LVMH records strong growth in 20121st February, 2013 by Andy Young
Louis Vuitton Möet Hennessy (LVMH) recorded revenue of €28.1 billion in 2012, an increase of 19% compared to 2011.
The luxury products group saw organic revenue growth of 9% and all its business groups enjoyed “excellent momentum” in Europe, Asia and the US.
The wine and spirits arm of LVMH recorded organic revenue growth of 11% and profits from “recurring operations” increased by 14%. Demand for LVMH wines and spirits remained strong in 2012, which continued the favourable trend for the market from 2011.
Bernard Arnault, chairman and CEO of LVMH, said: “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe. All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones.”
The company also said that “improved product mix and a policy of adjusted price” worked in addition to volume growth to help LVMH’s strong performance in the wine and spirits market.
Sparkling and still wines from the group’s Estates and Wines division experienced strong growth, while Champagne recorded a “strong performance” in its rosé and prestige vintages.
On the spirits side of the business LVMH reported that Hennessy Cognac saw a “very good year in all regions”, while Belvedere vodka enjoyed “good momentum outside the US”. The single malt whiskies Glenmorangie and Ardbeg recorded “rapid increases” in their key markets.
Arnault added: “Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy. In 2013, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
The good figures from LVMH followed a similarly strong performance for Diageo, which reported its half-yearly results on Thursday.