Strong Performance by LVMH Wines and Spirits Business
Helped by a strong performance from its Moet Hennessy wines and spirits business, LVMH, the world’s leading luxury products group, increased revenue by 19% to Eur28.1 billion in 2012, and profit from recurring operations by 13% to Eur5.92 billion.
Bernard Arnault, Chairman and CEO of LVMH, says: “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe. All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy. In 2013, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
Moet Hennessy recorded organic revenue growth of 11% to Eur4.14 billion. Profit from recurring operations increased by 14% to Eur1.26 billion. Continuing the favorable trend for the wines and spirits market in 2011, demand remained strong in 2012. In addition to volume growth, improved product mix and a policy of adjusted price contributed to the strong performance.
Champagne recorded a strong performance in its rosé and prestige vintages. Sparkling and still wines from Estates & Wines experienced strong new growth. Hennessy cognac saw a very good year for all its qualities and in all regions. Belvedere vodka enjoyed good momentum outside the US while the single malt whiskeys Glenmorangie and Ardbeg recorded rapid increases in their key markets.
