CHF 2.00 per share (1 ‘1A’ share/10 ‘B’ shares) was paid to shareholders and to South African Depository Receipt holders, net of withholding tax, in September 2021. The total dividend cash outflow in the period amounted to € 1 041 million.

During the year under review, the Group repurchased 171 million shareholder warrants issued under the 2020 equity-based shareholder loyalty scheme, for a total cost of € 131 million. These warrants will be used to hedge the Group’s obligations arising from its executive share-based compensation schemes. Proceeds from the exercise of stock options by executives amounted to a net cash inflow of € 123 million.

Balance sheet

At 31 March 2022, inventories amounted to € 7 099 million, a € 780 million increase over the prior year (2021: € 6 319 million). Inventories represented 15.1 months of cost of sales (2021: 18.3 months).

The Group’s net cash position rose by 55% to € 5 251 million at 31 March 2022. This position is comprised of cash and cash equivalents, investments in externally managed bond and money market funds as well as external borrowings, including corporate bonds. At 31 March 2021, gross cash amounted to € 11 200 million.

Shareholders’ equity represented 50% of total equity and liabilities compared to 51% in the prior year.

Acquisition of Delvaux

On 30 June 2021, Richemont completed the acquisition of Delvaux, the Belgian luxury leather goods Maison and inventor of the modern handbag, for a total cash consideration of € 178 million, with results consolidated within the Other business area from 1 July 2021. During the nine-month period to 31 March 2022, Delvaux contributed € 102 million of sales to the Group. The acquisition resulted in the recognition of € 60 million of goodwill and € 111 million in additional intangible assets.

Proposed dividends

In view of the Group’s strong results and robust net cash position, the Board has proposed a dividend of CHF 2.25 per ‘A’ share/10 ‘B’ shares and an additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares.

The dividends will be paid as follows:

 

 

 

 

 

Gross dividend per
 1‘A’ share/
 10 ‘B’ shares

Swiss withholding
 tax @ 35%
 

 Net payable per
 1‘A’ share/
 10 ‘B’ shares

Dividend

 CHF 2.2500

 CHF 0.7875

 CHF 1.4625

Special dividend

 CHF 1.00

 CHF 0.35

 CHF 0.65

 

 

 

 

The dividends will be payable following the annual general meeting which is scheduled to take place in Geneva on Wednesday 7 September 2022.

The last day to trade Richemont ‘A’ shares and Richemont South African Depository Receipts cum-dividend will be Tuesday 20 September 2022. Both will trade ex-dividend from Wednesday 21 September 2022.

The dividends on the Compagnie Financière Richemont SA ‘A’ shares will be paid on Friday 23 September 2022 and is payable in Swiss francs.

The dividends in respect of Richemont South African Depository Receipts will be payable on Thursday 29 September 2022 and is payable in rand to residents of the South African Common Monetary Area (‘CMA’) but may, dependent upon residence status, be payable in Swiss francs to non-CMA residents. Further details regarding the dividends payable to South African Depository Receipt holders may be found in a separate announcement dated Friday 20 May 2022 on SENS, the Johannesburg Stock Exchange news service.

 

Review of operations

Sales by region

 

 

 

 

 

 

 

 

 

Change at:

 

 

 

 Constant   

 Actual  

in €m

 2022

 2021

 exchange  
 rates*  

 exchange  
 rates  

Europe

 4 469

 2 955

 +51%

 +51%

Asia Pacific

 7 820

 5 937

 +28%

 +32%

Americas

 4 268

 2 388

 +77%

 +79%

Japan

 1 205

 940

 +35%

 +28%

Middle East and Africa

 1 419

 924

 +53%

 +54%

 

 19 181

 13 144

 +44%

 +46%

 

 

 

 

 

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2021.

The following comments on Group sales refer to year-on-year movements at constant exchange rates unless otherwise stated.    

 

Europe

Sales in Europe ended  51% higher than in March 2021 and 5% higher on a two-year comparative basis. Sales benefited from the lifting of Covid-related restrictions and were somewhat impacted by the conflict in Ukraine in the final weeks of the financial year. The sharp growth was underpinned by strong local demand that more than offset continued subdued inbound tourism.

All business areas contributed to growth compared to the prior year and most of them compared to two years ago. Overall, the region contributed 23% of Group sales, slightly increasing its contribution over the prior year.

Asia Pacific

The Group’s largest region in terms of sales, Asia Pacific, contributing 41% of Group sales, continued its strong performance from the prior year, with sales up by 28% compared to the prior year, and by 56% compared to the year ended March 2020. Sales in all business areas as well as in major markets such as China, Korea and Macau grew by double digits compared to both the prior year and on a two-year comparative basis.

