News 
During the financial year 2015-2016, which closed on 31 March, Richemont recorded a turnover of 11.76 billion Euros, an increase of 6% (-1% at constant exchange rates). Over the first six months, the group recorded double-digit growth in sales, followed by a drop in the second part of the year.
Geopolitical risks and their effects on consumer behaviour confirmed the group’s concerns: Europe’s contribution became negative from November, while the operational environment in Hong Kong and Macau remained difficult. Only continental China demonstrated sustained growth.
Taking this operational context and the difficult circumstances into consideration, the group’s brands acted accordingly to adapt to fluctuations in demand. Jewellery sales therefore progressed and their profitability held up well, sustained by the success of jewellery collections and good currency management. The decrease in the utilisation rate of watchmaking manufactures and the impact of the rising value of the Swiss Franc on production costs weighed heavily on the margins of watch brands and that of Cartier watches. Montblanc, Chloé and Peter Millar recorded a satisfactory increase in sales. Brands in the “Other” segment were faced with difficult market conditions throughout the year.
In this context, brands adjusted their fixed cost base. Over the course of the financial year, 97 million Euros were docked from operating profit for redevelopment and depreciation. Adjusted for these costs and capital gains made on the sale of a real estate property the previous year, this was down 11%.
Based on this year’s results and in line with its strategy of assuring a regular progression of dividends in the long term, the group’s board of directors proposed to fix the dividend at 1.70 Franc per share, compared to 1.60 Franc last year.
Sales in April saw a 15% decrease at constant exchange rates and an 18% decrease at actual exchange rates compared to the same period of the previous financial year. All regions are experiencing a downturn. At constant exchange rates, only the Africa and Middle East zone is registering growth. This development was largely anticipated. In the absence of any recovery in Hong Kong and Macau, the weakness of the Asia Pacific zone is partially counterbalanced by the continuous improvement in continental China (+26% at constant exchange rates). Retail sales remain higher than those achieved by third party distribution networks. This comparative basis will remain unfavourable until September.
June 09, 2016