Richemont’s group operating profit surges 331% to €1.94bn

Richemont has announced its group operating profit for the six-month period ending 30 September 2021 increased by 331% over the prior-year period to €1.94bn (£1.65bn), compared to €452m (£384m) for the same period in 2020.

Additionally, group operating profit reportedly increased by 67% on a two-year basis from €1.16bn (£9.92m) in 2019, and Richemont’s operating margin reached 21.9%. 

The company’s year-on-year gross profit also rose by 78% to €56.3bn (£48bn), from €3.16bn (£26.9bn) in 2020, with a corresponding gross margin increased to 63.3% of sales. 

Additionally, Richemont revealed its Jewellery Maisons’ sales performance was “outstanding” with a 36% and 41% sales growth increase at actual and constant exchange rates, respectively.

Richemont said the increase in gross margin is “mainly due to higher manufacturing capacity utilisation, a favourable geographical sales mix as well as a further shift towards retail sales”.

Meanwhile, the company’s Jewellery Maisons have “emerged stronger” after the global economic crisis caused by the Covid, achieving record half-year sales and an operating margin of 37.9%, up by 7.8%. Richemont attributed this to “strong” jewellery and watch sales across its collections.

The data also revealed that Jewellery Maisons led the growth with a 36% sales increase compared to the first half ended 30 September 2019, and Specialist Watchmakers returned to growth, expanding by 7%.

Compared to the six-month period ended 30 September 2019, the retail channel posted a 34% sales growth, with Jewellery Maisons and Specialist Watchmakers “leading the way”.

The Maisons benefited from increased high jewellery sales and additions to their popular jewellery collections, notably Tulle at Buccellati, Panthère at Cartier and Frivole at Van Cleef and Arpels.