LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury
products group, recorded revenue of €35.7 billion in 2015, an
increase of 16% over the previous year. Organic revenue growth was
6%. The Group turned in strong momentum in Europe, the United
States and Japan while other Asian countries demonstrate
contrasting tendencies.
In the fourth quarter, revenue increased by 12% compared to the
same period of 2014. Organic growth was 5%.
Profit from recurring operations reached €6 605 million in 2015,
an increase of 16%, to which all business groups contributed. Group
share of net profit was €3 573 million. Excluding the capital gain
realized in 2014 following the distribution of Hermès shares, Group
share of net profit increased by 20%.
Bernard Arnault, Chairman and CEO of LVMH, said: “The 2015
results confirm the capacity for LVMH to progress and gain market
share despite economic and geopolitical uncertainty. Revenue and
operating profit reached new record levels. Commitment to
excellence, a passion for quality and our capacity to innovate
underpin our growth momentum and are all values epitomised by the
Fondation Louis Vuitton and its emblematic building that welcomed
over one million visitors in 2015. All our Maisons demonstrated
outstanding flexibility in 2015. By adapting their strategies to
global changes and by continuing to evolve, they have shown the
creativity and entrepreneurship that drive them forward. In an
uncertain economic environment, we can rely on the desirability of
our brands and the agility of our teams to further strengthen in
2016 our leadership in the world of high quality products.”
Key highlights from 2015 include:
- Record revenue and profit from
recurring operations
- Strong progress in Europe, the United
States and Japan
- Positive impact of exchange rates
- Good performance of Wines & Spirits
in all regions with a progressive normalization of the situation in
China
- The success of both iconic and new
products at Louis Vuitton, where profitability remains at an
exceptional level
- Progress at Fashion brands, in
particular Fendi, Céline, Givenchy and Kenzo
- Remarkable momentum at Christian Dior
which gained market share globally
- Excellent results at Bvlgari and
success of TAG Heuer’s refocusing strategy
- Exceptional progress at Sephora which
strengthened its position in all its markets and in digital
- Free cash flow of €3.7 billion, an
increase of 30%
- A gearing of 16% as of the end of
December 2015
Key figures:
Euro millions
2014
2015
% change
Revenue 30 638 35 664 +
16 % Profit from recurring operations 5 715
6 605 + 16 % Group share of net profit
*2 971
5 648
3 573 *+20 %-37 % Free cash flow**
2 832 3 679 + 30 % Net
financial debt 4 805 4 235
- 12 % Total equity 23 003 25
799 + 12 %
* Excluding the 2014 exceptional gain from the distribution of
Hermès shares
** Before available for sale financial assets and investments,
transactions relating to equity and financing activities
Revenue by business group:
Euro millions
2014
2015
% change
2015/2014
Reported
Organic*
Wines & Spirits 3 973 4 603
+ 16 % + 6 % Fashion & Leather Goods
10 828 12 369 + 14 %
+ 4 % Perfumes & Cosmetics 3 916
4 517 + 15 % + 7 %
Watches & Jewelry 2 782 3 308
+ 19 % + 8 % Selective Retailing
9 534 11 233 + 18 %
+ 5 % Other activities and eliminations (395)
(366) - - Total LVMH
30 638 35 664
+ 16 % + 6 %
* With comparable structure and exchange rates. The exchange
rate impact is +10%.
Profit from recurring operations
by business group:
Euro millions 2014
2015 % change Wines & Spirits
1 147 1 363 + 19 %
Fashion & Leather Goods 3 189 3 505
+ 10 % Perfumes & Cosmetics 415
525 + 26 % Watches & Jewelry
283 432 + 53 % Selective
Retailing 882 934 + 6 %
Other activities and eliminations (201)
(154) - Total LVMH
5 715
6 605 + 16 %
Wines & Spirits: excellent growth in the United States
and Japan, continued destocking in China
The Wines & Spirits business group recorded an
increase in organic revenue of 6%. On a reported basis, revenue
growth was 16%. Profit from recurring operations increased by 19%.
Champagne experienced good growth in 2015 with an excellent
performance in Europe, the United States and Japan. Hennessy
demonstrated strong momentum in the United States across all
ranges. In China, the second half of the year was marked by a
rebound in revenue during a year characterised by continued
destocking by distributors. Other spirits, Glenmorangie and
Belvedere, continued a sustained growth.
Fashion & Leather Goods: strong creative momentum at
Louis Vuitton, other brands strengthened their positions
The Fashion & Leather Goods business group recorded
organic revenue growth of 4% in 2015. On a reported basis, revenue
growth was 14%. Profit from recurring operations increased by 10%.
Louis Vuitton had a remarkable year driven by the enthusiastic
welcome of both its iconic products as well as the new models
created by Nicolas Ghesquière. The Cruise Collection shown in Palm
Springs and the exhibition at the Grand Palais in Paris retracing
the history of the Maison were among the highlights for the year.
Fendi recorded exceptional growth with the success of its iconic
leather goods and the inauguration of Palazzo Fendi in the center
of Rome. Loro Piana continued to invest in its production capacity
and launched an exceptional new material combining vicuña wool and
baby cashmere. Céline’s growth was driven by all its product
categories. Givenchy and Kenzo each had a good year. Donna Karan
and Marc Jacobs continued to work on changes to their product
lines.
Perfumes & Cosmetics: market share gains and successful
innovations
The Perfumes & Cosmetics business group recorded
organic revenue growth of 7%. On a reported basis, revenue growth
was 15%. Profit from recurring operations increased by 26%.