Recent localised Covid-related lockdowns, particularly in China, led to temporary boutique closures in March 2022, negatively impacting an otherwise strong quarter.

Americas

The Americas reported sales growth of  77% above the prior year, and of 60% compared to the year ended March 2020, the strongest regional sales growth rates over the comparative one- and two-year periods. All business areas and almost all Maisons contributed to this outstanding performance.

The contribution of the region to Group sales increased to 22% from 18% in the prior year. The region now stands almost on par with Europe as the Group’s third largest region in terms of sales.

Japan

Sales in Japan, which contributed 6% of Group sales, recovered more slowly than in other regions, as international travel to the country, and related tourist sales, remained subdued. Japan also faced staggered Covid-related retail opening restrictions throughout the year.

Sales ended the year up by 35% on the prior year and by 7% on a two-year comparative basis, the latter growth rate being largely driven by the Jewellery Maisons and Online Distributors.

Middle East and Africa

The region benefited from increased demand from both domestic and international clients over the course of the year, driven by Expo 2020 Dubai and relatively favourable travel conditions. As a result, sales grew by 53% compared to the prior year and by 58% on a two-year comparative basis. The region contributed 8% of Group sales compared to 7% a year ago.

 

Sales by distribution channel

 

 

 

 

 

 

 

 

Change at:

 

 

 

 Constant  

 Actual   

in €m

 2022

 2021

 exchange  
 rates*  

 exchange   
 rates   

Retail

 11 057

 7 248

 +51%

 +53%

Online retail

 3 585

 2 794

 +27%

 +28%

Wholesale and royalty income

 4 539

 3 102

 +45%

 +46%

 

 19 181

 13 144

 +44%

 +46%

 

 

 

 

 

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2021.

The following comments on Group sales refer to year-on-year movements at constant exchange rates unless otherwise stated.

Retail

The Retail distribution channel incorporates sales from the Group’s directly operated stores at the Maisons and Watchfinder & Co. (‘Watchfinder’).

Retail generated the strongest channel performance with sales growth of 51% compared to the prior year and of 53% over a two-year period. Growth in this distribution channel was broad-based across all business areas and regions.

Retail sales were the largest contributor to Group sales, accounting for 57% of Group sales compared to 55% a year ago.

Online retail

Sales made through the online retail channel, primarily by the Online Distributors, also increased significantly, with a 27% growth over the prior year and 38% over two years, contributing 19% of Group sales.

Excluding Online Distributors, online retail sales rose by 42% and represented 6% of Group sales.

Wholesale

This distribution channel includes sales to mono-brand franchise partners, to third-party multi-brand retail partners as well as sales to agents, in addition to royalty income.

The 45% sales increase over the prior year was driven by a strong rebound across all business areas, whilst the 8% sales growth on a two-year comparative basis was mainly generated by the Jewellery Maisons.

For the year under review, the wholesale channel contributed 24% to Group sales.

 

Sales and operating results by segment

Jewellery Maisons

 

 

 

 

in €m

 2022

 2021  

 Change   

Sales

                     11 083

 7 459  

 +49%

Operating result

 3 799

 2 309  

 +65%

Operating margin

 34.3%

 31.0%

+330 bps  

 

 

 

 

The Group’s three Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels combined achieved a 49% increase in sales compared to the prior year (+54% compared to the year ended March 2020), with double-digit growth in jewellery, including high jewellery which benefited from the resumption of events, and watches. All iconic collections outperformed, from Opera Tulle and Macri at Buccellati, Love, Panthère, Santos and Ballon Bleu at Cartier to Alhambra and Perlée at Van Cleef & Arpels. This outstanding performance across all Maisons, price points, regions and distribution channels resulted in the Jewellery Maisons crossing the € 11 billion sales threshold for the first time. Growth was the strongest in the Jewellery Maisons’ directly-operated store network which contributed over three quarters of the business area’s sales.

With a 65% increase over the previous year, operating profit rose faster than sales leading to a 330 basis point improvement in operating profit margin to 34.3%. This excellent performance reflected higher sales, increased utilisation of manufacturing facilities, further manufacturing efficiency gains and ongoing cost discipline.

To support future growth for the Jewellery Maisons, investments accelerated into manufacturing capabilities as well as into significant boutique projects which included major renovations, such as the Milan Montenapoleone and New York Fifth Avenue stores for Cartier, as well store openings including the Buccellati flagship store in Tokyo Ginza and a Van Cleef & Arpels store in Highland Park Village in Dallas.

