Richemont Sales Up 37%, Jewelry Sales Up 32%, Watch Sales Up 38%

Richemont headquarters

Luxury goods group Cie. Financiere Richemont said Friday that year-over-year sales for the six months of 2010 increased 37 percent to 3.26 billion euros ($4.47 billion). At constant exchange rates (excluding currency fluctuations and other conditions) the increase was 27 percent for the period ended September 30. When removing the company’s recent acquisition of Internet retailer Net-A-Porter.com, sales increased by 22 percent.

The Geneva-based company said the strong growth in sales reflects, in part, low comparative figures in the prior period, when reported Group sales decreased by 15 percent.

Profit for the period rose 87 percent to 644 million euros ($883 million) and operating profit increased by 95 percent.

Its jewelry business (which includes Cartier, Van Cleef & Arpels and Piaget) saw its sales increase 32 percent to 1.69 billion euros ($2.31 billion) for the period. Both Cartier and Van Cleef & Arpels saw double-digit sales growth, Richemont said.

Watch sales (which include Vacheron Constantin, Baume & Mercier, Jaeger-LeCoultre, Lange & Söhne and IWC) rose 38 percent to 901 million euros ($1.23 billion).

Overall Group sales as measured by constant exchange rates increased 37 percent in the Americas, 36 percent in Asia-Pacific, 23 percent in Europe and 4 percent in Japan.

Johann Rupert, Richemont executive chairman and CEO, stressed that the strong sales figures benefited from favorable exchange rates and better economic conditions when compared to the post-recession prior year and cautioned that growth may slow during the second half of the year.

“The good performance achieved by Richemont in the first half of this year has been driven by a marked improvement in all business areas and across all geographies compared to the depressed levels seen last year,” Rupert said. “Richemont’s Maisons were able to benefit fully from this improved trading environment, further enhancing their leading positions in jewelry, watchmaking, writing instruments and accessories. … The robust sales momentum that the Group has seen for several months has continued through to the end of October; sales for the month were 36 per cent above those of October 2009 at actual exchange rates.”

He added, “For the second half of the financial year, we expect the high rate of growth in sales seen in the year to date to slow as a consequence of exchange rate movements and the more challenging prior year comparatives.”

Richemont’s Half-Year Sales Up 29%, led by Asian Demand and Jewelry and Watch Sales

Luxury goods conglomerate, Cie. Financiere Richemont SA, said Friday that sales for the six-month period, ended September 30, increased by 29 percent to 4.2 billion euros ($4.68 billion), year-over-year. At constant exchange rates (stripping out the effects of currency exchange rates), the increase was 36 percent.

The Swiss company reported solid growth across all segments, regions and channels. Operating profit increased by 41 percent to 1 07 billion euros ($1.2 billion). Net income for the period increased by 10 percent to 709 million euros ($791.3), reflecting the impact of a one-time gain in the comparative period.

Richemont owns several leading luxury goods companies, which it calls Maisons, with particular strengths in jewelry, luxury watches and writing instruments. These companies include Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc.

“Our Maisons were able to benefit from a favorable trading environment to enhance their positions in jewelry, watchmaking and accessories,” said Johann Rupert, Richemont, executive chairman and CEO. “The rate of increase in net profit was lower than the increase in operating profit primarily due to a one-off gain in the comparable period.”

Rupert also noted that the group’s net cash position is 2.6 billion euros ($2.9 billion) and that sales in month of October, not included in the report, increased 28 percent, year-over-year. Sales were strengthened by the group’s own retail network bolstered by very strong demand in the Asia-Pacific and Americas regions.

Although gross profit rose by 26 percent, gross margin percentage was 160 basis points lower at 63.2 percent of sales, due to adverse currency movements affecting sales, the strengthening of the Swiss franc and, as expected, the impact of Net-a-Porter, the online luxury goods retailer. The company’s brands raised prices in order to offset the strength of the Swiss franc during the period. The stronger Swiss franc is of particular importance to the cost of sales as the majority of the Group’s manufacturing facilities are located in Switzerland.

Compared with the group’s other brands, Net-a-Porter’s gross margin percentage is well below the average reflecting its distinct business model as an online retailer, Richemont said. Given its above-average sales growth, Net-a-Porter has a dilutive impact on the Group’s gross margin percentage.
 
