‘Good start to the year’ for wine reports LVMH

The Wines & Spirits division of French luxury group Louis Vuitton Moët Hennessy enjoyed a “good start to the year”, with strong growth for Hennessy Cognac in particular.

Overall, the group recorded revenue of €21.8 billion in the first half of 2018, an increase of 10% while organic growth was 12% versus the same period in 2017 and would have been higher (up 14%) if it hadn’t been for the termination of the Hong Kong airport concessions at the end of last year.

The US, Europe and Asia all recorded good growth and profit from recurring operations was €4.6 million, an increase of 28%.

For Wines & Spirits revenue for the first half of 2018 was €2.2m, a decrease of -1% compared to the same period last year but showing organic revenue growth of 7% as profits also rose by that much from €681m in H1 2017 to €726 in H1 2018.

The group reported, “strong momentum in China and good progress in European the United States, despite supply constraints”.

Prestige Champagne was reported to be “dynamic” while Hennessy Cognac showed growth in the US despite a “tight supply environment”.

Bernard Arnault, chairman and CEO of LVMH, commented on the group’s performance: “The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy. The performance of the first half is even more remarkable given the unfavourable currency environment. The standards of quality and creativity required from our Maisons, which combine both modernity and tradition, are key to LVMH’s success, always driven by a long-term vision.

“Despite buoyant global demand, monetary and geopolitical uncertainties remain. In this context, we will stay vigilant and rely on the talent of our teams and the shared entrepreneurial passion to further increase our leadership in the world of high quality products in 2018.”