Table of Contents
Key Points
- Johann Rupert’s net worth falls from $13.65 billion to $12.9 billion, due to Richemont share price decline.
- Aliko Dangote regains Africa’s richest title as Rupert slides; Dangote’s net worth increased to $13.8 billion, moving him to 140th globally.
- Richemont’s stock has declined 11% over the past month, driven by weak sales, underperformance in the Asia Pacific region, and a broader market downturn.
South Africa’s richest individual Johann Rupert, the chairman of Swiss luxury goods conglomerate Richemont, has experienced a dramatic decline in his fortune since briefly holding the title of Africa’s richest man on August 2.
According to Bloomberg’s real-time billionaire index, Rupert’s net worth has fallen by $750 million, from $13.65 billion to $12.9 billion, as of the latest update.
Aliko Dangote reclaims top spot as Rupert slides
Rupert’s recent financial slip has relegated him back to his previous position as the second-richest man in Africa. Nigerian billionaire Aliko Dangote, whom Rupert surpassed last Friday, has seen his net worth rise by $200 million, increasing from $13.6 billion to $13.8 billion. Dangote’s improved fortune has secured him the 140th spot on the global richest list, while Rupert now ranks 159th.
A substantial portion of Rupert’s wealth is tied to his holdings in Richemont. Rupert owns 6.26 million “A” shares and 522 million “B” shares in the company, which translates to a 10.18 percent stake and 51 percent voting rights. The recent decline in his net worth is attributed to the decrease in his Richemont stake, which fell from $9.41 billion to $8.93 billion.
The drop in Richemont’s share price has been significant, with shares falling nearly 4 percent since August 5. This decline reflects a broader downturn in global equities, exacerbated by weak U.S. economic data that has intensified recession fears.
Richemont shares tumble as sales miss expectations
Richemont, known for luxury brands such as Cartier and Van Cleef & Arpels, has seen a steady decline in its share price since mid-July, following the release of its first-quarter fiscal 2024 sales report. The company’s shares have declined by over 11 percent in the past month alone.
The company reported sales of €5.27 billion ($5.74 billion) for the three months ending June 30, 2024—a slight decrease at actual rates but a 1 percent increase at constant exchange rates compared to the previous year’s €5.32 billion ($5.8 billion).
Notably, Richemont experienced growth across all regions except Asia Pacific. Sales in the Asia Pacific region fell by 18 percent to €1.81 billion ($1.97 billion), primarily due to a 27 percent drop in China, Hong Kong, and Macau. This decline reflects low consumer confidence and challenging comparisons to the strong growth recorded in the prior year.
