Richemont more than doubles operating profit

Worldwide
Published:  24 May, 2022
Credit: Chloe

Richemont has released its results for the financial year ended March 31, 2022, achieving more than double operating profit over the previous year.

Operating profit for the group came in at €3.39 billion, while profit for the year rose by 61% to €2.08 billion, despite a €168 million negative impact due to business suspension in Russia.

Sales for the year were up by 46% at actual exchange rates and by 44% at constant exchange rates, the brand reported. Sales reached an all-time high for the year of €19.2 billion and represented a 35% increase on a two-year comparative period.

All houses, channels and regions achieved double-digit growth, and were led by the retail channel and the Americas (up 79%). Sales in the Asia Pacific region grew by 32%, with mainland China increasing by 20%.

The group saw a 51% increase in Europe despite subdued tourism, while the Middle East and Africa grew by a similar amount, overtaking Japan (up 28%) as Richemont’s fourth-largest market.

Chairman Johann Rupert said: “Even if the worst of Covid is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years. We can, however, take comfort from the strength and enduring appeal of our Maisons as well as their relatively balanced geographic spread.

“Richemont’s €5.3 billion net cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the Group is well-positioned to benefit from any strength in consumer demand. We will work to maintain the necessary agility and flexibility to manage global uncertainties.”