The wine and spirits arm of LVMH Moët Hennessy Louis Vuitton recorded organic revenue growth of 10% to €2.29 billion in the first half of the year, the luxury goods company has revealed.
On a reported basis, revenue rose 12% and profit from recurring operations increased by 21%. In particular, the company reports that Champagne performed well, and Hennessy cognac continued to show strong growth in the US market, while demand is recovering in China.
Overall, LVMH (including drinks, fashion, perfume, and jewellery) recorded revenue of €19.7 billion in the first six months of the year, representing an increase of 12% compared to the same period in 2016.
“LVMH has enjoyed an excellent first half, to which all our businesses contributed," said Bernard Arnault, chairman and CEO of the company. "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."
LVMH says that it is expecting a slowdown in volume growth for wines and spirits in the second half of the year, given the existing supply constraints.
"In an environment that remains uncertain, we approach the second half of the year with caution," added Arnault. "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.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.