Earnings per share increased by 11 percent for the period.
 
Double-digit organic growth was registered across all regions, including Russia and the Middle East. Travelers to Europe continue to be an important sales driver. All brands improved their performance in the region versus the comparative period.

Sales to the Asia-Pacific region increased 48 percent (60 percent at constant exchange rates) to 1.7 billion euros ($1.9 billion), led by China, which is now the company’s third strongest market, after Hong Kong and the U.S.

In Europe, sales increased 20 percent (22 percent at constant exchange rates) to 1.5 billion euros ($1.67).

Sales in the Americas grew by 23 percent (35 percent at constant exchange rates) to 602 million euros ($671.7), driven by significant High Jewelry sales, although business in general has been very encouraging, the company said.

Sales in Japan increased 9 percent (8 percent at constant exchange rates) to 380 million euros ($424 million), despite the dramatic events of last March. Van Cleef and Arpels and watches performed particularly well.
 
Directly operated boutiques and Net-a-Porter sales increased by 37 percent. This was well above the growth in wholesale sales and Richemont now generates 49 percent of its sales through its own retail network.

The growth in retail sales partly reflected the good performance of Net-a-Porter and the expansion of the Maisons’ network of boutiques to 919 stores. Openings during the period were primarily in high-growth markets such as China.
 
Jewelry sales grew by 34 percent to 2.16 billion euros ($2.4 billion). “Both Van Cleef & Arpels and Cartier performed exceptionally well,” Richemont said.

Watch sales increased 30 percent to 1.17 billion euros ($1.3 billion).  “All watch brands performed well worldwide, reflecting the strong demand for haute horlogerie,” Richemont said. “Despite higher input costs and the strength of the Swiss Franc, the contribution margin was 27 percent, reflecting the brand’s pricing power and operating leverage.”
 
Montblanc reported strong growth with a 10 percent increase to 334 million euros ($372.6 million), reflecting good demand for its range of watches and accessories particularly in the Asia-Pacific region.
 
Richemont’s fashion and accessories brands saw double-digit sales growth and more than tripled its profits to 23 million euros ($25.6 million). Alfred Dunhill and Chloé performed particularly well.
 
Net-a-Porter incurred losses during the period amounting to 22 million euros ($24.5 million), resulting from the amortization of intangibles and the costs associated with the continued expansion of its platforms in the U.K. and the U.S

Richemont Sales Up 21%, Profit Up 52%

Swiss luxury goods conglomerate, Compagnie Financière Richemont, said Friday that sales increased, year-over-year, for the first half of the fiscal year by 21 percent to €5.1 billion ($6.5 billion). By constant exchange rates sales grew 12 percent.

Profit for the period rose 52 percent to €1.08 billion ($1.37 billion); with operating profit up by 28 percent to €1.38 billion ($1.75 billion), benefiting from favorable currency movements, and gross profit up 24 percent to €3.31 billion ($4.2 billion). Operating margin gained 150 basis points to reach 27 percent.

The Geneva-based company cited “solid growth in all segments, regions and channels” along with favorable currency rates and Asian tourism in Europe for the strong performance.

Richemont owns many of the world’s best-known luxury brands (known as “maisons” by the company) including Cartier, Montblanc, Vacheron Constantin, Van Cleef & Arpels and Piaget. It also has wholesale businesses and owns the luxury retail website, Net-A-Porter.com. A list of its businesses can be found by following this link.

“The Group’s maisons benefited from favorable exchange rates effects, successful product launches as well as strong pricing power,” said Johann Rupert, Richemont executive chairman and CEO. “The increase in net profit was well above the prior period, reflecting both the growth in operating results and the non-recurrence of non-cash losses, which stemmed from the Swiss franc’s appreciation against the euro.”

He added, “Sales growth rates moderated, as evidenced by the October sales which grew by 12 percent at actual exchange rates. At constant exchange rates, they were 7 percent higher. Richemont is seeing good growth in Europe, supported by Asian tourism which is compensating for slower domestic Asia Pacific sales. Retail continued to lead wholesale, reflecting robust jewelry sales.”

