11th April, 2017 by Arabella Mileham
Strong spirit sales helped boost revenues across French luxury group LVMH Moët Hennessy Louis Vuitton, the company reported today, with Champagne also seeing growth.
The company saw a good performance across its wines and spirits brands in the first quarter of 2017, with double digit organic revenue growth across the business.
Overall Wine and Spirits revenue grew 15.8% to €1,196 million, compared to €1,033 million in 2015, buoyed by particularly strong spirit sales. There was double digit growth in cognac and spirits, rising nearly 20% to €757 million, up from €632 million a year ago. Cognac brand Hennessey saw volumes up 20%, although it noted potential problems with stocks. The continued development of Glenmorangie and Belvedere were also highlighted, and LVMH confirmed there was recovery in China, as well as good momentum in the US.
Champagnes and wines also grew, albeit less sharply, rising 9.5% to €439, up from €401 million last year. Champagne volumes were up 7%, and there was a “solid performance” across both Europe and the US for its wines, it said.
There was an overall organic growth of 13%, and a positive currency effect contributing 3% across its wine and spirits portfolio.
Overall revenue across the LVMH group reached €9,884 million over the quarter, up from 8,620 milllion in the same period last year. There was strong growth in Asia, up 20% to around 31% of the total revenue, followed by Europe, excluding France, up +20%, and the united States up 9%.
It was, the company statement said a “good start to the year in a very uncertain environment”, but it retained a cautious stance for the rest of the year.