Richemont has reported a 3% increase in group sales to €20.6bn (£17.6bn) in FY 2024, driven by jewellery Maisons and retail, representing 69% of group sales.
However, the group’s operating profit dropped by 5% to €4.8bn (£4.11bn). Profit for the year from continuing operations, which incorporated net one-time unallocated charges of €58m (£49.6m), was solid at €3.8bn (£3.25bn).
The overall profit for the year amounted to €2.3bn (£1.97bn) after a €1.5bn (£1.28bn) loss for the year from discontinued operations, primarily due to a €1.3bn (£1.11bn) write down of the net assets held for sale to fair value.
At actual exchange rates, sales at the Jewellery Maisons rose by 6%, reflecting growth across all regions, and in both retail and wholesale; growth at constant exchange rates reached 12%.
The 6% sales increase was underpinned by growth across price points and regions and included a sharp double-digit progression at Buccellati.
Moreover, the group’s Jewellery Maisons, Buccellati, Cartier and Van Cleef and Arpels, delivered a solid 33.1% operating margin, with combined sales exceeding the €14bn (£11.9bn) mark.
To accompany the three Maisons’ development, Richemont has stepped up investments in manufacturing, distribution and communication.
Additionally, the group’s Specialist Watchmakers delivered a resilient 15.2% operating margin given a strong Swiss franc, on sales 3% lower year-on-year to €3.8bn (£3.25bn).
A. Lange and Söhne and Vacheron Constantin also recorded robust performances. Overall, sales in the retail channel also performed strongly and combined with online retail sales accounted for 60% of the Specialist Watchmakers’ sales.
Richemont also announced it has appointed Nicolas Bos, currently chief executive of Van Cleef and Arpels, to the re-established role of chief executive officer of Richemont effective 1 June 2024, and Bram Schot as non-executive deputy chairman of the board effective 11 September 2024.
Johann Rupert, chairman of Richemont, said: “I am truly delighted that Nicolas has accepted to assume the re-established role of chief executive officer of Richemont. His vision and ability to uphold Van Cleef and Arpels’ tradition of excellence and creativity have been critical to the Maison’s remarkable growth. Building on Richemont’s expanded scale and stronger focus on retail and jewellery, Nicolas will steer the group through the next phase of its evolution. The re-established CEO role will help streamline decision making and optimise operational management.”
