South Africa's richest man Johann Rupert to reap $233-million dividend

Johann Rupert, a leading South African billionaire businessman renowned as one of Africa’s richest men, is set to receive a dividend payout of CHF204.62 million ($233.2 million) from his stake in Swiss luxury goods conglomerate Richemont.

The dividend is scheduled to be disbursed into the coffers of one of Rupert’s companies, Compagnie Financiere Rupert, on Sept. 6, contingent upon shareholders’ endorsement at the conglomerate’s annual general meeting. This substantial sum will be extracted from Richemont’s retained earnings, which amount to €14.62 billion ($15.97 billion) as of March 2023.

The fiscal year concluded on March 31, 2023, marked a remarkable period for Richemont, witnessing an impressive 60 percent profit surge from €2.45 billion ($2.67 billion) in 2022 to an impressive €3.91 billion ($4.25 billion).

This surge was fueled by a 19-percent increase in the group’s revenue, from €16.75 billion ($18.2 billion) in 2022 to an impressive €19.95 billion ($21.7 billion). The exceptional revenue growth was buoyed by a robust sales recovery in the Asia Pacific region and double-digit sales hikes across all other territories, particularly Japan and Europe.

The conglomerate’s impressive financial performance, characterized by robust cash flow generation and a formidable net cash position of €6.5 billion ($7.41 billion) at the close of March 2023, led to the board’s decision to propose handsome dividends to shareholders.

The dividends comprise an ordinary dividend of CHF2.5 ($2.85) per “A” share and CHF0.25 ($0.285) per ‘B’ share, marking an 11-percent surge compared to the prior year.

Additionally, a special dividend of CHF1.0 ($1.14) per “A” share and CHF0.1 ($0.114) per “B” share is under consideration, subject to approval at the forthcoming annual general meeting (AGM) set for Sept. 6, 2023.

Johann Rupert, who serves as Richemont’s chairman, holds a significant interest in the company through Compagnie Financiere Rupert. As of March 31, 2023, his stake comprised 6,263,000 Richemont “A” shares and 522,000,000 Richemont “B” shares, collectively representing 10.18 percent of the firm’s capital and a majority of 51 percent of its voting rights.

In line with the dividend proposed by Richemont, Rupert is set to pocket a whopping ordinary dividend of CHF146.16 million ($166.61 million) alongside a special dividend of CHF58.46 million ($66.64 million), culminating in total dividend earnings of CHF204.62 million ($233.25 million) from his stake in the conglomerate.