RICHEMONT DELIVERS STRONG PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2022

Compagnie Financière Richemont SA / Key word(s): Annual Results RICHEMONT DELIVERS STRONG PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2022 20-May-2022 / 07:31 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

Group highlights

• Significant step change in Group sales and operating profit, reaching € 19 181 million and € 3 390 million, respectively
• Increased proposed dividend of CHF 2.25 per 1 ‘A’ share / 10 ‘B’ shares and additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares
• Strengthened sustainability focus with Science-Based Targets commitment and appointment of Chief Sustainability Officer

Financial highlights

Compared to the year ended 31 March 2021

• Sales up by 46% at actual exchange rates and by 44% at constant exchange rates, with double-digit increases across all business areas, regions and channels; growth momentum led by retail and the Americas
• Operating profit more than doubled to € 3 390 million, delivering improved operating margin of 17.7% driven by:
  • Jewellery Maisons with 49% sales growth at actual exchange rates (+47% at constant rates) and 34.3% operating margin;
  • Specialist Watchmakers growing by 53% at actual exchange rates (+50% at constant exchange rates) and achieving 17.3% operating margin;
  • Online Distributors growth of 27% at actual exchange rates (+26% at constant exchange rates), YNAP stand-alone EBITDA at breakeven before exceptional reward payment; ongoing discussions with Luxury New Retail (‘LNR’) partners;
  • Other business area with strong growth (+53% at actual exchange rates, +51% at constant exchange rates) and significantly reduced operating loss;
  • Suspension of commercial activities in Russia resulting in € 168 million negative operating result impact.
• Profit for the year rose by 61% to € 2 079 million
• 55% increase in net cash position to € 5 251 million, supported by strong cash flow from operating activities and strict working capital management

Compared to the year ended 31 March 2020

• Sales up by 35% at actual exchange rates and 37% at constant exchange rates
• Broad-based growth in terms of business areas led by retail and online retail channels
• Significant 700 basis point improvement of operating contribution

Key financial data (audited)

				% change 2022
	2022	2021	2020	vs 2021	vs 2020
Sales	€ 19 181 m	€ 13 144 m	€ 14 238 m	+46%	+35%
Gross profit	€ 12 027 m	€ 7 861 m	€ 8 611 m	+53%	+40%
Gross margin	62.7%	59.8%	60.5%	+290 bps	+220 bps
Operating profit	€ 3 390 m	€ 1 478 m	€ 1 518 m	+129%	+123%
Operating margin	17.7%	11.2%	10.7%	+650 bps	+700 bps
Profit for the year	€ 2 079 m	€ 1 289 m	€ 931 m	+61%	+123%
Earnings per ‘A’ share/10 ‘B’ shares, diluted basis	€ 3.611	€ 2.296	€ 1.646	+57%	+119%
Cash flow generated from operating activities	€ 4 638 m	€ 3 218 m	€ 2 370 m	+€ 1 420 m	+€ 2 268 m
Net cash position	€ 5 251 m	€ 3 393 m	€ 2 395 m	+€ 1 858 m	+€ 2 856 m

 

Chairman’s commentary

Overview of results

The financial year ended 31 March 2022 saw Richemont report another strong set of results.  Increased inflationary pressures and repeated temporary store closures due to health protection measures, were offset by relatively improved economies up until February 2022.  The Group’s strong sales, profit and cash flows confirm the strong appeal of our Maisons and relevance of our long-term strategy.

Sales during the year under review reached an all-time high of € 19.2 billion, a 46% increase over last year (+35% on a two-year comparative period) with all Maisons, channels and regions achieving double-digit growth, led by retail and the Americas (+79%). Sales in Asia Pacific rose by 32%, with mainland China sales growing by 20% compared to the prior year. The strong European client base more than offset subdued inbound tourism, leading to a 51% sales increase, while in the Middle East and Africa sales grew at a similar pace, surpassing Japan as the Group's fourth largest market, where sales rose albeit by 28%.

Our Maisons and businesses’ continued focus on client-centric initiatives, resulted in direct-to-client sales further progressing to 76% of Group sales across our directly-operated stores and the online retail channel. We have an improved insight into client profiles, allowing us to better meet expectations, nurture closer relationships and optimise supply chain management. While wholesale sales recovered from last year, direct-to-client sales rose by double digits compared to both the prior year and on a two-year comparative basis. This was further enhanced by the return to in-person high-jewellery events and the long-awaited Watches and Wonders event which opened its physical doors in Geneva for the first time in three years.

Our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, delivered a step-change in performance with combined sales exceeding € 11 billion and the operating margin reaching 34.3% versus 31.0% in the prior year. Cartier and Van Cleef & Arpels posted an outstanding performance, increasing their market leadership. Buccellati also developed successfully, further expanding its international footprint with nine new directly-operated stores.

Another noteworthy achievement relates to the Specialist Watchmakers’ strong sales rebound (+53%) to € 3.4 billion and operating margin recovery to 17.3%, with nearly all Maisons exceeding pre-pandemic sales levels. The Specialist Watchmakers reaped the benefits of direct-to-client sales exceeding 50%, achieved through continuous improvements in distribution, communication, notably on social media, and supply chain management. The increased appeal of high-quality watches to Millennials and Gen-Z is very positive for the future.

At the Group’s Online Distributors, sales rose by 27% and EBITDA reached breakeven before the exceptional reward payments to Group employees and negative contribution of Feng Mao, the Chinese joint-venture with Alibaba. The shift towards a hybrid business model (mix of inventory ownership and e-concessions/marketplace) at NET-A-PORTER and YOOX, as well as localisation efforts, progressed further. Watchfinder consolidated its position as a leader in pre-owned watches in its home market and outside the UK.

