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PRESS RELEASE - RICHEMONT ANNUAL GENERAL MEETING 1998
RICHEMONT ANNUAL GENERAL MEETING 1998
ZUG, 10 SEPTEMBER 1998
AT THE ANNUAL GENERAL MEETING OF COMPAGNIE FINANCIERE RICHEMONT AG HELD TODAY
IN ZUG, THE SHAREHOLDERS APPROVED THE RESULTS FOR THE YEAR, INCLUDING THE
PROPOSALS OF THE BOARD OF DIRECTORS FOR THE APPROPRIATION OF RETAINED EARNINGS
AT 31 MARCH 1998,
A DIVIDEND OF GBP11.50 PER RICHEMONT UNIT WILL BE PAID TO UNITHOLDERS BY
RICHEMONT SA, LUXEMBOURG, A WHOLLY-OWNED SUBSIDIARY OF COMPAGNIE FINANCIERE
RICHEMONT AG. THE DIVIDEND WILL BE PAYABLE, WITHOUT DEDUCTION OF WITHHOLDING
TAXES OR CHARGES, ON 28 SEPTEMBER 1998 AGAINST PRESENTATION OF COUPON NUMBER
42. THE DIVIDEND REPRESENTS AN INCREASE OF 22.3% OVER THE AMOUNT PAID IN THE
PRIOR YEAR.
REGARDING THE GROUP'S TRADING PERFORMANCE IN THE CURRENT FINANCIAL YEAR, THE
CHAIRMAN, DR. NIKOLAUS SENN SAID:
QUOTE
IN THE LIGHT OF THE TURBULENCE IN WORLD FINANCIAL MARKETS TOGETHER WITH THE
ECONOMIC DIFFICULTIES FACING A NUMBER OF COUNTRIES, IN PARTICULAR RUSSIA AND IN
THE FAR EAST, I WOULD LIKE TO SAY A FEW WORDS REGARDING THE PERFORMANCE OF
RICHEMONT'S TOBACCO AND LUXURY GOODS BUSINESSES IN THE FIRST FEW MONTHS OF THE
CURRENT FINANCIAL YEAR.
ROTHMANS INTERNATIONAL'S OPERATING PROFIT IN CONSTANT CURRENCY TERMS HAS
REMAINED BROADLY IN LINE WITH THE RESULTS OF LAST YEAR. THIS HAS BEEN ACHIEVED
NOTWITHSTANDING A SLIGHT REDUCTION IN THE VOLUME OF CIGARETTES SOLD AS WELL AS
SOME MARGIN PRESSURE ARISING FROM THE HIGHER COST OF IMPORTED RAW MATERIALS IN
CERTAIN COUNTRIES. HOWEVER THE NON-RECURRENCE OF THE WINDFALL EXCISE DUTY GAIN
IN AUSTRALIA REPORTED LAST YEAR, TOGETHER WITH THE ADVERSE CURRENCY IMPACT
ARISING ON THE CONSOLIDATION OF THE RESULTS INTO STERLING, HAS RESULTED IN
TOBACCO OPERATING PROFIT IN STERLING TERMS BEING BELOW THE LEVEL ACHIEVED LAST
YEAR.
I AM HAPPY TO REPORT THAT, GIVEN THE DIFFICULT ENVIRONMENT IN FAR EASTERN
MARKETS, OUR LUXURY GOODS BUSINESSES ARE PERFORMING WELL AND TO OUR
SATISFACTION. WHILST HONG KONG AND CERTAIN OTHER FAR EASTERN MARKETS HAVE SHOWN
A CONSIDERABLE DOWNTURN IN SALES, THIS HAS BEEN COMPENSATED TO SOME EXTENT BY
GROWTH IN JAPAN. CONTINUED GOOD GROWTH IN EUROPE AND NORTH AMERICA HAS MORE
THAN OFFSET THE DOWNTURN IN ASIA, HOWEVER, RESULTING IN A MODEST IMPROVEMENT IN
OVERALL SALES OF LUXURY PRODUCTS. WHILST GROSS MARGINS HAVE BEEN MAINTAINED,
VENDOME'S OPERATING PROFIT HAS NONETHELESS BEEN IMPACTED BY PLANNED INCREASES
IN MARKETING AND OTHER OPERATING EXPENDITURE.
