South Africa’s richest man Johann Rupert’s Richemont posts $5.7-billion revenue in Q1 2024

Feyisayo Ajayi -

Key Point

  • Despite economic challenges, South African billionaire Johann Rupert’s luxury goods company, Richemont, reported $5.7 billion in sales for the first quarter.
  • Richemont’s jewelry brands, including Cartier and Van Cleef & Arpels, contributed significantly to the overall sales increase, growing by 4%.
  • While Asia Pacific faced challenges, Europe, Americas, Japan, and the Middle East drove growth, with Japan leading at 59% sales increase.

Richemont, the Swiss luxury goods holding company led by South Africa’s richest man Johann Rupert, posted robust sales of $5.7 billion in the first quarter of 2024. This achievement comes despite a strengthening dollar and ongoing macroeconomic and geopolitical uncertainties.

The company’s performance was bolstered by a four-percent increase in sales at its Jewellery Maisons, which include Buccellati, Cartier, and Van Cleef & Arpels, contributing approximately $4 billion to the total sales recorded during the period under review.

Regional performance highlights diverse growth

Sales for the three months ending June 30, 2024, amounted to €5.27 billion ($5.74 billion), a marginal decline at actual rates but a 1 percent increase at constant exchange rates compared to the prior year’s €5.32 billion ($5.8 billion).

Notably, Richemont saw growth across all regions except Asia Pacific, where sales contracted by 18 percent to €1.81 billion ($1.97 billion), largely due to a 27-percent decline in China, Hong Kong, and Macau, stemming from low consumer confidence and challenging comparisons to strong prior-year growth.

Conversely, Europe experienced a 5 percent increase in sales to €1.17 billion ($1.28 billion), driven by robust local demand and increased tourist spending. The Americas saw a 10 percent rise to €1.21 billion ($1.32 billion), reflecting strong domestic demand.

Japan recorded the highest regional growth at 59 percent, with sales reaching €603 million ($657.19 million), supported by vigorous domestic demand and thriving tourist spending. The Middle East and Africa region also reported an 8 percent sales increase to €470 million ($512.27 million), driven by heightened domestic and tourist spending in the UAE and Saudi Arabia.

Retail and online channels propel business growth

Richemont’s retail and online sales grew, with retail up two percent to €3.63 billion ($3.96 billion). Jewellery Maisons saw a four-percent rise to €3.66 billion ($3.99 billion). Specialist Watchmakers dropped 13 percent. Other businesses, including Alaïa and Peter Millar, increased six percent to €701 million ($764.14 million).

As of June 30, 2024, Richemont’s net cash position improved to €7.3 billion ($7.96 billion) from €6.6 billion ($7.19 billion) the previous year, excluding YOOX NET-A-PORTER’s net cash position, as its assets and liabilities are held for sale.

Johann Rupert, with a net worth of $13.5 billion, maintains his status as South Africa’s wealthiest individual. His significant stake in Richemont, comprising 10.18 percent of the company’s capital and 51 percent of the voting rights, is currently valued at $9.38 billion, according to the Bloomberg Billionaires Index.

Richemont’s strong Q1 2024 performance under Rupert’s leadership demonstrates resilience and strategic agility, positioning the company for continued growth amid ongoing global challenges.