| Thu 19 May 2011, 7:30 | | CFR - Compagnie Financiere Richemont SA Depositary Receipts - Richemont the |
|
CFR
CFR
CFR - Compagnie Financiere Richemont SA Depositary Receipts - Richemont, the
Swiss Luxury Goods Group, announces its audited consolidated results for the
year ended 31 March 2011 and cash dividend declaration
Compagnie Financiere Richemont SA Depositary Receipts
issued by Richemont Securities SA
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
PRESS RELEASE FOR IMMEDIATE RELEASE
19 May 2011
RICHEMONT, THE SWISS LUXURY GOODS GROUP, ANNOUNCES ITS AUDITED CONSOLIDATED
RESULTS FOR THE YEAR ENDED 31 MARCH 2011 AND CASH DIVIDEND DECLARATION
Financial highlights
- Strong sales growth across all segments and regions: + 33 % to Euro 6 892
million
- Excluding the impact of NET-A-PORTER.COM, sales increased by 19 % at constant
exchange rates
- Operating profit increased by 63 % to Euro 1 355 million
- Excluding the impact of NET-A-PORTER.COM, operating margin amounted to 20.9 %
- Record cash flow generated from operations: Euro 1 696 million
- Proposed dividend: CHF 0.45 per share, representing an increase of 29 %
Key financial data 12 months ended 31
March
In millions of euros, unless indicated 2011 2010 Change
Sales 6 892 5 176 + 33 %
Gross profit 4 394 3 191 + 38 %
Gross margin (%) 63.7 61.6 + 210 bps
Operating profit 1 355 830 + 63 %
Operating margin (%) 19.7 16.0 + 370 bps
Profit from continuing operations 1 079 603 + 79 %
Earnings per share from continuing operations - 1.925 1.076 + 79 %
diluted basis (Euro)
Cash flow generated from operations 1 696 1 464 + Euro 232
m
Net cash position 2 589 1 882 + Euro
707 m
This document contains forward-looking statements as that term is defined in the
United States Private Securities Litigation Reform Act of 1995. Such forward-
looking statements are not guarantees of future performance. Actual results may
differ materially from the forward-looking statements as a result of a number of
risks and uncertainties, many of which are outside the Group`s control.
Richemont does not undertake to update, nor does it have any obligation to
provide updates of, or to revise, any forward-looking statements.
Executive Chairman and Chief Executive Officer`s commentary
Results
We are pleased to report that Richemont has met the challenging environment of
the past year by achieving strong sales growth across all segments and all
geographic regions.
The year under review has seen record sales and profits for our Jewellery
Maisons and specialist watchmakers, despite the stronger Swiss franc.
Profitability at Montblanc improved with progress also being seen in the
performance of the Fashion and Accessories Maisons. NET-A-PORTER.COM, which was
acquired in April 2010, is performing ahead of its business plan.
As a consequence of these positive developments, the Group`s operating profit
has increased by 63 %, double the rate of growth in sales. This performance
reflects the strength of our Maisons, the Group`s operating leverage and most
importantly, the commitment and enthusiasm of all our colleagues in the Maisons,
regional platforms and support services.
These very satisfactory results have generated a record level of operating cash
flow; as a consequence the Group`s balance sheet is stronger than ever.
Outlook
Sales in the month of April were 32 % above the comparative period, or 35 % at
constant exchange rates. In an environment currently marked by geopolitical
unrest and currency instability, we hope that this positive trend will be
confirmed in the coming months.
The performance achieved in the year under review, following a major global
economic crisis, confirms the appeal of each of the Maisons. We will continue to
invest in their organic growth through higher levels of capital spending in
manufacturing capacity and in the further development of the Group`s own retail
network, particularly in growth markets. Our capital investments are therefore
likely to range between 6 % and 8 % of sales in the next two years.
We intend to take advantage of the many opportunities to further develop our
existing Maisons. We are more than ever encouraged by their growth potential and
we believe it to be the best route for creating shareholder value.
