Paris, 26 July 2017
LVMH Moët Hennessy Louis Vuitton,
the world's leading luxury products group, recorded revenue of
€19.7 billion in the first half of 2017, an increase of 15%.
Organic revenue growth was 12% compared to the same period in 2016.
All geographic areas continue to progress well. During the first
half of the year, the Group benefited from a favourable comparison
base, particularly in Asia but also in France, where activity was
impacted last year by a decline in tourism. The current trends
cannot reasonably be extrapolated for the full year.
In the second quarter, revenue
increased by 15% compared to the same period in 2016, with the
notable integration for the first time of Rimowa. Organic revenue
growth was 12%.
Profit from recurring operations
was €3 640 million for the first half of 2017, an increase of 23%.
Operating margin reached 18.5%, an increase of 1 percentage point.
Group share of net profit amounted to € 2 119 million, an increase
of 24%.
Bernard Arnault, Chairman and CEO
of LVMH, commented:
"LVMH has enjoyed an excellent
first half, to which all our businesses contributed. In the current
climate of geopolitical and economic instability, creativity and
quality, the founding values of our Group, have more than ever
become benchmarks for all. The increasing digitalization of our
activities furthermore reinforces the quality of the experience we
bring to our customers. In an environment that remains uncertain,
we approach the second half of the year with caution. We will
remain vigilant and rely on the entrepreneurial spirit and talent
of our teams to further increase our leadership in the world of
high quality products in 2017."
Highlights of the first half of
2017 include:
-
Double-digit increases in revenue and profit
from recurring operations;
-
Good growth in Europe, Asia and the United
States;
-
A good start to the year for Wines and
Spirits;
-
Outstanding momentum at Louis Vuitton;
profitability remains at an exceptional level;
-
LVMH's planned acquisition of Christian Dior
Couture, one of the world's most iconic brands, finalized on July
3;
-
Integration of Rimowa, a leader in premium-class
luggage;
-
Success of the new products at Christian
Dior;
-
Growth at Bvlgari and excellent response to TAG
Heuer's new products;
-
Continued strengthening of Sephora's omnichannel
strategy;
-
Cash from operations before changes in working
capital of €4.5 billion, an increase of 23%
-
Net debt to equity ratio of 14% as of the end of
June 2017.
Key figures
Euro millions |
First half 2016 |
First half 2017 |
% change |
Revenue
Profit from recurring operations
Group share of net profit
Cash from operations*
Net Financial Debt
Total Equity |
17 188
2 959
1 711
3 650
5 303
26 073 |
19 714
3 640
2 119
4 501
3 957
28 292 |
+ 15 %
+ 23 %
+ 24 %
+ 23 %
- 25 %
+ 9% |
* Before changes
in working capital.
Revenue by
business group:
Euro millions |
First half 2016 |
First half 2017 |
% change Reported Organic* |
Wines & Spirits |
2 056 |
2 294 |
+ 12 % |
+ 10 % |
Fashion & Leather Goods |
5 885 |
6 899 |
+ 17 % |
+ 14 % |
Perfumes & Cosmetics |
2 337 |
2 670 |
+ 14 % |
+ 12 % |
Watches & Jewelry |
1 609 |
1 838 |
+ 14% |
+ 13 % |
Selective Retailing |
5 480 |
6 280 |
+ 15% |
+ 12 % |
Other activities and eliminations |
(179) |
(267) |
- |
- |
Total LVMH |
17 188 |
19 714 |
+ 15 % |
+ 12 % |
* With comparable
structure and constant exchange rates. The exchange rate impact is
+2% and the structural impact is +1%.
Profit from recurring
operations by business group:
Euro millions |
First half 2016 |
First half
2017 |
% change |
Wines & Spirits |
565 |
681 |
+ 21
% |
Fashion & Leather Goods |
1 630 |
2 192 |
+ 34
% |
Perfumes & Cosmetics |
272 |
292 |
+ 7
% |
Watches & Jewelry |
205 |
234 |
+ 14
% |
Selective Retailing |
410 |
441 |
+ 8 % |
Other activities and eliminations |
(123) |
(200) |
- |
Total LVMH |
2 959 |
3 640 |
+ 23 % |
Wines &
Spirits: good start to the year with solid growth in the United
States, and improved momentum in China
The Wines &
Spirits business group recorded organic revenue growth of 10%.
On a reported basis, revenue rose 12% and profit from recurring
operations increased by 21%. The business group reaffirmed its
commitment to innovation with many initiatives across the brands.
All the champagne Houses have performed well. Europe and the United
States were particularly dynamic. Hennessy cognac continued to show
strong growth in the US market, while demand is recovering in
China. The second half of the year is expected to experience a
slowdown in volume growth given the existing supply
constraints.
