Worldwide operating profits at Richemont have surged by 46% to €1.2 billion (£1bn) in the six months ended September 30.
Unaudited accounts show sales increased by 12% at constant exchange rates, although the figure is flattered by the end of 2016’s inventory buy-back, which was recorded as a net negative for sales.
“The positive sales and profit performance achieved by Richemont in the first half of this financial year highlights the generally improved macro environment, reveals Richemont chairman, Johann Rupert. “The Group also benefited from easier comparative figures and favourable movements in period-end exchange rates.”
Excluding the inventory buy-back, sales increased by 8% at constant exchange rates, putting the cost of the buy-back at €200 million in the six month period from April to September last year.
This performance reflected growth in all major product categories, particularly jewellery, which reported a 15% increase in sales.
Sales growth in the jewellery maisons included a double digit increase for Cartier and Van Cleef & Arpels, with both enjoying a good performance in jewellery and watches, and improvements in all regions.
Richemont singled out the United Kingdom, Hong Kong, China and Korea for delivering double digit growth in turnover for the six month period.
The UK dramatically outperformed Europe as a whole, which saw sales rise only 3%.