| Thu 15 Sep 2005, 9:51 | | Richemont - Richemont Annual General Meeting 2005 |
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Richemont - Richemont Annual General Meeting 2005 And Trading Update
Richemont Securities AG
(Incorporated in Switzerland)
(Registration CH-170.3.013.861-6)
JSE Code: RCH
ISIN: CH0013157380
RICHEMONT ANNUAL GENERAL MEETING 2005 AND TRADING UPDATE
The Annual General Meeting of Compagnie Financiere Richemont SA will be held
later today in Geneva, 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. An ordinary dividend of Euro 0.50 per Richemont unit has been
proposed, an increase of 25 per cent compared to the prior year. In addition, a
special dividend of Euro 0.50 per unit will be payable, bringing the total
dividend for the year to Euro 1.00 per unit. A further press release will be
issued immediately after the meeting to confirm the decision.
At the meeting, Executive Chairman, Mr Johann Rupert, will make the following
statement in respect of Richemont`s current trading performance:
Quote:
The benefits of our Maisons` product development and marketing strategies,
linked to favourable trading conditions in our major markets, have resulted in
good growth in sales. The positive trends that we saw last year have continued
into the initial months of the current financial year.
Overall, sales in the five-month period to the end of August showed growth of 16
per cent at actual exchange rates in comparison to the prior year. We have seen
good performances in all business areas and across all geographic zones.
Our jewellery businesses, Cartier and Van Cleef & Arpels, have reported growth
of 13 per cent at actual exchange rates over the five-month period. Both have
benefited considerably from new product lines. Cartier`s new watch ranges - for
example the `Tankissime` and `Pasha 42` models - are selling well, whilst - in
jewellery - the `Panther` yellow gold and the `Baby Love` lines have also been
successful.
Sales by the Group`s specialist watchmakers have grown by 23 per cent during the
period to end-August. All of the watch businesses have performed well, their new
model ranges finding favour in the market.
Equally, Montblanc and Montegrappa sales have also increased at double-digit
rates, benefiting from new product launches and strong retail growth.
In our leather and accessories businesses, Lancel is showing signs of recovery
with good sales growth. However, Alfred Dunhill has reported a more modest
increase during the period, despite a continuing strong performance in Asia
Pacific and increased demand in the United States. We still have work to do with
these businesses to bring their performance into line with their peers in the
Group.
Chloe, on the other hand, is performing exceptionally well, driving growth in
sales in the `other products` segment.
I indicated that all geographical areas had reported good growth over the
period. The strongest growth has come in the Asia-Pacific market and in the
United States, with growth of 20 per cent and 18 per cent, respectively, at
actual exchange rates. However, we have also seen double-digit growth in Japan
and in our home market, Europe.
I would add that Richemont`s investment in British American Tobacco is
performing very well. BAT`s adjusted earnings per share for the first half of
its financial year increased by 23 per cent and Richemont will receive dividends
of almost GBP 170 million from BAT during the current year.
Looking forward to the rest of the year is, as always, difficult and I dislike
making forecasts.
I remain optimistic for the luxury goods market and that optimism is borne out
by the high rate of growth in sales that Richemont has seen in recent months.
Our specialist watchmakers, in particular, have performed impressively. The
increase has reflected the new product launches that we have seen over the last
year and the increased sell-in to our retail partners.
However, we face tough targets for the year as a whole, given the Group`s strong
performance last year. Although we expect to see continuing growth in all our
businesses, the higher comparatives make it less likely that the rate of growth
in sales for the full year will necessarily match the high levels that we have
experienced over the first five months. That is particularly true for the watch
businesses.
The Group is in a sound financial position and continues to produce exciting
products, which our customers love. Taking a long-term view, as always, the
Board and I have every confidence in the enduring strengths of Richemont`s
businesses and on the ability of Mr Platt and the executive team to ensure the
Group`s continuing prosperity.
Unquote
For its financial year ended 31 March 2005, Richemont reported an increase in
sales of 10 per cent to Euro 3 717 million. Operating profit, on a Swiss GAAP
basis, amounted to Euro 505 million, an increase of 71 per cent over the prior
year.
Richemont`s interim results for the six-month period to 30 September 2005 will
be released on Thursday, 17 November 2005. These interim results will be
presented for the first time in accordance with International Financial
Reporting Standards (`IFRS`) rather than Swiss GAAP. As required under IFRS,
Richemont`s results for the prior year will be restated in full compliance with
the international standards for comparative purposes. Restated, IFRS-compatible
figures for the financial year ended 31 March 2005 will be released in mid
October.
Richemont owns a portfolio of leading international brands including Cartier,
Van Cleef & Arpels, Alfred 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 an 18.5 per cent
interest in British American Tobacco.
Richemont trading update, 15 September 2005
Percentage change in sales by business area for the five-month period ended 31
August 2005
At actual exchange At constant exchange
rates rates
Jewellery Maisons +13% +14%
Specialist +23% +24%
watchmakers
Writing instrument +13% +13%
manufacturers
Leather and +6% +7%
accessories Maisons
Other businesses +27% +29%
Total sales +16% +17%
Percentage change in sales by geographic region for the five-month period ended
31 August 2005
At actual exchange At constant exchange
rates rates
Europe +15% +15%
Japan +11% +13%
Asia-Pacific +20% +20%
Americas +18% +20%
Total sales +16% +17%
Movements at constant exchange rates are calculated translating underlying sales
in local currencies into euros in both the current period and the prior year
comparative period at the average exchange rates applicable to the financial
year ended 31 March 2005.
Geneva, 15 September 2005
Press inquiries:
Mr Alan Grieve, Director of Corporate Communications
Tel: + 41 22 715 3736
Analysts` inquiries:
Ms Sophie Cagnard-Fabrici, Head of Investor Relations
Tel: + 33 1 5818 2597
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 15/09/2005 08:52:06 AM
Produced by the JSE SENS Department
