Hennessy’s “rapid” growth boosts LVMH sales

LVMH Moet Hennessy Louis Vuitton has reported 7% organic sales growth in its wines and spirits portfolio for the first quarter of the year.

The luxury goods group’s drinks portfolio delivered strong growth at the start of the year, with Hennessy Cognac leading the charge for spirits.

LVMH claims its “excellent momentum” achieved in 2012 continued, with a “solid performance” in the US and rapid growth in China.

Meanwhile LVMH’s other spirits, including Glenmorangie Scotch and Belvedere vodka, also experienced “a good start to the year”.

The results helped LVMH achieve an overall sales growth of 6% for the quarter to €6.9 billion.

“The group continued at the start of the year to perform in line with the trends of the second half of 2012 with strong growth in Asia and the United States, while Europe demonstrates good resistance despite a challenging economic environment,” the group said in its results.

“In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution.

“The Group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2013, its leadership of the global high quality goods market.”

LVMH recorded a 19% sales growth in its 2012 results to €28.2bn. Its wine and spirits portfolio attributed an 11% sales growth to €4.1bn.