Rupert did warn that sales and profits could slow as exchange rates will like be “less favorable” for the remainder of the fiscal year.

By region the company reported that sales in Europe accounted for 36 percent of overall sales as the region enjoyed good growth, with tourists driving the above-average increase. The highest growth rates were in the Maisons’ own boutiques in tourist destinations, including the Middle East. Europe’s reported a 23 percent growth in sales for the period to €1.85 billion ($2.35). At constant exchange rates, sales increased by 19 percent.

Asia Pacific remains the strongest region for Richemont but sales growth has slowed. The region accounted for 41 percent of the Group’s total, with Hong Kong and mainland China the two largest markets. “Sales growth in our maisons’ own boutiques in the region was well above the increase in sales to wholesale partners, partly reflecting the number of boutique openings in the last two years,” the company said. Asia reported a 22 percent growth in sales for the period to €2.1 billion ($2.67). At constant exchange rates, sales increased 9 percent.

After two years of what the company termed as “outstanding sales,” the Americas region reported that sales grew 16 percent to €698 million ($877 million). However, at constant exchange rates, growth was 4 percent. The region represented 14 percent of overall sales for Richemont.

Japan, which Richemont lists separately, saw what the company terms as “continued momentum” in sales in all retail segments. The struggling market saw its sales increase by 18 percent to €448 million ($570 million). At constant exchange rates the increase was 4 percent.

Its group of jewelry brands saw sales grow by 20 percent to €2.6 billion ($3.3 billion) with operating results of €958 ($1.21 billion), a 31 percent increase. Operating margin gained 280 basis points to reach 36.7 percent.

Meanwhile, its specialist watchmakers group reported that sales increased 25 percent to €1.46 billion ($1.85 billion) with operating results of €470 ($592 million), a 51 percent increase. Operating margin gained 560 basis points to reach 32.2 percent.

Montblanc, the German brand known for its luxury writing instruments but also manufactures and sells luxury leather goods, jewelry and watches, is listed separately by Richemont. It reported that its sales increased 10 percent to €368 million ($468 million) with operating results of €53 million ($67.3 million), a 2 percent decline. Operating margin lost 180 basis points to reach 14.4 percent. Richemont said that Montblanc doesn’t benefit much from sales in tourist destinations.

For its other businesses—which includes Richemont’s Fashion and Accessories businesses, Net-a-Porter and watch component manufacturing activities—results are as follows:

* Fashion & Accessories maisons saw double-digit sales growth and operating profits were in line with the prior period at €25 million.

* Sales growth at Net-a-Porter is “normalizing” but continues to exceed the Group’s average. Net-a-Porter reduced its losses during the period, but generated a positive operating cashflow.

* Losses at the Group’s watch component manufacturing facilities were in line with the comparative period.

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Montblanc’s Villeret Luxury Watches Keep The Minerva Soul

The home of traditional Swiss watch company now owned by luxury brand, Montblanc. Photo credit: Anthony DeMarco

VILLERET, Switzerland — In the Swiss watch industry, it could be said that the more things change the more they stay the same. This is particularly true for the watch company known today as “Montblanc Manufacture in Villeret.”

The company was founded in 1858 as the H. & C. Robert watchmaking factory by brothers Charles-Yvan and Hyppolite Robert inside the family house in this picturesque village on the edge of the Jura mountains. The company took on the Minerva name in 1923 and kept it for 84 years. 

Some of the components that make up a watch movement. All pieces are made in house in the Swiss watchmaking tradition. Photo credit: Anthony DeMarco

Almost from the beginning the company, which moved from its residential workshop to a true manufacturing facility across the street in 1887, produced in-house movements, particularly its chronographs that were so accurate and efficient they were used in the battlefields of World War I and II and to keep time for the events of the 1936 Winter Olympics. It was one of the first companies to produce a chronograph pocket watch, one of the first to produce movements for wristwatches, and one of the first to build a chronograph that could track hundredths of a second. The company also produced chronographs and classic watches for the general public. Needless to say the brand’s heritage and quality of their movements produced a loyal following.

