Richemont, the Swiss luxury goods group, today announced its audited consolidated results for the year ended 31 March 2015 …

If you are interested in these financial results and if you want to read the Chairman’s commentary please click on “read more”…


The entire results and comments are published  >>> HERE <<<


If you don’t want to read through all the results and comments these are the text passages you should not miss…


Financial highlights of continuing operations

  • Sales grew by 4 % to € 10 410 million; and by 1 % at constant exchange rates
  • Solid growth in Europe, the Middle East and the Americas offset by weaker trading in the Asia Pacific region
  • Operating profit growth of 10 % including an investment property disposal gain
  • Profit for the year down by 35 % to € 1 334 million, primarily due to mark-to-market losses on cash
  • Solid cash flow from operations of € 2 387 million
  • Net cash position of € 5 419 million not impacted by mark-to-market losses
  • Proposed dividend of CHF 1.60 per share, an increase of 14 %

Key financial data (audited)

for year ended 31 March





€ 10 410 m

€ 10 023 m

+ 4 %

Gross profit

€ 6 876 m

€ 6 491 m

+ 6 %

Gross margin

66.1 %

64.8 %

+ 130 bps

Operating profit

€ 2 670 m

€ 2 427 m

+ 10 %

Operating margin

25.6 %

24.2 %

+ 140 bps

Loss for the year from discontinued operations

€ (2) m

€ (12) m

+ 83 %

Profit for the year

€ 1 334 m

€ 2 067 m

– 35 %

Earnings per share, diluted basis

€ 2.356

€ 3.676

– 36 %

Cash flow generated from operations

€ 2 387 m

€ 2 875 m

€ (488) m

Net cash position

€ 5 419 m

€ 4 659 m

€ 760 m




Let me first quote Johann Rupert, the Chairman…


… “The Jewellery Maisons and Specialist Watchmakers delivered sales growth and broadly maintained their operating margins through successful product launches and, in certain markets, price increases. Lower precious metal prices and cost containment measures helped mitigate the single-digit sales growth and the impact of foreign exchange rate movements. Montblanc and the Group’s other businesses, including the fashion Maisons, reported 2 % sales growth.” …

… “In the longer term, we face the question of whether the euro will settle at the current level against the Swiss franc, recover somewhat or potentially weaken further. Given the extent of the Group’s activities here in Switzerland, with more than 8 700 employees in our manufacturing, distribution and head office functions, the strengthening of the Swiss franc inevitably means that our costs, measured in euros, will increase. In line with our competitors in the Swiss luxury watchmaking industry, removing these functions from Switzerland is not an alternative open to Richemont. Therefore, we have already implemented certain efficiency measures across the Group and are evaluating other courses of action. Where appropriate, retail prices for our Swiss-made products have already been or will in due course be adjusted to reflect the new exchange rate environment.” …

… “Compared to the same month last year, sales in April increased by 9 % at actual exchange rates: at constant exchange rates, sales decreased by 8 %. At actual rates, all regions reported sales growth except for Asia Pacific, which continues to be affected by a difficult trading environment in Hong Kong and Macau. The retail channel grew and significantly outperformed wholesale, where anticipation of worldwide pricing adjustments in May slowed purchases by our wholesale partners. The first two weeks of May indicated some normalisation of the wholesale market.

We believe that long-term demand for high-quality products will continue to grow around the world. Richemont is committed to supporting its Maisons to conceive, develop, manufacture and market products of beauty, individuality and the highest quality. These values are enduring and will see Richemont well positioned to benefit from an expanding market in the years to come. Meanwhile, the Group’s cash flows will continue to be preserved through cost control measures combined with prudent investment in the Maisons’ working capital and capital expenditures.

The combination of these factors allows us to look to the future positively.” …



Now follow other quotes from the today published report …


Sales by region

Movement at:





in € millions

31 March 2015

31 March 2014




3 067

2 886

+ 7 %

+ 6 %

Middle East and Africa



+ 13 %

+ 19 %

Asia Pacific

4 100

4 139

– 6 %

– 1 %


1 588

1 405

+ 8 %

+ 13 %




– 6 %

– 8 %

10 410

10 023

+ 1 %

+ 4 %

* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current year and the comparative year at the average exchange rates applicable for the financial year ended 31 March 2014.



… “The Jewellery Maisons – Cartier, Van Cleef & Arpels and Giampiero Bodino – reported a 4 % growth in sales in a challenging environment.

The Maisons’ boutique networks benefited from further openings, mitigated by a number of flagship closures for renovation, whereas wholesale sales were lower than the comparative period. Jewellery sales were resilient, but overall demand for watch collections suffered due to a weak Asia Pacific environment. Demand in western markets remained robust.” …

… “The Specialist Watchmakers’ sales increased by 5 % overall.

Operating contribution was 6 % lower than the prior year, primarily reflecting cautious sentiment in Hong Kong and mainland China as well as the impact of a strong Swiss franc on the cost of goods sold. The contribution margin for the year was 23 %. All Maisons showed robust growth, except for Piaget which has a large presence in the Asia Pacific region.” …

… “For the year, Montblanc reported sales of € 775 million, including higher sales of writing instruments, and an operating contribution of € 49 million. Losses at the Group’s watch component manufacturing facilities were reduced compared to the prior year.” …



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  • Richemont sales having collapsed here in HK and Asia it would be interesting to see where they grow to balance the figure.

    • I don’t think you can compensate that loss… You will have to come back to the traditional markets and make efforts to bring back those customers you have affronted before. I remember CEOs saying “we don’t need these customers anymore, there is so much growth in Asia” … I now wish them good luck!

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