| Wed 9 Sep 2009, 7:30 | | CFR - Compagnie Financiere Richemont SA Depositary Receipts - Richemont |
|
CFR
CFR
CFR - Compagnie Financiere Richemont SA Depositary Receipts - Richemont
Annual General Meeting 2009
Compagnie Financiere Richemont SA Depositary Receipts
issued by Richemont Securities AG
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
("Richemont" or "the Company")
RICHEMONT ANNUAL GENERAL MEETING 2009
TRADING UPDATE
The Annual General Meeting of Compagnie Financiere Richemont SA (the `Company`
or `the Group`) will be held later today in the Mandarin Oriental Hotel, 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 SFr 0.30 per share
has been proposed. A further press release will be issued immediately after the
meeting to confirm the decision. Given the Richemont restructuring effected in
October 2008, the dividend is not comparable to that paid in September last
year.
At the meeting, Executive Chairman, Mr. Johann Rupert, will make the following
statement in respect of Richemont`s current trading performance:
"From Richemont`s perspective, the first five months of this year through to end
August have seen overall sales at a level 16 per cent below the comparable
period last year, at actual exchange rates. The Americas region was the worst
performer, as expected in the circumstances, with a decline of 36 per cent.
Sales in the Asia-Pacific region, including China, grew by 5 per cent although
sales in Japan were down 7 per cent. European sales were 22 per cent lower,
including the Middle East, which is still growing.
The strengthening of the Yen and the Dollar has cushioned the decline in
underlying sales by around 5 per cent. Underlying sales in constant currencies
were down by 21 per cent overall.
The Group`s retail business, through its own stores, has fared reasonably well,
being only 7 per cent below last year`s level; wholesale business on the other
hand is down by 21 per cent, which largely reflects de-stocking by retailers,
most notably in the Americas.
The Jewellery Maisons and the Specialist Watchmakers experienced declines in
sales, of 14 per cent and 18 per cent, respectively. The Writing Instruments
division reported sales down 17 per cent for the period, whilst the Leather and
Accessories Maisons suffered a decline of only 1 per cent. The `Other
Businesses` segment reported sales down by some 23 per cent, which principally
reflects a significant decline in the level of turnover in the Group`s component
manufacturing activities due to the lack of demand throughout the Swiss watch
industry, including third parties.
Comparing the Group`s watch sales with those reported by the Swiss Watchmakers`
Federation for the six months to the end of June 2009, it is worth noting that,
in Swiss franc terms, sales by the Maisons are down by some 19 per cent compared
to a decline in Swiss watch exports over the same period of 26 per cent.
As I made clear when we published last year`s results in May, despite our
continuing cost-control measures, Richemont`s profitability for the first six
months of this year will inevitably be significantly below that seen in the
period to September 2008.
Although the rate of decline in sales is slowing, we still urge caution. We
would prefer to wait until we have more evidence of a broader economic recovery
before speculating on the likelihood of a better second half, particularly when
it comes to the wholesale business. The comparative figures for the second half
of last year are already lower than for the first half and set a lower `hurdle`
in terms of performance. These comparatives, although lower, will be mitigated
by an unfavourable currency environment in the second half.
Despite the difficult trading environment and the impact of the Group
restructuring effected in October last year, which saw the spin off of the non-
luxury assets and some Euro 350 million in cash to Reinet Investments, Richemont
had some Euro 820 million in cash on its balance sheet at 31 March this year, a
position that has been broadly maintained through to end August. The Group has
no net debt. That is a very comfortable position to be in at this time.
Linked to this financial strength, I am confident in the power of the Maisons to
innovate, improve customer service and grow their businesses. I am certain that
Richemont will emerge from the current downturn very well placed to take
advantage of the return of consumer confidence, whenever that may be."
For its financial year ended 31 March 2009, Richemont reported an increase in
sales of 2 per cent to Euro 5 418 million. Operating profit amounted to Euro 982
million, a decrease of 12 per cent compared to the prior year.
Richemont`s interim results for the six-month period to 30 September 2009 will
be released in November.
Press Mr Alan Grieve Analysts` Ms Sophie Cagnard
enquiries: Director of inquiries: Head of Investor
Corporate Relations Tel: +33 1
Affairs Tel: 5818 2597
+41 22 721 3507
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 Maison -
Montblanc; 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 October 2008, Richemont spun off its investment in British American Tobacco
together with some Euro 350 million in cash and a portfolio of other smaller
investments to Reinet Investments SCA, Luxembourg.
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
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
9 September 2009
Date: 09/09/2009 07:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
