‘Solid growth’ of Hennessy supports LVMH sales

Sales of high-end wine and spirits have performed well at luxury goods group LVMH, which reported revenues of more than €25 billion in the first half of 2019.

Champagne performed particularly well for the LVMH group (Photo: LVMH)

LVMH recorded revenue of €25.1 billion euros in the first half of 2019, up 15%. Organic sales growth was 12% compared to the same period in 2018.

The US, Asia and Europe saw good growth in H1, and a rebound in France in the second quarter.

Profit from recurring operations was €5.3 billion for the first half of 2019, an increase of 14%.

Wine and spirits growth also helped the company, which owns Moët & Chandon, Krug, Veuve Clicquot, Hennessy and Château d’Yquem, report organic sales growth of 6% to reach €2.48 billion. This, it said, was a result of “a strong policy of innovation and targeted investments in communication.”

The company performed well in key markets such as the US, China and travel retail, as well as recording growth in Africa and the Caribbean.

In its Champagne business, prestige vintages saw strong growth, while its price increase policy continued throughout the range.

The company also highlighted its recent acquisition of Provence winery Chateau du Galoupet.

Dating back to the 17th Century, the estate covers 68 hectares of vineyards, mainly producing rosé wine.

CEO Bernard Arnault said the group had made an “excellent start to the year,” and will “continue to manage costs and remain vigilant into the second half.”

“We are therefore entering the second half of the year with confidence and count on the talent of our teams and their shared entrepreneurial passion to further increase, once again in 2019, our leadership in the world of high-quality products.”