principles as we apply elsewhere opening stores either
directly or with local partners to ensure a good geographic
coverage. It has been important to realise that consumers
in new markets expect to see the same breadth of product
offering as they see when travelling abroad and, to this
end, we are taking care to ensure that our boutiques are
both opened in the most prestigious locations and offer the
full range of products. Both Montblanc and Alfred Dunhill
have been quick to grasp the retail growth opportunities
which the Chinese market offers and Cartier has also
invested in this important market and now operates
18 stores in mainland China, in addition to the nine
stores in Hong Kong and Macau.
significant contribution to profits from its associated
company, British American Tobacco (`BAT'). The equity
accounted share of BAT's profits increased by 13 per cent
to
company grew during the year to reach 19.3 per cent by
31 March 2008. By the end of April 2008, Richemont's
interest in BAT taken together with that of our joint
venture partner, Remgro Limited (`Remgro') reached
30 per cent of BAT's capital. At the BAT Annual General
Meeting held in April, its shareholders once again
approved the special waiver, which allows Richemont
and Remgro to hold more than 30 per cent of BAT's equity
without any obligation arising on the partners to make a
full bid for the shares in BAT that they do not already own.
reflect the strength of
our Maisons.
of the Group in September 1988, I am pleased to be able
to report that Richemont's performance during the past year
has demonstrated its capacity to weather the challenging
economic environment. The business has grown across a
broad geographic base with sales increasing by 10 per cent
to
respect, I must compliment Cartier, Van Cleef & Arpels,
Piaget, IWC and Jaeger-LeCoultre for their excellent
performances. We see the global market for true luxury
goods as continuing to expand, as consumers seek more
sophisticated, authentic and elegant products.
advantage of opportunities in existing and new market
areas. In established markets we invest in optimising our
boutique locations and have a comprehensive boutique
refurbishment programme across all of our Maisons.
In new market areas we seek to invest prudently, where
we believe the potential exists to develop strong businesses
in the medium to long term.
Chairman's
review