‘Good start to the year’ for LVMH drinks

The wines and spirits division of French luxury group Louis Vuitton Moët Hennessy has got off to a good start to the year with revenue rising to over €2 billion.

In its H1 report LVMH announced that the wine and spirits arm recorded organic growth revenue of 10% from January to June, compared to the same period in 2016, a rise from €2bnn to €2.2bn.

Profits from recurring operations grew 21% meanwhile from €565 million in the first half of 2016 to €681m in the first six months of this year.

The group reported that all of its Champagne houses performed well, with Europe and the US proving particularly dynamic.

Hennessy Cognac meanwhile continued to show growth in the US and demand was “recovering” in China.

However, LVMH also noted that: “The second half of the year is expected to experience a slowdown in volume growth given the existing supply constraints.”

Overall the group reported revenue of €19.7bn in the first half of the year, an increase of 15%.

Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent first half, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our group, have more than ever become benchmarks for all.

“The increasing digitalisation of our activities furthermore reinforces the quality of the experience we bring to our customers. In an environment that remains uncertain, we approach the second half of the year with caution.

“We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017.”