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One billion euros in losses to the online business sold to British online retailer Farfetch had a major impact on the outcome, as expected.
The group’s sales with brands such as Cartier, Piaget and IWC increased by 19 percent to 19.95 billion euros, according to a statement released on Friday. This does not include the sold activities of the online subsidiary YNAP. Adjusting for currency effects, Richemont grew 14 percent faster than analysts expected.
The operating result from work-in-progress (EBIT) is given by Richemont as € 5.03 billion. On a comparable basis, that’s a 34 percent increase. As a result, the YNAP goodwill write-off reduced profit to €301 million after a profit of €2.08 billion in 2021/22.
All regions, sales channels and divisions contributed to growth. Especially in the jewelry department, business continues at full speed. Sales in local currencies increased 16 percent with a high 35 percent margin, largely thanks to Cartier. Watchmakers grew 8 percent (margin: 19%).
Looking at regions, trade in Asia has also picked up again recently, especially after the important Chinese market has been burdened by tight corona measures. Currency-adjusted sales in Asia rose only 1 percent. Japan (+56%), Europe (+31%) and America (+14%) developed strongly.
Despite the set-offs, a generous dividend will be paid. Richemont proposes that shareholders pay a dividend of CHF 3.50 per publicly traded share (A share). Recently, a total of CHF 3.25 was paid for each title. In both cases, one franc is included as a special dividend.
Additionally, Richemont initiates a share buyback. The group plans to purchase up to 10 million A shares, which are said to represent 1.7 percent of the capital and 1.0 percent of the voting rights. Richemont can draw all the way. Net cash reached 6.55 billion euros, after 5.25 billion euros a year ago.
Richemont does not make any concrete statements regarding the appearance. But Richemont sees itself in a good position to meet growing demand. According to Chairman of the Board Johann Rupert, this is particularly likely to be due to a return to China trip. Meanwhile, economic volatility and geopolitical uncertainty are likely to continue to shape the market environment.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
