| Wed 10 Sep 2008, 7:30 | | RCH - Richemont Securities AG - Annual General Meeting 2008 - Trading Update |
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RCH
RCH
RCH - Richemont Securities AG - Annual General Meeting 2008 - Trading Update
RICHEMONT SECURITIES AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
PRESS RELEASE
10 SEPTEMBER 2008
RICHEMONT ANNUAL GENERAL MEETING 2008 - TRADING UPDATE
The Annual General Meeting of Compagnie Financiere Richemont SA will be held
later today in the Four Seasons Hotel des Bergues, Geneva, Switzerland.
At that meeting, shareholders are expected to approve the proposals of the Board
of Directors in terms of the approval of the financial statements and the
appropriation of retained earnings. An ordinary dividend of Euro 0.06 per
Richemont unit has been proposed. A further press release will be issued
immediately after the meeting to confirm the decision. The aggregate dividend
for the year, including that to be paid by Richemont SA, Luxembourg, will amount
to Euro 0.78 per unit, an increase of 20 per cent over the ordinary dividend
paid in 2007.
At the meeting, Executive Chairman, Mr. Johann Rupert, will make the following
statement in respect of Richemont`s current trading performance:
"We reported our trading results for the first three months of the business year
in July. For the quarter ended 30 June, overall sales increased by 13 per cent
at actual exchange rates and by 20 per cent at constant exchange rates.
For the five month period to end-August, sales have continued to show good
growth overall, albeit at a lower rate. Cumulative sales for the five months
across all of our business areas grew by 11 per cent at actual rates or 18 per
cent at constant exchange rates.
The strongest growth during the period came from our Jewellery Maisons - Cartier
and Van Cleef & Arpels - where combined sales at actual exchange rates increased
by 13 per cent over the five-month period. Sales of High Jewellery pieces during
the period were particularly strong.
Our specialist watchmakers reported overall growth of 12 per cent during this
period. There is a very limited impact from the acquisition of the Roger Dubuis
business included in the figure.
Montblanc`s sales grew by 2 per cent, with high single digit growth through the
Maison`s own boutique network offset by lower wholesale sales.
However, the leather and accessories businesses were 5 per cent lower at actual
exchange rates, reflecting the more difficult trading environment in this area
of the market.
Our other businesses, which include Chloe as well as certain component
manufacturing businesses, reported growth of 24 per cent. This was largely due
to the impact of acquisitions during the past year, such as the watch case
manufacture Donze-Baume.
From a geographic perspective we have seen good growth in many of our markets.
At actual exchange rates, sales in Europe increased by 17 per cent and in the
Asia-Pacific region by 19 per cent. Those increases were partly offset by an 8
per cent decrease in Japan. European sales were particularly strong in France,
the U.K. and Switzerland, which benefited from strong tourist traffic from
emerging market economies.
Sales in the Americas were at the same level as last year, largely due to
exchange rate effects. Underlying sales in local currency terms grew by 14 per
cent during the five month period. The American market is beginning to show some
signs of a slowdown, which is to be expected given the difficulties that the
economy is facing.
The impact of the global financial crisis, the high rates of inflation and high
commodity prices on our business is difficult to predict. Products and brands
positioned at the entry and mid-market price points in the luxury goods industry
are experiencing difficult market conditions today. However, to date, the top
end of the luxury market - where Richemont`s Maisons are predominantly
positioned - has not been affected. That is not to say that Richemont is immune
from a slowdown but we do believe that we are better placed than many to weather
difficult times ahead.
The talents embodied in our Maisons, coupled with Richemont`s strong balance
sheet with no net debt, even once the recently announced restructuring is
completed, give me the confidence to say that, whatever may lie ahead in the
short term, Richemont will continue to prosper and grow over the long term."
For its financial year ended 31 March 2008, Richemont reported an increase in
sales of 10 per cent to Euro 5 302 million. Operating profit amounted to Euro 1
108 million, an increase of 21 per cent over the prior year.
Richemont`s interim results for the six-month period to 30 September 2008 will
be released in November.
On 8 August 2008, the Group announced details of the proposed separation of its
luxury goods and tobacco interests, including a proposal to distribute 90 per
cent of its interest in British American Tobacco plc to unitholders. Further
meetings of participation certificate holders of Richemont SA and shareholders
of Compagnie Financiere Richemont SA to consider the restructuring proposals
will be held on 8 and 9 October 2008, respectively. If approved by unitholders,
the transaction is expected to be effected on 20 October 2008 with the British
American Tobacco shares being distributed to unitholders on or around 3 November
2008.
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, A. Lange & Sohne and Roger Dubuis; Writing instrument Maisons -
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 currently holds a 19.5 per
cent interest in British American Tobacco.
Press inquiries: Mr Alan Grieve, Director of Corporate Affairs
Tel: + 41 22 721 3507
Analysts` inquiries: Ms Sophie Cagnard, Head of Investor Relations
Tel: + 33 1 5818 2597
Compagnie Financiere Richemont SA
50, Chemin de la Chenaie CH-1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550 www.richemont.com
Date: 10/09/2008 07:30:07 Produced by the JSE SENS Department.
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