Strong performance in Asia-Pacific helps Richemont return to growth
Chairman Johann Rupert says that most markets were in positive territory, led by mainland China, Korea, the UK and Hong Kong
A 23% surge in luxury watch and jewellery sales in Richemont’s largest market, Asia-Pacific, helped the group return to growth in the first half of its financial year.Measured in rand, Richemont’s interim sales remained flat at R84bn but its net profit jumped 66% to R14.6bn due to a low base set in the comparative period when it invested heavily in buying back slow-moving stock.In euros, the luxury brands group’s sales grew 10% to €5.6bn and its profit rose 80% to €974m, the company said in its results statement for the six months to end-September that were released on Friday.Excluding a one-off charge of €249m in the matching period, profit grew 11%. Richemont got its business units, which it refers to as "maisons", to buy back €249m worth of slow-moving stock in the first half of its 2016 financial year."Most markets were in positive territory, led by mainland China, Korea, the UK and notably a return to growth in Hong Kong," Richemont chairman Johann Rupert said in the results st...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.