Fashion &
Leather Goods: good creative momentum at Louis Vuitton and further
strengthening of other brands
The Fashion &
Leather Goods business group recorded organic revenue growth of
14%. On a reported basis, revenue increased 17% and profit from
recurring operations was up 34%. The momentum at Louis Vuitton,
driven by its exceptional creativity, was demonstrated across all
its product categories. The Cruise Collection presented at the Miho
Museum in Kyoto, Japan, was a great illustration of this. The
launch of new models resulting from the collaboration with the
artist Jeff Koons and the cult New York skatewear brand, Supreme,
were the highlights of the first half. Fendi continued its strong
growth and enriched its leather goods lines, notably with the new
Kan-I model. Loro Piana strengthened its
presence in Asia with several openings. Céline, Loewe and Kenzo
experienced good growth. Marc Jacobs strengthened its product
offering and continued its restructuring. Other brands continued to
grow. Rimowa, which joined the LVMH Group, is consolidated for the
first time in the first half-year accounts.
Perfumes &
Cosmetics: continuous innovation and strong growth in make
up
The Perfumes
& Cosmetics business group posted organic revenue growth of
12%. On a reported basis, revenue grew 14% and profit from
recurring operations was up 7%. Christian Dior showed strong growth
momentum, sustained by the vitality of its iconic fragrances
J'adore and Miss Dior,
the continued success of Sauvage and the
performance of its latest makeup creations. Guerlain enjoyed a
successful launch of its new perfume, Mon
Guerlain, represented by Angelina Jolie. Parfums Givenchy
experienced rapid growth in makeup, especially its line of
lipsticks. Benefit continued to roll out its Brow Collection.
Watches &
Jewelry: good first half for Bvlgari and
successful development of TAG Heuer in its core range
The Watches &
Jewelry business group recorded organic revenue growth of 13%.
On a reported basis, revenue growth was 14% and profit from
recurring operations was up 14%. Bvlgari enjoyed an excellent first
half and continued to gain market share. This dynamic is notable in
both jewelry and watchmaking, especially in China and Europe,
thanks to the success of the iconic Serpenti
and B-Zero 1 lines and the new Octo Finissimo watch. TAG Heuer experienced solid
revenue growth in a tough watch market. The new products created in
its flagship Carrera, Aquaracer and Formula 1 collections were very successful and a new
generation of the smart watch was launched. Hublot continued its
growth.
Selective
Retailing: growth at Sephora and improved momentum of DFS in
Asia
The Selective
Retailing business group posted organic revenue growth of 12%.
On a reported basis, sales growth was 15% and profit from recurring
operations was up 8%. Sephora continued to make progress and
reinforced its omnichannel strategy. While increasing its share of
online sales, Sephora continued to invest in extending its network
and renovating existing stores, particularly in New York and Dubai.
Le Bon Marché developed a new online shopping experience by
launching its digital platform 24 Sèvres. DFS experienced better
momentum in Asia, while the T Galleria, which opened in 2016 in
Cambodia and Italy, continued to develop.
Outlook
2017
Despite the context of
geopolitical and currency uncertainties, LVMH will continue to
pursue gains in market share through 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 2017, LVMH's global leadership position in luxury
goods.
An interim dividend of 1.60 Euro
will be paid on December 7th, 2017.
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
2017
(Euro millions) |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective Retailing |
Other
activities & eliminations |
Total |
First quarter |
1
196 |
3
405 |
1
395 |
879 |
3
154 |
(145) |
9 884 |
Second quarter |
1 098 |
*3 494 |
1 275 |
959 |
3 126 |
(122) |
9 830 |
Total revenue |
2 294 |
6 899 |
2 670 |
1 838 |
6 280 |
(267) |
19 714 |
* Including the entire revenue of
Rimowa of the first half of 2017.
First Half 2017
(organic growth compared to the first half 2016)
|
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective Retailing |
Other
activities & eliminations |
Total |
First quarter |
+13% |
+15% |
+12% |
+11% |
+11% |
- |
+13% |
Second quarter |
+6% |
+13% |
+13% |
+14% |
+12% |
- |
+12% |
Total revenue |
+10% |
+14% |
+12% |
+13% |
+12% |
- |
+12% |
First Half
2016
(Euro millions) |
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 revenue |
2 056 |
5 885 |
2 337 |
1 609 |
5 480 |
(179) |
17 188 |
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,
Woodinville, 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, Christian Dior Couture, 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, BeneFit
Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Kat Von D and
Maison Francis Kurkdjian. LVMH's Watches and Jewelry division
comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred
and Hublot. 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.
"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: |
|
|
|
Jean-Charles Tréhan |
+33 1 4413.2026 |
|
LVMH |
|
|
|
|
France : |
Michel
Calzaroni/Olivier Labesse/
Thomas Roborel de Climens/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 |
|
PDF Version
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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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