South African Equities earnings review : 1-30 November

We review the earnings results of Dischem, Redefine properties, Telkom, Vodacom, The Foschini Group, Mediclinc. Life health care , Spar group, Pepkor, Netcare, Barloworld, Mr Price , Investec.

Richemont (CFR) -

Richemont announces strong performance for the six months ended 30 September 2021 – 12 November 2021 (Lesego Mthombothi) Highlights Act. Growth Revenue €8.9 bn 63% GP Margin 63.3% 550 bps OP Margin 21.9% 1360 bps HEPS €2.181 699% Valuation P/E D/Y CFR 32.6x 1.2% FTSE/JSE Personal Goods 32.4x 0.8% CFR reported brilliant six-month results for the FY'22 period, showing robust double-digit sales increases across Maisons, businesses and channels exceeding pre-pandemic levels and expectations in more areas at actual and constant exchange rates. Group operating profit more than tripled to €1.9 billion and cash flow from operations nearly doubled to €1.78 billion leading to higher free cash flows. The Groups Jewellery Maisons, Specialist Watchmakers, Online Distributors, and Other segments delivered double-digit sales growth over the six months, driven by strong sequential growth acceleration in the second quarter. All regions (the Americas, Europe +63%, Middle East and Africa +55%, Asia Pacific +48%, and Japan +44%) delivered impressive sales growth with the strongest growth coming from the Americas at 114% at actual rates. From a distribution channel perspective, retail sales increased by 71% year-on-year, online retail sales increased by 38%, and wholesale sales increased by 74%. Operating profit at Jewellery Maisons more than doubled, while impressively Specialist Watchmakers operating results turned to a profit of €376 million from a loss of €8 million in the prior six-month period due to strong sales growth, improved manufacturing capacity utilisation, and tight cost control. Operating margins were impressive all around. CFR also announced it is in advanced talks with FarFetch which include the latter investing directly in Yoox-Net-A-Porter as a minority shareholder, hoping to remove the platforms drag on the value of the Group.

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