| Thu 12 Sep 2002, 9:42 | | Richemont Securities Ag - Trading Update |
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Richemont Securities AG - Trading update
RICHEMONT SECURITIES AG
Share Code: RCH
ISIN Code : CH0001609723
Press release - 12 September 2002
Richemont annual general meeting 2002
Trading statement - comment by Mr Johann Rupert
Zug, 12 September 2002
The Annual General Meeting of Compagnie Financiere Richemont AG will be held
later today in Zug, Switzerland.
At that meeting, shareholders are expected to approve the proposals of the board
of directors for the approval of the financial statements and appropriation of
retained earnings. A dividend of Euro 0.32 per Richemont unit has been proposed,
an increase of 7% compared to the prior year. Shareholders are also expected to
approve the transfer of the registered office from Zug to Geneva. A further
press release will be issued immediately after the meeting to confirm these
decisions.
At the meeting, the Group Chief Executive and Executive Chairman designate, Mr
Johann Rupert, will make the following statement in respect of Richemont`s
current trading performance:
Quote
Since 31 March 2002, the economic climate in which we operate has shown no sign
of any improvement. Lower interest rates have had, to some extent, a beneficial
effect in terms of keeping consumer-spending running at levels high enough to
avoid a serious and prolonged recession in major economies. However, the
accounting fiascos involving major US corporations that we have seen over the
past year have undermined confidence and caused further turmoil in stock markets
at a time when we might otherwise have hoped to see signs of rejuvenation.
Continuing global instability, particularly in terms of the situation in the
Middle East, further adds to the uncertainties which impact negatively on the so
called `feel good factor,` which is an important element in supporting the
demand for luxury products.
In the first five months of the current financial year, Group sales overall have
declined by almost 5 per cent compared to the prior year. However, excluding the
negative impact of the strengthening of the euro against both the dollar and the
yen during the period, the decline in underlying sales was limited to less than
one per cent.
Sales in the Group`s most important geographic region, Europe, showed a decline
of 6 per cent. Sales grew modestly in local currency terms in each of the
Americas, Japan and Asia-Pacific regions but, on translation into the euro,
showed an overall decline of some 3 per cent. Notwithstanding close monitoring
of the growth in operating expenses, operating profit for the first six months
of the year will, therefore, be below the prior year`s level.
The months of September to December are critically important to the Group in
terms of sales. The current trading environment, however, makes it extremely
difficult for us at this time to make any reliable forecast in terms of the
likely level of demand during this period.
Richemont`s businesses offer products of enduring quality and style and are well
placed to withstand these testing times. The Group continues to be in a good
position to support those businesses, particularly given the strength of its
balance sheet and the significant cash flow from the investment in British
American Tobacco.
Unquote.
For its financial year ended 31 March 2002, Richemont reported an increase in
sales of 5 % to Euro 3 860 million. Operating profit for the year decreased by
32 % to Euro 482 million.
Richemont`s interim results for the six-month period to 30 September 2002 will
be released on Thursday, 14 November 2002.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading
international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc
and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre,
Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Sohne, and Officine
Panerai.
In addition to its luxury goods business, Richemont holds a 21% interest in
British American Tobacco p.l.c., the world`s second largest tobacco company.
www.richemont.com
Compagnie Financiere Richemont AG
Rigistrasse 2 Ch-6300 Zug Switzerland
Telephone 041 710 33 22
Telefax 041 711 71 02
Telex 862 336 Cfr Ch
Date: 12/09/2002 07:51:02 AM Produced by the JSE SENS Department
