Shares in luxury goods owner Richemont, which is controlled by SA’s richest person, Johann Rupert, surged more than 5% on Friday after reporting that annual group sales rose 3% to a record high of €20.6bn in the year ended March.
However, the group said sales slowed in the fourth quarter, declining 1% at actual exchange rates.
Richemont, founded in 1988, owns some of the world’s leading luxury brands such as Cartier, Van Cleef & Arpels, IWC, Jaeger LeCoultre, Montblanc and Panerai.
Operating profit in the year increased 13% to €4.8bn, while overall profit came in at €2.3bn.
The Americas came in slightly ahead of Europe in absolute terms, with the US becoming Richemont’s largest individual market.
Richemont, worth more than R1.5-trillion on the JSE where it has a secondary listing, has over the past few months made two acquisitions to beef up its portfolio. In January, it completed a transaction in which it bought 70% of Gianvito Rossi, an Italian high-end shoe Maison. Earlier this month, it announced it had acquired Italian jewellery maker Vhernier.
“We very much look forward to realising Gianvito Rossi’s and Vhernier’s full potential over time, benefiting from the group’s infrastructure and backing as well as from the thriving luxury footwear and branded jewellery markets,” Rupert said.
“We always strive to create goodwill rather than buy goodwill and in this vein I am pleased to report the four-and-a-half-fold increase in sales at Buccellati since acquisition in 2019.”
In a separate announcement, Richemont said it had re-established the group CEO role, appointing long-time executive Nicolas Bos as its new boss. Jérôme Lambert, who has over the past five years been the group’s de facto CEO, will become COO.
Bos, who has been with Richemont since the 1990s, heads the group’s French jewellery brand Van Cleef & Arpels.
“I am truly delighted that Nicolas has accepted to assume the re-established role of CEO of Richemont. His vision and ability to uphold Van Cleef & Arpels’ tradition of excellence and creativity have been critical to remarkable growth,” Rupert said.
“Building on Richemont’s expanded scale and stronger focus on retail and jewellery, Nicolas will steer the group through the next phase of its evolution. The re-established CEO role will help streamline decision-making and optimise operational management.
“I am equally happy that Jérôme will continue as COO and would like to thank him for playing a significant part in strengthening Richemont’s operational backbone and in helping to successfully navigate the group through turbulent times.” Bos, who has been with Richemont since 1992, will take up his new role in June, reporting to Rupert, the group’s chair. Lambert will report to Bos.
Bos will assume some of Rupert’s responsibilities, particularly the direct reporting he currently has. Rupert told the media on Friday that this does not mean he is abandoning the ship.
The company also appointed Bram Schot as its nonexecutive deputy chair replacing Josua Malherbe, who is stepping down after 11 years in the role.
“I am also glad that such an experienced and seasoned successor as Bram will be taking over from Dillie [Malherbe] as deputy chair of the board. I want to take this opportunity to express my deep gratitude to Dillie for his invaluable counsel and immense contribution over the years. I am also delighted that he has accepted to continue to sit on the audit and the strategic and security committees.”
Update: May 19 2024
This story has been updated with new information.
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