Paris, 26 January 2017
LVMH Moët Hennessy Louis Vuitton,
the world's leading luxury products group, recorded revenue of
€37.6 billion in 2016, an increase of 5% over the previous year.
Organic revenue growth was 6%.
In the fourth quarter, revenue
increased by 9% compared to the same period of 2015. Organic growth
was 8%. The American market remains on a good track as does
Europe. Asia, excluding Japan, continued its good
momentum.
Profit from recurring operations
reached €7 billion in 2016, an increase of 6%, to which all
business groups, apart from selective distribution, contributed.
This result compares to 2015 which was itself a year of
growth. Operating margin reached 18.7%. Group share of net
profit was €3 981 million, representing growth of 11%.
Bernard Arnault, Chairman and CEO
of LVMH, said: "LVMH achieved an excellent performance in 2016
within a context of geopolitical and economic instability.
Continued innovation, entrepreneurial spirit and the quest for
excellence: all Maisons continue to assert these core values
while maintaining rigorous execution of their strategies on the
ground. In an environment which remains uncertain, we can
count on the appeal of our brands and the agility of our teams to
strengthen, once again in 2017, our leadership in the universe of
high quality products."
Key highlights from 2016
include:
-
Record revenue and profit from recurring
operations
-
Growth in the United States, Europe and
Asia
-
Good performance of Wines & Spirits in all
regions
-
The success of both iconic and new products at
Louis Vuitton, where profitability remains at an exceptional
level
-
Progress at Fendi
-
The sale of Donna Karan and the acquisition of
Rimowa, leader in luggage of excellence
-
Good momentum at Parfums Christian Dior driven
by successful product innovations
-
Market share gains at Bvlgari and TAG
Heuer
-
Growth at Sephora which strengthened its
position in all its markets and in digital
-
Free cash flow of €3 974 million, an increase of
8%
-
Gearing of 12% at end of December 2016
Key
figures:
Euro millions |
2015 |
2016 |
% change |
Revenue |
35 664 |
37 600 |
+ 5 % |
Profit from recurring operations |
6 605 |
7 026 |
+ 6 % |
Group
share of net profit |
3 573 |
3 981 |
+ 11 % |
Free cash
flow* |
3 679 |
3 974 |
+ 8 % |
Net
financial debt |
4 235 |
3 265 |
- 23 % |
Total
equity |
25 799 |
27 903 |
+ 8 % |
* Before
available for sale financial assets and investments, transactions
relating to equity and financing activities
Revenue by
business group:
Euro millions |
2015 |
2016 |
% change
2016/2015
Reported Organic* |
Wines &
Spirits |
4 603 |
4 835 |
+ 5 % |
+ 7 % |
Fashion & Leather Goods |
12 369 |
12 775 |
+ 3 % |
+ 4 % |
Perfumes & Cosmetics |
4 671 |
4 953 |
+ 6 % |
+ 8 % |
Watches & Jewelry |
3 308 |
3 468 |
+ 5 % |
+ 5 % |
Selective Retailing |
11 193 |
11 973 |
+ 7 % |
+ 8 % |
Other activities and eliminations |
(480) |
(404) |
- |
- |
Total LVMH |
35 664 |
37 600 |
+ 5 % |
+ 6 % |
* With comparable
structure and exchange rates.
Profit from
recurring operations by business
group:
Euro
millions |
2015 |
2016 |
% change |
Wines
& Spirits |
1 363 |
1 504 |
+ 10
% |
Fashion
& Leather Goods |
3 505 |
3 873 |
+ 10
% |
Perfumes
& Cosmetics |
524 |
551 |
+ 5 % |
Watches
& Jewelry |
432 |
458 |
+ 6 % |
Selective
Retailing |
940 |
919 |
- 2 % |
Other activities and eliminations |
(159) |
(279) |
- |
Total LVMH |
6 605 |
7 026 |
+ 6 % |
Wines &
Spirits: good year with progress in the United States and rebound
in shipments to China
The Wines &
Spirits business group recorded an increase in organic revenue
of 7 %. On a reported basis, revenue growth was 5 %. Profit from
recurring operations increased by 10 %. With volumes up 3%, solid
growth continues for champagne and prestige cuvees performed
particularly well. Hennessy cognac enjoyed an excellent year
with 10% volume growth. The American market is growing well
and China saw better momentum after a tough 2015 due to destocking
by distributors. Other spirits, Glenmorangie and Belvedere,
continued their growth.
