The Annual Net Profit Of The Group Will Encounter A Crisis.

Compagnie, Financi re Richemont SA (CFR.VX), the world's second largest luxury group, issued a profit warning yesterday, saying that the weakness of the euro exchange rate resulted in the large amount of non cash instruments purchased by market value. loss It is expected that net profit in the 2015 fiscal year ending March 31, 2015 will be 36% year-on-year decline, that is, net profit for the whole year will fall from about 2 billion 67 million euros in fiscal year 2014 to about 1 billion 323 million euros.

Analysts pointed out Compagnie Financi re Richemont SA's earnings decline is also related to the deterioration of its performance. Compagnie Financi re Richemont SA, the peak group, expects annual revenue to grow by 5% over the year. Market prediction The 4% is basically the same as the 4.9% increase in the 2014 fiscal year. However, after Hongkong's "occupy the central" demonstration and China's anti-corruption campaign dragged down, the growth rate after the exchange rate was slowed down significantly, the growth rate of the previous year's 10% decreased to only 2%. If we exclude the performance of Yoox SpA (MTA:YOOX)'s luxury business The Net-A-Porter Group, the increase will be 4% and 1% respectively after the actual growth rate and the effect of excluding exchange rate.

Compagnie Financi re Richemont SA (CFR.VX) wrote up to 2.8% to 80.75 Swiss francs on Wednesday morning.

The group disclosed that the euro value of 4 billion euros in monetary items and other derivatives converted into Swiss francs resulted in a loss of about 450 million euros. This loss has no material impact on the net cash position, but will substantially raise the effective tax rate for the whole year. As of March 31, 2015, the group had net cash of 5 billion 400 million euros, an increase of 1 billion 100 million euros over the 4 billion 300 million euros in the first half of September 30, 2014.

On the other hand, thanks to the one-time proceeds from the sale of New York retail property in the first half of July, the group's annual operating profit is expected to grow by 10% annually. Exane BNP Paribas SA (BNP.PA), a luxury industry analyst Luca Solca, said the increase in operating profit was actually only 1%-2%, far below market expectations of 6%.

At the time of the deadline, Compagnie Financi re Richemont SA (CFR.VX) fell 0.12% narrowed to 83 Swiss francs, which has fallen by 6.5% in 2015. The group will release its full financial results in fiscal year 2015 in May 22nd.