It has been another record year for luxury products group LVMH Moet Hennessy Louis Vuitton.
Revenue increased by 13 per cent year on year to reach €42.6 billion (US$52.9 billion), while organic revenue growth was 12 per cent.
All business groups recorded double-digit organic growth with the exception of wines and spirits, where second-half growth was hit by supply constraints.
Profit from recurring operations reached €8.2 billion, up 18 per cent. Operating margin reached 19.5 per cent, while the group share of net profit was €5.1 billion, growth of 29 per cent.
Describing the performance as “excellent”, LVMH chairman/CEO Bernard Arnault says the record year was partly because of a buoyant environment but above all a result of the creative strength of the group’s brands “and their ability to constantly reinvent themselves”.
Key highlights of last year listed by the group include:
● Record revenue and profit from recurring operations.
● Growth in Asia, Europe and the US.
● The success of both iconic and new products at Louis Vuitton, “whose profitability remains at an exceptional level”.
● The acquisition of Christian Dior Couture.
● Growth at Fendi and Loro Piana.
● The first year of integration of Rimowa luggage.
● Strong momentum at Parfums Christian Dior, driven by product innovation.
● An excellent year for Bulgari and good progress at Hublot and Tag Heuer.
● Growth at Sephora.
● Free cashflow of €4.7 billion, up 20 per cent.
“Significant” growth in China helped Hennessy cognac volumes grow by 8 per cent, with 7.5 million cases shipped despite the second-half supply constraints.
In fashion and leather goods, key events of the year were products arising from collaborations with artist Jeff Koons as well as the Supreme brand, the launch of the brand’s first smartwatch and the inauguration of the Maison Louis Vuitton Vendome in Paris.
There was rapid growth in Asia for the perfumes and cosmetics segment, and growth was particularly strong in Asia for Bulgari. Asia again shone in the selective retailing group with Sephora continuing to gain market share.
LVMH says the year was a positive turning point for DFS, with new stores in Cambodia and Italy continuing to grow sales.
Despite unfavourable currencies and geopolitical uncertainties, LVMH says it is well equipped to continue its growth momentum across all business groups this year.