Swiss luxury goods group Compagnie Financiere Richemont AG (CFRUY.PK) reported Wednesday a higher profit for its fiscal year 2012, as sales grew across all of its segments and geographic regions, particularly Asia-Pacific.
The board has proposed a 22 percent increase in dividend and announced its plans to buy back shares. CEO Johann Rupert said the company looks forward to the future with cautious optimism.
According to the company, the Asia-Pacific region saw the highest level of demand in the year, with a sales growth of 43 percent and represented 42 percent of group sales. Sales were up particularly in Hong Kong and mainland China.
In Europe, sales grew 20 percent at actual exchange rates and Americas' sales improved 26 percent from last year. Japan also posted a 13 percent growth in sales.
Rupert added, "Although sales in the month of April were 29 % above the comparative period, or 20 % at constant exchange rates, we are mindful of the unstable economic environment, particularly in the euro zone."
Based upon the good results for the year, the board has proposed an ordinary cash dividend of 0.55 Swiss franc per share, representing an increase of 22 percent from the prior year. The dividend will be payable following its Annual General Meeting, which is scheduled for September 5, the company said.
Separately, Richemont announced a programme to buy back up to 10 million Richemont 'A' shares through the market over next 2 years, representing 1.7 percent of the capital and 1.0 percent of the voting rights of Compagnie Financière Richemont SA.
For the fiscal year ended March 31, 2012, profit attributable to owners of the parent company increased to 1.54 billion euros from 1.09 billion euros in the previous year.
Operating profit rose 51 percent to 2.04 billion and operating margin improved 330 basis points to 23 percent, reflecting the significant increase in gross profit and continuing cost discipline.
Annual sales grew 29 percent to 8.87 billion euros from 6.89 billion euros in the preceding year. Revenues were up 30 percent at constant currency.
In Zurich, the shares are currently trading at 55.7 francs, up 2.35 francs or 4.4 percent, on a volume of 299,621 shares.
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