Richemont, a Swiss luxury goods holding company led by South African billionaire Johann Rupert, reported a double-digit increase in profit during the first half of its 2023 fiscal year, owing to higher sales as the group’s watch and luxury goods continued to shine despite widespread macroeconomic volatility and political tensions.
According to the group’s recently published interim financial statement, profits at the end of the first six months of its 2022 fiscal period rose by more than 40 percent, from €1.5 billion ($1.55 billion) in the same period in 2022 to €2.1 billion ($2.17 billion).
The group’s strong financial performance in the first half of 2023 builds on previous results, particularly in 2022, when 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).
The strong earnings growth can be attributed to a 24 percent increase in sales from €7.78 billion ($8.03 billion) to €9.67 billion ($9.98 billion), reflecting an improved environment in Asia during the review period and the quality of the group’s brands, particularly its best-in-class jewelry business.
Compared to the prior-year period, double-digit sales increases were recorded at actual exchange rates across all business areas, channels, and regions, excluding Asia Pacific, where sales grew by 3 percent.
During the period under review, Richemont’s specialist watchmakers increased sales by 22 percent during the period under review, with growth across all Maisons, regions, and distribution channels, demonstrating the strong appeal and successful iconization of their collections.
Its specialist watchmakers benefited from an overall growing interest in high-quality watches across generations, with three of the Maisons now operating on a very large scale, with annual sales approaching 1 billion euro.
