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RCH
RCH
RCH - Richemont - Trading Statement for the Quarter ended 31 December 2006
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
PRESS RELEASE FOR IMMEDIATE RELEASE
TRADING STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2006
Richemont, the Swiss luxury goods group, announces that its sales in the
quarter ended 31 December 2006 increased by 10 per cent at actual exchange
rates compared to the prior year.
At constant exchange rates, sales increased by 15 per cent.
Percentage change in sales by business segment for the three-month period
At constant At actual
exchange rates exchange rates
Jewellery Maisons +13% +8%
Specialist watchmakers +17% +13%
Writing instrument Maisons +17% +13%
Leather and accessories +5% +1%
Maisons
Other businesses +35% +29%
Total sales +15% +10%
The Group`s sales for the important third quarter trading season increased
by 10 per cent despite more challenging comparative figures and the further
weakening of both the dollar and yen against the euro during the period.
The performance reflected strong underlying demand, with nearly all Maisons
enjoying double-digit growth in sales at constant exchange rates; retail
sales in December showed excellent growth.
Jewellery Maisons
The jewellery Maisons - Cartier and Van Cleef & Arpels - both reported
double-digit growth in underlying sales during the quarter. At actual
exchange rates, however, growth was limited to 8 per cent for the quarter.
Both Maisons reported excellent growth in the Asia-Pacific region and in
the United States.
Specialist watchmakers
All of the Group`s specialist watchmakers reported underlying double-digit
sales growth. Panerai, A. Lange & Sohne, IWC and Jaeger-LeCoultre reported
the strongest growth during the three-month period.
Writing instrument Maisons
Montblanc reported excellent sales, supported by the Maison`s centenary
products. The ladies` jewellery lines launched last year contributed to the
growth in sales, as did the expansion of Montblanc`s retail network.
Leather and accessories Maisons
Alfred Dunhill reported double-digit sales growth in key Asian markets,
aided by the integration of retail activities in China. Sales growth in
Japan, however, was modest. Overall sales at actual rates were in line with
the prior year. At Lancel, sales grew by 3 per cent in the quarter.
Other businesses
Sales at Chloe increased by 60 per cent during the period. The slower rate
of growth compared to the first six months reflected the outstanding rate
of growth during the comparative three-month period.
Nine months sales
Cumulative sales for the nine-month period to 31 December 2006 increased by
13 per cent at actual exchange rates to Euro 3 855 million. At constant
exchange rates, sales increased by 17 per cent. Details of the nine-month
sales trends by segment and geographic region are given as an appendix to
this announcement.
Percentage change in sales by geographic region for the three-month period
At constant At actual
exchange rates exchange rates
Europe +14% +13%
Asia-pacific +19% +13%
Americas +18% +11%
Japan +6% -2%
Total sales +15% +10%
Europe
The third quarter of the year saw a slower rate of sales growth compared to
the 18 per cent reported during the first six months. This was in part due
to lower growth in wholesale sales. The Maisons maintained double-digit
growth overall and sales in newer markets such as Russia continued to grow
strongly.
Asia-Pacific
The outstanding performance in the region seen during the first half of the
year was maintained during the third quarter. The development of the market
in mainland China, the second largest market in the region, contributed
significantly to this growth.
Americas
At constant rates, sales in the Americas also continued to grow at a high
rate during the quarter, in line with the first six months. At actual
exchange rates, sales grew at 11 per cent, reflecting the further weakening
of the dollar against the euro during the period. Consumer confidence and
demand for the Group`s products remained at high levels with Cartier and
Van Cleef & Arpels both delivering excellent performances.
Japan
The 6 per cent growth in local currency sales in Japan was more than offset
by the further, marked weakening of the yen during December. Although the
excellent performance seen in the same period last year set a very tough
basis for comparison for the jewellery Maisons, the Group`s underlying
sales continued to grow, with excellent performances by the specialist
watchmakers and Montblanc.
Sales by distribution channel
During the period, the Group`s retail sales increased by 14 per cent at
actual exchange rates. Wholesale sales increased by 7 per cent.
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 Maisons - 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 18.9 per cent
interest in British American Tobacco.
Press inquiries:
Mr Alan Grieve, Director of Corporate Affairs
Tel: + 41 22 721 3507
Analysts` inquiries:
Ms Sophie Cagnard-Fabrici, Head of Investor Relations
Tel: + 33 1 5818 2597
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
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Appendix 1 - Movement in sales for the nine-month period ended 31 December
2006
Percentage change in sales by business segment
At constant At actual
exchange rates exchange rates
Jewellery Maisons +14% +11%
Specialist watchmakers +16% +14%
Writing instrument Maisons +21% +19%
Leather and accessories +9% +6%
Maisons
Other businesses +44% +40%
Total sales +17% +13%
Percentage change in sales by geographic region
At constant At actual
exchange rates exchange rates
Europe +17% +16%
Asia-pacific +19% +16%
Americas +19% +14%
Japan +11% +3%
Total sales +17% +13%
Appendix 2 - Exchange rates
Exchange 6 months 6 months 9 months 9 months to
rates against to 30 to 30 to 31 Dec 31 Dec 2005
the euro Sept 2006 Sept 2005 2006
Average
United States 1.27 1.24 1.27 1.22
dollar
Japanese yen 145.93 135.48 147.85 136.75
Swiss franc 1.57 1.55 1.58 1.55
Pound 0.68 0.68 0.68 0.68
sterling
The reported sales growth for the three months ended 31 December is derived
from the difference between the cumulative sales for the nine-month period
to 31 December and those reported for the six-month period to 30 September
in each year. Sales have been translated into euros at the average exchange
rates for each period as set out above.
In terms of sales at constant exchange rates, average exchange rates for
the year ended 31 March 2006 are used to convert local currency sales into
euros for both the current and for the comparative periods. Exchange rate
translation effects are thereby eliminated from the reported sales
performance.
23 JANUARY 2007
Date: 23/01/2007 08:00:04 Produced by the JSE SENS Department.
