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Billionaire Johann Rupert’s Richemont sees shares dive 14 percent on fears over China slowdown

Rupert’s net worth fell by $896 million as a result of the 14 percent drop in Richemont shares on Friday.

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Johann Rupert. ©Billionaires.Africa

Richemont, a Swiss luxury goods holding company led by South African billionaire Johann Rupert, saw its share price fall to its lowest level in more than two years on Friday after the Cartier owner stated that Chinese demand will take longer to recover than expected, casting doubt on the luxury industry’s recent growth.

“We face volatile times ahead. Even if the worst of COVID-19 is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years,” Rupert said.

According to the company’s recently released annual results, Richemont’s profit increased by 61 percent from €1.289 billion ($1.36 billion) in 2021 to €2.08 billion ($2.2 billion). This is more than double the amount made by the top luxury goods holdings in 2020.

His statement sheds light on the factors threatening Richemont’s revenue and earnings in the medium term and raises concerns about luxury demand, which has been buoyed by wealthy consumers who are less vulnerable to the effects of lockdowns and the cost-of-living crisis.

The leading billionaire businessman also stated that the Swiss watch and jewelry maker took a financial hit in Russia after failing to reach an agreement for its online sales unit and forecasted a difficult future, particularly in the core market of China.

Richemont’s profit in its 2022 fiscal year was reduced by €168 million ($177.4 million) due to the suspension of its business in Russia. Executives confirmed that some of its products were seized in Russia and stated that the financial penalties imposed cover the company’s risks in the country.

Regardless, the company ended the year with €5.3 billion ($5.6 billion) in cash, which it describes as a “source of strength” as market conditions deteriorate.

Due to negative sentiment among stock exchange investors, Richemont’s shares fell as much as 14 percent on Friday, extending its year-to-date loss to 37 percent.

Rupert’s net worth fell by $896 million, or 9.5 percent, as a result of the 14-percent drop in Richemont shares on Friday, bringing his total net worth loss this year to $3.42 billion in 2022.

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Africa’s richest man Aliko Dangote gains $100 million in June

The $100-million increase in his net worth in June follows a $300-million decline in May.

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Aliko Dangote.

Africa’s richest man Aliko Dangote saw his net worth rise by $100 million in June despite the mixed performance of his publicly traded companies, as investors reduced their positions in shares that had delivered impressive year-to-date growth due to profit and valuation concerns.

According to data from the Bloomberg Billionaires Index, Dangote’s net worth increased by $100 million between the start of business on June 1 and the end of business on June 30, rising from $20.3 billion to $20.4 billion.

The $100-million increase in his net worth in June follows a $300-million decline in May, when investors sold down shares in his flagship company Dangote Cement as part of a move to preserve wealth after the cement maker’s stock price surged to an all-time high of N300 ($0.72) per share on May 19.

The increase in his net worth brings his year-to-date wealth gains to $1.32 billion, making him one of the few billionaires in the world who have been able to record impressive gains in their fortunes despite recent stock market declines.

Apart from the multimillion-dollar increase in his net worth in June, the Nigerian billionaire, who recently launched the continent’s largest granulated urea fertilizer complex, received a total dividend of $725.2 million this year from his publicly traded businesses, which is significantly more than the $639.5 million he received last year.

Through his manufacturing conglomerate Dangote Industries Limited, Dangote opened an application nearly four days ago to raise up to N300 billion ($723 million) in medium-term debt funding from Nigerian investors to fund the completion of his $19-billion integrated refinery and petrochemical complex, Dangote Oil Refinery.

The refinery’s pipeline infrastructure, when completed in the first half of 2023, will process 540,000 barrels of Nigerian crude per day in the first phase of operation, increasing to 650,000 barrels per day later.

The refinery will also produce 65 million liters of premium motor spirits (petrol), 15 million liters of diesel, and 3 billion standard cubic feet of gas per day.

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Egypt’s richest man Nassef Sawiris loses $600 million in June after gaining $1.25 billion in May

His fortune is derived from a 38.8-percent stake in Netherlands-based OCI N.V. and a six-percent stake in German sportswear behemoth Adidas.

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Egypt's richest man Nassef Sawiris.

After reporting a whopping $1.25-billion increase in his net worth in May, Egypt’s richest man Nassef Sawiris saw his fortune plummet by $600 million in June as the market value of his investment portfolio fell by double digits, mirroring the drop in EU stocks over the month.

Sawiris, a leading Egyptian businessman and one of Africa’s richest billionaires, serves on the boards of Adidas, a leading sportswear manufacturer, and OCI N.V., a global manufacturer and distributor of nitrogen products.

The majority of his fortune is derived from a 38.8-percent stake in Netherlands-based OCI N.V. and a six-percent stake in German sportswear behemoth Adidas, which is valued at $2.11 billion at the time of writing this report.

According to data from the Bloomberg Billionaires Index, Sawiris had a net worth of $7.45 billion at the start of business on June 1, but his net worth dropped to $6.85 billion at the end of business on June 30 due to a decline in the share prices of OCI N.V. and Adidas.

The $600-million decline in his net worth in June follows a drop in EU equities as global markets face immense pressure, with aggressive monetary tightening by the U.S. Federal Reserve and other major central banks fueling fears of an impending economic downturn.

Despite the recent loss, the year-to-date change in Sawiris’ net worth remains positive, with the businessman’s fortune rising by more than $350 million this year, from $6.5 billion at the start of business in January to $6.85 billion at the time of writing.

The increase in his net worth year-to-date can be linked to his stake in OCI N.V., which enjoyed an increase in its valuation after the group reported a 246-percent increase in net income in the first quarter of 2022, from $102 million in the first quarter of 2021 to $354 million, driven by a 108-percent rise in revenue above $2.3 billion due to higher volumes and selling prices.

The group revealed that its outlook remains positive until at least 2024, providing strong support for nitrogen prices to remain above historical averages.

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Ghanaian tycoon Daniel McKorley’s McDan Group to donate land to students for soya bean cultivation

McKorley is a well-known businessman and the founder and CEO of the McDan Group.

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Ghanaian tycoon Daniel McKorley.

Ghanaian tycoon Daniel McKorley has announced plans to donate three to five acres of land to students for soya bean cultivation as part of the efforts to increase food sufficiency in Ghana, as food prices continue to rise due to supply constraints exacerbated by the war in Ukraine.

According to GhanaWeb, the leading business mogul announced the decision at the third edition of the McDanYouthConnect series of events, explaining that the move is part of a concerted effort to improve agriculture and promote food sufficiency in the country. He added that students will be given the opportunity to cultivate one or two products and create value for the nation.

His decision, which was applauded by all dignitaries and persons who attended the event, resulted in the release of 100 acres of land for the block farming project.

McKorley went on to advise students to continue engaging with the “right” people to increase their knowledge base, to network, and to ask for help when trying out something new, as such an attitude in life will allow them to unlock their future potential and grow.

McKorley is a well-known businessman and the founder and CEO of the McDan Group of Companies, an Accra-based transportation and logistics group with three divisions: McDan Shipping, McDan Aviation, and McDan Logistics.

Aside from its core operations in Ghana, the group maintains active operations and an extensive presence in West African countries such as Sierra Leone, Liberia, and Equatorial Guinea through its broad interests in shipping, logistics, and aviation.

McDan Group, led by McKorley, opened its first private jet terminal at an international airport in Accra, Ghana’s capital city, earlier this year, with three planes and one helicopter operating under the McDan Aviation brand.

The jet terminal will serve high-end clients seeking to maximize luxury clients and corporate executives seeking a quick and efficient commute for business purposes.

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