Champagne and spirits boosts LVMH growth
French luxury goods group LVMH Moët Hennessy Louis Vuitton reported organic growth of 7% of its wine and spirit portfolio in the first 9 months of the year, on the back of strong spirit and Champagne growth.
The wines & spirits business, which accounts for around 12% of the company’s revenue, rose 5% on a reported, or 7% on an organic basis to €3.281 billion, up from €3.129 billion in the same period last year.
Overall sales grew 4% on a reported and 5% on an organic basis over the 9 months, rising to €26.32 billion, with a marked acceleration in the third quarter compared to the beginning of the year trends, up 6%, the third quarter.
There was strong growth for its Hennessy cognac brand among its ‘prestige brands’ up 9% by volume, it noted, and the group’s Champagne portfolio, which includes Moët & Chandon, Dom Pérignon, Veuve Cliquot and Krug also showing a good performance, rising 3%.
The French luxury goods group also noted further strong growth across the US as well as an improvement in China, which it said were demonstrating “better dynamics” in the first three quarters of the year following last year’s destocking. In February it credited a rebound in China to boosting its overall sales.
In Scotch, it highlighted Glenmorangie, and vodka brand Belvedere as showing good growth.
“In an uncertain geopolitical and monetary environment, LVMH will continue its strategy focused on innovation and targeted geographical expansion in the most promising markets,” a statement said. “LVMH will rely on the dynamism of its brands and the talent of its teams to further strengthen in 2016 its leadership of the global luxury market.”
In July the company reported total revenues of €17.2 billion in the first half of 2016, an increase of 3% on the previous year, with its wine and spirits revenues up 7%.
Other brands owned by LVMH include Ardbeg, Belvedere vodka and Hennessy Cognac and wine brands Cloudy Bay and Château d’Yquem.