World’s second largest luxury group, Richemont reports modest financials for the half year ending Sept., with sales growing by 4 % to € 5,324 billion (9 % at constant exchange rates) with satisfactory growth across segments, regions and channels. Operating profit decreased by 1 % to € 1, 37 billion, reflecting unfavourable currency movements and the perating margin declined by 130 basis points to 25.7 %
Profit for the period rose by 10 % to € 1,185 billion, reflecting currency hedging gains. Strong increase in cash flow from operations to € 1, 292 billion.
Europe / Middle East and Asia / Pacific have been Richemont’s best performing regions for the first half fiscal year. Europe accounted for 38 % of overall sales. European and Middle-Eastern sales continued to benefit from visitors in major tourist destinations. Sales in the Asia Pacific region accounted for 40 % of the Group total, with Hong Kong and mainland China the two largest markets. Asia Pacific was led by good growth in Hong Kong and Macau, offset by lower sales in mainland China, largely reflecting prudent consumer sentiment after several years of exceptional expansion.
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