Richemont expects 36 percent decline in FY15 net profit

Compared to the previous financial year, Richemont’s net profit for the year ended March 31, 2015 is expected to decrease by 36 percent. The company is attributing this significant decrease to non-cash, mark-to-market losses on financial instruments, which include monetary items and derivatives.

The company has also said that following the announcement made on March 31, 2015, Richemont’s current interest in the Net-A-Porter Group will be termed as ‘held for sale’ at the current year-end. The results of that business will be reported as a ‘discontinued operation’ in the group’s consolidated statement of comprehensive income for the two years ended March 31, 2015 and 2014. As a consequence, previously reported Richemont sales and operating profit will be re-presented, excluding the results of The Net-A-Porter Group.

Including The Net-A-Porter Group’s results, Richemont’s sales for the year would have increased by 5 percent on a reported basis and by 2 percent on a constant currency basis compared to the previous financial year. On a re-presented basis, excluding the results of the discontinued operation, Richemont’s sales increased by 4 percent on a reported basis and by 1 percent on a constant currency basis. Richemont’s operating profit for the year is expected to show an increase of 10 percent. The group’s results for the year ended March 31, 2015 will be announced in detail on May 22, 2015.