RICHEMONT ANNOUNCES STRONG PERFORMANCE -4-
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Online distributors
in EURm Six months to Six months to Change 30 September 2021 30 September 2020 Sales 1 278 934 +37% Operating result (141) (138) -2% Operating margin (11.0)% (14.8)% +380 bps
The sales of products specific to the Richemont Houses generated by YNAP are reported in the reports of the Maisons and YNAP sectors of activity. In Group sales, these are then eliminated as âintersegment salesâ.
The 37% increase in sales and 28% increase in gross merchandise value (GMV) at online distributors compared to the previous year period is due to double-digit growth in all regions. Compared to the six-month period ended September 30, 2019, sales increased by 8% and GMV by 9%. The Americas, the second largest contributor to sales, posted the highest growth rate. NET-A-PORTER continued its development in China with its flagship store on the luxury pavilion of Alibaba Tmall now offering more than 400 luxury brands, allowing the development of selected assortments. The Italian NET-A-PORTER and MR PORTER distribution center in Landriano became fully operational in September and now serves as a hub serving millions of customers around the world. Watchfinder focused on expanding its range of services and expanding its international presence by entering the Italian market, including starting to offer pre-owned watches to NET-A-PORTER and MR PORTER customers in the United States. United while the watch take-back program continued. is now available in 89 boutiques, including some Cartier stores.
Investments remained focused on information technology related to the global migration of YNAP’s technology and logistics platform, successfully completed in September, and the shift to a hybrid business model. currently in progress. Online distributors recorded an operating loss of 141 million euros, despite an increase in sales and an improvement in the gross margin, due to the increase in investments in communication and the temporary absorption of the rights of Customs and value added tax linked to Brexit for an amount of around 40 million euros. At 49 million euros, the EBITDA loss remained unchanged compared to the same period of the previous year.
Other
in EURm Six months to Six months to Change 30 September 2021 30 September 2020 Sales 935 545 +72% Operating result 29 (108) n/r Operating margin 3.1% (19.8)% n/r
‘Others’ includes the Fashion & Accessories Houses and, among others, the Group’s watch components and real estate manufacturing activities.
Sales increased by 72% over the period, or 66% excluding the impact of Delvaux, the oldest luxury leather goods house in the world acquired at the end of June 2021. While sales were slightly below the level before Covid Half-year, Double-digit sales growth was achieved in the second quarter, exceeding pre-Covid levels. In an environment marked by a sharp drop in attendance at airports, Montblanc’s sales increased significantly compared to the same period of the previous year. Its new Mark Makers campaign is starting to have a positive impact on sales. Note the continued exceptional performance of Peter Millar, compared to 2020 and 2019. The launches of the first collections of the new creative directors Gabriela Hearst at Chloé and Pieter Mulier at Alaïa were also highly acclaimed and are showing a promising start.
In-store investments were limited and included a new store for Montblanc in Wuhan, China, refurbished stores for dunhill in Tokyo Ginza and Alaïa in Paris as well as an offshore store in Florida Palm Beach for Peter Millar. Higher sales, improved gross margin, tight cost control and a positive contribution from a real estate transaction resulted in an operating profit of 29 million euros.
Value adjustments on acquisitions
in EURm Six months to Six months to Change 30 September 2021 30 September 2020 Valuation adjustments on acquisitions (89) (99) -10%
Amortization of certain intangible assets and inventory adjustments made upon acquisition are not included in the operating income of the respective segments. They mainly concern online distributors, Buccellati and Delvaux.
Business expenses
in EURm Six months to Six months to 30 September 2021 30 September 2020 Change Corporate costs (153) (116) +32% Central support services (129) (116) +11% Other unallocated expenses, net (24) - n/r
General expenses represent the costs of central management, marketing support and other central functions (collectively the central functions), as well as other expenses and revenues which are not allocated to specific segments. These increased by 32% compared to the same period of the previous year and represent nearly 2% of the Group’s sales.
The consolidated financial statements of comprehensive income, cash flows and the financial position of the Group as well as an overview of quarterly commercial results are presented in the appendix. Richemont’s unaudited half-year consolidated financial statements are available on the Group’s website at www.richemont.com/en/home/investors/resultats-reports-presentations/.
Burkhart Grund Jérôme Lambert Chief Executive Officer Chief Finance Officer
Compagnie Financière Richemont SA
Geneva, November 12, 2021
Annex
2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019 Q1 (April-June) EURm EURm EURm constant rates actual rates constant rates actual rates By region Europe 905 436 1 072 +108% +108% -15% -16% Asia Pacific 1 933 1 013 1 423 +95% +91% +40% +36% Americas 955 277 698 +276% +245% +47% +37% Japan 240 112 298 +138% +114% -14% -19% Middle East and Africa 364 155 249 +154% +135% +55% +46% By distribution channel Retail 2 421 1 052 1 851 +138% +130% +35% +31% Online retail 809 506 648 +67% +60% +29% +25% Wholesale & royalty income 1 167 435 1 241 +178% +168% -3% -6% By business area Jewellery Maisons 2 515 1 083 1 827 +142% +132% +43% +38% Specialist Watchmakers 849 359 823 +143% +136% +6% +3% Online Distributors 637 356 612 +86% +79% +8% +4% Other 440 204 493 +124% +116% -7% -11% Inter-segment eliminations (44) (9) (15) +425% +389% +204% +193% Total 4 397 1 993 3 740 +129% +121% +22% +18% 2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019 Q2 (July-September) EURm EURm EURm constant rates actual rates constant rates actual rates By region Europe 1 104 798 1 149 +38% +38% -4% -4% Asia Pacific 1 856 1 543 1 306 +17% +20% +43% +42% Americas 971 623 649 +58% +56% +59% +50% Japan 286 253 349 +20% +13% -11% -18% Middle East and Africa 293 268 204 +10% +9% +49% +44% By distribution channel Retail 2 555 1 878 1 957 +35% +36% +33% +31% Online retail 824 702 612 +17% +17% +37% +35% Wholesale & royalty income 1 131 905 1 088 +25% +25% +7% +4% By business area Jewellery Maisons 2 582 1 978 1 909 +30% +31% +39% +35% Specialist Watchmakers 830 607 744 +35% +37% +13% +12% Online Distributors 641 578 567 +11% +11% +15% +13% Other 495 341 448 +45% +45% +14% +10% Inter-segment eliminations (38) (19) (11) +97% +100% +237% +245% Total 4 510 3 485 3 657 +29% +29% +26% +23% 2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019 H1 (April-September) EURm EURm EURm constant rates actual rates constant rates actual rates By region Europe 2 009 1 234 2 221 +62% +63% -9% -10% Asia Pacific 3 789 2 556 2 729 +47% +48% +41% +39% Americas 1 926 900 1 347 +123% +114% +53% +43% Japan 526 365 647 +56% +44% -12% -19% Middle East and Africa 657 423 453 +62% +55% +53% +45% By distribution channel Retail 4 976 2 930 3 808 +71% +70% +34% +31% Online retail 1 633 1 208 1 260 +38% +35% +33% +30% Wholesale & royalty income 2 298 1 340 2 329 +74% +71% +2% -1% By business area
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November 12, 2021 01:01 ET (06:01 GMT)
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