Richemont, a Swiss luxury goods holding firm owned by South African billionaire Johann Rupert, announced a profit of $2.2 billion at the end of the fiscal year 2022. This is in the face of disruptions caused by the Russia-Ukraine crisis and frequent temporary store closures owing to health protection measures.
According to the company’s recently released annual results, Richemont’s profit increased by 61%, from $1.36 billion in 2021 to $2.2 billion in 2022. This is more than double what it made in 2020.
The Offset following the COVID-19 Pandemic
The management credits this to an improvement in economies starting February 2022, with double-digit growth in all Maisons, channels, and regions. This offset inflationary pressures and several temporary store closures due to COVID-19 induced restrictions.
The group’s sales reached an all-time high of $20.32 billion during the fiscal year under review. A 46 percent increase over last year’s $13.9 billion, as sales in America increased by double digits. In comparison, sales in Asia Pacific and mainland China increased by 32 percent and 20 percent, respectively, compared to the previous year.
Johann Rupert: An Increased Net Worth on the Horizon
Johann Rupert, like other Richemont shareholders, received a whopping $123.3 million dividend from the Swiss-based luxury goods holding last year. They are expected to receive millions in dividends, this year.
The board proposed a regular dividend of CHF2.25 ($2.31) per “A” share and CHF 0.225 ($0.2363) per “B” share. And a special dividend of CHF1.00 ($1.0277) per “A” share/10 “B” shares.
Following the recently released results, shares in the Rupert-led holding company fell 11.2 percent to $156.75 per share on the Johannesburg Stock Exchange at the time of writing.
Since the beginning of the year, the company’s shares have dropped by 35%, bringing its market capitalization below $6.2 billion.
Rupert’s fortune has fallen by $2.52 billion since the start of the year, to $9.43 billion at the time of writing due to his stake in the company.