// Richemont’s full-year sales inch up 2% but net profit plunges 67%
// In the final quarter, its sales fell 18% due to the coronavirus pandemic
Richemont has posted a mixed bag in its full-year results, with sales inching up by two per cent despite a 67 per cent plunge in net profit.
The Swiss luxury company, which owns retailers Cartier, Alfred Dunhill and the Yoox Net-A-Porter Group, saw sales come in €14.2 billion (£12.4 billion) for the year to March 31, while net profit fell from €2.78 billion down to €931 million (£813 million) – well below the €1.21-€1.29 billion several analysts had predicted.
Richemont said the big drop in full-year net profit was partly due to a large one-off gain booked during the 2019 financial year.
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Taking this effect out of the equation, Richemont said its net profit fell 34 per cent year-on-year.
Meanwhile, full-year operating profit fell 22 per cent to €1.5 billion (£1.31 billion).
During the final quarter from January to March, Richemont said its sales fell 18 per cent due to the coronavirus pandemic.
It warned that the pandemic would hit its performance during the current fiscal year – even with the resurgent demand in China on the reopening of its 462 boutiques – but could not make reliable predictions at this stage.
Richemont chairman Johann Rupert said the luxury group is reducing its 2020 dividend while considering a warrant scheme to help compensate shareholders for a lower payout this year.
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