LVMH posts strong 9-month performance

Luxury drinks and consumer products producer LVMH recorded a 6% organic increase in revenue, reaching €25.3 billion (£18.8bn) for the first nine months of 2015.

Champagne performed particularly well for the LVMH group, with 5% volume growth posted over the period (photo: LVMH)

The wines and spirits division recorded organic revenue growth of 7% in the first nine months of 2015.

The division behind top-end brands like Moët & Chandon Champagne, Hennessey Cognac and Glenmorangie Scotch whisky accelerated its performance in its latest quarter, growing organic revenues by 16% in the three months to 31 September.

Champagne performed particularly well, despite stiff competition by in-vogue Prosecco, with volumes growing by 5% over the nine-month period.

Hennessy Cognac, which increased its volumes by 12%, saw “a strong rebound in shipments to China and continued excellent momentum in the United States”, the company said in a statement.

Belvedere vodka and Glenmorangie “continue to grow rapidly”, it reported.

However, overall the company continues to suffer in Asia. While its three other main markets – the US, Japan and Europe – posted low double-digit revenue growth for the nine-month period, Asian revenues shrank by 6% on the same period last year.

“With organic revenue growth of 7% for the third quarter, the trend remains comparable to that recorded in the first half of the year. The Group continues to deliver strong growth in Europe and the United States, and is seeing an acceleration in Japan,” LVMH said.