Johann Rupert
Executive Chairman and Chief Executive Officer
Compagnie Financiere Richemont SA
Geneva, 19 May 2011
***
Financial Review
Sales
Sales for the year ended 31 March 2011 increased by 33 % at actual exchange
rates. At constant exchange rates and excluding the impact of the acquisition of
NET-A-PORTER.COM, sales increased by 19 %. The strong growth in sales reflected
the Maisons` product creativity, success among both local clients and
travellers, and new store openings as well as low comparative figures: in the
prior year, Group sales decreased by 4 %.
Further details of sales by region, distribution channel and business area are
given in the Review of Operations on pages 6 to 9.
Gross profit
The gross margin percentage increased by 210 basis points to 63.7 % of sales.
This higher margin primarily results from the outperformance of the retail
network relative to wholesale, higher levels of manufacturing capacity
utilisation and higher reported sales. The Maisons have been able to offset
currency movements, where necessary, by price increases. Margin improvements
were partly offset by the stronger Swiss franc versus the euro, the increasing
cost of precious materials and the integration of NET-A-PORTER.COM. Excluding
the impact of NET-A-PORTER.COM, the gross margin reached 64.3 % of sales.
The Swiss franc is of particular importance to the cost of sales as the majority
of the Group`s manufacturing facilities are located in Switzerland. The
improvement in the gross margin percentage, combined with the significant
increase in the value of sales, generated a 38 % gross profit increase.
Operating profit
Operating profit increased by 63 % reflecting the significant increase in gross
profit and continuing cost control. As a consequence, the operating margin
percentage increased by 370 basis points to 19.7 %.
Excluding the impact of the acquisition of NET-A-PORTER.COM, the operating
margin increased by 490 basis points to 20.9 %.
The increase in net operating expenses was limited to 29 % overall, some 4 %
below the growth in sales. At constant exchange rates, net operating expenses
increased by 13 % excluding the impact of NET-A-PORTER.COM. The increase
included the impacts of better trading. Selling and distribution expenses were
29 % higher, reflecting better trading and the additional costs stemming from
the expansion of the boutique network, particularly in the Asia-Pacific region.
Communication expenses increased by 38 % and represented 10 % of sales.
Administration costs grew by 20 % reflecting the integration of NET-A-PORTER.COM
and exchange rate effects: excluding these factors, underlying administration
costs were 3 % higher than the prior year.
Profit for the year
Profit for the year increased by 79 % to Euro 1 079 million, reflecting the
following significant factors:
- Net finance costs amounted to Euro 181 million, primarily due to unrealised
currency translation losses of Euro 150 million on Group financial assets, which
are euro-denominated cash and liquid bond funds held by a Swiss franc entity, as
a result of a stronger Swiss franc against the euro. These currency translation
losses are offset in `other comprehensive income`, with no net effect on the
Group`s equity position.
- A one-off Euro 102 million accounting gain relating to the acquisition of NET-
A-PORTER.COM. This is reported within the Group`s share of the post-tax results
of associated companies.
- An effective taxation rate of 16.7 %.
Earnings per share increased by 79 % to Euro 1.925 on a diluted basis. To comply
with the South African practice of providing headline earnings per share
(`HEPS`) data, the relevant figure for headline earnings for the year ended 31
March 2011 would be Euro 1 002 million (2010: Euro 611 million). Diluted HEPS
for the year was Euro 1.770 (2010: Euro 1.092). Further details regarding
earnings per share and HEPS may be found in note 29 of the Group`s consolidated
financial statements.
Cash flow
Cash flow generated from operations for the year was Euro 1 696 million.
Compared to the prior year, the additional Euro 232 million generated from
operations reflected the significant increase in operating profit, partly offset
by movements in working capital. The Group`s absorption of cash for working
capital during the year contrasts favourably with the prior year, when
manufacturing output and inventories were being reduced. However, the absorption
of cash in the year under review was limited in view of the strong recovery in
sales.
Net acquisitions of tangible fixed assets amounted to Euro 282 million,
reflecting selective investment in the Group`s network of boutiques and
manufacturing facilities. Free cash flow in the year, being net cash generated
from operating activities after capital and non-current asset expenditure,
financing and taxation payments, amounted to Euro 1 180 million.
