| Fri 21 Jan 2005, 8:12 | | Trading update for the quarter ended 31 Dec 2004 |
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Richemont Securities AG - Trading update for the quarter ended 31 December 2004
Richemont Securities AG
(Incorporated in Switzerland)
(Registration CH-170.3.013.861-6)
JSE Code : RCH
ISIN: CH0013157380
TRADING UPDATE FOR THE QUARTER ENDED 31 DECEMBER 2004
Richemont, the Swiss luxury goods group, announces its unaudited sales figures
for the quarter ended 31 December 2004.
Sales in the three-months up to 31 December 2004 were 9 per cent above the prior
year at actual exchange rates.
Underlying sales in local currencies grew by 13 per cent, with good growth in
all areas, including Japan.
Combined sales of Cartier and Van Cleef & Arpels, Richemont`s Jewellery Maisons,
increased by 7 per cent at actual rates and 12 per cent at constant rates; sales
by the Group`s specialist watchmakers grew by 10 per cent and 14 per cent at
actual rates and constant rates, respectively.
Percentage change in sales by geographic region for the three-month period
At constant At actual
exchange rates exchange rates
Europe + 12 % + 12 %
Japan + 9 % + 5 %
Asia-Pacific + 16 % + 8 %
Americas + 15 % + 6 %
Total sales + 13 % + 9 %
In Europe, the signs of a recovery in tourism seen earlier in the year were
confirmed, whilst the modest improvement in certain domestic economies
continued. Strong growth was seen in sales of jewellery, watches and writing
instruments. In the important markets of France and Italy, sales overall
increased by 17 per cent and 10 per cent, respectively.
In Japan, there was good underlying sales growth in all business areas although
this was offset to some extent by the weakness of the yen. The Group`s Jewellery
Maisons, Cartier and Van Cleef & Arpels, saw sales in constant currency terms
grow by 7 per cent during the quarter.
Demand in the Asia-Pacific markets remained strong. Sales grew by 8 per cent at
actual exchange rates, or some 16 per cent at constant rates, despite the
relatively high comparative figures seen in the prior year. Sales in China
during the quarter increased by 49 per cent at constant exchange rates, albeit
from a low base.
Against strong comparative figures, underlying sales in the Americas continued
to show strong growth, although the weakness of the dollar had a significant
adverse effect on growth at actual exchange rates. The Group`s Jewellery Maisons
reported double-digit growth at constant rates for the quarter, as did Alfred
Dunhill.
At actual exchange rates, the Group`s retail sales increased by 9 per cent
overall, whilst wholesale sales increased by 8 per cent.
Percentage change in sales by business area for the three-month period
At constant At actual
exchange rates exchange rates
Jewellery Maisons + 12 % + 7 %
Specialist + 14 % + 10 %
watchmakers
Writing instrument + 12 % + 9 %
manufacturers
Leather and + 4 % 0 %
accessories
Other businesses + 31 % + 28 %
Total sales + 13 % + 9 %
Sales of the Group`s Jewellery Maisons - Cartier and Van Cleef & Arpels - grew
by 12 per cent at constant exchange rates, benefiting also from exceptional
sales of high jewellery pieces during the quarter. Particularly good growth was
seen in the Asia-Pacific region, with double-digit increases also seen in Europe
and the Americas. Cartier`s new products launched worldwide during the current
year, including the Panthere and Trinity jewellery collections, the steel Santos
Demoiselle watch and the Santos line of men`s jewellery, contributed to a good
performance in the quarter. Gift lines also performed well.
The Group`s specialist watchmakers - Jaeger-LeCoultre, Piaget, IWC, Baume &
Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Sohne - continued
to enjoy good sales. Particularly strong results were reported by Jaeger-
LeCoultre and IWC.
Montblanc reported very good sales growth during the quarter, benefiting from
new product launches, including the NightFlight range of leather goods, and the
increased level of sales through its own boutique network.
Within leather and accessories, Alfred Dunhill`s continued growth in its key
Asian markets as well as in the United States was partially offset by lower
sales in Europe. Lancel saw the re-opening of its Paris flagship boutique in
September and benefited from the launch of new products.
The `Other businesses` segment includes Chloe, Hackett, Purdey and Old England
as well as certain watch component manufacturing activities for third parties.
Sales growth in the quarter remained strong particularly for Chloe, which
benefited from the expansion of its global retail presence.
In addition to its luxury goods businesses, Richemont holds an 18.8 per cent
interest in British American Tobacco.
Press inquiries:
Mr Alan Grieve, Director of Corporate Communications
Tel: + 41 22 715 3500
Analysts` inquiries:
Ms Sophie Cagnard-Fabrici, Head of Investor Relations
Tel: + 33 1 5818 2597
Compagnie Financiere Richemont SA
8 Boulevard James-Fazy CH-1201 Geneva Switzerland
Tel: +41 (0)22 715 3500 Telefax +41 (0)22 715 3550 www.richemont.com
21 January 2005
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 21/01/2005 08:00:21 AM
Produced by the JSE SENS Department