The Group’s ‘Other’ business area, mostly composed of the Fashion & Accessories Maisons, posted strong growth, with sales 53% higher than in the prior year, positively impacted by newly appointed creative directors at Alaïa, Chloé and Montblanc as well as by the contribution of Delvaux, the Belgian luxury leather goods Maison, acquired last June. Peter Millar continued to perform strongly, notably through its G/FORE brand, while Alaïa and Chloé enjoyed a good reception of their recent collections. Montblanc's leather collection was successfully launched this March, while lacklustre travel retail continued to weigh on the Maison’s performance. Overall, the business area’s operating loss was significantly reduced to € 47 million.

Discussion with our Luxury New Retail (‘LNR’) partners continues around closer future collaboration. There is considerable complexity, which means the process is inevitably protracted. We look forward to concluding matters in the near future.

At the Group level, operating profit more than doubled to € 3.4 billion and the operating margin strengthened to 17.7%. This significant growth in operating profit, combined with careful management of working capital, led to cash flow from operating activities increasing to € 4.6 billion. Profit for the year rose by 61% to € 2.1 billion and net cash by 55% to € 5.2 billion at the end of March 2022.

 

Dividends

Given the strong performance of the year and robust net cash position of the Group, the Board proposes to pay an ordinary dividend of CHF 2.25 per ‘A’ share (and CHF 0.225 per ‘B’ share), an increase of 13% over the prior year, as well as an additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares, subject to shareholders’ approval at the Annual General Meeting on 7 September 2022. This is a recognition of the excellent profits achieved over the year that we would like to share, not only with all Richemont colleagues through an exceptional reward payment, but also with Richemont’s loyal long-term shareholders.

 

Annual General Meeting and Board changes

The Annual General Meeting (‘AGM’) in September 2021 saw some significant board changes: we were delighted to welcome Patrick Thomas, former Chief Executive Officer of Hermès, who brings unparalleled luxury industry expertise, and Jasmine Whitbread, an experienced director and highly regarded Environmental, Social & Governance expert. Both directors bring very valuable contributions to our Board.

We also bid farewell to two long-serving and valued non-executive directors, Alan Quasha and Gary Saage, who stepped down from the Board; two other respected and experienced non-executive directors, Jan Rupert and Ruggero Magnoni, have also indicated that they will not seek re-election to the Board of Directors at the 2022 AGM having each served for 16 years. They made immeasurable contributions to the development of Richemont and will be sorely missed. I wish to thank each of them for their loyal, insightful and valuable support.

After the 2022 AGM and subject to shareholders’ approval, the Board will be reduced to 16 members as we continue to seek an optimal balance between diversity and experience relevant to the business with a Board size which does not over-burden our non-executive directors. Female Board members will represent 31% of the new Board.

PricewaterhouseCoopers (‘PWC’) has been the Group’s external auditor since 1993. Recognising shareholders’ expectations, it has been decided to initiate a tender process which may lead to the appointment of a new Group external auditor.

 

Sustainability

Our vision of sustainable luxury requires that we leave no stone unturned.

One important step is to remove polyvinyl chloride (‘PVC’) from our products and packaging. I am pleased to report that we are on track to achieve this objective by December 2022 and wish to salute the countries that have already banned PVC from their landfills, thus contributing to a healthier planet for humans, fauna and flora.

Another major aspect is to ensure that sustainability is firmly embedded in our governance. With this in mind, Board member Ms Whitbread was appointed in February 2022 to chair Richemont’s Governance and Sustainability Committee, drawing on her experience at Standard Chartered plc and previously at, inter alia, BT Group plc.

In parallel to the enhanced Board expertise and involvement, the Group has continued to raise investment behind sustainability, including appointing its first Chief Sustainability Officer in February 2022 to further advance Richemont’s sustainability vision. The Group will build upon its already strong position in this area, validated by independent authorities such as MSCI (AA rating), Carbon Disclosure Project (A rating) and the Science Based Targets Initiative (targets validated). We were also proud to be rated among the top 2% of companies rated worldwide by Sustainalytics and the World’s Best Employers by Forbes 2021, and to be named as a Financial Times-Statista Climate Leader 2022.

I encourage you to read our 2022 Sustainability Report, to be released shortly, which speaks to many more of our achievements and commitments.

Outlook

As I conclude my comments, I would like to convey our deepest sympathy and compassion to all those affected by the tragic conflict taking place in Ukraine. Richemont and its Maisons have made significant donations to Médecins Sans Frontières to support its relief efforts.

We remain in close contact with our colleagues in Ukraine and Russia, where we have suspended our operations. Their safety and wellbeing are our highest priority.

Even if the worst of Covid is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years. We can, however, take comfort from the strength and enduring appeal of our Maisons as well as their relatively balanced geographic spread. Richemont’s € 5.3 billion net cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the Group is well positioned to benefit from any strength in consumer demand. We will work to maintain the necessary agility and flexibility to manage global uncertainties.

Finally, I would like to thank all our colleagues across the Group for their contribution to the excellent performance delivered with solidarity, empathy, creativity, agility and responsibility. We have seen all our businesses improve and made major strides in our sustainability agenda. We consider ourselves custodians of Richemont’s underlying businesses and the planet for future generations. As such, I would like to reiterate how important it is for us to build brand equity over time, and to do it in a responsible manner.

 

Johann Rupert

Chairman

 

Compagnie Financière Richemont SA

 

Financial review

Any references to Hong Kong, Macau and Taiwan within this financial review are to Hong Kong SAR, China; Macau SAR, China; and Taiwan, China respectively.

Given the magnitude of the impact of the Covid pandemic on the Group’s operations in the comparative year ended 31 March 2021, additional comments are provided on a two-year comparative basis to the year ended 31 March 2020 for a more comprehensive view of performance.

Sales

Compared to the prior year, sales grew by 46% at actual exchange rates and by 44% at constant exchange rates as growth rebounded in all major markets and distribution channels. The strong sales growth rates experienced throughout the first three quarters of the fiscal year continued into the fourth quarter with overall Group sales expanding by 33% at actual exchange rates (and by 27% at constant exchange rates), despite the impact of the conflict in Ukraine and tighter health restrictions in China, leading to temporary distribution network closures in March.

Compared to the year ended 31 March 2020, sales grew by 35% at actual exchange rates and by 37% at constant exchange rates.