Significant investing activities during the period included the acquisition of a
controlling interest in NET-A-PORTER.COM for a net amount of Euro 245 million.
During the year under review, the Group initiated a new share buy-back programme
and purchased some 5 million `A` shares through the market at a cost of Euro 112
million. The gross cost of these purchases was partly offset by proceeds from
sales of shares linked to the exercise of stock options by executives. The 2010
dividend of CHF 0.35 per share payment was paid in September 2010 and amounted
to Euro 141 million.
Financial structure and balance sheet
Fixed assets, including tangible and intangible assets, and goodwill increased
by Euro 473 million during the year. The increase largely reflects the
acquisition of NET-A-PORTER.COM and increases in the Group`s boutique network
and manufacturing capacity.
Inventories at the end of March amounted to Euro 2 789 million. This figure
represents 16.5 months of gross inventories and compares with 19 months at March
2010. The improvement in the rate of stock turn reflects both the improved
trading conditions and supply chain constraints, which have led to low levels of
finished goods within the specialist watchmaking segment. Notwithstanding these
effects, the increase in the value of inventories partly reflects NET-A-
PORTER.COM, the strengthening of the Swiss franc and the expansion of the
Maisons` boutique networks.
The Group`s net cash position amounted to Euro 2 589 million at 31 March 2011
(2010: Euro 1 882 million). This includes holdings of short-term liquid bond
funds as well as cash and cash equivalents net of borrowings. Liquid bond funds
and cash balances were primarily denominated in euros, whereas borrowings were
spread across the principal currencies of the countries in which the Group has
significant operations.
Shareholders` equity at 31 March 2011 amounted to Euro 6 992 million, net of the
cost of repurchased treasury shares and related instruments. The Group held some
22 million `A` shares in treasury, representing 4 % of the total number of the
`A` shares in issue, as well as options to acquire a further 11 million `A`
shares.
Richemont`s financial structure remains very strong, with minimal debt and
shareholders` equity representing 72 % of total equity and liabilities.
Proposed dividend
The Board has proposed an ordinary cash dividend of CHF 0.45 per share, an
increase of CHF 0.10 per share compared to last year.
The dividend will be paid as Gross Withholding Net
follows: dividend payable
per share tax @ 35% per share
Ordinary dividend CHF 0.4500 CHF 0.1575 CHF 0.2925
The dividend will be payable following the Annual General Meeting, which is
scheduled to take place on Wednesday, 7 September 2011.
The last day to trade Richemont `A` shares and Richemont South African
Depository Receipts cum-dividend will be Friday, 9 September 2011.
The dividend on the Compagnie Financiere Richemont `A` shares will be paid on
Thursday, 15 September 2011. The dividend in respect of the `A` shares is
payable in Swiss francs.
The dividend in respect of Richemont South African Depository Receipts will be
payable on Friday, 23 September 2011. The South African Depository Receipt
dividend is payable in rand to residents of the South African Common Monetary
Area (`CMA`) but may, dependent upon residence status, be payable in Swiss
francs to non-CMA residents.
***
Review of Operations
1. Sales by region
Movement at:
Constant Actual
in Euro millions 31 March 2011 31 March 2010 exchange rates* exchange rates
Europe 2 588 2 099 + 20 % + 23 %
1 740
Asia-Pacific 2 569 1 740 + 36 % + 48 %
Americas 998 712 + 30 % + 40 %
Japan 737 625 + 1 % + 18 %
6 892 5 176 + 24 % + 33 %
*Note: movements at constant exchange rates are calculated translating
underlying sales in local currencies into euros in both the current year and the
comparative year at the average exchange rates applicable for the financial year
ended 31 March 2010.
Europe
Accounting for 38 % of overall sales, Europe remains the most important region
for the Group. The strong rate of sales growth during the year reflects
purchases made by local clients as well as travellers. The 23 % sales growth in
the region also included the impact of exchange rate effects from non-euro
denominated countries and the integration of NET-A-PORTER.COM.
Asia-Pacific
The very strong growth reported in the Asia-Pacific region is measured against
robust comparative figures. The region now represents 37 % of Group sales. The
Maisons have continued to expand their distribution networks and now enjoy
leading positions in many of the region`s markets. Growth continued throughout
the year.
