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Luxury goods maker Richemont May sales increase 17%

12 Jun '06

4 min read

Non-recurring items – operating profit
In the current year, the non-recurring items in operating profit, amounting to € 28 million, mainly relate to the disposal gain on Hackett in June 2005 and a gain realised on the disposal of a retail property during the second half of the year. After taxes, these gains amounted to € 22 million. In the comparative year, the non-recurring item reflects the gain of € 76 million on the partial indirect disposal of a 0.6 percent interest in British American Tobacco ('BAT') ordinary shares.

Non-recurring items – share of associate
Non-recurring items reported by BAT resulted in a swing of € 363 million in terms of Richemont's share of the results of its associate as between the prior year and the year ended 31 March 2006.

In the current year, the non-recurring items in the Group's share of the post-tax profit reported by BAT amounted to a net charge of € 58 million. These nonrecurring items include restructuring charges and gains on the disposal of subsidiaries, non-current investments and brands. In the comparative year, the Group's share of non-recurring net gains reported by BAT amounted to € 305 million. This significant net gain stemmed largely from the gain arising on the merger of BAT's US business with that of R.J. Reynolds.

Earnings per unit
On a diluted basis, earnings per unit decreased from € 2.185 to € 1.951. Excluding the impact of nonrecurring items in both periods, earnings per unit on a diluted basis increased by 35 percent from € 1.498 to € 2.015.

Richemont group encompasses several of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Dunhill and Montblanc.

Richemont SA

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