1/ Here is our recap of the $CFR fiscal 2023 H1 earnings call, highlighting the most important takeaways.
Let’s dive in! 👇👇
Let’s dive in! 👇👇
2/ Business at a Glance
Swiss luxury conglomerate of jewellery (65% of sales), specialist watchmakers (22%), and fashion houses (13%). Global leader in fine jewellery and one of the leaders in high-end watches.
🌏 39% Asia Pacific
🇺🇸 23% USA
🇪🇺 22% Europe
🇯🇵 8% Japan
🌍 8% ME&A
Swiss luxury conglomerate of jewellery (65% of sales), specialist watchmakers (22%), and fashion houses (13%). Global leader in fine jewellery and one of the leaders in high-end watches.
🌏 39% Asia Pacific
🇺🇸 23% USA
🇪🇺 22% Europe
🇯🇵 8% Japan
🌍 8% ME&A
3/ The Key Figures
Great results with double digit sales increases across all business areas. Shares +12.8% after release.
➡️Revenue: €9.7bn (+24% y/y)
➡️Operating profit: +26%
➡️Profit from cont. ops: €2.11bn
➡️Loss from discont. ops*: €2.87bn
➡️€4.8bn net cash
Great results with double digit sales increases across all business areas. Shares +12.8% after release.
➡️Revenue: €9.7bn (+24% y/y)
➡️Operating profit: +26%
➡️Profit from cont. ops: €2.11bn
➡️Loss from discont. ops*: €2.87bn
➡️€4.8bn net cash
4/ *YNAP Divestiture
Sold a controlling interest in loss-making Yoox Net-a-Porter to luxury marketplace Farfetch and Emirati businessman Mohamed Alabbar.
➡️Resulted in a €2.7bn write down
➡️YNAP reclassified as “discont. ops”
➡️Profit from cont. ops +40%
➡️Deal close in 2023
Sold a controlling interest in loss-making Yoox Net-a-Porter to luxury marketplace Farfetch and Emirati businessman Mohamed Alabbar.
➡️Resulted in a €2.7bn write down
➡️YNAP reclassified as “discont. ops”
➡️Profit from cont. ops +40%
➡️Deal close in 2023
5/ Moat & Competition
➡️Boasts some of the most distinguishable jewellery brands worldwide
➡️Luxury goods aren't a proxy for the general economy: target market is relatively recession immune
➡️Deconsolidation of YNAP should allow $CFR to focus on higher growth, margins and FCF
➡️Boasts some of the most distinguishable jewellery brands worldwide
➡️Luxury goods aren't a proxy for the general economy: target market is relatively recession immune
➡️Deconsolidation of YNAP should allow $CFR to focus on higher growth, margins and FCF
6/ Risks
➡️Consumers in the luxury space tend to be fickle; brand habits can change
➡️Swings in fx rates can see certain regional growth suffer
➡️Cost inflation pressure – raw materials, energy, labour, materials etc.
➡️Weaker demand from China may continue to hamper growth
➡️Consumers in the luxury space tend to be fickle; brand habits can change
➡️Swings in fx rates can see certain regional growth suffer
➡️Cost inflation pressure – raw materials, energy, labour, materials etc.
➡️Weaker demand from China may continue to hamper growth
7/ Conclusion
Strong results, with growth across all of their business segments. Good to see management consolidate into higher growth and profitability.
$CFR continues to screen attractively on our #HighWay model, which indicates an annual return of 15%+ from these levels.
Strong results, with growth across all of their business segments. Good to see management consolidate into higher growth and profitability.
$CFR continues to screen attractively on our #HighWay model, which indicates an annual return of 15%+ from these levels.
8/ That wraps up our review of $CFR's fiscal 2023 H1 earnings.
If you liked this please consider following
@HighStreet_AM. Thank you for reading, we are looking forward to sharing more insights in the coming weeks!
If you liked this please consider following
@HighStreet_AM. Thank you for reading, we are looking forward to sharing more insights in the coming weeks!
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