OVERALL, AT THE RICHEMONT ATTRIBUTABLE EARNINGS LEVEL, RESULTS FOR THE YEAR TO
DATE HAVE NOT MATCHED THE STRONG PERFORMANCE IN THE COMPARABLE PERIOD LAST
YEAR. HOWEVER, FOR THE YEAR AS A WHOLE - BARRING NO FURTHER DETERIORATION IN
FINANCIAL AND ECONOMIC CONDITIONS WORLD-WIDE - THE BOARD EXPECTS THAT
RICHEMONT'S ATTRIBUTABLE EARNINGS WILL BE BROADLY IN LINE WITH THOSE OF THE
PRIOR YEAR.
UNQUOTE
THE ANNUAL GENERAL MEETING RE-ELECTED THE EXISTING DIRECTORS AND APPOINTED TWO
NEW DIRECTORS TO THE BOARD, MR. LEO DESCHUYTENEER, A DIRECTOR OF THE BELGIAN
INVESTMENT COMPANY SOFINA SA, AND MR. ERNST VERLOOP, A FORMER DIRECTOR OF
ROTHMANS INTERNATIONAL BV AND UNILEVER NV.
FOR ITS FINANCIAL YEAR ENDED 31 MARCH 1998, RICHEMONT REPORTED AN INCREASE OF
27.4% IN ATTRIBUTABLE PROFIT TO GBP386.0 MILLION BEFORE EXCEPTIONAL ITEMS AND
GOODWILL AMORTISATION.
RICHEMONT IS A SWISS-BASED TOBACCO AND LUXURY GOODS GROUP. IT IS MANAGED WITH A
VIEW TO THE PROFITABLE LONG-TERM DEVELOPMENT OF SUCCESSFUL INTERNATIONAL
BRANDS. IT IS THE ULTIMATE PARENT OF A FAMILY OF SOME OF THE WORLD'S LEADING
CONSUMER BRANDS.
RICHEMONT'S TOBACCO INTERESTS ARE HELD THROUGH ROTHMANS INTERNATIONAL, THE
WORLD'S FOURTH LARGEST MULTINATIONAL TOBACCO COMPANY. ITS INTERNATIONAL BRANDS
INCLUDE ROTHMANS, PETER STUYVESANT, DUNHILL AND WINFIELD. IN ADDITION, ROTHMANS
INTERNATIONAL MARKETS A RANGE OF REGIONAL AND LOCAL BRANDS AROUND THE WORLD.
RICHEMONT'S LUXURY GOODS BRANDS ARE HELD THROUGH VENDOME LUXURY GROUP. VENDOME
OWNS A PORTFOLIO OF LEADING INTERNATIONAL BRANDS INCLUDING CARTIER, ALFRED
DUNHILL, MONTBLANC AND LANCEL AS WELL AS THE PRESTIGIOUS SWISS WATCH
MANUFACTURERS VACHERON CONSTANTIN, PIAGET AND BAUME & MERCIER.
IN ADDITION, TO ITS TOBACCO AND LUXURY GOODS BUSINESSES, RICHEMONT HOLDS
INVESTMENTS IN THE PAY TELEVISION AND DIRECT MARKETING INDUSTRIES.
FURTHER INFORMATION:
JOHANN RUPERT
CHIEF EXECUTIVE
JAN DU PLESSIS
FINANCE DIRECTOR
COMPAGNIE FINANCIERE RICHEMONT AG
RIGISTRASSE 2
6300 ZUG
SWITZERLAND
TELEPHONE. +41 41 710 33 22
TELEFAX: +41 41 711 71 38
PRODUCED BY: ELIZE BLOM 10-09-1998 16:04 SENS
Tobacco giant British American Tobacco Plc (NYSE: BTI) said it will
acquire Rothmans International SA from Switzerland's Compagnie
Financiere Richemont AG and South Africa's Rembrandt Group Ltd. in a
stock swap valued at 4.6 billion pounds, or about $7.5 billion. |
