LVMH posts 9% rise in wine and spirit profits31st January, 2014 by Lauren Eads
Moët Hennessy Louis Vuitton (LVMH) has toasted a successful 2013 recording a total revenue of €29.1 billion – a 4% increase on the previous year.
The French-owned luxury goods conglomerate, responsible for luxury drinks brands including Château d’Yquem, Dom Pérignon and Veuve Clicquot, saw an organic revenue growth of 8% with the group maintaining its hold in the United States and Asia, and reported continued growth in Europe, despite a “challenging economic environment”.
The company said it had seen “remarkable performance” within the wine and spirits sector which saw revenue increase by 1%, representing organic growth of 6%, while profits within the sector increased by 9%.
The group said the Champagne market had seen “sustained demand for its prestige vintages”, while sparkling and still wines from Estates & Wines had recorded “solid performances”.
Bernard Arnault, chairman and CEO of LVMH, said: “2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets. Profit from recurring operations exceeded €6 billion for the first time.
“A significant event during the year was the acquisition of Loro Piana, a company famous for its unrivalled work with cashmere and rare textiles, and with which we share the same values of family and craftsmanship. All our brands have proven to be exceptionally dynamic. 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 2014, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”