In the year under review, double-digit sales growth was seen in all geographies compared to the prior year, led by the Americas at 79%, with Asia Pacific further building on its strong performance in the prior year. On a two-year comparative basis, sales in all regions exceeded pre-pandemic levels on a constant currency basis.

The Group’s directly-operated stores generated the strongest channel performance with sales up by 53% compared to the prior year and by 51% compared to the year ended March 2020. Online retail and wholesale sales grew by 28% and 46% compared to the prior year, respectively. Excluding Online Distributors, sales through the Maison’s own e-commerce platforms grew by 44%.

All business areas enjoyed double-digit sales increases compared to the prior year and the year ended March 2020. The Jewellery Maisons generated an outstanding 49% sales growth over the prior year and a 54% increase over the two-year period. Sales at the Specialist Watchmakers and the Other business areas each grew by 53%, with all Maisons growing by double digits compared to the prior year. Compared to two years ago, the above business areas grew by 20% and 15%, respectively, with almost all Maisons growing by double digits. Online Distributors posted a 27% sales increase over the prior year and a 15% increase compared to two years ago.

Further details on sales by region, distribution channel and business area are given under Review of Operations.

Gross profit

At € 12 027 million, gross profit increased by 53% compared to the prior year, with a corresponding gross margin increased to 62.7% of sales.

This 290 basis point improvement in gross margin mainly reflected higher manufacturing capacity utilisation, a favourable geographical sales mix, a further shift towards retail sales and targeted price increases. All these positive factors more than offset rising precious material prices, the impact on costs of a strong Swiss franc as well as valuation adjustments of € 70 million for inventories held in Russia, due to the current suspension of commercial activities in this market.

Operating profit

Operating profit more than doubled compared to the prior year, increasing by 129% to € 3 390 million, or 17.7% of sales, constituting a 650 basis point improvement.

Overall, operating expenses grew by 35% over the prior year, well below the 46% sales progression rate. This increase in operating expenses partly reflected higher sales as well as the non-recurrence of one-off rental concessions and government employment support received in the prior year. The increase also included additional reward payments to Group employees to recognise the strong contribution to the exceptional performance of the Group during the year.

The further expansion of the Group’s retail network contributed to an increase in selling and distribution expenses. As a percentage of sales, they improved to 21.8% in the current year from 24.7% a year ago.

Communication investment across the Group increased to € 1 865 million and included the impact of the resumption of in-person events such as Watches & Wonders Geneva which opened in March 2022. As a percentage of sales, communication expenses were in line with pre-pandemic levels at 9.7%. Expenses related to the fulfilment of online retail orders grew by 37% whilst increases in administrative expenses were limited to 18%.

The decision by the Group to suspend its commercial activities in Russia, which accounted for less than 2% of Group sales, and the resulting current uncertainty surrounding future operations in the country, led to a charge of € 98 million in operating expenses.

Profit for the year

Profit for the year amounted to € 2 079 million, an increase of 61% over the prior year. Net finance costs of € 844 million for the year included non-cash fair value losses of € 538 million arising from the Group’s investments in a Farfetch convertible note and an option to purchase additional Farfetch China shares, as well as the Group’s investments in externally managed bond funds. In addition, it included a € 194 million impact of foreign exchange losses on monetary items. Interest charges on the Group’s outstanding corporate bonds amounted to € 95 million while lease interest charges amounted to € 65 million for the year.

Earnings per share reached € 3.611 on a diluted basis, up 57% over the prior year. To comply with the South African practice of providing headline earnings per share (‘HEPS’) data, the relevant figure for the year ended 31 March 2022 was € 2 132 million (2021: € 1 316 million). Basic HEPS for the year were € 3.762 (2021: € 2.328 ), diluted HEPS for the year were € 3.712 (2021: € 2.322 ). Further details regarding earnings per share and HEPS, including an itemised reconciliation, can be found in note 30 of the Group’s consolidated financial statements.

Cash flow

Cash flow from operating activities amounted to € 4 638 million, a 44% increase on the prior year, reflecting the significant growth in operating profit coupled with a measured increase in net working capital, with increases in inventories and receivables largely offset by additional liabilities.

Net investments in tangible fixed assets amounted to € 736 million, as the Group supported its growth momentum with increased investments primarily in its internal boutique network as well as increased manufacturing investments at the Jewellery Maisons and additional technology investments at the Online Distributors.

Investments in associates included an increase of the Group’s investment into Kering Eyewear and the previously announced investment of $ 250 million into Farfetch China.

The 2021 dividend of CHF 2.00 per share (1 ‘1A’ share/10 ‘B’ shares) was paid to shareholders and to South African Depository Receipt holders, net of withholding tax, in September 2021. The total dividend cash outflow in the period amounted to € 1 041 million.

During the year under review, the Group repurchased 171 million shareholder warrants issued under the 2020 equity-based shareholder loyalty scheme, for a total cost of € 131 million. These warrants will be used to hedge the Group’s obligations arising from its executive share-based compensation schemes. Proceeds from the exercise of stock options by executives amounted to a net cash inflow of € 123 million.

Balance sheet

At 31 March 2022, inventories amounted to € 7 099 million, a € 780 million increase over the prior year (2021: € 6 319 million). Inventories represented 15.1 months of cost of sales (2021: 18.3 months).

The Group’s net cash position rose by 55% to € 5 251 million at 31 March 2022. This position is comprised of cash and cash equivalents, investments in externally managed bond and money market funds as well as external borrowings, including corporate bonds. At 31 March 2021, gross cash amounted to € 11 200 million.

Shareholders’ equity represented 50% of total equity and liabilities compared to 51% in the prior year.

Acquisition of Delvaux

On 30 June 2021, Richemont completed the acquisition of Delvaux, the Belgian luxury leather goods Maison and inventor of the modern handbag, for a total cash consideration of € 178 million, with results consolidated within the Other business area from 1 July 2021. During the nine-month period to 31 March 2022, Delvaux contributed € 102 million of sales to the Group. The acquisition resulted in the recognition of € 60 million of goodwill and € 111 million in additional intangible assets.

