Richemont In 2006-2007 Another Year Of Flying High
For the Richemont group, one (good) year follows another. The 2006-2007 financial year ended with two-digit increases in turnover and operating and net profit. No clouds on the horizon.
During its 2006-2007 financial ending on 31 March, the worldA’s number one luxury goods producer recorded a net profit A– including revenues from the groupA’s holding in British American Tobacco (BAT) - of 1,329 million euros (+21% compared to 2005-2006) on turnover of 4,827 million (+12%). Operating profit, derived from its activities in luxury products, for its part increased by 24%, to 916 million euros. The board of directors therefore decided to pay a dividend of 1.25 euro per share, up by 14%.
In terms of sales, all sectors of activity contributed to this growth: +9% to 2,435 million euros for companies specialising in jewellery (Cartier and Van Cleef & Arpels), +13% to 1,203 million for watchmaking firms (Baume & Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Panerai, Piaget and Vacheron Constantin), +18% to 585 million for manufacturers of writing instruments (Montblanc and Montegrappa), +8% to 307 million for companies active in leather goods and accessories (Alfred Dunhill and Lancel) and +25% to 297 million for other activities (Chloé, Old England and Hackett).
The picture was virtually the same with regard to operating profit, the only bad news being another loss A– admittedly 11 million instead of 38 million one year earlier A– for producers of leather goods and a fall of 9% to 20 million euros in the profit of A“other activitiesA”. For the rest, it was growth all the way: +8% to 667 million among jewellers, +21% to 274 million for watch manufacturers and +33% to 110 million in the sector of writing instruments.
From a geographical point of view, turnover increased in all regions of the world, however the weakness of the yen and the dollar against the euro entailed some loss of earnings. At constant exchange rates sales in fact rose by 10% in Japan, 18% in the Americas and 24% in the Asia-Pacific region, while in euros they increased by only 1% to 731 million euros, 12% to 984 million and 19% to 1,070 million respectively. In Europe, turnover increased by 13% to 2,042 million.
Clearly satisfied with the results of his group, the president Johann Ruppert expressed A“concernA” however over the difficulty today in meeting demand in full for certain watch models, but promised that everything would be done to remedy the problem. In the light of good results for April 2007, with sales up by 10% (current exchange rate) and the continuing buoyant world economic situation, he also announced A“largely positiveA” prospects, despite current monetary difficulties. Other reasons for his optimism were the potential of the groupA’s brands, a balanced portfolio and a presence in all regions of the world, which considerably reduced the level of risk.
(No Ratings Yet)
Loading ...No Comments »
No comments yet.
RSS feed for comments on this post.