A watchmaker creates one of the individual components of a movement. Photo credit: Anthony DeMarco

The company’s biggest change happened in 2000 when Italian investor Emilio Gnutti purchased it and changed its mission to produce haute horlogerie timepieces in-house using the same hand-made techniques and the philosophy of the brand. The new owner brought in Demetrio Cabiddu as its technical director. Then a change of seismic proportions happened in 2006 when luxury goods conglomerate, Compagnie Financière Richemont, purchased the company and from my understanding assigned the watch manufacturer to Montblanc—one of the many luxury brands it owns.

The balance spring (also known as a hairspring) is attached to the balance wheel to control the speed at which the wheels of the timepiece turn, and thus the rate of movement of the hands. These items are hand-made inside the factory. Photo credit: Anthony DeMarco

In the new atrium on the top floor of the historic manufacturing facility, Cabiddu, who is extremely passionate and protective of the company’s heritage, said he had some sleepless nights wondering what Montblanc, which was new to the staunchly traditional Swiss watch industry, was going to do with the company and its heritage. 

A skilled watchmaker attaches the balance spring to the balance wheel and then sets it over a timing device with a reference balance. She checks the difference in beats and bends the spring until they match.  Photo credit: Anthony DeMarco

“Of course I was very worried, I was scared,” Cabiddu said in French through a translator. “There was a need to preserve the heritage and credibility of Minerva and this 150 years of expertise.” He added, “People who don’t have fear are people who don’t have a conscience.” 

Some of the older equipment in the factory includes this large stamping machine. Photo credit: Anthony DeMarco

It turned out that there was no need to fear. Montblanc, the German company with its own 106-year history as a manufacturer of luxury writing instruments, not only bought into the legacy of Minvera, but in some cases expanded upon it. 

Another example of the early equipment that is still being used in the Villeret factory is this vertical drill. Photo credit: Anthony DeMarco

In fact, Montblanc’s inexperience in the Swiss watch industry “turned out to be an advantage,” Cabiddu said. “Montblanc trusted us. In hindsight it turned out to be the best choice.” 

Before Montblanc took control of the company, it was known for 84 years as Minerva. The toolboxes still carry the name and according to technical director, Demetrio Cabiddu, still maintains the Minerva heritage. Photo credit: Anthony DeMarco

There were some changes. Most obvious was the name change to reflect the location of the company. “Losing the name was a solution I had to take,” Cabiddu said. “Today I laugh about it a lot more. I used to cringe (when hearing the new name). In hindsight it was probably the right thing to do as we move into the future.” 

Two persons are dedicated to working with clients all over the world to create hand-drawn models of bespoke watches they would like to own. Photo credit: Anthony DeMarco

Montblanc also renovated the manufacturing facility. However, restoration is a better way to describe the work. Apart from the new, modern atrium with a view of the countryside, a fresh coat of paint and some structural repairs, little appears to have changed. 

Montblanc Collection Villeret 1858 Vintage Tachydate

Montblanc renamed the building the “Institut Minerva de Recherche en Haute Horlogerie,” and created a foundation under the same name, which Montblanc said in a statement is, “dedicated to classical fine watchmaking and the upholding of traditional skills and special complications,” adding that it “supports young watchmakers through internships, commissioning research on the history of traditional watchmaking and initiates new developments with traditional techniques in watchmaking.”

Montblanc Collection Villeret 1858 Tourbillon Bi-Cylindrique

It isn’t clear to me how this institute or foundation operates. What is clear is that it hasn’t changed the focus of the company. Villeret is a watch manufacturer that employs 36 full-time workers and four consultants and produces between 200 and 250 limited-edition hand-made timepieces per year, Cabiddu said. Everything is done in house with the exception of the dials, hands, straps and cases. 

Montblanc Collection Villeret 1858 Régulateur Nautique Timepiece

Large stamping machines and vertical drills that date back approximately 80 years share the building with modern CNC and CAD equipment. Some machines are so old parts aren’t available anymore so watchmakers have to hand-build the parts and even the tools to repair the equipment. The company produces chronographs, tourbillons and classic watch lines. In addition, it creates bespoke timepieces for private clients. Two designers are dedicated to creating hand-drawings of the timepieces based on specifications of these collectors. 

