Paris, 28 July 2015
LVMH Moët Hennessy Louis Vuitton,
the world's leading luxury products group, recorded revenue of
€16.7 billion in the first half of 2015, an increase of 19%.
Organic revenue growth was 6% compared to the same period in 2014.
The Group recorded strong growth in Europe and the United States.
Louis Vuitton had an excellent start to the year. Wines and Spirits
continued to grow despite destocking of the distribution in
China.
In the second quarter, revenue
increased by 23% compared to the same period in 2014. Organic sales
growth was 9% marking an increase from the first quarter.
Profit from recurring operations
was €2 955 million for the first half of 2015, an increase of 15%,
to which all the business groups contributed. Group share of net
profit amounted to €1 580 million.
Bernard Arnault, Chairman and CEO
of LVMH, commented:
"The excellent results of the
first half are witness to the efficiency of our strategy, which
relies upon the strength of our brands and a very entrepreneurial
style of management. Building on the first half performances, 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."
Highlights of the first half of
2015 include:
-
Solid growth in Europe and the United
States,
-
Strong positive exchange rate effect,
-
Good performance from Wines and Spirits in all
global regions with the exception of China, impacted by the
continued destocking of distributors,
-
Double-digit organic revenue growth in the
second quarter for Fashion & Leather Goods
-
Major success of new products at Louis Vuitton,
where profitability remains at an exceptional level,
-
Continued investment in the fashion
brands,
-
Excellent performance at Parfums Christian
Dior,
-
Strong growth in Bvlgari's results and the
continued repositioning of TAG Heuer on its core offering,
-
Remarkable momentum at Sephora which is
strengthening its position in all operating regions and in the
digital universe,
-
DFS continues to be impacted by the currency and
geopolitical environment in Asia,
-
Cash from operations before changes in working
capital of €3.4 billion,
-
Net debt to equity ratio of 25% as of the end of
June 2015.
Key figures
Euro millions |
First half 2014 |
First half 2015 |
% change |
Revenue
Profit from recurring operations
Group share of net profit
Cash from operations*
Net Financial Debt
Total Equity |
14 009
2 576
1 509
3 140
6 470
28 604 |
16 707
2 955
1 580
3 368
6 034
24 445 |
+ 19 %
+ 15 %
+ 5 %
+ 7 %
- 7 %
ns** |
* Before changes
in working capital.
** The amount at June 30,
2014 did not include the impact of the Hermès transaction at the
end of the year
Revenue by
business group:
Euro millions |
First half 2014 |
First half 2015 |
% change Reported Organic* |
Wines & Spirits |
1 677 |
1 930 |
+ 15 % |
+ 2 % |
Fashion & Leather Goods |
5 030 |
5 933 |
+ 18 % |
+ 5 % |
Perfumes & Cosmetics |
1 839 |
2 159 |
+ 17 % |
+ 6 % |
Watches & Jewelry |
1 266 |
1 552 |
+ 23 % |
+ 10 % |
Selective Retailing |
4 382 |
5 291 |
+ 21 % |
+ 5 % |
Other activities and eliminations |
(185) |
(158) |
- |
- |
Total LVMH |
14 009 |
16 707 |
+ 19 % |
+ 6 % |
* With comparable
structure and constant exchange rates. The exchange rate impact is
+13%.
Profit from recurring
operations by business group:
Euro millions |
First half
2014 |
First half
2015 |
% change |
Wines & Spirits |
461 |
482 |
+ 5
% |
Fashion & Leather Goods |
1 487 |
1 661 |
+ 12
% |
Perfumes & Cosmetics |
204 |
248 |
+ 22
% |
Watches & Jewelry |
107 |
205 |
+ 91
% |
Selective Retailing |
398 |
428 |
+ 7 % |
Other activities and eliminations |
(81) |
(69) |
- |
Total LVMH |
2 576 |
2 955 |
+ 15 % |
Wines &
Spirits: strong momentum in the United States, recovery in Europe
and continued destocking by distributors in China
The Wines &
Spirits business group recorded organic revenue growth of 2%.
On a reported basis, revenue growth was 15% and profit from
recurring operations increased by 5%. The champagne business had a
good start to the year, driven by the progress of the prestige
vintages, particularly in Europe and Japan. Despite the continued
destocking by distributors in China, the second quarter saw a
return to organic revenue growth for Hennessy thanks to the
sustained strong performance in the US market. Other spirits,
Belvedere and Glenmorangie continue their development.
Fashion &
Leather Goods: excellent creative momentum at Louis Vuitton and
further strengthening of other brands
The Fashion &
Leather Goods business group recorded organic revenue growth of
5% in the first half of 2015, with accelerated growth in the second
quarter. On a reported basis, revenue growth was 18% and profit
from recurring operations increased by 12%. Louis Vuitton continued
to illustrate its creative momentum across its collections. Leather
goods experienced strong growth with the success of models in
Monogram and new leather lines. Nicolas
Ghesquière's runway shows in symbolic locations received an
enthusiastic welcome. Loro Piana continued its development and
benefited from new store openings. Fendi recorded an excellent
performance, in particular in leather goods and accessories.
Céline, Givenchy and Kenzo experienced strong growth. Marc Jacobs
and Donna Karan continued the repositioning of their collections.
Other brands are further strengthening their positions.