Proposed dividends

In view of the Group’s strong results and robust net cash position, the Board has proposed a dividend of CHF 2.25 per ‘A’ share/10 ‘B’ shares and an additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares.

The dividends will be paid as follows:

	Gross dividend per  1‘A’ share/  10 ‘B’ shares	Swiss withholding  tax @ 35%	Net payable per  1‘A’ share/  10 ‘B’ shares
Dividend	CHF 2.2500	CHF 0.7875	CHF 1.4625
Special dividend	CHF 1.00	CHF 0.35	CHF 0.65

The dividends will be payable following the annual general meeting which is scheduled to take place in Geneva on Wednesday 7 September 2022.

The last day to trade Richemont ‘A’ shares and Richemont South African Depository Receipts cum-dividend will be Tuesday 20 September 2022. Both will trade ex-dividend from Wednesday 21 September 2022.

The dividends on the Compagnie Financière Richemont SA ‘A’ shares will be paid on Friday 23 September 2022 and is payable in Swiss francs.

The dividends in respect of Richemont South African Depository Receipts will be payable on Thursday 29 September 2022 and is payable in rand to residents of the South African Common Monetary Area (‘CMA’) but may, dependent upon residence status, be payable in Swiss francs to non-CMA residents. Further details regarding the dividends payable to South African Depository Receipt holders may be found in a separate announcement dated Friday 20 May 2022 on SENS, the Johannesburg Stock Exchange news service.

 

Review of operations

Sales by region

 

			Change at:
			Constant	Actual
in €m	2022	2021	exchange    rates*	exchange    rates
Europe	4 469	2 955	+51%	+51%
Asia Pacific	7 820	5 937	+28%	+32%
Americas	4 268	2 388	+77%	+79%
Japan	1 205	940	+35%	+28%
Middle East and Africa	1 419	924	+53%	+54%
	19 181	13 144	+44%	+46%

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2021.

The following comments on Group sales refer to year-on-year movements at constant exchange rates unless otherwise stated.    

 

Europe

Sales in Europe ended  51% higher than in March 2021 and 5% higher on a two-year comparative basis. Sales benefited from the lifting of Covid-related restrictions and were somewhat impacted by the conflict in Ukraine in the final weeks of the financial year. The sharp growth was underpinned by strong local demand that more than offset continued subdued inbound tourism.

All business areas contributed to growth compared to the prior year and most of them compared to two years ago. Overall, the region contributed 23% of Group sales, slightly increasing its contribution over the prior year.

Asia Pacific

The Group’s largest region in terms of sales, Asia Pacific, contributing 41% of Group sales, continued its strong performance from the prior year, with sales up by 28% compared to the prior year, and by 56% compared to the year ended March 2020. Sales in all business areas as well as in major markets such as China, Korea and Macau grew by double digits compared to both the prior year and on a two-year comparative basis.

Recent localised Covid-related lockdowns, particularly in China, led to temporary boutique closures in March 2022, negatively impacting an otherwise strong quarter.

Americas

The Americas reported sales growth of  77% above the prior year, and of 60% compared to the year ended March 2020, the strongest regional sales growth rates over the comparative one- and two-year periods. All business areas and almost all Maisons contributed to this outstanding performance.

The contribution of the region to Group sales increased to 22% from 18% in the prior year. The region now stands almost on par with Europe as the Group’s third largest region in terms of sales.

Japan

Sales in Japan, which contributed 6% of Group sales, recovered more slowly than in other regions, as international travel to the country, and related tourist sales, remained subdued. Japan also faced staggered Covid-related retail opening restrictions throughout the year.

Sales ended the year up by 35% on the prior year and by 7% on a two-year comparative basis, the latter growth rate being largely driven by the Jewellery Maisons and Online Distributors.

Middle East and Africa

The region benefited from increased demand from both domestic and international clients over the course of the year, driven by Expo 2020 Dubai and relatively favourable travel conditions. As a result, sales grew by 53% compared to the prior year and by 58% on a two-year comparative basis. The region contributed 8% of Group sales compared to 7% a year ago.

 

Sales by distribution channel

			Change at:
			Constant	Actual
in €m	2022	2021	exchange    rates*	exchange     rates
Retail	11 057	7 248	+51%	+53%
Online retail	3 585	2 794	+27%	+28%
Wholesale and royalty income	4 539	3 102	+45%	+46%
	19 181	13 144	+44%	+46%

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2021.

The following comments on Group sales refer to year-on-year movements at constant exchange rates unless otherwise stated.
 

Retail

The Retail distribution channel incorporates sales from the Group’s directly operated stores at the Maisons and Watchfinder & Co. (‘Watchfinder’).

Retail generated the strongest channel performance with sales growth of 51% compared to the prior year and of 53% over a two-year period. Growth in this distribution channel was broad-based across all business areas and regions.

Retail sales were the largest contributor to Group sales, accounting for 57% of Group sales compared to 55% a year ago.

Online retail

Sales made through the online retail channel, primarily by the Online Distributors, also increased significantly, with a 27% growth over the prior year and 38% over two years, contributing 19% of Group sales.

Excluding Online Distributors, online retail sales rose by 42% and represented 6% of Group sales.

Wholesale

This distribution channel includes sales to mono-brand franchise partners, to third-party multi-brand retail partners as well as sales to agents, in addition to royalty income.

The 45% sales increase over the prior year was driven by a strong rebound across all business areas, whilst the 8% sales growth on a two-year comparative basis was mainly generated by the Jewellery Maisons.

For the year under review, the wholesale channel contributed 24% to Group sales.