The company was founded in 1858 as the as the H. & C. Robert watchmaking factory by brothers Charles-Yvan and Hyppolite Robert in the house across the street from the current manufacturing facility. Photo credit: Anthony DeMarco

With its trademarked V-shaped bridge and a small arrow, the highly polished movements were always a site to behold. However, the outside of the watches were traditional and one dimensional. Montblanc added variety to the overall appearance of the timepieces, Cabiddu said.

The company, formerly called Minerva, was known for its chronograph movements. Here is some the company's earlier chronograph pocket watches. Photo credit: Anthony DeMarco

“Our movements were always beautiful,” he said. “Montblanc added a diversification of the aesthetic.” 

The company still does repair work on antique watches that were built prior to Montblanc's ownership of the brand. Photo credit: Anthony DeMarco

But still he describes the timepieces they make as “understated luxury,” and added that Montblanc’s own history shows that it respects and enhances this philosophy. “Montblanc is not really big with being in your face.” 

This philosophy of beauty could certainly describe the town that now shares the company’s name. Very little seems to have changed in the countryside outside the building, yet its prosperity shows that it is able to adjust to changes in the world while maintaining its heritage. Looking out from the atrium just across the street is the yellow-colored house where the watch company was founded more than 150 years ago, now occupied by a new family. Beyond the house cows graze on a sheet of green. Past the meadow are the Jura mountains covered with the flaming reds, oranges and yellows that represent the leaves of autumn on this late October day. If that’s not enough, above the cliffs in the powder blue late afternoon sky is a crescent moon.

It’s a scene that one could easily describe as understated luxury.

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Richemont Reports Widespread Sales Growth Led by Jewelry Sales but Cautions on Future Profits

Cie. Financiere Richemont SA said Wednesday that sales for the five-month period ended August 31 increased 29 percent year-over-year, led by strong growth for all of its brands throughout all regions. At constant exchange rates, sales increased by 35 percent.

However, the company cautions that the rising Swiss franc and uncertain economic conditions make the remainder of the year difficult to predict. In a move to stop the surge of the Swiss franc against other currencies, the Swiss National Bank capped the franc’s rate against the euro at an exchange rate below 1.20 francs to help the country’s exports. The Swiss currency dropped more than 8 percent against the euro Tuesday. It is unclear whether the SNB’s decision played into Richemont’s outlook.

On a region-by-region basis, sales growth in Europe, the company’s largest market, was robust (up 21 percent), reflecting purchases made by local clients and tourists, the luxury goods company said. The Asia-Pacific region continues to lead the way with a 46 percent growth in sales for the period. This stems from sustained consumer confidence in that region and increased investment by the company in its brands (known as Maisons) and distribution networks. Sales growth in the Americas increased a notable 26 percent, year-over-year. Sales in Japan increased 7 percent, despite the aftermath of the natural disasters which struck that country in March.

Retail sales grew 37 percent due to the expansion of the Geneva-based company’s retail networks, particularly in the Asia-Pacific region, and strong growth at the e-commerce site, Net-A-Porter.

The company’s wholesale business increased 22 percent during the five-month period.
 
All brands enjoyed solid growth. Jewelry brands (Cartier and Van Cleef & Arpels) led the way with 34 percent growth in sales for the period. Sales at watch brands (Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis) grew 28 percent for the period. Montblanc sales increased 10 percent. Sales in a category listed as “Other” (Alfred Dunhill, Chloé, Lancel and Net-A-Porter.Com as well as other smaller brands and watch component manufacturing activities for third parties) increased 24 percent.

The company is also in a joint venture with Ralph Lauren’s watch and jewelry business.

Richemont’s net cash position for the period is 2.6 billion euros ($3.6 billion).

Richemont expects its sales and operating profit for the first six months of this year to be significantly higher than the comparative period.

“Based on the strengthening of the Swiss Franc between March 2011 and today, the Group will incur a significant translation loss on its cash balances,” the company said in a statement. Further, the accounting gain recognized in the comparative period relating to the acquisition of Net-A-Porter of € 101 million will not re-occur. Accordingly, Richemont expects attributable profit to be broadly in line with the prior year despite a significantly higher operating profit.”

Johann Rupert, Richemont executive chairman and Group CEO, added: “The rest of the financial year is difficult to predict. The problems of fiscal deficits generally and Euro zone difficulties in particular are likely to act as a drag on business prospects for companies in the period ahead, especially if the growth markets are affected. To hope for a continuation of the current good trading levels in such circumstances may be over-optimistic. In addition, we must keep in mind the demanding comparative figures against which sales in the coming six months will be measured.

