Richemont’s overall sales, at 3,717 million euros for the year ending 31st March 2005, are the second highest in the Group’s history and operating profit at 505 million euros – whilst not quite at the record levels achieved in 2000 and 2001 – represents a significant recovery from the results seen in the last two years.
Richemont Maisons have enjoyed good growth across all geographic regions and all of our business segments have reported higher sales.
The ‘Jewellery Maisons’, Cartier and Van Cleef & Arpels, saw their combined turnover increasing by 8 per cent to 1,956 million euros. Cartier has performed strongly in all markets with double-digit growth in underlying sales in all regions, with the exception of Japan. New watch models such as the Santos 100, launched in 2004, and jewellery ranges such as the Panthère have all contributed significantly to the strong performance. Cartier remains the acknowledged global leader in its market.
Although small in comparison to Cartier, Van Cleef & Arpels has also posted good growth during the year. Having established a product range that embodies the values and heritage of the Maison, our goal now is to continue to gradually expand its global distribution.
This was an excellent year for Richemont’s watchmakers. The majority were able to post double digit increases in sales and demand was strong in all regions. Particularly strong growth was seen in the Asia- Pacific region and in the A Americas. Notably, IWC has benefited from its roll-out into new markets, linked
to the introduction of exciting new models such as the Aquatimer. Jaeger-LeCoultre too has continued its global roll-out and is benefiting from the increased awareness of its character as a true ‘Manufacture’ in terms of high watchmaking skills.


Analysis of sales and profitability by business area
The following table analyses the sales and operating contribution of the Group’s five main areas of activity.





In the table above, those Maisons which are principally engaged in a specific business area have been grouped together. Accordingly, those businesses which have a heritage as producers of high jewellery and jewellery watches – Cartier and Van Cleef & Arpels – are grouped together as jewellery Maisons. Their entire product ranges, including watches, writing instruments and leather goods, are reflected in the sales and operating results for that segment.

The Group’s jewellery Maisons reported an 8 per cent increase in sales at actual exchange rates. During the year, Cartier launches included the new Panthère high jewellery range and the relaunch of the Trinity collection. Cartier watch sales included a significant contribution from the Santos range, including the Santos 100 and Santos Dumont models. Van Cleef & Arpels’ sales increased, reflecting the effects of boutique openings and the launch of new products, including the Hawaii line. For the segment as a whole, increasing sales and continuing cost control have generated an operating profit of 460 million euros and an operating margin of 24 per cent, 4 percentage points above the prior year.

The Group’s specialist watchmakers reported a 13 per cent increase in sales, with almost all brands reporting double-digit growth. Operating profit increased by 56 per cent to 148 million euros, representing an operating margin of 17 per cent compared with 12 per cent in the prior year.

Source: Compagnie Financière Richemont SA

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