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RCH
RCH
RCH - Richemont Securities AG - Interim management statement for the three
months ended 31 December 2007
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
23 JANUARY 2008
INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 31 DECEMBER 2007
Richemont presents its interim management statement for the three months ended
31 December 2007.
Sales by business area
Oct- Oct-Dec Movement at
Dec
2007 2006 Constant Actual
Euro m Euro m rates(1) rates(1)
Jewellery Maisons 863 803 + 15 % + 7 %
Specialist watchmakers 426 389 + 16 % + 10 %
Writing instrument Maisons 221 203 + 14 % + 9 %
Leather and accessories 87 86 + 7 % + 1 %
Maisons
Other businesses 76 71 + 13 % + 7 %
Total sales 1 673 1 552 + 14 % + 8 %
Interim Management Statement
This statement 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 three months ended 31 December 2007 saw strong demand for the Group`s luxury
products, with underlying sales growth at 14 per cent at constant exchange
rates. At actual exchange rates, sales increased by 8 per cent to Euro 1 673
million.
Although the strongest sales growth during the period was reported in the Asia-
Pacific and Europe regions, sales for the quarter in the Americas region
increased by 10 per cent at constant exchange rates.
The Group overall enjoyed good growth in underlying sales during the first two
months of the quarter. However, December saw underlying growth of 10 per cent,
as demand in the US and Japanese markets slowed somewhat.
Jewellery Maisons
The Group`s Jewellery Maisons reported underlying sales growth of 15 per cent
during the period. Cartier saw good growth in the Asia-Pacific region and Van
Cleef & Arpels reported very strong growth in all regions, albeit from a lower
base.
Specialist watchmakers
The Group`s specialist watchmakers saw good demand during the period, with
underlying sales growth of 16 per cent. Piaget, IWC and Panerai performed
particularly well.
Writing instrument Maisons
Montblanc reported double-digit sales growth at constant rates, despite the
strong comparative figures reported in 2006, its centenary year.
Leather and accessories Maisons
Alfred Dunhill reported continuing good sales growth, particularly through its
own boutique network. Lancel`s sales were marginally lower than the comparative
period at actual exchange rates.
(1) See appendix 2 for details of exchange rates used.
Other businesses
The increase in sales of other businesses included the positive impact of watch
component manufacturing acquisitions made during the current financial year.
Chloe achieved underlying sales growth of 9 per cent.
Sales by geographic region
Oct- Oct-Dec Movement at
Dec
2007 2006 Constant Actual
Euro m Euro m rates rates
Europe 753 684 + 12 % + 10 %
Asia-Pacific 378 313 + 32 % + 21 %
Americas 327 327 + 10 % 0 %
Japan 215 228 + 2 % - 6 %
Total sales 1 673 1 552 + 14 % + 8 %
Europe
The overall increase of 10 per cent at actual exchange rates reflects a
continuation of the trend established during the first six months of the year.
Asia-Pacific
The region continued to report outstanding sales growth, particularly in China
and Hong Kong. Sales in the region represented 23 per cent of Group turnover
during the quarter.
Americas
In the Americas region, constant currency sales grew by 10 per cent. The
increase was offset by significant exchange rate effects, resulting in sales at
actual exchange rates being in line with the comparative period.
Japan
The Japanese market remained challenging during the quarter with sales growth of
2 per cent in yen terms.
Sales by distribution channel
At actual exchange rates, the Group`s retail sales increased by 10 per cent and
wholesale sales increased by 6 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 31 December 2007 amounted
to Euro 1 093 million, an increase of Euro 189 million over the position at 30
September 2007. This increase primarily reflected seasonal net cash inflows in
respect of operations, partly offset by investing activities. During the period,
the Group acquired Azzedine Alaia SAS, a small but prestigious French fashion
house, and Donze-Baume SA, a Swiss watch case manufacturer.
British American Tobacco
At 31 December 2007, the Group`s effective interest in British American Tobacco
plc (`BAT`) was 19.3 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 10
456 million. Richemont equity accounts its interest in BAT; accordingly, the
Group does not include turnover reported by BAT in its sales figures.
Restructuring
On 19 November, Richemont announced that the Group was investigating the
potential to restructure its operations to separate its luxury goods businesses
from its other interests. The announcement intimated that such a restructuring
may entail providing Richemont unitholders with the option of becoming direct
shareholders in British American Tobacco plc.
A further announcement will be made in due course.
Press inquiries: Mr Alan Grieve
Director of Corporate Affairs
pressoffice@cfrinfo.net
Tel: + 41 22 721 3507
Analysts` inquiries: Ms Sophie Cagnard
Head of Investor Relations
investorrelations@cfrinfo.net
Tel: + 33 1 5818 2597
Appendix 1
Sales by business area for the nine months ended 31 December
April-Dec April-Dec Movement at
2007 2006 Constant Actual
Euro m Euro m rates(1) rates(1)
Jewellery Maisons 2 139 1 973 + 15 % + 8 %
Specialist watchmakers 1 133 986 + 21 % + 15 %
Writing instrument Maisons 505 460 + 14 % + 10 %
Leather and accessories 224 222 + 6 % + 1 %
Maisons
Other businesses 220 214 + 8 % + 3 %
Total sales 4 221 3 855 + 15 % + 9 %
Sales by geographic region for the nine months ended 31 December
April-Dec April-Dec Movement at
2007 2006 Constant Actual
Euro m Euro m rates(1) rates(1)
Europe 1 845 1 659 + 13 % + 11 %
Asia-Pacific 990 812 + 31 % + 22 %
Americas 833 805 + 12 % + 3 %
Japan 553 579 + 5 % - 4 %
Total sales 4 221 3 855 + 15 % + 9 %
(1) See appendix 2 for details of exchange rates used.
Appendix 2
Foreign exchange rates
April-December April-December
Average rates against the euro 2007 2006
United States dollar 1.39 1.27
Japanese yen 162.85 147.85
Swiss franc 1.65 1.58
Pound sterling 0.69 0.68
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
the current three-month period, the current nine-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 19.3 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: 23/01/2008 08:00:01 Produced by the JSE SENS Department.
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