Richemont demonstrates sustained resilience

 

Richemont operating profit down by 17% in 1H FY25  

Recently, Richemont reported for the 1H (six-month period ended 30 September 2024) and the report say, Richemont demonstrates sustained resilience FY25. According to the Interim Results & Group highlights said,

Sales at € 10.1 billion and operating profit from continuing operations at € 2.2 billion in a challenging macroeconomic and geopolitical context, supported by ongoing investment into distribution and manufacturing assets.  

In a Strategic developments Richemont highlight, 1: Completion of the acquisition of distinctive Italian jewellery Maison Vhernier, 2: Signature of an agreement by which Mytheresa will acquire YNAP in exchange for a 33% equity stake in Mytheresa, subject to customary closing conditions, 3: Strengthened governance with the appointment of new Group CEO; new leadership in place at Cartier and Van Cleef & Arpels.

At the Financial highlights Richemont reported, 1: Resilient H1 top-line performance, delivering stable sales at constant exchange rates, supported by the Group’s balanced geographical mix and mid-single digit growth at Jewellery Maisons; down 1% at actual exchange rates.  

2: Solid growth in sales across all regions, except for Asia Pacific; double-digit growth in the Americas, reinforcing the US’ position as the largest individual market for the Group, 3: Continued growth in direct-to-client sales, now accounting for 76% of Group sales.  

4: Operating profit from continuing operations down by 17%, or by 12% at constant exchange rates, resulting in a 21.9% operating margin; A: Continued growth at Jewellery Maisons, with sales up 2% at actual exchange rates (+4% at constant exchange rates), delivering a 32.9% operating margin, B: A decline in sales at Specialist Watchmakers, by 17% at actual exchange rates (-16% at constant exchange rates) with a 9.7% operating margin. C:Sales up 4% in the ‘Other’ business area, at both actual and constant exchange rates; € 52 million operating loss, with F&A Maisons posting a -2% operating margin.  

5: € 1.7 billion profit for the period from continuing operations; € 1.3 billion loss from discontinued operations mainly due to the non-cash write-down of YNAP & 6: Solid net cash position of € 6.1 billion, with € 1.2 billion cash flow generated from operating activities.

Richemont operates in three business areas: Jewellery Maisons with Buccellati, Cartier, Van Cleef & Arpels and Vhernier.