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On Friday Richemont released some great-looking numbers. Clearly the rich are not feeling the global inflation pinch. In SA the share price popped by 9% at one stage, but some of that was caused by the awfully weak Rand.
Sales were up 22% in the quarter thanks to the Jewellery Maisons which grew revenue by 27%. That division had EBIT margins of 34.9%. The Chinese are traveling and spending again, and the Richemont share price is loving it.
Over the last year the Richemont share price is up 84% in Rands. In Swiss Francs over the same period, it is up 49%. This is a very solid Rand hedge and we are lucky to have it listed on the JSE.
Even after this rally, the stock is trading on 25 times 2023 earnings estimates. That's not too expensive for a world-class business that is well-managed and has timeless brands. It is a must-own in all JSE portfolios.
