LVMH posts 6% boost despite drinks slipBy Lauren Eads
LVMH Moët Hennessy Louis Vuitton’s organic revenue rose by 6% in the first quarter compared to last year, despite sales of its wine and spirits dropping by 3%.
Overall, the company’s revenue increased by 4% to €7.2 billion in the first quarter of 2014, with organic growth rising by 6% compared to the same period last year with strong growth in both the US, Asia and Japan.
This rise was largely boosted by sales of its fashion and leather goods brands which saw an organic growth of 9%, however wines and spirits slumped by 3%.
The sector’s drop was attributed to a lacklustre performance of Cognac in China, linked to current destocking by retailers, however “solid growth” of the spirit was seen in the US.
Other spirits, including Glenmorangie and Belvedere, recorded good growth in volumes while Champagne too, the prestige vintages in particular, recording strong growth.
A spokesperson said: “In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution. The Group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenue to increase, once again in 2014, its leadership of the global high quality goods market.”
LVMH is responsible for wine and spirits brands including Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, , Château Cheval Blanc, Hennessy and Glenmorangie.