• Switzerland's news in English

Richemont plans higher dividend after profit rise

AFP · 16 May 2013, 12:45

Published: 16 May 2013 12:45 GMT+02:00

Facebook Twitter Google+ reddit

The firm, the world's second-biggest luxury goods group, which owns the Cartier, Piaget, Jaeger-LeCoultre and Montblanc brands among others, said its net profit for the financial year ending at the end of March reached two billion euros ($2.6 billion).
The group, which had already forecast the surge last month, citing 
favourable exchange rates, also announced that its chairman Johann Rupert soon planned to take a leave of absence.
Richemont meanwhile said its operating profit had jumped by 18 percent to 
2.4 billion euros during the financial year, on sales up 14 percent at 10.1 billion euros.
The results were especially sweetened by a 13-percent rise in jewellery 
sales to 5.2 billion euros, and an 18-percent rise in watch sales to 2.7 billion euros.
"The Jewellery Maisons and the Specialist Watchmakers have reported 
remarkable growth in sales and profits, despite the continuing strength of the Swiss franc and historically high cost of precious metals and stones," chairman Rupert said in the earnings report.
On a region-by-region basis, the company said sales in the 
Americas soared 18 percent to 1.2 billion euros, increased 17 percent in Europe to 3.1 billion euros, and rose 13 percent in the Asia Pacific region to 4.1 billion euros.
Although impressive, these increases fell far short of the 43-percent jump 
Richemont achieved in overall sales last year, as the Swiss watch industry experienced its biggest boom ever thanks to a huge Chinese appetite for European luxury goods.
Rupert said 
on Thursday he was optimistic "despite the slowdown in the Asia Pacific region and continuing uncertainty in the world economy."
"The enduring appeal of our Maisons and their growth potential lead us to 
look forward to the future with a degree of optimism," he said.
In light of the strong results, the board nearly doubled dividends for the 
financial year, proposing one franc per share up from 0.55 francs last year.
Following the news, the price of shares in the company jumped 5.94 percent 
to 87.45 francs a share in late morning trading as the Swiss stock exchange's main index shed 0.54 percent.
Rupert also said 
on Thursday that he planned to take a year off after the next general assembly meeting in September, although he stressed that he planned to take back the reins the following year.
"After 25 years, I think I have the right to take a break," he told a 
conference call with reporters, adding that he planned to use his year off to visit the Antarctic and that he wanted to read about 50 books.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
'Protect Swiss waterways or lose our fish': WWF
Photo: Richi Stadelmann/WWF

Eighty-five percent of fish species in Switzerland are under threat, according to a report by the World Wildlife Fund (WWF).

SBB pilots new annual pass – costing 12,200 francs
The 'door-to-door' pass includes use of an electric car. Photo: SBB

Swiss federal railways (SBB) is looking for 100 people willing to pilot a new annual transport pass that includes use of an electric car.

Immigration to Switzerland falls as emigration rises
File photo: The Local

Immigration in Switzerland has fallen considerably this year, according to official figures.

Wawrinka aces his way into Basel quarterfinals
Photo: Fabrice Coffrini/AFP

The home favourite returns to the quarterfinals of the Swiss Indoors for the first time in five years.

Illegal immigrant dies after setting himself on fire
The victim was treated at University Hospital Zurich. Photo: University Hospital Zurich

The 45-year-old Tunisian was threatened with deportation.

Swiss government rejects call for second immigration vote
Photo: Justus Blumer/Christophe G

The Swiss government has rejected a popular initiative calling for a revote on plans to limit immigration.

Bern: companies should report salary inequality by law
File photo: Fabrice Coffrini/AFP

The Swiss government wants to force small companies to examine their rates of pay every four years.

Husband in custody after Orbe body identified
File photo: Bas Leenders

The deceased is a 55-year-old woman who lived in the house with her husband.

Presented by MoneyPark
How to get a mortgage in Switzerland
Houses in Zürich. Photo: Pixabay.

Ready to buy? Here’s what you need to know as an expat about Swiss regulations, how to finance your purchase, and why you should use a broker.

Autumn in Switzerland: ten stunning Instagram photos
Photo: Swiss Tourism/Jan Geerk

Switzerland is beautiful in all seasons, but as these photos show, autumn is a special time in the alpine country.

Photo: Unterirdisch Ueberleben
Inside Switzerland’s largest nuclear bunker – 40 years on
Sponsored Article
Last chance to vote absentee in the US elections
Photo: The Local
Ticino firefighters rescue cow from swimming pool
Photo: Antoni Da Campo
Vegan wins battle to be accepted by Swiss army
Photo: Swiss Tourism
Ten Swiss ski resorts named most expensive in Europe
Photo: Randy Kashka
Swiss women will ‘work for free’ for the rest of year
Photo: Swiss Tourism
Montreux throws hat in Olympic rings
Photo: Swiss Tourism
Seven things you’ll miss about Switzerland if you leave
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
jobs available