Richemont FY sales grow by 29 %

Richemont, the Swiss luxury goods group, announced its audited consolidated results

for the year ended 31 March 2012. Sales increased by 29 % to € 8 867 million at actual exchange rates and by 30% at constant currency. Its operating profit rose by 51 % to € 2 040 million and operating margin reached 23 % of sales. Healthy cash flow generated from operations is € 1 789 million.

Sales for the year increased by 29 %. This growth in sales reflected the continuing demand for established product lines of the brand. The Asia-Pacific region saw the highest level of demand and, following several years of very strong growth, sales in that region now represent 42 % of group sales. Gross profit also increased by 29 %. The gross margin percentage was in line with the prior year at 63.7 % of sales.

Operating profit increased by 51 %, reflecting the significant increase in gross profit and continuing cost discipline. This is evidenced by the limited year-on-year increase in net operating expenses of 19 %, which was well below the percentage growth in sales. Selling and distribution expenses were 19 % higher, reflecting sales growth in general and the opening of new boutiques by the Maisons.

Profit for the year increased by 43 % to € 1 540 million. The effective taxation rate was 14.6 %. The decrease in the rate compared to the prior year was primarily due to timing differences associated with deferred tax assets relating to inventory. Earnings per share increased by 43 % to € 2.756 on a diluted basis. Cash flow generated from operations was € 1 789 million, € 93 million above the prior year.

Richemont owns a portfolio of leading international brands or Maisons, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Lancel, Net-a-Porter and Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.