Specialist Watchmakers

 

 

 

 

in €m

 2022

 2021  

 Change   

Sales

 3 435

 2 247  

 +53%

Operating result

 593

 132  

 +349%

Operating margin

 17.3%

 5.9%

+1 140 bps  

 

 

 

 

Sales at the Specialist Watchmakers, which comprise A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin, grew by 53% compared to the prior year, and by 20% compared to the year ended March 2020. The performance for the year under review was driven by double-digit growth at all Maisons and across regions, with particular strength in the Americas. All channels saw strong growth with retail sales leading the growth. Previous investments in offline and online retail resulted in direct-to-client sales exceeding 50% of sales for the first time. Selective store investments included the new IWC Shinsegae Mall - Daejeon, South Korea, Vacheron Constantin flagship Ginza, Tokyo, Panerai flagship rue du Rhône, Geneva, and the renovated Piaget flagship store on Rodeo Drive, Beverly Hills.

Iconic collections, enriched with new references, saw strong demand. They notably included Lange 1 for A Lange & Söhne, Riviera for Baume & Mercier, Pilot for IWC, Reverso for Jaeger-LeCoultre, Luminor for Panerai, Polo for Piaget, Excalibur for Roger Dubuis and Overseas for Vacheron Constantin.

As a result of long-term management actions and strict discipline, the Specialist Watchmakers were able to convert this excellent sales performance into a significant increase in profitability, reporting an operating profit of € 593 million. Operating margin gained 1 140 basis points, increasing to 17.3%.

Online Distributors

 

 

 

 

in €m

 2022

 2021

 Change   

Sales

 2 788

 2 197

 +27%

Operating result

 (210)

 (223)

 +6%

Operating margin

 -7.5%

 -10.2%

+270 bps  

 

 

 

 

Sales of Richemont Maisons’ products made through NET-A-PORTER, MR PORTER, THE OUTNET and YOOX (all together ‘YNAP’) are reported under both the Maisons’ and Online Distributors’ business area. On Group level, these sales are subsequently eliminated as ‘intersegment sales’.

Online Distributors, comprising YNAP and Watchfinder, grew sales by 27% compared to the prior year, reflecting double-digit growth across all regions, led by the Americas and Asia Pacific. Compared to two years ago, sales rose by 15%. The shift towards a hybrid business model is well under way with a number of e-concessions operating at NET-A-PORTER and MR PORTER and a marketplace introduced at YOOX for Europe. NET-A-PORTER and MR PORTER continued their localisation initiatives, notably in the Middle East and China. Watchfinder’s international expansion ramped up successfully while the watch trade-in programme was further rolled out at the Specialist Watchmakers and Cartier.

The segment’s EBITDA loss decreased to € 24 million from € 37 million a year ago and the operating loss was reduced to € 210 million. Notwithstanding Brexit-related one-off expenses, YNAP’s EBITDA reached breakeven before the exceptional reward payments to Group employees and negative contribution of Fengmao, the Chinese joint-venture with Alibaba.

Other

 

 

 

 

in €m

 2022

 2021  
 re-presented*  

 Change   

Sales

 2 056

 1 345  

 +53%

Operating result

 (47)

 (214)  

 +78%

Operating margin

 -2.3%

 -15.9%

+1 360 bps  

 

 

 

 

* Prior year comparatives have been re-presented as costs previously included with Other have been reclassified to unallocated corporate costs

Other’ includes the Group’s Fashion & Accessories businesses as well as the Group’s watch component manufacturing and real estate activities. Following the successful acquisition of the Belgium-based luxury leather goods Maison, Delvaux’s sales and operating results are included within the segment from 1 July 2021 onwards. Delvaux already contributed strongly to sales and to strengthening our leather expertise.

Excluding Delvaux, sales grew by double digits compared to the prior year and by 9% compared to two years ago. For the one-year comparison, performance in the Americas and Europe was particularly commendable. All channels posted double-digit sales growth, including online retail following a triple-digit growth in the year ended March 2021. Direct-to-client sales reached 57%. Peter Millar, including the G/FORE brand, continued to deliver excellent results while Chloé and Alaïa started to reap the benefits of the new creative leadership under Gabriela Hearst and Pieter Mulier, respectively.

Store investments included the renovated Montblanc store in The Galleria Mall, Houston as well as new stores for Delvaux in Shinsegae Gangnam, Seoul, for Peter Millar in Highland Park Village, Dallas and for Chloé at E-Skyland Mall, Kaohsiung.

Higher sales, improved gross margin and financial discipline led to a significant reduction in operating loss to € 47 million.