Americas
The strong recovery of sales in the Americas region reflects both weak
comparative sales in local currency terms, the integration of NET-A-PORTER.COM
and positive exchange rate effects. Nevertheless, growth in the region stems
from a strong retail performance and higher levels of productivity in the
wholesale network. The reported growth has occurred despite the reduction in the
number of points of sale in the region. The Americas region represented 14 % of
Group sales.
Japan
In euro terms, sales increased by 18 %, largely due to the significant
appreciation of the yen. Yen-denominated sales increased by 1 %, reflecting
positive responses to new products and a stabilisation of the Maisons`
businesses. The earthquake and tsunami of 11 March 2011 and their aftermath
occurred shortly before the Group`s financial year-end and consequently had only
a minimal impact on the Group`s performance for the year as a whole.
2. Sales by distribution channel
Movement at:
Constant Actual
in Euro millions 31 March 2011 31 March 2010 exchange rates* exchange rates
Retail 3 469 2 385 + 35 % + 45 %
Wholesale 3 423 2 791 + 15 % + 23 %
6 892 5 176 + 24 % + 33 %
*Note: movements at constant exchange rates are calculated translating
underlying sales in local currencies into euros in both the current year and the
comparative year at the average exchange rates applicable for the financial year
ended 31 March 2010.
Retail
Retail sales include sales within directly operated stores and NET-A-PORTER.COM.
For the first time, retail sales exceeded 50 % of the Group`s overall sales.
The rate of growth highlighted the quality of the retail offer, sustained demand
from final customers, successful store openings and the integration of NET-A-
PORTER.COM. Excluding NET-A-PORTER.COM, retail sales increased by 24 % at
constant exchange rates.
During the current year, the overall retail network of Group-owned boutiques
increased to 876 boutiques. Store openings were primarily in growth markets.
Wholesale
The Group`s wholesale business, including sales to franchise partners, reported
good growth. In the comparative year, the wholesale business was negatively
impacted due to de-stocking by business partners.
Given the planned reduction in the number of points of sale in some key markets,
most notably in the United States, and constraints in the supply of finished
products, the reported growth in the current year underlines the productivity
improvement in the wholesale network.
3. Sales and operating results by business area
Jewellery Maisons
in Euro millions 31 March 2011 31 March 2010 Change
Sales 3 479 2 688 + 29 %
Operating results 1 062 742 + 43 %
Operating margin 30.5 % 27.6 % + 290 bps
Cartier and Van Cleef & Arpels` strong sales growth was broad-based in terms of
geography and product lines. The performance was particularly strong in the
Maisons` own boutiques.
As a consequence, the Jewellery Maisons posted record sales and profitability.
Specialist Watchmakers
in Euro millions 31 March 2011 31 March 2010 Change
Sales 1 774 1 353 + 31 %
Operating results 379 231 + 64 %
Operating margin 21.4 % 17.1 % + 430 bps
All of the Group`s specialist watchmakers performed well, excluding, as
expected, Baume & Mercier which is being restructured. The reorganisation of
Baume & Mercier`s product offer during the second half of the financial year
negatively impacted both sales and operating results. The specialist
watchmakers` results in the comparative year included a one-off charge amounting
to Euro 13 million.
The specialist watchmakers posted record sales and profits. Overall, the
operating margin increased to 21.4 % of sales, in spite of higher costs of sales
due to the appreciation of the Swiss franc and higher precious material prices.
Montblanc Maison
in Euro millions 31 March 2011 31 March 2010 Change
Sales 672 551 + 22 %
Operating result 109 79 + 38 %
Operating margin 16.2 % 14.3 % + 190 bps
Montblanc`s sales growth reflected good demand for its range of writing
instruments, watches and accessories. Operating results improved due to a better
utilisation of manufacturing capacity and a more efficient retail network.
Other businesses
in Euro millions 31 March 2011 31 March 2010 Change
Sales 967 584 + 66 %
Operating results (34) (36) + 6 %
Operating margin (3.5) % (6.2) % + 270 bps
The `Other` segment includes NET-A-PORTER.COM from 1 April 2010, as well as the
Group`s Fashion and Accessories Maisons and the Group`s watch component
manufacturing activities.
