FDBusiness.com

LVMH, the world’s leading luxury products group, reported a 5% rise in revenue to €37.6 billion for 2016, helped by a 5% increase in sales at Moët Hennessy, its Wines & Spirits division, to €4.84 billion. The Wines & Spirits business recorded an increase in organic revenue of 7 %. Profit from recurring operations increased by 10% to €1.50 billion.

With volumes up 3%, solid growth is continuing for champagne and prestige cuvees performed particularly well during 2016. Hennessy cognac enjoyed an excellent year with 10% volume growth. The American market is growing well and China saw better momentum after a tough 2015 due to destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued their growth.

“LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability,” says Bernard Arnault, chairman and chief executive of LVMH. “In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.”