Corporate costs

 

 

 

 

 

 

 

in €m

 2022

 

 2021
 re-presented*

 

 Change

Corporate costs

 (566)

 

 

 (323)

 

 +75%

 

 

 

 

 

 

 

Central support services

 (309)

 

 

 (255)

 

 +21%

Other unallocated expenses, net

 (257)

 

 

 (68)

 

 +278%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate costs represent the costs of central management, marketing support and other central functions (collectively central support services), as well as other expenses and income that are not allocated to specific business areas. Most corporate costs are incurred in Switzerland. For the year under review, they represented slightly below 3% of Group sales.

The Group’s consolidated financial statements of comprehensive income, cash flows and financial position are presented in Appendix 1. Richemont’s audited consolidated financial statements for the year may be found on the Group’s website at www.richemont.com/en/home/investors/results-reports-presentations. 

Jérôme Lambert
Chief Executive Officer

Burkhart Grund
Chief Finance Officer

 

 

Presentation

The results will be presented via an audio webcast on 20 May 2022, starting at 09:30 (CEST). The direct link is available from 07:30 (CEST) at www.richemont.com. The presentation may be viewed using a mobile device or from a browser.

Statutory information

The Richemont 2022 Annual Report will be published on 2 June 2022 and will be available for download from the Group’s website at www.richemont.com/en/home/investors/results-reports-presentations/. Copies may be obtained from the Company’s registered office or by contacting the Company via the website at www.richemont.com/en/home/investors/investor-and-analyst-contacts/

 

 

Registered office

Registrar

Auditor

50 chemin de la Chênaie
CP 30, 1293 Bellevue
Geneva
Switzerland
+41 22 721 3500
www.richemont.com

Computershare Schweiz AG
P.O. Box, 4601 Olten
Switzerland
+41 62 205 7700
share.register@computershare.com

PricewaterhouseCoopers SA
50 avenue Giuseppe-Motta
1202 Geneva
Switzerland

 

 

 

Secretariat contact

Investor/analyst and media contacts

 

Swen Grundmann
Company Secretary

+41 22 721 3500
secretariat@cfrinfo.net

Sophie Cagnard
Group Corporate Communications and IR Director

James Fraser
Investor Relations Executive

+41 22 721 3003 (investor relations)

investor.relations@cfrinfo.net

+41 22 721 3507 (media)

pressoffice@cfrinfo.net

 

 

 


 

 

richemont@teneo.com

 

 

‘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).

About Richemont

At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.

Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar including G/FORE, Purdey and Serapian. Find out more at https://www.richemont.com/.

 

Disclaimer

This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont’s forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumer traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers' desire to travel to our retail stores.  International conflicts or wars, including resulting sanctions and restrictions on importation and exportation of finished products and/or raw materials, whether self-imposed or imposed by international countries, non-state entities or others, may also impact these forward-looking statements.  As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group’s control. Richemont does not undertake to update, nor does it have any obligation to provide updates of, or to revise, any forward-looking statements.

© Richemont 2022

 

Appendix 1

 

 

 

 

 

 

 

 

Q1 FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(April-June 2021)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 905

 436

 1 072

 +108%

 +108%

 -15%

 -16%

Asia Pacific

 1 933

 1 013

 1 423

 +95%

 +91%

 +40%

 +36%

Americas

 955

 277

 698

 +276%

 +245%

 +47%

 +37%

Japan

 240

 112

 298

 +138%

 +114%

 -14%

 -19%

Middle East and Africa

 364

 155

 249

 +154%

 +135%

 +55%

 +46%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 2 421

 1 052

 1 851

 +138%

 +130%

 +35%

 +31%

Online retail

 809

 506

 648

 +67%

 +60%

 +29%

 +25%

Wholesale & royalty income

 1 167

 435

 1 241

 +178%

 +168%

 -3%

 -6%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 2 515

 1 083

 1 827

 +142%

 +132%

 +43%

 +38%

Specialist Watchmakers

 849

 359

 823

 +143%

 +136%

 +6%

 +3%

Online Distributors

 637

 356

 612

 +86%

 +79%

 +8%

 +4%

Other

 440

 204

 493

 +124%

 +116%

 -7%

 -11%

Inter-segment eliminations

 (44)

 (9)

 (15)

 

 

 

 

Total

 4 397

 1 993

 3 740

 +129%

 +121%

 +22%

 +18%

 

 

 

 

 

 

 

 

Q2 FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(July-September 2021)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 1 104

