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RCH
Richemont - Unaudited Sales Figures For The Financial Year Ended 31 March 2006
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont" or "the Company")
PRESS RELEASE - 25 APRIL 2006
UNAUDITED SALES FIGURES FOR THE FINANCIAL YEAR ENDED 31 MARCH 2006
Richemont, the Swiss luxury goods group, announces unaudited sales for the year
ended 31 March 2006 of Euro 4 308 million, an increase of 17 per cent at actual
exchange rates compared to the prior year. At constant exchange rates, sales
increased by 16 per cent.
Sales by business area for the year:
March March Movement at
2006 2005 Constant Actual
Eurom Eurom Rates Rates
Jewellery 2 227 1 938 +13% +15%
Maisons
Specialist
watchmakers 1 063 870 +21% +22%
Writing
instrument
manufacturers 497 424 +15% +17%
Leather and
accessories
Maisons 283 259 +8% +9%
Other businesses 238 180 +31% +32%
Total sales 4 308 3 671 +16% +17%
The sales trends seen during the first six months of the year and in the pre-
Christmas period continued into the fourth quarter of the financial year.
Particularly strong growth was seen in the Group"s specialist watchmaking
division, which reported growth of 22 per cent.
The Group overall benefited from good consumer demand stemming from the
generally favourable economic environment seen in its principal markets. In
addition, exchange rates of key currencies, notably the dollar and yen, were
relatively stable against the euro for a large part of the year.
Jewellery Maisons
Of the Group"s Jewellery Maisons, Cartier continued to perform strongly, showing
particularly good growth in the Americas, Japan and in the rest of the Asia-
Pacific region. Van Cleef & Arpels saw very good growth in sales, albeit from a
smaller base, with a particularly strong performance in Europe.
Specialist watchmakers
The Group"s specialist watchmakers saw a high level of demand in all regions,
all reporting double-digit growth. Vacheron Constantin, IWC and Panerai, in
particular, performed very well, Vacheron Constantin having benefited from sales
linked to its 250th anniversary celebrations in 2005.
Writing instrument manufacturers
Sales by the Group"s principal writing instrument manufacturer, Montblanc,
reflected very strong demand within the Maison"s own boutique network.
Leather and accessories Maisons
Overall growth in sales for Alfred Dunhill reflected double-digit growth in the
Asia-Pacific region, offset to some extent by a more challenging market for the
company"s products in Japan. Lancel saw a recovery in its European market, with
a double-digit rate of increase in sales.
Other businesses
The sales increase reported by the Group"s other businesses primarily reflects
the exceptional performance of Chloe, where sales more than doubled during the
year.
Sales by geographic region for the year:
March March Movement at
2006 2005 Constant Actual
Eurom Eurom Rates Rates
Europe 1 811 1 580 +14% +15%
Japan 723 639 +15% +13%
Asia-Pacific 899 755 +14% +19%
Americas 875 697 +21% +26%
Total sales 4 308 3 671 +16% +17%
Europe
Sales in Europe represented 42 per cent of total Group sales. The overall
increase of more than Euro 200 million reflects double-digit growth in all
business areas. The specialist watchmakers, in particular, performed very well.
Japan
Representing 17 per cent of Group revenues, sales in the domestic Japanese
market benefited from the improved economic situation.
Asia-Pacific
Sales in the region represented 21 per cent of total Group sales. The Euro 144
million increase in regional sales reflects strong demand, particularly for the
Group"s specialist watchmakers" products.
Americas
The Americas region, which accounted for 20 per cent of total sales for the
year, showed the highest rate of growth, notwithstanding the good results seen
in the prior year. All business areas reported double-digit growth, with
excellent performances from IWC and Panerai.
Sales by distribution channel
At actual exchange rates, the Group"s retail sales increased by 17 per cent
overall to Euro 1 762 million, whilst wholesale sales increased by 18 per cent.
Disposals
In June 2005, Richemont sold its interest in Hackett, the menswear brand and, in
March 2006, announced the sale of Old England, a Paris-based retailer. The sales
figures for the year ended 31 March 2006 therefore include Hackett sales for the
two-month period to 31 May 2005 and for Old England for the full twelve-month
period. Prior year comparative figures include both brands for the full twelve-
month period.
Foreign Exchange Rates 2006 2005
Average vs Euro:
US $ 1.22 1.26
Yen 137.70 135.18
SFr 1.55 1.54
GBP 0.68 0.68
Richemont"s results for the financial year ended 31 March 2006 will be released
on Thursday, 8 June 2006. As the Company is now in a closed period until the
release of the full year results in June, Richemont is not in a position to
provide any further details in connection with the information contained in this
announcement.
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 and A. Lange & Sohne; Writing instrument manufacturers - Montblanc and
Montegrappa; 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 addition to its luxury goods business, Richemont holds an 18.6 per cent
interest in British American Tobacco.
Compagnie Financiere Richemont SA
50 Chemin de la Chenaie
CH-1293 Bellevue, Geneva Switzerland
Tel : +41 (0)22 721 3500
Fax : +41 (0)22 721 3550
www.richemont.com
25 April 2006
Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)
Date: 25/04/2006 07:00:19 AM Produced by the JSE SENS Department