 

Sales and operating results by segment

Jewellery Maisons

in €m	2022	2021	Change
Sales	11 083	7 459	+49%
Operating result	3 799	2 309	+65%
Operating margin	34.3%	31.0%	+330 bps

The Group’s three Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels combined achieved a 49% increase in sales compared to the prior year (+54% compared to the year ended March 2020), with double-digit growth in jewellery, including high jewellery which benefited from the resumption of events, and watches. All iconic collections outperformed, from Opera Tulle and Macri at Buccellati, Love, Panthère, Santos and Ballon Bleu at Cartier to Alhambra and Perlée at Van Cleef & Arpels. This outstanding performance across all Maisons, price points, regions and distribution channels resulted in the Jewellery Maisons crossing the € 11 billion sales threshold for the first time. Growth was the strongest in the Jewellery Maisons’ directly-operated store network which contributed over three quarters of the business area’s sales.

With a 65% increase over the previous year, operating profit rose faster than sales leading to a 330 basis point improvement in operating profit margin to 34.3%. This excellent performance reflected higher sales, increased utilisation of manufacturing facilities, further manufacturing efficiency gains and ongoing cost discipline.

To support future growth for the Jewellery Maisons, investments accelerated into manufacturing capabilities as well as into significant boutique projects which included major renovations, such as the Milan Montenapoleone and New York Fifth Avenue stores for Cartier, as well store openings including the Buccellati flagship store in Tokyo Ginza and a Van Cleef & Arpels store in Highland Park Village in Dallas.

Specialist Watchmakers

in €m	2022	2021	Change
Sales	3 435	2 247	+53%
Operating result	593	132	+349%
Operating margin	17.3%	5.9%	+1 140 bps

Sales at the Specialist Watchmakers, which comprise A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin, grew by 53% compared to the prior year, and by 20% compared to the year ended March 2020. The performance for the year under review was driven by double-digit growth at all Maisons and across regions, with particular strength in the Americas. All channels saw strong growth with retail sales leading the growth. Previous investments in offline and online retail resulted in direct-to-client sales exceeding 50% of sales for the first time. Selective store investments included the new IWC Shinsegae Mall - Daejeon, South Korea, Vacheron Constantin flagship Ginza, Tokyo, Panerai flagship rue du Rhône, Geneva, and the renovated Piaget flagship store on Rodeo Drive, Beverly Hills.

Iconic collections, enriched with new references, saw strong demand. They notably included Lange 1 for A Lange & Söhne, Riviera for Baume & Mercier, Pilot for IWC, Reverso for Jaeger-LeCoultre, Luminor for Panerai, Polo for Piaget, Excalibur for Roger Dubuis and Overseas for Vacheron Constantin.

As a result of long-term management actions and strict discipline, the Specialist Watchmakers were able to convert this excellent sales performance into a significant increase in profitability, reporting an operating profit of € 593 million. Operating margin gained 1 140 basis points, increasing to 17.3%.

Online Distributors

in €m	2022	2021	Change
Sales	2 788	2 197	+27%
Operating result	(210)	(223)	+6%
Operating margin	-7.5%	-10.2%	+270 bps

Sales of Richemont Maisons’ products made through NET-A-PORTER, MR PORTER, THE OUTNET and YOOX (all together ‘YNAP’) are reported under both the Maisons’ and Online Distributors’ business area. On Group level, these sales are subsequently eliminated as ‘intersegment sales’.

Online Distributors, comprising YNAP and Watchfinder, grew sales by 27% compared to the prior year, reflecting double-digit growth across all regions, led by the Americas and Asia Pacific. Compared to two years ago, sales rose by 15%. The shift towards a hybrid business model is well under way with a number of e-concessions operating at NET-A-PORTER and MR PORTER and a marketplace introduced at YOOX for Europe. NET-A-PORTER and MR PORTER continued their localisation initiatives, notably in the Middle East and China. Watchfinder’s international expansion ramped up successfully while the watch trade-in programme was further rolled out at the Specialist Watchmakers and Cartier.

The segment’s EBITDA loss decreased to € 24 million from € 37 million a year ago and the operating loss was reduced to € 210 million. Notwithstanding Brexit-related one-off expenses, YNAP’s EBITDA reached breakeven before the exceptional reward payments to Group employees and negative contribution of Fengmao, the Chinese joint-venture with Alibaba.

Other

in €m	2022	2021    re-presented*	Change
Sales	2 056	1 345	+53%
Operating result	(47)	(214)	+78%
Operating margin	-2.3%	-15.9%	+1 360 bps

* Prior year comparatives have been re-presented as costs previously included with Other have been reclassified to unallocated corporate costs

‘Other’ includes the Group’s Fashion & Accessories businesses as well as the Group’s watch component manufacturing and real estate activities. Following the successful acquisition of the Belgium-based luxury leather goods Maison, Delvaux’s sales and operating results are included within the segment from 1 July 2021 onwards. Delvaux already contributed strongly to sales and to strengthening our leather expertise.

Excluding Delvaux, sales grew by double digits compared to the prior year and by 9% compared to two years ago. For the one-year comparison, performance in the Americas and Europe was particularly commendable. All channels posted double-digit sales growth, including online retail following a triple-digit growth in the year ended March 2021. Direct-to-client sales reached 57%. Peter Millar, including the G/FORE brand, continued to deliver excellent results while Chloé and Alaïa started to reap the benefits of the new creative leadership under Gabriela Hearst and Pieter Mulier, respectively.

Store investments included the renovated Montblanc store in The Galleria Mall, Houston as well as new stores for Delvaux in Shinsegae Gangnam, Seoul, for Peter Millar in Highland Park Village, Dallas and for Chloé at E-Skyland Mall, Kaohsiung.

Higher sales, improved gross margin and financial discipline led to a significant reduction in operating loss to € 47 million.

Corporate costs

in €m	2022		2021  re-presented*			Change
Corporate costs	(566)			(323)		+75%
Central support services	(309)			(255)		+21%
Other unallocated expenses, net	(257)			(68)		+278%

Corporate costs represent the costs of central management, marketing support and other central functions (collectively central support services), as well as other expenses and income that are not allocated to specific business areas. Most corporate costs are incurred in Switzerland. For the year under review, they represented slightly below 3% of Group sales.

