LVMH wine and spirits revenues up 7%

Luxury goods group LVMH Moët Hennessy Louis Vuitton has reported total revenues of €17.2 billion in the first half of 2016, an increase of 3% on the previous year, with its wine and spirits revenues up 7%.

LVMH reported a 7% increase in revenues generated by its wine and spirits portfolio

Strong growth in the US and “improved momentum” in China were credited with helping boost revenues within its wine and spirits portfolio, which achieved the biggest jump in growth of LVMH’s business groups, beating perfumes and cosmetics, fashion and jewellery.

Profits generated by the group’s wine and spirits brand’s increased by 17% to €565 million.

The group’s Champagne portfolio, which includes Moët & Chandon, Dom Pérignon and Krug, was said to have performed particularly well in Europe and the US, with prestige vintages highlighted as the category’s key driver.

Other brands owned by LVMH include Glenmorangie, Ardbeg, Belvedere vodka and Hennessy Cognac.

Hennessy recorded strong growth in the American market while momentum improved in China following 2015, which was marked by a period of de-stocking by distributors.

Overall, the group’s total revenues increased by 3% to €17.2bn, while the group’s net profits totalled €1.7bn – an increase of 8% on the previous year.

“LVMH’s results for the first half of 2016 reflect, more than ever, the strength of our business model, which allows us to continue to grow even during an unstable geopolitical environment and economic and monetary uncertainties”, said Bernard Arnault, chairman and CEO of LVMH.

“The diversity of our businesses, the entrepreneurial style of our brands and the agility of our organization all contribute to the growth of the Group. By remaining vigilant, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products in 2016.”