Richemont Net Operating Profits -23%

(IDEX Online News) – Swiss luxury goods group Richemont, whose jewelry brands include Cartier, Piaget and Van Cleef & Arpels has reported its results for the fiscal year ended March 31, which showed that operating profits decreased 23 percent.

Richemont announced that the decrease was due to a non-recurring property disposal gain of €234 million in the prior year and current year restructuring and write-down charges of €97 million.

The company recorded mixed results, which showed that sales increased 6 percent to €11.076 billion ($12.41 billion) compared to €10.410 billion ($11.67 billion) over the same period ended March 2015.

Net profit for the year increased by 67 percent to €2.227 billion ($2.5 billion), primarily due to a non-cash post tax gain of €639 million relating to the merger of NET-A-PORTER and YOOX Groups.

Europe accounted for 31 percent of overall sales, but results were sharply divided between the first and second half of the year. First half-year sales growth in 2015 was 26 percent, whereas second half-year sales growth was 5 percent – due to both the exchange rate environment and a change in tourism flows.

The Middle East and Africa showed continued strong growth through the year, while sales in the Asia Pacific region accounted for 36 percent of the group total. Hong Kong and Macau saw significantly lower sales throughout the year, most notably affecting the watch category and the wholesale channel. The 13-percent decrease in the region on a constant exchange rate was partly offset by growth in mainland China.

“In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected,” said Richemont chairman Johann Rupert.