The Group’s consolidated financial statements of comprehensive income, cash flows and financial position are presented in Appendix 1. Richemont’s audited consolidated financial statements for the year may be found on the Group’s website at www.richemont.com/en/home/investors/results-reports-presentations. 

Jérôme Lambert Chief Executive Officer

Burkhart Grund Chief Finance Officer

 

 

Presentation

The results will be presented via an audio webcast on 20 May 2022, starting at 09:30 (CEST). The direct link is available from 07:30 (CEST) at www.richemont.com. The presentation may be viewed using a mobile device or from a browser.

• Live telephone connection (pre-registration required):
  • https://ccevent.eu/richemont2022.html
• An archive of the video webcast will be available at 15:00 (CEST) the same day:
  • www.richemont.com/en/home/investors/results-reports-presentations/
• A transcript of the webcast will be available on 21 May 2022:
  • www.richemont.com/en/home/investors/results-reports-presentations/

Statutory information

The Richemont 2022 Annual Report will be published on 2 June 2022 and will be available for download from the Group’s website at www.richemont.com/en/home/investors/results-reports-presentations/. Copies may be obtained from the Company’s registered office or by contacting the Company via the website at www.richemont.com/en/home/investors/investor-and-analyst-contacts/

 

 

Registered office	Registrar	Auditor
50 chemin de la Chênaie CP 30, 1293 Bellevue Geneva Switzerland [phone] www.richemont.com	Computershare Schweiz AG P.O. Box, 4601 Olten Switzerland [phone] [e-mail]	PricewaterhouseCoopers SA 50 avenue Giuseppe-Motta 1202 Geneva Switzerland
Secretariat contact	Investor/analyst and media contacts
Swen Grundmann Company Secretary [phone] [e-mail]	Sophie Cagnard Group Corporate Communications and IR Director James Fraser Investor Relations Executive [phone] (investor relations) [e-mail] [phone] (media) [e-mail]
	[e-mail]

 

‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332). South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).

About Richemont

At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.

Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar including G/FORE, Purdey and Serapian. Find out more at https://www.richemont.com/.

 

Disclaimer

This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont’s forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumer traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers' desire to travel to our retail stores.  International conflicts or wars, including resulting sanctions and restrictions on importation and exportation of finished products and/or raw materials, whether self-imposed or imposed by international countries, non-state entities or others, may also impact these forward-looking statements.  As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group’s control. Richemont does not undertake to update, nor does it have any obligation to provide updates of, or to revise, any forward-looking statements.

Richemont 2022

 

Appendix 1

Q1 FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(April-June 2021)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	905	436	1 072	+108%	+108%	-15%	-16%
Asia Pacific	1 933	1 013	1 423	+95%	+91%	+40%	+36%
Americas	955	277	698	+276%	+245%	+47%	+37%
Japan	240	112	298	+138%	+114%	-14%	-19%
Middle East and Africa	364	155	249	+154%	+135%	+55%	+46%
By distribution channel
Retail	2 421	1 052	1 851	+138%	+130%	+35%	+31%
Online retail	809	506	648	+67%	+60%	+29%	+25%
Wholesale & royalty income	1 167	435	1 241	+178%	+168%	-3%	-6%
By business area
Jewellery Maisons	2 515	1 083	1 827	+142%	+132%	+43%	+38%
Specialist Watchmakers	849	359	823	+143%	+136%	+6%	+3%
Online Distributors	637	356	612	+86%	+79%	+8%	+4%
Other	440	204	493	+124%	+116%	-7%	-11%
Inter-segment eliminations	(44)	(9)	(15)
Total	4 397	1 993	3 740	+129%	+121%	+22%	+18%
Q2 FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(July-September 2021)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	1 104	798	1 149	+38%	+38%	-4%	-4%
Asia Pacific	1 856	1 543	1 306	+17%	+20%	+43%	+42%
Americas	971	623	649	+58%	+56%	+59%	+50%
Japan	286	253	349	+20%	+13%	-11%	-18%
Middle East and Africa	293	268	204	+10%	+9%	+49%	+44%
By distribution channel
Retail	2 555	1 878	1 957	+35%	+36%	+33%	+31%
Online retail	824	702	612	+17%	+17%	+37%	+35%
Wholesale & royalty income	1 131	905	1 088	+25%	+25%	+7%	+4%
By business area
Jewellery Maisons	2 582	1 978	1 909	+30%	+31%	+39%	+35%
Specialist Watchmakers	830	607	744	+35%	+37%	+13%	+12%
Online Distributors	641	578	567	+11%	+11%	+15%	+13%
Other	495	341	448	+45%	+45%	+14%	+10%
Inter-segment eliminations	(38)	(19)	(11)
Total	4 510	3 485	3 657	+29%	+29%	+26%	+23%
H1 FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(April-September 2021)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	2 009	1 234	2 221	+62%	+63%	-9%	-10%
Asia Pacific	3 789	2 556	2 729	+47%	+48%	+41%	+39%
Americas	1 926	900	1 347	+123%	+114%	+53%	+43%
Japan	526	365	647	+56%	+44%	-12%	-19%
Middle East and Africa	657	423	453	+62%	+55%	+53%	+45%
By distribution channel
Retail	4 976	2 930	3 808	+71%	+70%	+34%	+31%
Online retail	1 633	1 208	1 260	+38%	+35%	+33%	+30%
Wholesale & royalty income	2 298	1 340	2 329	+74%	+71%	+2%	-1%
By business area
Jewellery Maisons	5 097	3 061	3 736	+69%	+67%	+41%	+36%
Specialist Watchmakers	1 679	966	1 567	+75%	+74%	+10%	+7%
Online Distributors	1 278	934	1 179	+39%	+37%	+11%	+8%
Other	935	545	941	+74%	+72%	+3%	-1%
Inter-segment eliminations	(82)	(28)	(26)
Total	8 907	5 478	7 397	+65%	+63%	+24%	+20%

 

 

