COMPAGNIE FINANCIERE RICHEMONT SA - Richemont delivers strong performance for the year ended 31 March 2022

Richemont delivers strong performance for the year ended 31 March 2022

Compagnie Financière Richemont SA
Depository Receipts issued by Richemont Securities SA
(“Richemont Securities” or “Richemont” or “the Company” or “the Group”)
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0045159024
Depository Receipt Code: CFR

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53LR
20 May 2022

RICHEMONT DELIVERS STRONG PERFORMANCE
FOR THE YEAR ENDED 31 MARCH 2022

Group highlights

• Significant step change in Group sales and operating profit, reaching 
€ 19 181 million and € 3 390 million, respectively 
• Increased proposed dividend of CHF 2.25 per 1 ‘A’ share / 10 ‘B’ shares and 
additional special dividend of CHF 1.00 per ‘A’ share/10 ‘B’ shares
• Strengthened sustainability focus with Science-Based Targets commitment and
appointment of Chief Sustainability Officer

Financial highlights

Compared to the year ended 31 March 2021

• Sales up by 46% at actual exchange rates and by 44% at constant exchange rates,
with double-digit increases across all business areas, regions and channels; 
growth momentum led by retail and the Americas
• Operating profit more than doubled to € 3 390 million, delivering improved
operating margin of 17.7% driven by:
     -  Jewellery Maisons with 49% sales growth at actual exchange rates 
(+47% at constant rates) and 34.3% operating margin;
     -  Specialist Watchmakers growing by 53% at actual exchange rates
(+50% at constant exchange rates) and achieving 17.3% operating margin;
     -  Online Distributors growth of 27% at actual exchange rates (+26%
at constant exchange rates), YNAP stand-alone EBITDA at breakeven before
exceptional reward payment; ongoing discussions with Luxury New Retail (‘LNR’)
partners;
     -  Other business area with strong growth (+53% at actual exchange rates,
+51% at constant exchange rates) and significantly reduced operating loss;
     -  Suspension of commercial activities in Russia resulting in € 168 million
negative operating result impact.
• Profit for the year rose by 61% to € 2 079 million
• 55% increase in net cash position to € 5 251 million, supported by strong cash
flow from operating activities and strict working capital management

Compared to the year ended 31 March 2020

• Sales up by 35% at actual exchange rates and 37% at constant exchange rates
• Broad-based growth in terms of business areas led by retail and online retail
channels
• Significant 700 basis point improvement of operating contribution

Key financial data (audited)
+--------------------+-----------+-----------+-----------+-----------+-----------+
|                    |           |           |           |     % change 2022     |   
|                    |       2022|       2021|       2020|     vs2021|     vs2020|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Sales               |EUR 19 181m|EUR 13 144m|EUR 14 238m|       +46%|       +35%| 
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Gross profit        |EUR 12 027m| EUR 7 861m| EUR 8 611m|       +53%|       +40%|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Gross margin        |      62.7%|      59.8%|      60.5%|    +290bps|    +220bps|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Operating profit    | EUR 3 390m| EUR 1 478m| EUR 1 518m|      +129%|      +123%|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Operating margin    |      17.7%|      11.2%|      10.7%|    +650bps|    +700bps|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Profit for the year | EUR 2 079m| EUR 1 289m|   EUR 931m|       +61%|      +123%|
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Dividend per ‘A’    |   CHF 2.25|   CHF 2.00|   CHF 1.00|       +13%|      +125%| 
|share/10 ‘B’ shares |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Special dividend per|           |           |           |           |           |
|‘A’ share/10 ‘B’    |   CHF 1.00|         - |          -|          -|          -|
| shares             |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Earnings per ‘A’    |           |           |           |           |           |
|share/10 ‘B’ shares,|  EUR 3.611|  EUR 2.296|  EUR 1.646|       +57%|      +119%|
|diluted basis       |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Earnings per ‘A’    |           |           |           |           |           | 
|share/10 ‘B’ shares,|  EUR 3.660|  EUR 2.302|  EUR 1.651|       +59%|      +122%|
|basic               |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Headline earnings   |           |           |           |           |           |
|per ‘A’ share/10    |  EUR 3.762|  EUR 2.328|  EUR 1.742|       +62%|      +116%|
|‘B’shares, basic    |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Cash flow generated |           |           |           |           |           |
|from operating      | EUR 4 638m| EUR 3 218m| EUR 2 370m|+EUR 1 420m|+EUR 2 268m|
|activities          |           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+-----------+
|Net cash position   | EUR 5 251m| EUR 3 393m| EUR 2 395m|+EUR 1 858m|+EUR 2 856m|
+--------------------+-----------+-----------+-----------+-----------+-----------+


Please contact Computershare at Web.Queries@Computershare.co.za if you wish to
receive any documents electronically for Richemont.

This short form announcement is the responsibility of the directors of Compagnie
Financière Richemont SA and is a summary of the information in the full
announcement available on the Stock Exchange News Service (“SENS”)
at: https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CFR/FY22.pdf and on the
Group’s website:
https://www.richemont.com/en/home/media/press-releases-and-news/

This announcement does not contain full details and should not be used as a
basis for any investment decision in relation to the Company’s shares. The full
announcement is also available for inspection, at no charge, at the Company’s
registered office (50 Chemin de la Chênaie, 1293 Bellevue, Geneva, Switzerland)
and the office of the Sponsor during standard office hours.

‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on
SIX Swiss Exchange, the Company’s primary listing (Reuters
‘CFR.VX’/Bloomberg‘CFR:VX’/ISIN CH0210483332).
South African depository receipts in respect of Richemont ‘A’ shares are traded
on the Johannesburg Stock Exchange, the Company’s secondary listing, (Reuters
‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).


Sponsor:
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Telephone: (011) 282 8231

Date: 20-05-2022 07:30:00
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