Sales by Richemont`s Fashion and Accessories Maisons increased by 20 % and,
reflecting positive gross margin development and cost control, generated profits
of Euro 29 million; an increase of Euro 21 million compared to the prior year.
Losses in the Group`s watch component manufacturers were reduced from Euro 44
million in the prior year to Euro 35 million, reflecting improving orders and
productivity gains.
Sales at NET-A-PORTER.COM amounted to Euro 274 million. The business generated a
positive cash flow and performed above plan.
Corporate costs
in Euro millions 31 March 2011 31 March 2010 Change
Corporate costs (161) (186) - 13 %
Central support services (159) (147) + 8 %
Other operating income/(expense), net (2) (39) n/a
Corporate costs represent the costs of central management, marketing support and
other central functions, known as central support services, as well as other
expenses and income which are not allocated to specific business areas,
including foreign exchange hedging gains and losses. The increase in central
support service costs was largely due to the strength of the Swiss franc.
Excluding the effect of a stronger Swiss franc and specific transaction costs in
the comparative year, central support services costs decreased by 1 %.
Other operating expenses included gains of Euro 13 million relating to the
Group`s exchange rate hedging programme, which are reported within gross profit.
In the comparative year, equivalent exchange rate hedging losses amounted to
Euro 14 million.
***
The Group`s audited consolidated statements of comprehensive income, of cash
flows and of financial position are presented in Appendix 1. Richemont`s audited
consolidated financial statements for the year are available on the Group`s
website at http://www.richemont.com/investor-relations/reports.html
Richard Lepeu Gary Saage
Deputy Chief Executive Officer Chief Financial Officer
Presentation
The results will be presented via a live internet webcast on 19 May 2011,
starting at 09:00 (CET). The direct link will be available from 08:00 (CET) at:
http://www.richemont.com
- Live listen-only telephone connection: call one of these numbers 10 minutes
before the start of the presentation:
- Europe: +41 91 610 56 00
- USA: +1 866 291 4166
- UK: +44 203 059 5862
- South Africa: 0800 992 635 (toll free)
- An archived video webcast of the presentation will be available from:
http://www.richemont.com/investor-relations/results-presentations.html
- A transcript of the presentation will be available from:
http://www.richemont.com/investor-relations/results-presentations.html
Annual Report
The Richemont Annual Report and Accounts 2011 will be published on or around 24
June 2011 and will be available for download from the Group`s website; copies
may be obtained from the Company`s registered office or by contacting the
Company via the website at http://www.richemont.com/contact.html
Compagnie Media contact Investor contact
Financiere Alan Grieve Sophie Cagnard
Richemont SA Director of Corporate Head of Investor
50 chemin de la Affairs Relations
Chenaie Tel: +41 22 721 3507 Tel +33 1 58 18 25 97
1293 Bellevue E-mail: E-mail:
Geneva, pressoffice@cfrinfo.net investor.relations@cfri
Switzerland nfo.net
Tel: +41 22 721
3500
Internet:
www.richemont.com
Statutory Information
`A` shares issued by Compagnie Financiere Richemont SA are listed and traded on
the SIX Swiss Exchange, (Reuters "CFR.VX" / Bloomberg "CFR:VX" / ISIN
CH0045039655) and are included in the Swiss Market Index (`SMI`) of leading
stocks. The Swiss `Valorennummer` is 4503965.
South African depository receipts in respect of Richemont `A` shares are traded
on the Johannesburg stock exchange operated by JSE Limited (Reuters "CFRJ.J" /
Bloomberg "CFR:SJ" / ISIN CH0045159024).
The closing price of the Richemont `A` share on 31 March 2011 was CHF 53.05 and
the market capitalisation of the Group`s `A` shares on that date was CHF 27 692
million. Over the preceding year, the highest closing price of the `A` share was
CHF 57.25 (13 January 2011), and the lowest closing price of the `A` share was
CHF 35.65 (1 July 2010).