Perfumes &
Cosmetics: continuous innovation and increasing market
share
The Perfumes
& Cosmetics business group recorded organic revenue growth
of 6%. On a reported basis, revenue growth was 17% and profit from
recurring operations increased by 22%. Demonstrating remarkable
momentum in their competitive environment, LVMH brands gained
market share. Christian Dior's iconic lines J'adore and Miss Dior continued to
show their exceptional strength. The launch of a new men's
fragrance will mark the second half of the year. Guerlain furthered
its progress with the confirmed success of La
Petite Robe Noire and the rapid development of Abeille Royale. Benefit, Make Up
For Ever and Fresh reinforced their excellent performances.
Watches &
Jewelry: strong growth in jewelry and cautious purchasing behavior
of multi-brand watch retailers
In the first half of 2015, the
Watches & Jewelry business group recorded
organic revenue growth of 10%. On a reported basis, revenue growth
was 23% and profit from recurring operations increased by 91%.
Bvlgari had an excellent first half driven by the success of its
iconic jewelry lines and its new watch for women, Lvcea. Hublot showed strong progress while TAG Heuer
continued to refocus on its core offering. A partnership was
concluded between TAG Heuer, Google and Intel for the launch of a
smartwatch.
Selective
Retailing: remarkable performance at Sephora and DFS still impacted
by the currency and geopolitical environment in Asia
The Selective
Retailing business group recorded organic revenue growth of 5%.
On a reported basis, revenue growth was 21% and profit from
recurring operations increased by 7%. DFS relied on its unique
expertise in "travel retail" to address the more difficult context
that persists in Asia, linked to the currency and geopolitical
environment.
Sephora achieved strong growth and continued to gain market share
in its key countries, particularly France, the United States,
Canada and China and continued the expansion of its distribution
network. It also increased its lead in the development of a
multichannel experience for its clients through its rapid increase
in online sales and numerous digital initiatives.
Outlook
2015
Despite the context of economic
and currency uncertainties, LVMH will continue to gain market share
thanks to the numerous product launches planned before the end of
the year and its geographic expansion in promising markets, while
continuing to manage costs.
Our strategy of focusing on
quality across all our activities, combined with the dynamism and
unparalleled creativity of our teams, will enable us to reinforce,
once again in 2015, LVMH's global leadership position in luxury
goods.
An interim dividend of 1.35 Euro
will be paid on December 3, 2015.
Regulated
information related to this press release, the half year results
presentation and the half year financial statement are available on
our internet site www.lvmh.com
Limited review
procedures have been carried out, the related report will be issued
following the Board meeting.
ANNEXE
LVMH - Revenue by
business group and by quarter
First Half
2015
(euro millions) |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective
Distribution |
Other
Activities & Eliminations |
Total |
First quarter |
992 |
2
975 |
1
094 |
723 |
2
656 |
(117) |
8 323 |
Second quarter |
938 |
2 958 |
1 065 |
829 |
2 635 |
(41) |
8 384 |
Total revenue |
1 930 |
5 933 |
2 159 |
1 552 |
5 291 |
(158) |
16 707 |
First Half
2014
(euro millions) |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective
Distribution |
Other
Activities & Eliminations |
Total |
First quarter |
888 |
2
639 |
941 |
607 |
2
222 |
(91) |
7 206 |
Second quarter |
789 |
2 391 |
898 |
659 |
2 160 |
(94) |
6 803 |
Total revenue |
1 677 |
5 030 |
1 839 |
1 266 |
4 382 |
(185) |
14 009 |
LVMH
LVMH Moët Hennessy Louis Vuitton is represented in
Wines and Spirits by a portfolio of brands that includes Moët &
Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart,
Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château
Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wen Jun, Belvedere,
Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape
Mentelle, Newton et Numanthia. Its Fashion and
Leather Goods division includes Louis Vuitton, Céline, Loewe,
Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan,
Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana.
LVMH is present in the Perfumes and Cosmetics
sector with Parfums Christian Dior, Guerlain, Parfums Givenchy,
Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic
companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and
Fresh). LVMH is also active in selective retailing as well as in
other activities through DFS, Sephora, Le Bon Marché, la
Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division
comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred,
Hublot and De Beers Diamond Jewellers Ltd, a joint venture created
with the world's leading diamond group.
"Certain
information included in this release is forward looking and is
subject to important risks and uncertainties and factors beyond our
control or ability to predict, that could cause actual results to
differ materially from those anticipated, projected or implied. It
only reflects our views as of the date of this presentation. No
undue reliance should therefore be based on any such information,
it being also agreed that we undertake no commitment to amend or
update it after the date hereof."
Contacts: |
|
|
Analysts
and investors: |
Chris
Hollis
LVMH |
+ 33 1.4413.2122 |
|
|
|
Media: |
|
|
France : |
Michel
Calzaroni/Olivier Labesse/
Sonia Fellmann/Hugues Schmitt |
+ 33 1.4070.1189 |
|
DGM Conseil |
|
|
|
|
UK: |
Hugh
Morrison |
+ 44.773.965 5492 |
|
|
|
Italy: |
Michele
Calcaterra/ Matteo Steinbach |
+39 02 6249991 |
|
SEC and Partners |
|
US: |
James
Fingeroth/Molly Morse/
Anntal Silver |
+1 212.521.4800 |
|
Kekst & Company |
|
PDF version
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: LVMH via Globenewswire
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