 798

 1 149

 +38%

 +38%

 -4%

 -4%

Asia Pacific

 1 856

 1 543

 1 306

 +17%

 +20%

 +43%

 +42%

Americas

 971

 623

 649

 +58%

 +56%

 +59%

 +50%

Japan

 286

 253

 349

 +20%

 +13%

 -11%

 -18%

Middle East and Africa

 293

 268

 204

 +10%

 +9%

 +49%

 +44%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 2 555

 1 878

 1 957

 +35%

 +36%

 +33%

 +31%

Online retail

 824

 702

 612

 +17%

 +17%

 +37%

 +35%

Wholesale & royalty income

 1 131

 905

 1 088

 +25%

 +25%

 +7%

 +4%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 2 582

 1 978

 1 909

 +30%

 +31%

 +39%

 +35%

Specialist Watchmakers

 830

 607

 744

 +35%

 +37%

 +13%

 +12%

Online Distributors

 641

 578

 567

 +11%

 +11%

 +15%

 +13%

Other

 495

 341

 448

 +45%

 +45%

 +14%

 +10%

Inter-segment eliminations

 (38)

 (19)

 (11)

 

 

 

 

Total

 4 510

 3 485

 3 657

 +29%

 +29%

 +26%

 +23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H1 FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(April-September 2021)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 2 009

 1 234

 2 221

 +62%

 +63%

 -9%

 -10%

Asia Pacific

 3 789

 2 556

 2 729

 +47%

 +48%

 +41%

 +39%

Americas

 1 926

 900

 1 347

 +123%

 +114%

 +53%

 +43%

Japan

 526

 365

 647

 +56%

 +44%

 -12%

 -19%

Middle East and Africa

 657

 423

 453

 +62%

 +55%

 +53%

 +45%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 4 976

 2 930

 3 808

 +71%

 +70%

 +34%

 +31%

Online retail

 1 633

 1 208

 1 260

 +38%

 +35%

 +33%

 +30%

Wholesale & royalty income

 2 298

 1 340

 2 329

 +74%

 +71%

 +2%

 -1%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 5 097

 3 061

 3 736

 +69%

 +67%

 +41%

 +36%

Specialist Watchmakers

 1 679

 966

 1 567

 +75%

 +74%

 +10%

 +7%

Online Distributors

 1 278

 934

 1 179

 +39%

 +37%

 +11%

 +8%

Other

 935

 545

 941

 +74%

 +72%

 +3%

 -1%

Inter-segment eliminations

 (82)

 (28)

 (26)

 

 

 

 

Total

 8 907

 5 478

 7 397

 +65%

 +63%

 +24%

 +20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(October-December 2021)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 1 410

 982

 1 263

 +42%

 +44%

 +12%

 +12%

Asia Pacific

 2 128

 1 729

 1 429

 +18%

 +23%

 +47%

 +49%

Americas

 1 333

 841

 874

 +55%

 +59%

 +59%

 +53%

Japan

 389

 335

 341

 +22%

 +16%

 +23%

 +14%

Middle East and Africa

 398

 299

 249

 +30%

 +33%

 +65%

 +60%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 3 400

 2 288

 2 212

 +45%

 +49%

 +56%

 +54%

Online retail

 1 025

 841

 747

 +19%

 +22%

 +40%

 +37%

Wholesale & royalty income

 1 233

 1 057

 1 197

 +14%

 +17%

 +4%

 +3%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 3 343

 2 366

 2 162

 +38%

 +41%

 +57%

 +55%

Specialist Watchmakers

 977

 758

 818

 +25%

 +29%

 +20%

 +19%

Online Distributors

 785

 668

 670

 +15%

 +18%

 +19%

 +17%

Other

 610

 436

 522

 +37%

 +40%

 +19%

 +17%

Inter-segment eliminations

 (57)

 (42)

 (16)

 

 

 

 

Total

 5 658

 4 186

 4 156

 +32%

 +35%

 +38%

 +36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9 months FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(April-December 2021)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 3 419

 2 216

 3 484

 +53%

 +54%

 -2%

 -2%

Asia Pacific

 5 917

 4 285

 4 158

 +35%

 +38%

 +43%

 +42%

Americas

 3 259

 1 741

 2 221

 +90%

 +87%

 +55%

 +47%

Japan

 915

 700

 988

 +39%

 +31%

 0%

 -7%

Middle East and Africa

 1 055

 722

 702

 +48%

 +46%

 +57%

 +50%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 8 376

 5 218

 6 020

 +60%

 +61%

 +42%

 +39%

Online retail

 2 658

 2 049

 2 007

 +30%

 +30%

 +35%

 +32%

Wholesale & royalty income

 3 531

 2 397

 3 526

 +47%

 +47%

 +2%

 0%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 8 440

 5 427

 5 898

 +55%

 +56%

 +47%

 +43%

Specialist Watchmakers

 2 656

 1 724

 2 385

 +53%

 +54%

 +13%

 +11%

Online Distributors

 2 063

 1 602

 1 849

 +29%

 +29%

 +14%

 +12%

Other

 1 545

 981

 1 463

 +57%

 +57%

 +8%

 +6%

Inter-segment eliminations

 (139)