Copyright Richemont 2011
Appendix 1
Consolidated statement of comprehensive income
2011 2010
Euro m Euro m
Sales 6 892 5 176
Cost of sales (2 498) (1 985)
Gross profit 4 394 3 191
Selling and distribution expenses (1 654) (1 277)
Communication expenses ( 699) ( 506)
Administrative expenses ( 656) ( 545)
Other operating (expense) / income ( 30) ( 33)
Operating profit 1 355 830
Finance costs ( 292) ( 161)
Finance income 111 24
Share of post-tax profit of associated 101 4
undertakings
Profit before taxation 1 275 697
Taxation ( 196) ( 94)
Profit from continuing operations 1 079 603
Discontinued operations (net of tax) - ( 3)
Profit for the year 1 079 600
Other comprehensive income:
Currency translation adjustments:
- movement in the year 459 299
- reclassification to profit or loss 11 -
Cash flow hedges:
- net gains 81 27
- reclassification to profit or loss ( 13) 13
Tax on cash flow hedges ( 11) ( 2)
Share of other comprehensive income of - 1
associated undertakings
Other comprehensive income, net of tax 527 338
Total comprehensive income 1 606 938
Profit attributable to:
Owners of the parent company 1 090 599
Non-controlling interest ( 11) 1
1 079 600
Total comprehensive income
attributable to:
Owners of the parent company 1 616 937
Non-controlling interest ( 10) 1
1 606 938
Earnings per share attributable
to owners of the parent company during
the year (expressed in Euro per share)
Basic:
- from continuing operations 1.977 1.088
- from discontinued operations - (0.005)
1.977 1.083
Diluted:
- from continuing operations 1.925 1.076
- from discontinued operations - (0.005)
1.925 1.071
Consolidated statement of cash flows
2011 2010
Euro m Euro m
Operating profit 1 355 827
Depreciation and impairment of 213 187
property, plant and equipment
Amortisation and impairment of other 78 52
intangible assets
Loss on disposal of property, plant 5 5
and equipment
Loss on disposal of intangible assets 1 1
Increase in provisions 92 18
Decrease in retirement benefit ( 2) -
obligations
Non-cash items 18 51
(Increase)/decrease in inventories ( 350) 240
Decrease in trade debtors 83 42
(Increase)/decrease in other ( 67) 13
receivables and prepayments
Increase in current liabilities 267 29
Increase/(decrease) in long-term 3 ( 1)
liabilities
Cash flow from operations 1 696 1 464
Interest received 17 15
Interest paid ( 22) ( 26)
Other investment income 4 6
Dividends from associated undertaking - 1
Taxation paid ( 202) ( 82)
Net cash generated from operating 1 493 1 378
activities
Cash flows from investing activities
Proceeds from disposal of subsidiary ( 3) 1
undertakings and other businesses, net
of cash disposed
Acquisition of subsidiary undertakings ( 246) ( 22)
and other businesses, net of cash
acquired
Acquisition of associated undertakings - ( 5)
Acquisition of property, plant and ( 285) ( 151)
equipment
Proceeds from disposal of property, 3 4
plant and equipment
Acquisition of intangible assets ( 41) ( 29)
Proceeds from disposal of intangible - 1
assets
Investment in short-term bond funds (2 284) (1 240)
Proceeds from disposal of short-term 1 489 861
bond funds
Acquisition of other non-current ( 22) ( 16)
assets
Proceeds from disposal of other non- 32 77
current assets
Net cash used in investing activities (1 357) ( 519)
Cash flows from financing activities
Proceeds from borrowings 81 264
Repayment of borrowings ( 270) ( 417)
Dividends paid ( 141) ( 110)
Payment for treasury shares ( 112) ( 158)
Proceeds from sale of treasury shares 28 59
Capital element of finance lease ( 2) ( 3)
payments
Net cash used in financing activities ( 416) ( 365)
Net change in cash and cash ( 280) 494
equivalents
Cash and cash equivalents at beginning 940 1 363
of year
Reclassification of short-term bond - ( 956)
funds
Exchange (losses)/gains on cash and ( 3) 39
cash equivalents
Cash and cash equivalents at end of 657 940
year
Consolidated statement of financial position
2011 2010 2009
re- re-
presented presented
Assets Euro m Euro m Euro m
