Belvedere sales help deliver €1.26bn profit for LVMH

LVMH Moet Hennessy Louis Vuitton, the owner of Ardbeg, Glenmorangie and Hennessy Cognac, has recorded strong growth across all brands at the end of its 2012 financial year.

LVMH brands like Belvedere vodka helped deliver a healthy €1.26bn profit for the group

Revenue for the group as a whole, which also includes fashion label Louis Vuitton and Christian Dior, rose by 19% to €28.2billion compared to the previous year.

LVMH’s wine and spirits portfolio itself recorded organic sales growth of 11% to €4.1bn, attributed to ‘volume growth, improved product mix and a policy of adjusted price’.

Profits for the drinks portfolio grew by 14% to €1.26bn during the period.

The group reported that Hennessy Cognac had a ‘good year’ across all regions and expressions, Belvedere vodka maintained momentum outside its core US market, while single malt Scotch whiskies Glenmorangie and Ardbeg both recorded ‘rapid increases’ in their own core markets.

Bernard Arnault, chairman and CEO of LVMH, said: “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe.

“All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones.”

The group added that it would continue to rely on its long-term strategy to strengthen its high-quality products for the year ahead.