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Despite the disruptions caused by the Russia-Ukraine crisis and repeated temporary store closures due to health protection measures, Richemont, a Swiss luxury goods holding company led by South African billionaire Johann Rupert, reported a profit of €2.08 billion ($2.2 billion) at the end of its 2022 fiscal year.
Richemont’s profit increased by 61 percent during the reporting period, from €1.289 billion ($1.36 billion) in 2021 to €2.08 billion ($2.2 billion), according to the company’s recently released annual results. This is more than double what it made in 2020.
Increased inflationary pressures and repeated temporary store closures due to health-protection measures, according to management, were offset by relatively improved economies up until February 2022, with double-digit growth in all Maisons, channels, and regions.
During the fiscal year under review, the group’s sales reached an all-time high of €19.2 billion ($20.32 billion), a 46-percent increase over last year’s €13.14 billion ($13.9 billion), as sales in America increased by double digits, while sales in the Asia Pacific and mainland China increased by 32 percent and 20 percent, respectively, compared to the previous year.
Richemont shareholders, such as Rupert, who received a whopping dividend of $123.3 million from the Switzerland-based luxury goods holding last year, are expected to receive dividends in the millions this year.
The board proposed paying an ordinary dividend of CHF2.25 ($2.31) per “A” share and CHF 0.225 ($0.2363) per “B” share, plus a special dividend of CHF1.00 ($1.0277) per “A” share/10 “B” shares.
In response to the recently released results, shares in the Rupert-led holding company fell 11.2 percent on the Johannesburg Stock Exchange to R152.52 ($156.75) per share at the time of writing.
The company’s shares have dropped by 35 percent since the start of the year, bringing its market capitalization below R99 billion ($6.2 billion).
Rupert’s fortune has fallen by $2.52 billion since the year began, to $9.43 billion at the time of writing, owing to his stake in the company.
