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
14 009 16 707 + 19 % Profit from
recurring operations 2 576 2 955 + 15 % Group share of net profit 1
509 1 580 + 5 % Cash from operations* 3 140 3 368 + 7 % Net
Financial Debt 6 470 6 034 - 7 % Total Equity
28 604 24 445 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
First half
% change
2014
2015
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.”
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version on businesswire.com: http://www.businesswire.com/news/home/20150728006415/en/
LVMHAnalysts and investors:Chris Hollis+ 33
1.4413.2122orMedia:DGM ConseilFrance:Michel
Calzaroni/Olivier Labesse/Sonia Fellmann/Hugues Schmitt+ 33
1.4070.1189orUK:Hugh Morrison+ 44.773.965 5492orSEC and
PartnersItaly:Michele Calcaterra/ Matteo Steinbach+39 02
6249991orKekst & CompanyUS:James Fingeroth/Molly
Morse/Anntal Silver+1 212.521.4800
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