Richemont is reporting a solid set of results for the first half of this year. The Group’s Maisons benefitted from favourable exchange rates effects, successful product launches as well as strong pricing power.
The increase in net profit was well above the prior period, reflecting both the growth in operating results and the non-recurrence of non-cash losses, which stemmed from the Swiss franc’s appreciation against the euro based on the closing Swiss franc rate.
Richemont’s financial position continues to be strong: the Group’s net cash position is € 3 billion.
Sales growth rates moderated, as evidenced by the October sales which grew by 12 % at actual exchange rates. At constant exchange rates, they were 7 % higher. Richemont is seeing good growth in Europe, supported by Asian tourism which is compensating for slower domestic Asia Pacific sales. Retail continued to lead wholesale, reflecting robust jewellery sales.
For the second half of the year, the comparatives are likely to be impacted by less favourable exchange rates.
With a view to strengthening the manufacturing base and exploiting growth opportunities as they arise, the Group’s Maisons will execute their investment programmes as planned.