LVMH wine and spirits suffer in 2014By Neal Baker
Luxury producer LVMH has posted a 16% drop in profits and a 5% drop in revenue for its wine and spirits division in 2014, blaming the Chinese Cognac downturn.
Revenue for wines and spirits dropped from €4.17 billion to €3.97 bn, while profits fell from €1.37bn to €1.15bn.
Accounting for changes in currency rates and the structure of the business, the wines and spirits business group recorded a decrease in organic revenue of 3% in 2014.
However, Hennessy performed well in the US, whole other spirits Glenmorangie and Belvedere “continue their development”. As for Champagne, the American and Asian markets “benefited from strong demand” according to LVMH.
Bernard Arnault, Chairman and CEO of LVMH, said, “In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen our leadership in the world of high quality products.”