 (70)

 (42)

 

 

 

 

Total

 14 565

 9 664

 11 553

 +50%

 +51%

 +29%

 +26%

 

 

 

 

 

 

 

 

 

Q4 FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(January-March 2022)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 1 050

 739

 814

 +43%

 +42%

 +32%

 +29%

Asia Pacific

 1 903

 1 652

 834

 +8%

 +15%

 +123%

 +128%

Americas

 1 009

 647

 585

 +46%

 +56%

 +75%

 +72%

Japan

 290

 240

 224

 +23%

 +21%

 +41%

 +29%

Middle East and Africa

 364

 202

 228

 +69%

 +80%

 +62%

 +60%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 2 681

 2 030

 1 318

 +27%

 +32%

 +105%

 +103%

Online retail

 927

 745

 639

 +19%

 +24%

 +46%

 +45%

Wholesale & royalty income

 1 008

 705

 728

 +36%

 +43%

 +38%

 +38%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 2 643

 2 032

 1 319

 +25%

 +30%

 +102%

 +100%

Specialist Watchmakers

 779

 523

 474

 +41%

 +49%

 +62%

 +64%

Online Distributors

 725

 595

 578

 +18%

 +22%

 +27%

 +25%

Other

 511

 364

 325

 +35%

 +40%

 +58%

 +57%

Inter-segment eliminations

 (42)

 (34)

 (11)

 

 

 

 

Total

 4 616

 3 480

 2 685

 +27%

 +33%

 +73%

 +72%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY22

 2022

 2021

 2020

 % change 2022 vs 2021

 % change 2022 vs 2020

(April 2021 – March 2022)

 €m

 €m

 €m

constant rates

 actual rates

constant rates

 actual rates

By region

 

 

 

 

 

 

 

Europe

 4 469

 2 955

 4 298

 +51%

 +51%

 +5%

 +4%

Asia Pacific

 7 820

 5 937

 4 992

 +28%

 +32%

 +56%

 +57%

Americas

 4 268

 2 388

 2 806

 +77%

 +79%

 +60%

 +52%

Japan

 1 205

 940

 1 212

 +35%

 +28%

 +7%

 -1%

Middle East and Africa

 1 419

 924

 930

 +53%

 +54%

 +58%

 +53%

 

 

 

 

 

 

 

 

By distribution channel

 

 

 

 

 

 

 

Retail

 11 057

 7 248

 7 338

 +51%

 +53%

 +53%

 +51%

Online retail

 3 585

 2 794

 2 646

 +27%

 +28%

 +38%

 +35%

Wholesale & royalty income

 4 539

 3 102

 4 254

 +45%

 +46%

 +8%

 +7%

 

 

 

 

 

 

 

 

By business area

 

 

 

 

 

 

 

Jewellery Maisons

 11 083

 7 459

 7 217

 +47%

 +49%

 +57%

 +54%

Specialist Watchmakers

 3 435

 2 247

 2 859

 +50%

 +53%

 +21%

 +20%

Online Distributors

 2 788

 2 197

 2 427

 +26%

 +27%

 +17%

 +15%

Other

 2 056

 1 345

 1 788

 +51%

 +53%

 +17%

 +15%

Inter-segment eliminations

 (181)

 (104)

 (53)

 

 

 

 

Total

 19 181

 13 144

 14 238

 +44%

 +46%

 +37%

 +35%

 

 

 

 

 

 

 

 

 

 

Consolidated statement of comprehensive income for the year ended 31 March

 

 

 

 

 

 

 

 

 

 

 2022

 

 

 2021

 

 

 

 

 €m

 

 

 €m

 

 

Revenue

 

 19 181

 

 

13 144

 

 

Cost of sales

 

 (7 154)

 

 

(5 283)

 

 

Gross profit

 

 12 027

 

 

7 861

 

 

Selling and distribution expenses

 

 (4 185)

 

 

(3 241)

 

 

Communication expenses

 

 (1 865)

 

 

(1 030)

 

 

Fulfilment expenses

 

 (486)

 

 

 (356)

 

 

Administrative expenses

 

 (1 757)

 

 

(1 484)

 

 

Other operating expenses

 

 (344)

 

 

 (272)

 

 

