Richemont profit soars on one-time gain
Compagnie Financiere Richemont SA (CFR.EB) said Friday that net profit soared in the first half of fiscal 2019 on the back of a one-off gain from the revaluation of YNAP shares.
Richemont’s first-half net profit rose to 2.25 billion euros ($2.57 billion) from EUR974 million during the same period last year.
The Swiss luxury company said its profit increase reflects a EUR1.38 billion gain on the revaluation of existing shares of the YNAP business, which it acquired earlier this year. Excluding this, profit for the period was EUR875 million, down 10% on year, the company said.
Richemont, known for its Cartier and Piaget brands, said revenue for the first six months rose 21% to EUR6.81 billion thanks to growth in all its business areas. This represents 24% growth on a constant-exchange basis, the company said.
The online-distributors division, which comprises the YNAP and Watchfinder businesses, had sales of EUR893 million in the first half and recorded a EUR115 million loss, which Richemont said was mostly due to the amortization of intangible assets.
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