| Wed 18 Jul 2007, 7:30 | | RCH - Richemont Securities AG - Management stateme |
|
RCH
RCH
RCH - Richemont Securities AG - Management statement for the three months
ended 30 June 2007
Richemont Securities AG
(Incorporated in Switzerland)
(Registration CH-170.3.013.861-6)
JSE Code : RCH
ISIN: CH0013157380
MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 30 JUNE 2007
Richemont presents its management statement for the first three months of
its current financial year.
Sales by business area:
April - June April - June Movement at
2007 2006 Constant Actual
EUR m EUR m rates (1) rates (1)
Jewellery Maisons 638 604 +12% +6%
Specialist 367 310 +24% +18%
watchmakers
Writing 140 129 +12% +9%
instrument
Maisons
Leather and 62 61 +7% +2%
accessories
Maisons
Other businesses 61 58 +11% +5%
Total sales 1 268 1 162 +15% +9%
In accordance with the listing requirements of SWX Swiss Exchange and the
reporting requirements of the European Union Transparency Directive, which
took effect in January 2007, Richemont presents its first Interim
Management Report, covering the three-month period ended 30 June 2007.
The first quarter of the Group`s financial year should not necessarily be
taken as indicative of likely trends for the financial year as a whole. A
large part of the Group`s business is transacted in the quarter to 31
December each year. The quarter to 30 June, whilst typically representing
between 20 and 25 per cent of the Group`s annual sales, may not be
representative of trends for subsequent quarters or the year as a whole.
This report is intended to provide investors with an overview of trading
performance and any significant developments in the Group, not full
quarterly financial reporting. Accordingly, no figures in respect of
operating or attributable profit are provided in this report. Equally, no
commentary is given here on the performance of the Group`s principal
associated company, British American Tobacco plc.
The information contained in this report has not been audited.
Overview
The first three months of the financial year saw a continuation of
the good growth in sales of luxury products seen during the preceding
twelve months. In the three month period, overall sales grew by 9 per cent
at actual exchange rates. Underlying growth of 15 per cent at constant
exchange rates was offset by the weakness of dollar-related currencies and
the yen during the period.
Jewellery Maisons
Cartier and Van Cleef & Arpels, the Group`s Jewellery Maisons, reported
underlying sales growth of 12 per cent during the period. The Asia-Pacific
region was a strong driver of growth, as was Europe. Japan saw modest
growth at constant exchange rates.
Specialist watchmakers
The Group`s specialist watchmakers continued to benefit from strong demand
in all regions.
Writing instrument Maisons
Double digit growth at constant rates was achieved despite strong
comparative figures linked to Montblanc`s centenary in 2006.
(1) See appendix 1 for details of exchange rates used.
Richemont holds a portfolio of several of the most prestigious names in the
luxury goods industry including Cartier, Van Cleef & Arpels, Piaget,
Vacheron Constantin, Jaeger-LeCoultre, IWC, Alfred Dunhill and Montblanc.
In addition to its luxury goods interests, Richemont holds a significant
investment in British American Tobacco - one of the world`s leading tobacco
groups.
www.richemont.com
Leather and accessories Maisons
Alfred Dunhill reported sales growth of 7 per cent at constant exchange
rates during the period, mainly driven by Europe and the Asia-Pacific
region. Sales were only marginally ahead of last year on translation into
euros.
Lancel`s sales were marginally above the prior year at actual exchange
rates.
Other businesses
Chloe continues to perform well overall, although the rate of growth in
sales has slowed significantly as higher comparative figures apply.
Sales by geographic region
April - June April - June Movement at
2007 2006 Constant Actual
EUR m EUR m rates rates
Europe 555 492 +14% +13%
Asia-Pacific 291 242 +28% +20%
Americas 256 249 +10% +3%
Japan 166 179 +5% -7%
Total sales 1 268 1 162 +15% +9%
Europe
The overall increase of 13 per cent at actual exchange rates reflects good
performances in all business areas.
Asia-Pacific
This region continued to report strong growth, which was evident in all
business areas and all Maisons. Sales in the region represented 23 per cent
of Group turnover in the quarter.
Americas
In the Americas region, underlying sales grew by 10 per cent with retail
sales growing by 12 per cent at constant exchange rates.
Japan
The Japanese market remained challenging during the quarter. Although the
specialist watchmakers saw good growth overall, the jewellery maisons
experienced more modest underlying growth.
Sales by distribution channel
At actual exchange rates, the Group`s retail sales increased by 11 per cent
and wholesale sales increased by 8 per cent.
Financial position
The Group`s overall financial situation did not change significantly during
the quarter under review. The Group`s net cash position at 30 June 2007
amounted to Euro 1 233 million, an increase of Euro 92 million over the
situation at 31 March 2007. This reflected the receipt of the final
dividend of GBP 157 million from British American Tobacco in respect of its
financial year ended 31 December 2006. This inflow was compensated by
seasonal net cash outflows of some Euro 82 million in respect of operations
together with the exercise of a call option to acquire 3 million Richemont
`A` units, linked to the Group`s stock option plan.
British American Tobacco
At 30 June 2007, the Group`s effective interest in British American Tobacco
(`BAT`) was 19.1 per cent. Based on the market price of ordinary shares on
that date, the market value of the Group`s interest in BAT amounted to Euro
9 800 million. Richemont equity accounts its interest in BAT; accordingly,
the Group does not include turnover reported by BAT in its sales figures.
Press inquiries:
Mr Alan Grieve, Director of Corporate Affairs
Tel: + 41 22 721 3507
Analysts` inquiries:
Ms Sophie Cagnard-Fabrici, Head of Investor Relations
Tel: + 33 1 5818 2597
Appendix 1
Foreign exchange rates April - June April - June
Average rates against the euro 2007 2006
United States dollar 1.35 1.26
Japanese yen 162.87 143.80
Swiss franc 1.65 1.56
Pound sterling 0.68 0.69
Actual exchange rates for the period are calculated using the average daily
closing rates against the euro.
In terms of sales at constant exchange rates, average exchange rates for
the year ended 31 March 2007 are used to convert local currency sales into
euros for both the current three-month period and comparative figures.
Exchange rate translation effects are thereby eliminated from the reported
sales performance.
Notes for editors
Richemont owns a portfolio of leading international brands or `Maisons`,
which are managed independently of one another, recognising their
individuality and uniqueness. The businesses operate in five areas:
Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist
watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume &
Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Sohne;
Writing instrument Maisons, being Montblanc and Montegrappa; Leather and
accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses,
which includes, specifically, Chloe as well as other smaller Maisons and
watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds a 19.1 per cent
interest in British American Tobacco. Richemont equity accounts its
interest in British American Tobacco; accordingly, the Group does not
include turnover reported by British American Tobacco in its sales figures.
Date: 18/07/2007 07:30:01 Produced by the JSE SENS Department.