Fashion & Leather Goods: good
performance of Louis Vuitton, other brands strengthened their
positions
The Fashion &
Leather Goods business group recorded organic revenue growth of
4% in 2016. On a reported basis, revenue growth was 3 %. Profit
from recurring operations increased by 10%. Louis Vuitton had a
good year driven by the level of creativity across all its
businesses. The continued success of its iconic product range
and the strong demand for recent creations such as the new luggage
designed by Marc Newson and the Louis Vuitton fragrances, all
contributed to this growth. Fendi recorded robust growth
crossing the symbolic revenue threshold of 1 billion euros during
the year. Loro Piana continued to expand its distribution
network and opened a flagship store in Paris. Céline, Loewe and
Kenzo all continued to grow. Marc Jacobs continued to work on
changes to its collection. Donna Karan was sold in December to the
American G-III group. Rimowa, world leader in luggage of
excellence, joined the LVMH group.
Perfumes &
Cosmetics: continued success of innovations; excellent performance
in makeup
The Perfumes
& Cosmetics business group recorded organic revenue growth
of 8%. On a reported basis, revenue growth was 6%. Profit from
recurring operations increased by 5%. The inauguration of the new
atelier for the creation of fragrances, Les Fontaines Parfumées, at
Grasse was a highlight of the year. Parfums Christian Dior
grew market share in all regions, driven by the worldwide success
of Sauvage and the vitality of its iconic
perfumes J'adore and Miss
Dior. The progress of makeup also contributed to the
Maison's excellent performance. Guerlain benefitted from the
successful launch of its new makeup collection inspired by its
fragrance La Petite Robe Noire. Benefit
experienced strong growth driven by the success of its new
collection for eyebrows. Make Up For Ever, Fresh and Kat Von
D performed well.
Watches &
Jewelry: market share gains for Bvlgari and TAG Heuer
The Watches &
Jewelry business group recorded organic revenue growth of 5%.
On a reported basis, revenue growth was 5%. Profit from recurring
operations increased by 6%. Bvlgari continued to gain market share
with enhancements to its Serpenti, Diva and
B.zero1 lines. Growth continued in
China, Korea and in the Middle East. TAG Heuer grew despite a
difficult market for watches, gained market share and benefitted
from the success of its new collections and its connected watch.
Hublot accelerated its development in Asia and recorded the best
year in its history. Chaumet continued to move its product
lines upmarket and inaugurated a new boutique concept in Hong
Kong.
Selective
Retailing: good performance at Sephora, DFS impacted by a difficult
tourism context in Asia
The Selective
Retailing business group recorded organic revenue growth of 8%.
On a reported basis, revenue growth was 7%. Profit from recurring
operations declined by 2%. Sephora gained market share across all
regions and once again recorded double-digit growth in both revenue
and profits. More than a hundred stores were opened in 2016
including notably a flagship store in the World Trade Center in New
York and major renovations in Boston and Singapore. Its
online offer accelerated with the launch in six new countries. DFS
continued to face a difficult environment, notably in Hong
Kong. The expansion into new destinations continued.
The opening of the T Galleria in Angkor in Cambodia and one in
Venice, Italy were the highlights of the year.
Cautiously
confident for 2017
Despite a climate of geopolitical
and currency uncertainties, LVMH is well-equipped to continue its
growth momentum across all business groups in 2017. 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 2017 with caution
but has, once again, set an objective of increasing its global
leadership position in luxury goods.
