Richemont records strong sales growth

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For the year ended March 31, 2023, Richemont reported sales from continuing operations increased by 19 percent at actual exchange rates and 14 percent at constant exchange rates to 19, 953 million euros.

Compared to the prior year, gross profit increased by 23 percent to 13, 716 million euros and the corresponding gross margin rose to 68.7 percent of sales. operating profit from continuing operations rose by 34 percent to 5, 031 million euros. As a result, operating margin improved by 280 basis points to 25.2 percent of sales.

Profit for the year from continuing operations increased by 60 percent over the prior year to 3, 911 million euros.

“Economic volatility and political uncertainty look set to remain features of the trading environment. The group will therefore seek to maintain the necessary agility to manage fluctuating levels of demand. I am confident that our Maisons are well positioned to meet strong demand, notably driven by a significant resumption of Chinese travel,” said Johann Rupert, chairman of Richemont.

Richemont’s core markets witness sales growth

At actual exchange rates, the company said in a release, Asia Pacific sales grew by 6 percent, partly benefitting from a rebound in sales in mainland China, Hong Kong and Macau in the final quarter of the financial year, following the removal of travel and health restrictions. South Korea and Southeast Asia delivered sales increases throughout the year.

Sales growth in the Americas, which represents the group’s second largest sales region, reached 27 percent for the year compared to 89 percent growth in the prior year. In Europe, the company added, 30 percent sales growth reflected demand in most markets, with the performance of France, Italy and Switzerland particularly noteworthy. Japan reported the strongest regional performance for the year with sales up by 45 percent, driven by domestic sales and the progressive return of inbound tourism. Sales in the Middle East & Africa rose by 24 percent.

The group’s directly-operated stores drove growth, with sales up by 22 percent at actual exchange rates compared to the prior year, underpinned by double-digit growth across all regions and all business areas. Online retail sales, now excluding sales made by YNAP, increased by 12 percent while wholesale sales were 14 percent higher over the year.

Richemont announces 11 percent increase in dividend

At actual exchange rates, all business areas delivered double-digit sales growth compared to the prior year. Sales at the Jewellery Maisons rose by 21 percent, reflecting growth across all channels and regions. The 13 percent increase in sales of the Specialist Watchmakers was supported by growth in all regions with the exception of Asia Pacific. The ‘Other’ business area enjoyed a 19 percent sales progression, sustained by all regions.

The company further said that based upon the strong performance of the year, significant cash flow generation and a solid net cash position of 6.5 billion euros at the end of March 2023, Richemont board proposes to pay an ordinary dividend of 2.50 Swiss francs per 1 A share 0.25 Swiss francs per ‘B’ shares, up by 11 percent over the prior year as well as a special dividend of 1 Swiss franc per ‘A’ share and 0.10 Swiss francs ‘B’ shares.