Date£º
2015-07-30 13:55 Source£º
thedrinksbusiness Author:
Rupert Millar Translator:
Louis Vuitton Moet-Hennessy's Q2 results have "far outpaced"analysts'predictions on the back of strong fashion and drinks sales.
The French luxury group announced revenue of €16.7 billion in the first six months of this year, an increase of 19%. Organic revenue was up 6% on the same period in 2014.
Strong growth was, for once, particularly strong in Europe and the US -helped by a weak euro and strong dollar -and the group reported that the wines and spirits division grew in all regions save China where "destocking of distributors"is still on-going.
Organic revenue for the wines and spirits arm rose 2% between the first half of 2014 and first six months of 2015 from €1.6m to €1.9m, while profits rose 5% over the same period from €461m to €482m.
The group reported that: "The Champagne business had a good start to the year, driven by the progress of the prestige vintages, particularly in Europe and Japan. "Despite the continued destocking by distributors in China, the second quarter saw a return to organic revenue growth for Hennessy thanks to the sustained strong performance in the US market. Other spirits, Belvedere and Glenmorangie continue their development."
Bernard Arnault, chairman and CEO of LVMH, commented: "The excellent results of the first half are witness to the efficiency of our strategy, which relies upon the strength of our brands and a very entrepreneurial style of management. Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products."