Q3 FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(October-December 2021)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	1 410	982	1 263	+42%	+44%	+12%	+12%
Asia Pacific	2 128	1 729	1 429	+18%	+23%	+47%	+49%
Americas	1 333	841	874	+55%	+59%	+59%	+53%
Japan	389	335	341	+22%	+16%	+23%	+14%
Middle East and Africa	398	299	249	+30%	+33%	+65%	+60%
By distribution channel
Retail	3 400	2 288	2 212	+45%	+49%	+56%	+54%
Online retail	1 025	841	747	+19%	+22%	+40%	+37%
Wholesale & royalty income	1 233	1 057	1 197	+14%	+17%	+4%	+3%
By business area
Jewellery Maisons	3 343	2 366	2 162	+38%	+41%	+57%	+55%
Specialist Watchmakers	977	758	818	+25%	+29%	+20%	+19%
Online Distributors	785	668	670	+15%	+18%	+19%	+17%
Other	610	436	522	+37%	+40%	+19%	+17%
Inter-segment eliminations	(57)	(42)	(16)
Total	5 658	4 186	4 156	+32%	+35%	+38%	+36%

 

9 months FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(April-December 2021)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	3 419	2 216	3 484	+53%	+54%	-2%	-2%
Asia Pacific	5 917	4 285	4 158	+35%	+38%	+43%	+42%
Americas	3 259	1 741	2 221	+90%	+87%	+55%	+47%
Japan	915	700	988	+39%	+31%	0%	-7%
Middle East and Africa	1 055	722	702	+48%	+46%	+57%	+50%
By distribution channel
Retail	8 376	5 218	6 020	+60%	+61%	+42%	+39%
Online retail	2 658	2 049	2 007	+30%	+30%	+35%	+32%
Wholesale & royalty income	3 531	2 397	3 526	+47%	+47%	+2%	0%
By business area
Jewellery Maisons	8 440	5 427	5 898	+55%	+56%	+47%	+43%
Specialist Watchmakers	2 656	1 724	2 385	+53%	+54%	+13%	+11%
Online Distributors	2 063	1 602	1 849	+29%	+29%	+14%	+12%
Other	1 545	981	1 463	+57%	+57%	+8%	+6%
Inter-segment eliminations	(139)	(70)	(42)
Total	14 565	9 664	11 553	+50%	+51%	+29%	+26%

 

Q4 FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(January-March 2022)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	1 050	739	814	+43%	+42%	+32%	+29%
Asia Pacific	1 903	1 652	834	+8%	+15%	+123%	+128%
Americas	1 009	647	585	+46%	+56%	+75%	+72%
Japan	290	240	224	+23%	+21%	+41%	+29%
Middle East and Africa	364	202	228	+69%	+80%	+62%	+60%
By distribution channel
Retail	2 681	2 030	1 318	+27%	+32%	+105%	+103%
Online retail	927	745	639	+19%	+24%	+46%	+45%
Wholesale & royalty income	1 008	705	728	+36%	+43%	+38%	+38%
By business area
Jewellery Maisons	2 643	2 032	1 319	+25%	+30%	+102%	+100%
Specialist Watchmakers	779	523	474	+41%	+49%	+62%	+64%
Online Distributors	725	595	578	+18%	+22%	+27%	+25%
Other	511	364	325	+35%	+40%	+58%	+57%
Inter-segment eliminations	(42)	(34)	(11)
Total	4 616	3 480	2 685	+27%	+33%	+73%	+72%
FY22	2022	2021	2020	% change 2022 vs 2021		% change 2022 vs 2020
(April 2021 – March 2022)	€m	€m	€m	constant rates	actual rates	constant rates	actual rates
By region
Europe	4 469	2 955	4 298	+51%	+51%	+5%	+4%
Asia Pacific	7 820	5 937	4 992	+28%	+32%	+56%	+57%
Americas	4 268	2 388	2 806	+77%	+79%	+60%	+52%
Japan	1 205	940	1 212	+35%	+28%	+7%	-1%
Middle East and Africa	1 419	924	930	+53%	+54%	+58%	+53%
By distribution channel
Retail	11 057	7 248	7 338	+51%	+53%	+53%	+51%
Online retail	3 585	2 794	2 646	+27%	+28%	+38%	+35%
Wholesale & royalty income	4 539	3 102	4 254	+45%	+46%	+8%	+7%
By business area
Jewellery Maisons	11 083	7 459	7 217	+47%	+49%	+57%	+54%
Specialist Watchmakers	3 435	2 247	2 859	+50%	+53%	+21%	+20%
Online Distributors	2 788	2 197	2 427	+26%	+27%	+17%	+15%
Other	2 056	1 345	1 788	+51%	+53%	+17%	+15%
Inter-segment eliminations	(181)	(104)	(53)
Total	19 181	13 144	14 238	+44%	+46%	+37%	+35%

 

 

Consolidated statement of comprehensive income for the year ended 31 March

		2022			2021
		€m			€m
Revenue		19 181			13 144
Cost of sales		(7 154)			(5 283)
Gross profit		12 027			7 861
Selling and distribution expenses		(4 185)			(3 241)
Communication expenses		(1 865)			(1 030)
Fulfilment expenses		(486)			(356)
Administrative expenses		(1 757)			(1 484)
Other operating expenses		(344)			(272)
Operating profit		3 390			1 478
Finance costs		(959)			(295)
Finance income		115			320
Share of post-tax results of equity-accounted investments		31			12
Profit before taxation		2 577			1 515
Taxation		(498)			(226)
Profit for the year		2 079			1 289
Other comprehensive income:
Items that will never be reclassified to profit or loss
Defined benefit plan actuarial gains		32			118
Tax on defined benefit plan actuarial gains		(7)			(15)
Fair value changes on financial assets held at fair value through other comprehensive income		(169)			202
		(144)			305
Items that are or may be reclassified subsequently to profit or loss
Currency translation adjustments
–  movement in the year		1 107			(517)
–  reclassification to profit or loss		(2)			9
Cash flow hedging – reclassification to profit or loss, net of tax		4			4
Share of other comprehensive income of equity-accounted investments		1			–
		1 110			(504)
Other comprehensive income, net of tax		966			(199)
Total comprehensive income		3 045			1 090
Profit attributable to:
Owners of the parent company		2 074			1 301
Non-controlling interests		5			(12)
		2 079			1 289
Total comprehensive income attributable to:
Owners of the parent company		3 037			1 103
Non-controlling interests		8			(13)
		3 045			1 090
Earnings per ʻAʼ share/10 ʻBʼ shares attributable to owners of the parent company during the year (expressed in € per share)
From profit for the year
Basic		3.660			2.302
Diluted		3.611			2.296

