Richemont, the Swiss luxury goods group, announces its audited results for the year ended 31 March 2006. The Group's full year results are presented for the first time in compliance with International Financial Reporting Standards ('IFRS'). The March 2005 comparative figures presented in this document have been restated to reflect the IFRS reporting framework.
– Sales increased by 17 per cent to € 4 308 million.
– Underlying operating profit from the luxury goods businesses, excluding non-recurring net disposal
gains, increased by 47 per cent to € 713 million. Including non-recurring items, operating profit
increased to € 741 million.
– Underlying net profit attributable to unitholders, including the Group's share of the results of British
American Tobacco before non-recurring items, increased by 36 per cent to € 1 130 million. Including the significant impact of non-recurring items in both years, net profit attributable to unitholders declined to € 1 094 million.
The highlights above focus on the underlying trends in the Group's businesses. Key results prepared on a full IFRS basis, including net disposal gains and non-recurring items, are presented on page 2 of this document.
Sales at the Group's jewellery Maisons, Cartier and Van Cleef & Arpels, increased by 15 per cent and the specialist watchmaking division reported particularly strong growth of 22 per cent.
Excluding non-recurring net disposal gains in both periods, underlying operating profit from the Group's luxury goods businesses increased by 47 per cent to € 713 million. Gains on the disposal of Hackett and on the sale and leaseback of a retail property resulted in operating profit for the year increasing to € 741 million.
British American Tobacco (%u2018BAT')
Excluding the impact of non-recurring items from both periods, the Group's equity accounted share of the posttax profit of BAT increased by 10 per cent to € 544 million. Including such non-recurring items reported by BAT in both periods – in particular the very significant gain made on the restructuring of its operations in the United States in the prior year – the Group's share of BAT's earnings fell by 39 per cent to € 486 million.
Net profit attributable to unitholders
Attributable net profit, including the results of Richemont's luxury goods business and the Group's share of the results of BAT, declined by 10 per cent to € 1 094 million. The positive underlying trend in both the luxury business and BAT's results was offset by the non-recurrence of the significant gains reflected in the prior year, largely linked to the interest in BAT. On an underlying basis, excluding the impact of non-recurring items from both periods, attributable profit increased by 36 per cent to € 1 130 million.
Cash generated from the Group's luxury goods operations was € 774 million for the year, compared to € 481 million in 2005. Net cash at 31 March 2006, after payment of the ordinary and special dividends of €.553 million in September 2005, increased to € 884 million.
The proposed dividend for the year amounts to € 0.60 per unit, an increase of 20 per cent compared to last year. In addition, the Board has also proposed a further special dividend amounting to € 0.50 per unit. The dividend for the year will therefore amount to € 1.10 per unit in total.