Operating profit

 

 3 390

 

 

1 478

 

 

Finance costs

 

 (959)

 

 

 (295)

 

 

Finance income

 

 115

 

 

 320

 

 

Share of post-tax results of equity-accounted investments

 

 31

 

 

 12

 

 

Profit before taxation

 

 2 577

 

 

1 515

 

 

Taxation

 

 (498)

 

 

 (226)

 

 

Profit for the year

 

 2 079

 

 

1 289

 

 


Other comprehensive income:

 

 

 

 

 

 

 

Items that will never be reclassified to profit or loss

 

 

 

 

 

 

 

Defined benefit plan actuarial gains

 

 32

 

 

 118

 

 

Tax on defined benefit plan actuarial gains

 

 (7)

 

 

 (15)

 

 

Fair value changes on financial assets held at fair value through other comprehensive income

 (169)

 

 

 202

 

 

 

 

 (144)

 

 

 305

 

 

Items that are or may be reclassified subsequently to profit or loss

 

 

 

 

 

 

 

Currency translation adjustments

 

 

 

 

 

 

 

  movement in the year

 

 1 107

 

 

 (517)

 

 

  reclassification to profit or loss

 

 (2)

 

 

 9

 

 

Cash flow hedging – reclassification to profit or loss, net of tax

 

 4

 

 

 4

 

 

Share of other comprehensive income of equity-accounted investments

 

 1

 

 

 

 

 

 

 

 1 110

 

 

 (504)

 

 

Other comprehensive income, net of tax

 

 966

 

 

 (199)

 

 

Total comprehensive income

 

 3 045

 

 

1 090

 

 


Profit attributable to:

 

 

 

 

 

 

 

Owners of the parent company

 

 2 074

 

 

1 301

 

 

Non-controlling interests

 

 5

 

 

 (12)

 

 

 

 

 2 079

 

 

1 289

 

 


Total comprehensive income attributable to:

 

 

 

 

 

 

 

Owners of the parent company

 

 3 037

 

 

1 103

 

 

Non-controlling interests

 

 8

 

 

 (13)

 

 

 

 

 3 045

 

 

1 090

 

 

 

 

 

 

 

 

 

 

Earnings per ʻAʼ share/10 ʻBʼ shares attributable to owners of the parent company during the year (expressed in € per share)

 

 

From profit for the year

 

 

 

 

 

 

 

Basic

 

 3.660

 

 

2.302

 

 

Diluted

 

 3.611

 

 

2.296

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of cash flow for the year ended 31 March

 

 

 

 

 

 

 2022

 2021

 

 

 €m

 €m

Cash flows from operating activities

 

 

 

Operating profit from continuing operations

 

 3 390

 1 478

Adjustment for non-cash items

 

 1 703

 1 554

Changes in working capital

 

 81

 529

Cash flow generated from operations

 

 5 174

 3 561

Interest received

 

 102

 83

Interest paid

 

 (210)

 (179)

Dividends from equity-accounted investments

 

 6

 

Dividends from other investments

 

 

 1

Taxation paid

 

 (434)

 (248)

Net cash generated from operating activities

 

 4 638

 3 218

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of subsidiary undertakings and other businesses, net of cash acquired

 

 (195)

 (33)

Proceeds from disposal of subsidiary undertakings, net of cash

 

 1

 

Acquisition of equity-accounted investments

 

 (104)

 

Proceeds from disposal of, and capital distributions from, equity-accounted investments

 

 63

 50

Acquisition of property, plant and equipment

 

 (754)

 (386)

Proceeds from disposal of property, plant and equipment

 

 18

 14

Payments capitalised as right of use assets

 

 (4)

 

Acquisition of intangible assets

 

 (117)

 (127)

Acquisition of investment property

 

 

 (1)

Proceeds from disposal of investment property

 

 86

 

Investment in money market and externally managed funds

 

 (13 698)

 (11 430)

Proceeds from disposal of money market and externally managed funds

 

 12 654

 10 085

Acquisition of other non-current assets and investments

 

 (252)

 (379)

Proceeds from disposal of other non-current assets and investments

 

 24

 12

Net cash used in investing activities

 

 (2 278)

 (2 195)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from borrowings

 

 1

 2 072

Corporate bond issue transaction costs

 

 

 (8)

Repayment of borrowings

 

 (16)

 (85)

Dividends paid

 

 (1 041)

 (529)

Proceeds from sale of treasury shares

 

 123

 32

Acquisition of warrants on own equity

 

 (131)

 (15)

Contribution from non-controlling interests in a subsidiary

 

 15

 

Acquisition of non-controlling interests in a subsidiary

 

