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Johann Rupert, Africa’s richest man and chairman of Swiss luxury goods group Richemont, has experienced a significant setback as his fortune declined by a staggering $800 million over the past two days.
According to Forbes, a U.S. business magazine that tracks the wealth of ultra-high net-worth individuals, Rupert’s net worth has declined by $800 million in just 48 hours. His fortune dropped from $12.7 billion at the start of the week to $11.9 billion at the time of this report.
The substantial $800-million loss in Rupert’s wealth can be directly attributed to the recent decrease in the market value of his 9.14-percent stake in Richemont.
The company’s shares suffered an 8.05-percent slump from its opening price of CHF153.95 ($179.32) on Monday, July 17, to CHF141.55 ($164.9) at the close of trading activities on Tuesday, July 18.
Richemont’s share price decline has resulted in the group’s market capitalization plunging below $90 billion. Investors’ reaction to the group’s ad hoc announcement played a crucial role in this downturn despite the announcement highlighting robust growth as Richemont’s sales for the first quarter of the 2024 fiscal year surged by double digits.
In the first quarter of the 2024 fiscal year, Richemont witnessed its revenue skyrocket from €4.65 billion ($5.23 billion) to €5.32 billion ($5.98 billion), displaying an exceptional performance during a challenging economic period.
The remarkable 14-percent increase in sales was primarily driven by China’s consumption-led economic rebound and a strong resurgence in demand for high-end jewelry in Asia, which effectively offset softer sales in the Americas region.
Despite these promising figures, Richemont experienced a 19-percent rise in organic sales, excluding the impact of currency movements, slightly below analysts’ expectations of 20 percent.
Additionally, the 14-percent surge in sales to €5.32 billion ($5.98 billion) was below the projections of €5.43 billion ($6.1 billion) by analysts at Barclays and €5.54 billion ($6.2 billion) by analysts at Bank Vontobel.