Non-current assets
Property, plant and equipment 1 267 1 160 1 169
Goodwill 441 164 155
Other intangible assets 314 225 231
Investments in associated 7 24 14
undertakings
Deferred income tax assets 349 315 305
Financial assets held at fair 70 88 143
value through profit or loss
Other non-current assets 211 187 172
2 659 2 163 2 189
Current assets
Inventories 2 789 2 260 2 422
Trade and other receivables 597 626 672
Derivative financial 148 13 18
instruments
Prepayments 119 84 80
Assets of disposal groups held - - 11
for sale
Financial assets held at fair 2 154 1 339 -
value through profit or loss
Cash at bank and on hand 1 227 1 258 2 032
7 034 5 580 5 235
Total assets 9 693 7 743 7 424
Equity and liabilities
Equity attributable to owners
of the parent company
Share capital 334 334 334
Treasury shares ( 325) ( 248) ( 195)
Hedge and share option 305 194 90
reserves
Cumulative translation 892 423 124
adjustment reserve
Retained earnings 5 774 4 956 4 480
6 980 5 659 4 833
Non-controlling interest 12 2 3
Total equity 6 992 5 661 4 836
Liabilities
Non-current liabilities
Borrowings 120 340 90
Deferred income tax 35 27 78
liabilities
Retirement benefit obligations 38 39 39
Provisions 137 54 39
Other long-term financial 158 17 34
liabilities
488 477 280
Current liabilities
Trade and other payables 825 574 545
Current income tax liabilities 260 230 172
Borrowings 1 3 188
Derivative financial 36 79 123
instruments
Provisions 126 105 117
Accruals and deferred income 294 242 218
Short-term loans 101 54 276
Bank overdrafts 570 318 669
2 213 1 605 2 308
Total liabilities 2 701 2 082 2 588
Total equity and liabilities 9 693 7 743 7 424
The re-presented financial positions for prior years reflect the amendments to
IAS 17 Leases in respect of land leases.
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
Notes for South African editors
Acknowledging the interest in Richemont`s results on the part of South African
investors, set out below are key figures from the results expressed in rand. The
average euro/rand exchange rate prevailing during the year ended 31 March 2011
was 9.4858; this compares with a rate of 11.042 during the prior year.
in ZAR millions 31 31
March March
2011 2010
Sales 65 376 57 153 + 14 %
Operating profit 12 853 9 165 + 40 %
Profit from continuing operations 10 235 6 658 + 54 %
Loss from discontinued operations - (33) n/a
Profit for the year 10 235 6 625 + 54 %
Profit attributable to:
Owners of the parent company 10 340 6 614
Non-controlling interest (105) 11
10 235 6 625
Earnings per depository receipt - ZAR ZAR + 54 %
diluted basis 1.8260 1.1826
Headline earnings per depository ZAR ZAR + 39 %
receipt - diluted basis 1.6790 1.2058
Headline earnings per depository receipt exclude the impact of gains amounting
to ZAR 835 million (Euro 88 million). In the comparative year, headline earnings
per depository receipt excluded the impact of losses amounting to ZAR 133
million (Euro 12 million). Further details of these gains and losses, which
conform to the JSE listing requirements, are presented in note 29 of the audited
consolidated financial statements.
Subject to approval of the shareholders at the annual general meeting, scheduled
to take place on 7 September 2011, the dividend will be paid to Richemont
Depository Receipt holders on 23 September 2011. The rand dividend amount per
Depository Receipt will be calculated by reference to the Swiss franc/rand
exchange rate prevailing on the currency conversion date of 2 September 2011.
Richemont Securities SA Depository Receipts are issued subject to the terms of
the Deposit Agreement entered into on 18 December 1992, most recently amended on
16 December 2010. By holding Depository Receipts, investors acknowledge that
they are bound by the terms of the Deposit Agreement. Copies of the Deposit
Agreement may be obtained by investors from Richemont Securities SA or
Computershare Limited.
Date: 19/05/2011 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.
