Johan Rupert, South Africa’s wealthiest individual and the current richest person in Africa according to Forbes’ real-time billionaire index, has seen a major rise in his net worth, gaining $2.7 billion in just one month.
At the beginning of January, Rupert’s wealth was estimated at $11.3 billion an offshoot from December’s data on Africa’s richest, according to a report by Nairametrics.
However, as of Thursday, February 6, 2025, new assessments place his fortune at $14 billion, surpassing Nigerian billionaire Aliko Dangote, whose net worth stands at $10.9 billion.
The 74-year-old tycoon, who built his fortune through luxury goods conglomerate Compagnie Financière Richemont SA, has benefitted from a significant appreciation in the company’s stock.
Over the past month, Richemont’s shares have soared by 27.36%, contributing to the dramatic boost in Rupert’s net worth.
Some context on Rupert’s networth rise
On Wednesday, Morgan Stanley analysts upgraded Richemont’s stock rating from Equal-weight to Overweight, signaling strong growth prospects for the company.
- The investment bank also raised its price target for Richemont shares from CHF 148.00 to CHF 200.00, citing the company’s robust financial health and positive momentum.
- Richemont’s stock currently trades at CHF 177.10, marking a 28% year-to-date return and approaching its 52-week high of $19.61.
- Analysts highlight the company’s strong financial position, with a current ratio of 2.52 and an impressive 67.6% gross profit margin.
Morgan Stanley’s bullish stance on Richemont is driven by three key factors: the company’s resilient financials, the potential for multiple expansions in its stock valuation, and revised earnings estimates for fiscal years 2025 to 2027 that exceed market consensus.
What we know about Richemont’s market performance
The Swiss luxury group, best known for its brands Cartier, Buccellati, Van Cleef & Arpels, and Vhernier, reported €6.15 billion ($6.32 billion) in third-quarter sales, marking a 10% year-over-year increase.
- Strong performance in jewelry sales helped offset a decline in watch sales, a segment that has been impacted by shifting consumer trends.
- Regionally, Richemont registered double-digit growth in the Americas, Europe, the Middle East & Africa, and Japan.
- However, sales in Asia Pacific continued to face challenges, declining 18%, largely due to ongoing economic difficulties in China, Hong Kong, and Macau.
China, a key driver of luxury goods sales in recent years, has been grappling with an economic slowdown, affecting discretionary spending among affluent consumers. While Richemont’s performance remains strong in other markets.