Richemont, better-than-expected results boost share price on the stock exchange
The Swiss group's shares are up over 6% at the start of the day following a better-than-expected 2023/2024 financial year
3' min read
3' min read
A rosier-than-expected quarter at the close of the 2023/2024 financial year for Richemont, and shares in Zurich surged more than 6% at the opening of the session. The Swiss luxury group ended the twelve months with a 3% increase in revenue at current exchange rates (+8% at constant exchange rates) to EUR 20.6 billion, driven by the jewellery maison, while operating profit stood at EUR 4.8 billion, up 13% at constant exchange rates. Meanwhile, the group has gained over 30% on the stock exchange since the beginning of the year.
In the fourth quarter alone, however, Richemont reported +3% organic growth in Jewellery Maisons (JM) and -1% in Watches. These figures are respectively 1% and 3% better than the Sellside consensus expected. Moreover, for JM the result is 1% better than for Lvmh's F&LG division. The profit for the year (excluding an additional €1.5 billion write-down of YNAP) is significantly above the consensus.
Nicolas Bos new ceo
Richemont also appointed Nicolas Bos, who is currently head of Van Cleef & Arpels, as its new chief executive officer when the figures were approved. Bos will take up the post on 1 June and join the senior executive committee, while current CEO Jérôme Lambert will remain chief operating officer and will report to Bos and remain on the board.
"Building on Richemont's expansion combined with its move to a more retail-oriented model focused on jewellery, Nicolas will lead the group through the next phase of its evolution," said chairman Johann Rupert in a note.
Geographical split
.At actual exchange rates, sales grew in all regions and in almost all channels, excluding the online retail channel. Growth was led by Asia Pacific in absolute terms and Japan in percentage terms. The Americas were slightly ahead of Europe in absolute terms, with the US becoming the group's largest single market. With +5%, the group's direct shops generated the strongest channel performance (+11% at constant exchange rates). With increases in all business areas and regions, retail sales contributed 69% to group sales.
