Richemont H1 forecasts increase in net profit

Trading for the four months ended July 2012 showed Richemont’s sales rising 24 percent on a reported basis and 13 percent on a constant currency basis against the comparative period. On this basis, Richemont’s operating profit for the six months ending 30 September 2012 is likely to show an increase of between 20 percent and 40 percent compared to the first six months of the last financial year. Net profit for the same period may increase between 20 percent and 40 percent.

Many factors driving these results are uncertain and beyond the group’s control and may therefore lead to actual levels of profit growth for the six month period below or above the ranges indicated. Those uncertain factors include the level of trading during August and September 2012 and the impact of exchange rate movements on the group’s results. Specifically, exchange rate movements may significantly impact net financial income / expense and therefore net profit for the period.

Richemont was created in 1988 by the spin-off of the international assets owned by the Rembrandt Group Limited of South Africa (now known as Remgro Limited). The group’s luxury businesses operate globally. The largest market is Europe, which generates some 40 per cent of sales.