Christian Dior accelerated its growth and increased worldwide
market share. The new men’s fragrance Sauvage experienced
unprecedented worldwide success. The vitality of its iconic
perfumes J’adore and Miss Dior together with the excellent
reception of new make-up products contributed to the Maison’s
remarkable performance. Guerlain demonstrated profitable growth
notably driven by the progress of L’Homme Idéal and the continued
success of the skincare ranges Orchidée Impériale and Abeille
Royale. Benefit experienced strong growth driven by the originality
of its products. Fresh and Make Up For Ever performed very
well.
Watches & Jewelry: good growth in jewelry and cautious
purchasing behaviour of multi-brand watch retailers
The Watches & Jewelry business group recorded organic
revenue growth of 8%. On a reported basis, revenue growth was 19%.
Profit from recurring operations increased by 53%. Bvlgari had an
excellent year driven by its iconic creations and its new Diva and
Lvcea collections. Bvlgari’s stores delivered excellent
performances. The watch brands were impacted by the cautious
purchasing behaviour of multi-brand retailers. TAG Heuer launched
with enormous success its smartwatch developed in partnership with
Google and Intel while continuing to develop its core offering.
Given its strong growth, Hublot strengthened its production
capacity with the opening of a second manufacturing facility in
Nyon, Switzerland.
Selective Retailing: excellent performance at Sephora, DFS’s
development impacted by economic changes in Asia
The Selective Retailing business group recorded organic
revenue growth of 5%. On a reported basis, revenue growth was 18%.
Profit from recurring operations increased by 6%. Sephora had an
exceptional year in terms of revenue and results and continued to
gain market share in all its markets. The omni-channel strategy
accelerated with numerous initiatives in several countries. DFS
continues to experience an uncertain environment in Asia as a
result of currency and geopolitical changes, while its business in
Japan benefited from a boom in Chinese tourism. Significant cost
containment efforts were continued at DFS.
Confidence for 2016
Despite a climate of economic, currency and geopolitical
uncertainties, LVMH is well-equipped to continue its growth
momentum across all business groups in 2016. The Group will
maintain a strategy focused on developing its brands by continuing
to build on strong innovation and a constant quest for quality in
their products and their distribution.
Driven by the agility of its teams, their entrepreneurial
spirit, the balance of its different businesses and geographic
diversity, LVMH enters 2016 with confidence and has, once again,
set an objective of increasing its global leadership position in
luxury goods.
Dividend increase of 11%
At the Annual Shareholders’ Meeting on April 14, 2016, LVMH will
propose a dividend of €3.55 per share, an increase of 11%. An
interim dividend of €1.35 per share was paid on December 3 of last
year. The balance of €2.20 per share will be paid on April 21,
2016.
The LVMH Board met on 2 February 2016 to approve the financial
statements for 2015.Audit procedures have been carried out and the
audit report is being issued.Regulated information related to this
press release, the presentation of annual results and the report
“Financial Documents” are available at www.lvmh.fr.
APPENDIX
LVMH – Revenue by business group and by quarter
2015 Revenue (Euro millions)
FY 2015 Wines & Spirits Fashion
& Leather Goods Perfumes & Cosmetics
Watches & Jewelry Selective Retailing
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 First Half 1 930 5
933 2 159 1 552 5 291
(158)
16 707 Third Quarter
1 199 2 939 1 102
852 2 614 (125)
8 581 Nine months 3 129
8 872 3 261 2
404 7 905 (283)
25 288 Fourth Quarter 1 474
3 497 1 256 904
3 328 (83)
10 376
Total 2015 4 603 12
369 4 517 3 308
11 233 (366)
35 664
2015 Revenue (Organic growth versus
same period of 2014)
FY 2015 Wines & Spirits Fashion
& Leather Goods Perfumes & Cosmetics
Watches & Jewelry Selective Retailing
Other activities & eliminations
Total First Quarter -1% +1%
+6% +7% +5%
-
+3% Second Quarter +5%
+10% +6% +13% +5%
-
+9% Total First Half
+2% +5%
+6% +10% +5%
-
+6% Third Quarter
+16% +3% +7% +11%
+5% -
+7% Nine
months +7% +5%
+7% +10%
+5% -
+6% Fourth Quarter
+4% +3%
+7% +3% +5%
-
+5% Total 2015
+6% +4% +7%
+8% +5% -
+6%
2014 Revenue (Euro millions)
FY 2014 Wines & Spirits Fashion
& Leather Goods Perfumes & Cosmetics
Watches & Jewelry Selective Retailing
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
First Half 1 677 5
030 1 839 1 266
4 382 (185)
14 009 Third Quarter 948 2 647
961 706 2 234
(108)
7 388 Nine months
2 625 7 677 2
800 1 972 6 616
(293) 21 397 Fourth
Quarter 1 348 3 151 1 116
810 2 918 (102)
9 241 Total 2014 3 973
10 828 3 916
2 782 9 534
(395) 30 638
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/20160202006445/en/
Analysts and investors:LVMHChris Hollis, + 33
1.4413.2122orMedia:France :DGM ConseilMichel
Calzaroni/Olivier Labesse/Sonia Fellmann/Hugues Schmitt+ 33
1.4070.1189orUK:Montfort CommunicationsHugh Morrison /
Hannah Glynn+ 44.203.770 7903orItaly:SEC and PartnersMichele
Calcaterra/ Matteo Steinbach+39 02. 62.49991orUS:KekstJames
Fingeroth/Molly Morse/Anntal Silver +1 212.521.4800
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