“Moreover, the impact of the Swiss franc’s appreciation against the euro and other major currencies obviously poses a challenge for all Swiss exporters. For Richemont, with a significant production base, our headquarters and many of our Maisons located in Switzerland, the stronger Swiss franc will continue to be negative for our cost of sales and operating expenses, maintaining negative pressure on our margins.”

Richemont Expects Huge Sales and Profits as Hard Luxuries Continue to Sparkle

Montblanc boutique in Hamburg. Photo credit: Anthony DeMarco

A luxury slowdown in China, a European economy under constant crisis, and sluggish growth in the U.S. has failed to slow the growth in the sale of “hard luxuries” (jewelry and watches). The latest example is Geneva-based Compagnie Financière Richemont, which issued a statement Monday saying that it expects first half profits to rise from 20 percent to 40 percent, year-over-year.

Richemont—whose brands include Cartier, Van Cleef & Arpels, Montblanc and Vacheron Constantin—was required to make this statement prior to its sales and profits reports for the first half of the year. SIX Swiss Exchange requires that issuers make an immediate announcement when “the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior-year period.”

In accordance with these requirements Richemont said that sales for the four months ended in July rose 24 percent on a reported basis and 13 percent on a constant-exchange basis. Based on these results, Richemont’s said its operating profit for the six months ending September 30 is likely to show an increase of between 20 percent and 40 percent compared to the first six months of the last financial year.  Net profit for the same period may also increase by 20 percent and 40 percent.

Richemont sales for the five months ending August 31 will be announced on September 5 first-half results for period ending September 30 will be announced November 9.

This is the latest in financial reports that are revealing the resiliency and strength in hard luxuries.

* In late July, Paris-based LVMH reported revenue growth of 26 percent, year-over-year to $16 billion for the first half of 2012. Group profit rose 28 percent to $2 billion. The luxury group, whose jewelry and watch brands include Tag Heuer, Hublot and Bulgari, acquired in June 2011, reported that total jewelry and watch sales rose 113 percent to $1.6 billion, with Bulgari's revenue now included. Organic growth was 13 percent.

* A few days earlier, Swatch Group, the world’s largest watch company, said its watch and jewelry sales for the first half of 2012 increased 16.7 percent to $3.42 billion, year-over-year. The company owns 19 watch and jewelry brands in all market segments, including Swatch, Breguet and Longines.

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Richemont Q3 Revenue Up 24%

The Cartier store on 5th Avenue in New York. One of Richemont's luxury brands.

Luxury goods conglomerate Cie. Financiere Richemont SA said Monday that third quarter revenue increased 24 percent year-over-year to 2.62 billion euros ($3.32 billion) with all regions and nearly all of its brands reporting double-digit increases.

Revenue for the month of December alone rose 21 percent, compared with the same period of the prior year.

“The group’s overall performance remains solid,” said Johann Rupert, executive chairman and Group CEO. “The group’s activities over the past nine months enable us to reconfirm our expectations that operating profit for the full year will be significantly higher than last year.”

The largest increase for the Geneva-based company by region was is Asia, which reported a 36-percent rise for the period to 1.05 billion euros ($1.33 billion). Asia is now the company’s biggest market accounting for about 40 percent of total sales.

Europe, its second-largest market, saw sales increase 15 percent for the period to 914 million euros ($1.15 billion). In the Americas, revenue rose 24 percent to 382 million euros ($484 million). In Japan, revenue increased 10 percent to 272 million euros.

Among its jewelry brands (Cartier and Van Cleef & Arpels) sales rose by 25 percent to $1.36 billion ($1.72 billion).

In its specialist watchmakers division (Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture) sales increased 27 percent to 697 million euros ($884 million).

Montblanc, listed as a separate division was the only brand to post less than double-digit gains for the period at 1 percent growth to 220 million euros ($279 million).

Among brands Alfred Dunhill, Lancel, Net-a-Porter and Chloé, listed as “Other” by the company, sales rose 29 percent to 339 million euros ($430 million).