Interim Management Statement
This statement is intended to provide investors with an overview of trading performance and any significant developments in the Group, not full quarterly financial reporting. Accordingly, no figures in respect of operating or attributable profit are provided in this report. Equally, no commentary is given here on the performance of the Group’s principal associated company, British American Tobacco plc.

The first quarter of the Group’s financial year should not necessarily be taken as indicative of likely trends for the financial year as a whole; a large part of the Group’s business is transacted in the quarter to 31 December each year. The quarter to 30 June, whilst typically representing between 20 and 25 per cent of the Group’s annual sales, may not be representative of trends for subsequent quarters or the year as a whole.

The information contained in this report has not been audited.

Overview
In the first three months of the financial year, overall sales grew by 13 per cent at actual exchange rates, reflecting a continuation of the strong demand seen during the preceding twelve months. Underlying sales growth in the three month period was 20 per cent.

Jewellery Maisons
The Group’s Jewellery Maisons - Cartier and Van Cleef & Arpels - reported very strong growth during the period. With the exception of Japan, where sales saw a mid-single digit decrease, all regions reported double-digit growth at constant exchange rates.

Specialist watchmakers
The Group’s seven specialist watchmakers continued to benefit from strong demand in all regions other than Japan.

Writing instrument Maisons
Sales grew by 5 per cent at constant rates. Strong sales growth through Montblanc's own boutique network was offset by wholesale sales in line with the prior year’s level, largely due to logistics issues at Montblanc's new distribution facility.

Other businesses
Chloé’s sales saw a mid-single digit decrease at constant exchange rates, reflecting lower retail sales. The increase in sales of other businesses overall included the impact of acquisitions made during the previous financial year.

Sales by geographic region
Europe
The 17 per cent increase at actual exchange rates reflects continuing sales growth in the region’s established markets as well as very strong sales growth in the Middle East and other developing markets.

Asia-Pacific
This region continued to report very strong growth, particularly in China and Hong Kong. Sales in the region represented 25 per cent of Group turnover in the quarter.

Americas
Underlying sales in the Americas region grew by 20 per cent, reflecting strong retail sales growth of 19 per cent. The growth in dollar-terms was largely offset on translation into euros.

Japan
The challenging market conditions in Japan, which have impacted luxury businesses generally,continued during the quarter, with most Maisons reporting lower turnover. Sales in yen terms decreased by 7 per cent. Sales in Japan now represent 11 per cent of total Group sales.

Sales by distribution channel
At actual exchange rates, the Group’s retail sales increased by 14 per cent whilst wholesale sales increased by 12 per cent.

Restructuring proposals
On 22 May, Richemont announced further details of its restructuring proposals which would see the Group separated into two entities: a luxury business, headquartered in Switzerland, and a separate investment vehicle. In addition to retaining their shares in the luxury goods business, it is envisaged that Richemont unitholders would receive shares in the investment vehicle and would be able to receive a substantial part of their interest in the BAT shares directly.

Further announcements in respect of the restructuring proposals will be made when appropriate. No further comment will be made until such time.

Courtesy : Richmond, Switzerland

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Posted by Naresh Koshti on 16 July, 2008 12:26:17 PM IST #