Richemont, the Swiss luxury goods group, announces its audited results for the year ended 31 March 2008.
Richemont, the Swiss luxury goods group, announces its audited results for the year ended 31 March 2008.Financial highlights• Sales increased by 10 per cent to € 5 302 million. Good growth seen during the earlier part of theyear continued in the fourth quarter.
• Operating profit from the luxury goods businesses increased by 21 per cent to € 1 108 million.
• Net profit, including the Group's share of the results of British American Tobacco, increased by 18per cent to € 1 570 million. Excluding the impact of non-recurring items in both years, net profitattributable to unitholders increased by 17 per cent to € 1 582 million.
• Cash generated by the Group's luxury goods operations was € 968 million.
• The ordinary dividend for the year, at € 0.78 per unit, represents an increase of 20 per cent over thatpaid in 2007.Sales
The 10 per cent sales increase reflected goodunderlying growth across all business areas. Atconstant exchange rates, sales increased by 16 percent. The Jewellery Maisons, Specialist Watchmakersand Montblanc all saw strong growth throughout theyear.Operating profit
Higher sales and increased margins generated a 21 percent increase in operating profit to € 1 108 million. Theoperating margin for the year was 21 per cent, 2percentage points higher than the comparative year. British American Tobacco (‘BAT')
Richemont's share of the results of BAT increased 13per cent to € 609 million, reflecting the higherprofitability of BAT and the Group's higher interest inthat company as a result of its buy-back programme.Cash dividends received from BAT during the yearamounted to € 325 million.Net profit
Net profit, including the Group's share of the results ofBritish American Tobacco, increased by 18 per cent to€ 1 570 million. Earnings per unit on a diluted basiswere by 18 per cent higher at € 2.760 per unit. Cash position
The Group's net cash position at 31 March 2008 was€ 1 246 million, Group net cash having increased by€ 105 million during the year. This reflected strong netcash generation by the Group's luxury business of€ 543 million, after tax and capital expenditure, as wellas the dividends received from BAT, net of dividendspaid to unitholders. During the year, Richemont paidordinary and special dividends amounting to € 701million. Dividend
The dividend for the year will be € 0.78 per unit, anincrease of 20 per cent over the prior year's ordinarydividend.Group results
Operating profit in the prior year included a one off,non-operational gain of € 16 million. During the yearunder review, there were no such items. The Group's share of the results of its principalassociate, British American Tobacco, also includesnon-recurring items reported by that entity. Including the Group's share of results from associates,the overall impact of these non-recurring items, after taxation and minority interests, on net profit was a lossof € 11 million (2006: loss of € 22 million). Excludingnon-recurring items, net profit attributable tounitholders increased by 17 per cent to € 1 582 millionfrom € 1 350 million in the prior year.Richemont holds a portfolio of several of the most prestigious names in the luxury goods industry including Cartier, Van Cleef &Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Alfred Dunhill and Montblanc. In addition to its luxury goods interests,Richemont also holds a significant investment in British American Tobacco – one of the world's leading tobacco groups.Press release
• Operating profit from the luxury goods businesses increased by 21 per cent to € 1 108 million.
• Net profit, including the Group's share of the results of British American Tobacco, increased by 18per cent to € 1 570 million. Excluding the impact of non-recurring items in both years, net profitattributable to unitholders increased by 17 per cent to € 1 582 million.
• Cash generated by the Group's luxury goods operations was € 968 million.
• The ordinary dividend for the year, at € 0.78 per unit, represents an increase of 20 per cent over thatpaid in 2007.Sales
The 10 per cent sales increase reflected goodunderlying growth across all business areas. Atconstant exchange rates, sales increased by 16 percent. The Jewellery Maisons, Specialist Watchmakersand Montblanc all saw strong growth throughout theyear.Operating profit
Higher sales and increased margins generated a 21 percent increase in operating profit to € 1 108 million. Theoperating margin for the year was 21 per cent, 2percentage points higher than the comparative year. British American Tobacco (‘BAT')
Richemont's share of the results of BAT increased 13per cent to € 609 million, reflecting the higherprofitability of BAT and the Group's higher interest inthat company as a result of its buy-back programme.Cash dividends received from BAT during the yearamounted to € 325 million.Net profit
Net profit, including the Group's share of the results ofBritish American Tobacco, increased by 18 per cent to€ 1 570 million. Earnings per unit on a diluted basiswere by 18 per cent higher at € 2.760 per unit. Cash position
The Group's net cash position at 31 March 2008 was€ 1 246 million, Group net cash having increased by€ 105 million during the year. This reflected strong netcash generation by the Group's luxury business of€ 543 million, after tax and capital expenditure, as wellas the dividends received from BAT, net of dividendspaid to unitholders. During the year, Richemont paidordinary and special dividends amounting to € 701million. Dividend
The dividend for the year will be € 0.78 per unit, anincrease of 20 per cent over the prior year's ordinarydividend.Group results
| in € millions | March 2008 | March 2007 | |
| Sales | 5 302 | 4 827 | + 10 % |
| Cost of sales | (1 897) | (1 753) | |
| Gross profit | 3 405 | 3 074 | + 11 % |
| Net operating expenses | (2 297) | (2 158) | + 6 % |
| Operating profit | 1 108 | 916 | + 21 % |
| Net financial income | 47 | 31 | |
| Profit before taxation | 1 155 | 947 | |
| Taxation | ( 195) | ( 158) | |
| Net profit - parent and subsidiaries | 960 | 789 | + 22 % |
| Share of post-tax profit of associates | 610 | 540 | + 13 % |
| Net profit | 1 570 | 1 329 | + 18 % |
| Analysed as follows | |||
| Net profit attributable to unitholders | 1 571 | 1 328 | |
| Net profit attributable to minority interests | ( 1) | 1 | |
| 1 570 | 1 329 | ||
| Earnings per unit - diluted basis | € 2.760 | € 2.331 | + 18 % |
| Dividends | |||
| Ordinary dividend per unit | € 0.78 | € 0.65 | + 20 % |
| Special dividend per unit | - | € 0.60 | - |
| Total dividend per unit | € 0.78 | € 1.25 | - |
