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Richemont FY19 Net Profit More Than Doubles, Margin Down; Lifts Dividend

Swiss luxury goods group Compagnie Financiere Richemont AG (CFRUY.PK) reported Friday that its fiscal 2019 profit more than doubled to 2.79 billion euros from last year's 1.22 billion euros.

The latest results included a post-tax non-cash gain of 1.38 billion euros on the revaluation of YOOX NET-A-PORTER GROUP or YNAP shares held prior to tender offer.

The company noted that YNAP and Watchfinder & Co. consolidated in its accounts since May 1 and June 1, 2018, respectively, as Online Distributors.

Operating profit grew 5 percent from last year to 1.94 billion euros. Operating margin, meanwhile, declined 280 basis points to 13.9 percent from last year's 16.7 percent.

Excluding the impact of Online Distributors and one-time net charges of 118 million euros, the operating margin increased to 19.5 percent.

Group sales increased 27 percent to 13.99 billion euros from last year's 11.01 billion euros. Excluding YNAP and Watchfinder, sales rose 8 percent at actual and constant exchange rates.

Reflecting the performance seen during the year, the Board has proposed a dividend of 2.00 Swiss francs per share, up from 1.90 francs per share last year.

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