 

 

Consolidated statement of cash flow for the year ended 31 March

		2022	2021
		€m	€m
Cash flows from operating activities
Operating profit from continuing operations		3 390	1 478
Adjustment for non-cash items		1 703	1 554
Changes in working capital		81	529
Cash flow generated from operations		5 174	3 561
Interest received		102	83
Interest paid		(210)	(179)
Dividends from equity-accounted investments		6	–
Dividends from other investments		–	1
Taxation paid		(434)	(248)
Net cash generated from operating activities		4 638	3 218
Cash flows from investing activities
Acquisition of subsidiary undertakings and other businesses, net of cash acquired		(195)	(33)
Proceeds from disposal of subsidiary undertakings, net of cash		1	–
Acquisition of equity-accounted investments		(104)	–
Proceeds from disposal of, and capital distributions from, equity-accounted investments		63	50
Acquisition of property, plant and equipment		(754)	(386)
Proceeds from disposal of property, plant and equipment		18	14
Payments capitalised as right of use assets		(4)	–
Acquisition of intangible assets		(117)	(127)
Acquisition of investment property		–	(1)
Proceeds from disposal of investment property		86	–
Investment in money market and externally managed funds		(13 698)	(11 430)
Proceeds from disposal of money market and externally managed funds		12 654	10 085
Acquisition of other non-current assets and investments		(252)	(379)
Proceeds from disposal of other non-current assets and investments		24	12
Net cash used in investing activities		(2 278)	(2 195)
Cash flows from financing activities
Proceeds from borrowings		1	2 072
Corporate bond issue transaction costs		–	(8)
Repayment of borrowings		(16)	(85)
Dividends paid		(1 041)	(529)
Proceeds from sale of treasury shares		123	32
Acquisition of warrants on own equity		(131)	(15)
Contribution from non-controlling interests in a subsidiary		15	–
Acquisition of non-controlling interests in a subsidiary		(86)	–
Lease payments  ̶  principal		(632)	(561)
Net cash used in financing activities		(1 767)	906
Net change in cash and cash equivalents		593	1 929
Cash and cash equivalents at the beginning of the year		3 780	1 985
Exchange gains/(losses) on cash and cash equivalents		195	(134)
Cash and cash equivalents at the end of the year		4 568	3 780

 

 

Consolidated balance sheet at 31 March

			2022	2021
			€m	€m
Assets
Non-current assets
Property, plant and equipment			3 122	2 583
Goodwill			3 538	3 456
Other intangible assets			2 342	2 436
Right of use assets			3 468	3 339
Investment property			–	220
Equity-accounted investments			252	187
Deferred income tax assets			754	614
Financial assets held at fair value through profit or loss			325	506
Financial assets held at fair value through other comprehensive income			280	377
Other non-current assets			521	435
			14 602	14 153
Current assets
Inventories			7 099	6 319
Trade receivables and other current assets			1 662	1 369
Derivative financial instruments			55	12
Financial assets held at fair value through profit or loss			6 632	5 550
Assets held for sale			59	79
Cash at bank and on hand			9 877	7 877
			25 384	21 206
Total assets			39 986	35 359
Equity and liabilities
Equity attributable to owners of the parent company
Share capital			334	334
Treasury shares			(346)	(490)
Hedge and share option reserves			503	419
Cumulative translation adjustment reserve			3 728	2 626
Retained earnings			15 595	14 885
			19 814	17 774
Non-controlling interests			49	110
Total equity			19 863	17 884
Liabilities
Non-current liabilities
Borrowings			5 948	5 937
Lease liabilities			3 101	2 927
Deferred income tax liabilities			325	258
Employee benefit obligations			61	65
Provisions			74	55
Other long-term financial liabilities			107	97
			9 616	9 339
Current liabilities
Trade payables and other current liabilities			3 351	2 537
Current income tax liabilities			724	550
Borrowings			1	–
Lease liabilities			647	590
Derivative financial instruments			150	114
Provisions			325	248
Bank overdraft			5 309	4 097
			10 507	8 136
Total liabilities			20 123	17 475
Total equity and liabilities			39 986	35 359

 

Operating results for the year ended 31 March

	Maisons	Online Distributors	Intersegment elimination and central costs	Total Group
	€m	€m	€m	€m
2022
Sales	16 574	2 788	(181)	19 181
Gross profit	11 243	941	(157)	12 027
Gross margin	67.8%	33.8%		62.7%
Operating profit	4 345	(210)	(745)	3 390
Operating margin	26.2%	(7.5)%		17.7%
	Maisons	Online Distributors	Intersegment elimination and central costs	Total Group
	€m	€m	€m	€m
2021 re-presented*
Sales	11 051	2 197	(104)	13 144
Gross profit	7 183	732	(54)	7 861
Gross margin	65.0%	33.3%		59.8%
Operating profit	2 227	(223)	(526)	1 478
Operating margin	20.2%	(10.2)%		11.2%

* Prior year comparatives have been re-presented as costs previously included with Other have been reclassified to unallocated corporate costs

 

---

End of ad hoc announcement

---

Language:	English
Company:	Compagnie Financière Richemont SA
	Chemin de la Chênaie 50
	1293 Bellevue
	Switzerland
Phone:	[phone]
E-mail:	[e-mail]
Internet:	http://www.richemont.com
ISIN:	CH0210483332
Valor:	21048333
Listed:	SIX Swiss Exchange
EQS News ID:	1357339

End of Announcement	EQS News Service

1357339  20-May-2022 CET/CEST