LVMH sees double digit growth across the board, except for wines and spirits

Luxury goods company LVMH saw organic revenues grow 12% in the first nine months of 2017, with its wine and spirits division holding firm, despite being the only part of its business to not achieve double digit growth in this period.

Overall, LVMH Moët Hennessy Louis Vuitton recorded a 14% increase in revenue reaching €30.1 billion for the first nine months of 2017, with organic revenues up 12% compared to the same period in 2016.

Individually, all business groups recorded double-digit organic growth, with the exception of wines and spirits, whose progress was “limited by supply constraints”, the group said.

Wines and Spirits achieved revenues of €3.5 billion, an organic increase of 8%, compared with Fashion and Leather Goods (14%), Perfumes and Cosmetics (14%) and Watches and Jewellery (13%).

“Champagne volumes were up 4%, with particularly strong demand in Europe and Japan,” the company states.

“Hennessy Cognac has been performing well since the beginning of the year. The volume increase was 9% for the first nine months of 2017, despite a third quarter decline related to supply constraints. Higher qualities progressed well.”

It follows a slightly stronger performance of its wine and spirits division in July, when the business group recorded organic growth revenue of 10% from January to June, compared to the same period in 2016.

“In an uncertain geopolitical and currency environment, LVMH will continue to be vigilant,” the group added in a statement.

“The Group will pursue its strategy focused on innovation and targeted geographic expansion in the most promising markets. LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2017.”