Dividend increase
of 13%
At the Annual Shareholders'
Meeting on April 13, 2017, LVMH will propose a dividend of €4 per
share, an increase of 13%. An interim dividend of €1.40 per share
was paid on December 1 of last year. The balance of €2.60 per share
will be paid on April 21, 2017.
The LVMH Board
met on 26 January 2017 to approve the financial statements for
2016.
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
2016 Revenue
(Euro millions)
FY 2016 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective
Retailing |
Other
activities & eliminations |
Total |
First
Quarter |
1
033 |
2
965 |
1
213 |
774 |
2
747 |
(112) |
8 620 |
Second
Quarter |
1 023 |
2 920 |
1 124 |
835 |
2 733 |
(67) |
8 568 |
Total First Half |
2 056 |
5 885 |
2 337 |
1 609 |
5 480 |
(179) |
17 188 |
Third
Quarter |
1 225 |
3 106 |
1 241 |
877 |
2 803 |
(114) |
9 138 |
Nine months |
3 281 |
8 991 |
3 578 |
2 486 |
8 283 |
(293) |
26 326 |
Fourth
Quarter |
1 554 |
3 784 |
1 375 |
982 |
3 690 |
(111) |
11 274 |
Total 2016 |
4 835 |
12 775 |
4 953 |
3 468 |
11 973 |
(404) |
37 600 |
2016 Revenue
(Organic growth versus same period of 2015)
FY 2016 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective
Retailing |
Other
activities & eliminations |
Total |
First
Quarter |
+6% |
0% |
+9% |
+7% |
+4% |
- |
+3% |
Second
Quarter |
+13% |
+1% |
+6% |
+2% |
+7% |
- |
+4% |
Total First Half |
+9% |
0% |
+8% |
+4% |
+5% |
- |
+4% |
Third
Quarter |
+ 4% |
+5% |
+10% |
+2% |
+8% |
- |
+6% |
Nine months |
+7% |
+2% |
+8% |
+4% |
+6% |
- |
+5% |
Fourth
Quarter |
+7% |
+9% |
+7% |
+8% |
+11% |
- |
+8% |
Total 2016 |
+7% |
+4% |
+8% |
+5% |
+8% |
- |
+6% |
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
129 |
723 |
2
648 |
(144) |
8 323 |
Second
Quarter |
938 |
2 958 |
1 099 |
829 |
2 627 |
(67) |
8 384 |
Total First Half |
1 930 |
5 933 |
2 228 |
1 552 |
5 275 |
(211) |
16 707 |
Third
Quarter |
1 199 |
2 939 |
1 143 |
852 |
2 603 |
(155) |
8 581 |
Nine months |
3 129 |
8 872 |
3 371 |
2 404 |
7 878 |
(366) |
25 288 |
Fourth
Quarter |
1 474 |
3 497 |
1 300 |
904 |
3 315 |
(114) |
10 376 |
Total 2015 |
4 603 |
12 369 |
4 671 |
3 308 |
11 193 |
(480) |
35 664 |
*Reclassification of cosmetics
company Kendo from Selective retailing to Perfumes and
Cosmetics
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, Belvedere, Chandon,
Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle,
Newton, Bodega Numanthia and Ao Yun. Its
Fashion and Leather Goods division includes Louis Vuitton, Céline,
Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc
Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and Rimowa. LVMH is
present in the Perfumes and Cosmetics sector with Parfums Christian
Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, 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, Royal Van Lent and Cheval
Blanc hotels. 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 / Charlotte McMullen |
+44 7921.881.800 |
|
Montfort Communications |
|
Italy: |
Michele
Calcaterra/ Matteo Steinbach |
+39 02 6249991 |
|
SEC and Partners |
|
US: |
James
Fingeroth/Molly Morse/
Anntal Silver |
+1 212.521.4800 |
|
Kekst & Company |
|
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information contained therein.
Source: LVMH via Globenewswire
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