| Compagnie Financiere Richemont SA |
| Group highlights |
- Sales at € 10.1 billion and operating profit from continuing operations at € 2.2 billion in a challenging macroeconomic and geopolitical context, supported by ongoing investment into distribution and manufacturing assets
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- Completion of the acquisition of distinctive Italian jewellery Maison Vhernier
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- Signature of an agreement by which Mytheresa will acquire YNAP in exchange for a 33% equity stake in Mytheresa, subject to customary closing conditions
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- Strengthened governance with the appointment of a new Group CEO; new leadership in place at Cartier and Van Cleef & Arpels
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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
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- 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
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- Continued growth in direct-to-client sales, now accounting for 76% of Group sales
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- Operating profit from continuing operations is down by 17%, or by 12% at constant exchange rates, resulting in a 21.9% operating margin
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- Continued growth at Jewellery Maisons, with sales up 2% at actual exchange rates (+4% at constant exchange rates), delivering a 32.9% operating margin
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- A decline in sales at Specialist Watchmakers, by 17% at actual exchange rates (-16% at constant exchange rates) with a 9.7% operating margin
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- Sales were up 4% in the ‘Other’ business area, at both actual and constant exchange rates; € 52 million operating loss, with F&A Maisons posting a -2% operating margin
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- € 1.7 billion profit for the period from continuing operations; € 1.3 billion loss from discontinued operations mainly due to the non-cash write-down of YNAP
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- Solid net cash position of € 6.1 billion, with € 1.2 billion cash flow generated from operating activities
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Key financial data (unaudited) |
| Six months ended 30 September |
2024 |
2023 |
change |
| Sales |
€ 10 077 m |
€ 10 221 m |
-1% |
| Gross profit |
€ 6 771 m |
€ 6 973 m |
-3% |
| Gross margin |
67.2% |
68.2% |
-100 bps |
| Operating profit |
€ 2 206 m |
€ 2 655 m |
-17% |
| Operating margin |
21.9% |
26.0% |
-410 bps |
| Profit for the period from continuing operations |
€ 1 729 m |
€ 2 160 m |
-20% |
| Loss for the period from discontinued operations |
€ (1 272) m |
€ (655) m |
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| Profit for the period |
€ 457 m |
€ 1 505 m |
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| Earnings per ‘A’ share/10 ‘B’ shares, diluted basis |
€ 0.779 |
€ 2.601 |
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| Cash flow generated from operating activities |
€ 1 249 m |
€ 1 666 m |
€ (417) m |
| Net cash position |
€ 6 108 m |
€ 5 785 m |
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Chairman’s Commentary |
| Overview of results |
| In the first six months of the financial year, Richemont demonstrated sustained resilience, against a challenging macroeconomic and geopolitical backdrop, supported by ongoing investment in our distribution and manufacturing capacities. Benefitting from the Group’s balanced geographic mix and continued strength at our Jewellery Maisons, sales from continuing operations were stable at constant exchange rates (-1% at actual exchange rates) at € 10.1 billion. Operating profit from continuing operations came in at € 2.2 billion, down 12% at constant exchange rates (-17% at actual exchange rates), largely reflecting the impact of the decline in sales at our Specialist Watchmakers, a slight gross margin erosion and ongoing investments for our Maisons’ long-term growth. |
| The Group recorded very solid sales progress in most regions, led by the Americas and Japan in value, which grew 10% and 32% respectively at actual exchange rates. Both Europe and Middle East & Africa also posted robust growth. The Group’s balanced regional mix, building on several growth engines, contributed to offsetting the 19% decrease in Asia Pacific sales, led by China. Direct-to-client sales rose further, now representing 76% of Group sales. |
| With 2% sales growth overall (+4% at constant exchange rates), our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, continued to show strength and gain share. Limited price increases over recent months were not sufficient to fully offset raw material cost increases, notably that of gold. Our Jewellery Maisons nonetheless delivered a € 2.3 billion operating result and a corresponding 32.9% operating margin. |
| As already alluded to at our last Annual General Meeting of shareholders in September, the global watch market is experiencing a slowdown, particularly in China, which is affecting all watchmaking brands globally, with the high-end segments showing greater resilience. This highlights the need for discipline and caution regarding overproduction and underscores the importance of adapting to changing market conditions, which will ultimately contribute to maintaining higher product desirability. Looking back at the first half of our fiscal year, our Specialist Watchmakers Maisons were affected in different ways, influenced by their regional exposure and product mix. Largely reflecting their significant exposure to the Asia Pacific region, our Specialist Watchmakers recorded a 17% year-on-year sales decline (-16% at constant exchange rates) to € 1.7 billion. As a consequence of lower sales on fixed operating costs and a strong Swiss franc, the operating result amounted to € 160 million, corresponding to a 9.7% operating margin. |
| Sales at our ‘Other’ business area increased by 4% at both actual and constant exchange rates. Sales at our Fashion & Accessories Maisons were 2% higher than the prior-year period, driven by Alaïa’s and Peter Millar’s continued outperformance. Overall, the ‘Other’ business area recorded a € 52 million operating loss, € 23 million of which was for the F&A Maisons.
At the Group level, operating profit from continuing operations was also significantly impacted by negative foreign exchange movements, but still delivered a 21.9% operating margin. Profit for the period from continuing operations decreased to € 1.7 billion. The € 1.3 billion loss from discontinued operations reflected the combined result of YOOX NET-A-PORTER (‘YNAP’) for the six months and the € 1.2 billion non-cash write-down on the revaluation of YNAP’s net assets, classified as ‘held for sale’, to its fair value, following the agreement signed with Mytheresa in October. Importantly, amidst ongoing macro uncertainty, our net cash position remained solid at € 6.1 billion on 30 September 2024. This excludes YNAP’s net cash position of € 0.1 billion, presented as assets and liabilities of the disposal group held for sale. |
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| Compagnie Financiere Richemont SA |
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