COMPAGNIE FINANCIERE RICHEMONT Online Distributors
in EURm Six months to Six months to Change
30 September 2021 30 September 2020
Sales 1 278 934 +37%
Operating result (141) (138) -2%
Operating margin (11.0)% (14.8)% +380 bps
Sales of Richemont Maisons' own products generated by YNAP are reported under both the Maisons' and YNAP's business area reporting. In Group sales, these are subsequently eliminated as 'intersegment sales'.
The 37% increase in sales and 28% increase in Gross Merchandise Value (GMV) at the Online Distributors compared to the prior-year period was driven by double-digit growth across all regions. Compared to the six-month period ended 30 September 2019, sales rose by 8% and GMV by 9%. The Americas, which is the second largest contributor to sales, posted the highest growth rate. NET-A-PORTER continued its development in China with its flagship store on Alibaba Tmall Luxury Pavilion now offering over 400 luxury brands, enabling the development of curated assortments. The NET-A-PORTER and MR PORTER Italian distribution centre in Landriano became fully operational in September and is now acting as a central hub serving millions of customers around the world. Watchfinder focused on extending its array of services and its international presence by entering the Italian market, and notably started offering pre-owned watches to NET-A-PORTER and MR PORTER's clients in the USA while the watch trade-in programme continued to be rolled out, now being available across 89 boutiques, including in select Cartier stores.
Investments remained focused on information technology linked to YNAP's global technology and logistics platform migration, successfully completed in September, and the shift to a hybrid business model. currently underway. The Online Distributors recorded a EUR 141 million operating loss, notwithstanding higher sales and an improved gross margin, due to increased communication investments and temporary absorption of Brexit-driven customs duties and value-added tax amounting to some EUR 40 million. At EUR 49 million, the EBITDA loss was unchanged from the prior-year period.
Other
in EURm Six months to Six months to Change
30 September 2021 30 September 2020
Sales 935 545 +72%
Operating result 29 (108) n/r
Operating margin 3.1% (19.8)% n/r
'Other' includes the Fashion & Accessories Maisons and, amongst others, the Group's watch component manufacturing and real estate activities.
Sales rose by 72% for the period or 66% excluding the impact of Delvaux, the world's oldest luxury leather goods Maison acquired at the end of June 2021. Whilst sales were slightly below pre-Covid level in the first six-month period, double-digit sales growth was achieved in the second quarter, exceeding pre-Covid levels. In an environment marked by significantly reduced footfall in airports, Montblanc sales increased markedly compared to the prior-year period. Its new Mark Makers campaign is starting to positively impact sales. Worth noting is the continued outstanding performance of Peter Millar, compared both to 2020 and 2019. The launches of the first collections from new creative directors Gabriela Hearst at Chloé and Pieter Mulier at Alaïa have also been strongly acclaimed and show a promising debut.
Store investments were limited, and included a new store for Montblanc in Wuhan, China, renovated stores for dunhill in Tokyo Ginza and Alaïa in Paris as well as a relocated store in Florida Palm Beach for Peter Millar. Higher sales, improved gross margin, tight cost control and a positive contribution from a real estate transaction resulted in a EUR 29 million operating profit.
Valuation adjustments on acquisitions
in EURm Six months to Six months to Change
30 September 2021 30 September 2020
Valuation adjustments on acquisitions (89) (99) -10%
The amortisation of certain intangible assets and inventory adjustments made on acquisition are not included in the operating result of the respective segments. They primarily relate to Online Distributors, Buccellati and Delvaux.
Corporate costs
in EURm Six months to Six months to
30 September 2021 30 September 2020 Change
Corporate costs (153) (116) +32%
Central support services (129) (116) +11%
Other unallocated expenses, net (24) - n/r
Corporate costs represent the costs of central management, marketing support and other central functions (collectively central functions), as well as other expenses and income that are not allocated to specific segments. These increased by 32% compared to the prior-year period and represented close to 2% of Group sales.
The Group's consolidated financial statements of comprehensive income, cash flows and financial position as well as an overview of quarterly trading results are presented in Appendix. Richemont's unaudited consolidated financial statements for the half year are available on the Group's website at www.richemont.com/en/home/investors/ results-reports-presentations/.
Burkhart Grund
Jérôme Lambert
Chief Executive Officer Chief Finance Officer Compagnie Financière Richemont SA
Geneva, 12 November 2021
Appendix
2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019
Q1 (April-June) EURm EURm EURm constant rates actual rates constant rates actual rates
By region
Europe 905 436 1 072 +108% +108% -15% -16%
Asia Pacific 1 933 1 013 1 423 +95% +91% +40% +36%
Americas 955 277 698 +276% +245% +47% +37%
Japan 240 112 298 +138% +114% -14% -19%
Middle East and Africa 364 155 249 +154% +135% +55% +46%
By distribution channel
Retail 2 421 1 052 1 851 +138% +130% +35% +31%
Online retail 809 506 648 +67% +60% +29% +25%
Wholesale & royalty income 1 167 435 1 241 +178% +168% -3% -6%
By business area
Jewellery Maisons 2 515 1 083 1 827 +142% +132% +43% +38%
Specialist Watchmakers 849 359 823 +143% +136% +6% +3%
Online Distributors 637 356 612 +86% +79% +8% +4%
Other 440 204 493 +124% +116% -7% -11%
Inter-segment eliminations (44) (9) (15) +425% +389% +204% +193%
Total 4 397 1 993 3 740 +129% +121% +22% +18%
2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019
Q2 (July-September) EURm EURm EURm constant rates actual rates constant rates actual rates
By region
Europe 1 104 798 1 149 +38% +38% -4% -4%
Asia Pacific 1 856 1 543 1 306 +17% +20% +43% +42%
Americas 971 623 649 +58% +56% +59% +50%
Japan 286 253 349 +20% +13% -11% -18%
Middle East and Africa 293 268 204 +10% +9% +49% +44%
By distribution channel
Retail 2 555 1 878 1 957 +35% +36% +33% +31%
Online retail 824 702 612 +17% +17% +37% +35%
Wholesale & royalty income 1 131 905 1 088 +25% +25% +7% +4%
By business area
Jewellery Maisons 2 582 1 978 1 909 +30% +31% +39% +35%
Specialist Watchmakers 830 607 744 +35% +37% +13% +12%
Online Distributors 641 578 567 +11% +11% +15% +13%
Other 495 341 448 +45% +45% +14% +10%
Inter-segment eliminations (38) (19) (11) +97% +100% +237% +245%
Total 4 510 3 485 3 657 +29% +29% +26% +23%
2021 2020 2019 % change 2021 vs 2020 % change 2021 vs 2019
H1 (April-September) EURm EURm EURm constant rates actual rates constant rates actual rates
By region
Europe 2 009 1 234 2 221 +62% +63% -9% -10%
Asia Pacific 3 789 2 556 2 729 +47% +48% +41% +39%
Americas 1 926 900 1 347 +123% +114% +53% +43%
Japan 526 365 647 +56% +44% -12% -19%
Middle East and Africa 657 423 453 +62% +55% +53% +45%
By distribution channel
Retail 4 976 2 930 3 808 +71% +70% +34% +31%
Online retail 1 633 1 208 1 260 +38% +35% +33% +30%
Wholesale & royalty income 2 298 1 340 2 329 +74% +71% +2% -1%
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November 12, 2021 01:01 ET (06:01 GMT)
