Richemont Loses $177m from Russia Boycott, but Doubles Profits
May 23, 22
(IDEX Online) - Richemont has lost $177m from its withdrawal from Russia.
But the Swiss-based company, that counts Cartier, Van Cleef & Arpels, Jaeger-leCoultre and Piaget among its 26 maisons, still saw operating profits more than double for the year to 31 March 2022.
It said suspending its commercial activities in Russia accounted for less than two per cent of total sales.
Richemont's jewelry maisons saw 49% sales growth at actual exchange rates and a 34.3 per cent operating margin.
Sales by its specialist watchmakers grew by 53 per cent and achieved a 17.3 per cent operating margin.
Global group sales were $20.3bn, and operating profits were $3.6bn.
Chairman Johann Rupert said: "Increased inflationary pressures and repeated temporary store closures due to health protection measures, were offset by relatively improved economies up until February 2022. The group's strong sales, profit and cash flows confirm the strong appeal of our maisons and relevance of our long-term strategy.
He continued: "We remain in close contact with our colleagues in Ukraine and Russia, where we have suspended our operations. Their safety and wellbeing are our highest priority.
"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."
Pic shows Cartier store in China