 (86)

 

Lease payments  ̶  principal

 

 (632)

 (561)

Net cash used in financing activities

 

 (1 767)

 906

 

 

 

 

Net change in cash and cash equivalents

 

 593

 1 929

Cash and cash equivalents at the beginning of the year

 

 3 780

 1 985

Exchange gains/(losses) on cash and cash equivalents

 

 195

 (134)

Cash and cash equivalents at the end of the year

 

 4 568

 3 780

 

 

 

 

 

 

Consolidated balance sheet at 31 March

 

 

 

 

 

 

 

 

 2022

 2021

 

 

 

 €m

 €m

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

 

 3 122

 2 583

Goodwill

 

 

 3 538

 3 456

Other intangible assets

 

 

 2 342

 2 436

Right of use assets

 

 

 3 468

 3 339

Investment property

 

 

 

 220

Equity-accounted investments

 

 

 252

 187

Deferred income tax assets

 

 

 754

 614

Financial assets held at fair value through profit or loss

 

 

 325

 506

Financial assets held at fair value through other comprehensive income

 

 

 280

 377

Other non-current assets

 

 

 521

 435

 

 

 

 14 602

 14 153

Current assets

 

 

 

 

Inventories

 

 

 7 099

 6 319

Trade receivables and other current assets

 

 

 1 662

 1 369

Derivative financial instruments

 

 

 55

 12

Financial assets held at fair value through profit or loss

 

 

 6 632

 5 550

Assets held for sale

 

 

 59

 79

Cash at bank and on hand

 

 

 9 877

 7 877

 

 

 

 25 384

 21 206

Total assets

 

 

 39 986

 35 359

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity attributable to owners of the parent company

 

 

 

 

Share capital

 

 

 334

 334

Treasury shares

 

 

 (346)

 (490)

Hedge and share option reserves

 

 

 503

 419

Cumulative translation adjustment reserve

 

 

 3 728

 2 626

Retained earnings

 

 

 15 595

 14 885

 

 

 

 19 814

 17 774

Non-controlling interests

 

 

 49

 110

Total equity

 

 

 19 863

 17 884

 

 

 

 

 

Liabilities

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

 

 5 948

 5 937

Lease liabilities

 

 

 3 101

 2 927

Deferred income tax liabilities

 

 

 325

 258

Employee benefit obligations

 

 

 61

 65

Provisions

 

 

 74

 55

Other long-term financial liabilities

 

 

 107

 97

 

 

 

 9 616

 9 339

Current liabilities

 

 

 

 

Trade payables and other current liabilities

 

 

 3 351

 2 537

Current income tax liabilities

 

 

 724

 550

Borrowings

 

 

 1

 

Lease liabilities

 

 

 647

 590

Derivative financial instruments

 

 

 150

 114

Provisions

 

 

 325

 248

Bank overdraft

 

 

 5 309

 4 097

 

 

 

 10 507

 8 136

Total liabilities

 

 

 20 123

 17 475

Total equity and liabilities

 

 

 39 986

 35 359

 

 

 

 

 

 

Operating results for the year ended 31 March

 

 

 

 

 

 



 Maisons


Online
Distributors

Intersegment
elimination and
central costs

Total Group

 

€m

€m

€m

€m

2022

 

 

 

 

Sales

16 574

2 788

(181)

19 181

Gross profit

11 243

941

(157)

12 027

Gross margin

67.8%

33.8%

 

62.7%

Operating profit

4 345

(210)

(745)

3 390

Operating margin

26.2%

(7.5)%

 

17.7%

 

 

 

 

 

 



Maisons


Online
Distributors


Intersegment
elimination and
central costs



Total Group

 

€m

€m

€m

€m

2021 re-presented*

 

 

 

 

Sales

11 051

2 197

(104)

13 144

Gross profit

7 183

732

(54)

7 861

Gross margin

65.0%

33.3%

 

59.8%

Operating profit

2 227

(223)

(526)

1 478

Operating margin

20.2%

(10.2)%

 

11.2%

 

 

 

 

 

* Prior year comparatives have been re-presented as costs previously included with Other have been reclassified to unallocated corporate costs

 


End of ad hoc announcement

Language:

English

Company:

Compagnie Financière Richemont SA

Chemin de la Chênaie 50

1293 Bellevue

Switzerland

Phone:

+41227213506

E-mail:

pressoffice@cfrinfo.net

Internet:

http://www.richemont.com

ISIN:

CH0210483332

Valor:

21048333

Listed:

SIX Swiss Exchange

EQS News ID:

1357339


 

End of Announcement

EQS News Service

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