LVMH bolstered by China ‘normalisation’
Reported sales for LVMH’s Wine & Spirits division grew 16% in 2015 to €4.603bn, buoyed by “progressive normalisation” in China.
LVMH Group saw its Wine & Spirits sales soar 16% in 2015
According to the Group’s 2015 full year statement, organic revenues for the division grew 6%, while profits from recurring operations swelled by 19%.
Cognac brand Hennessy demonstrated “strong momentum” in the United States across all ranges, while the Chinese market saw a “rebound” in revenue in the second half despite continued destocking by distributors.
Other spirits, notably Glenmorangie Scotch whisky and Belvedere vodka, contributed “sustained growth”.
The Wine & Spirits division posted sales of €1.474bn for the key fourth quarter trading period, up 4% on an organic basis year-on-year.
LVMH 2015 full year results by business category
The Wine & Spirits division matched the performance LVMH Group as a whole, which posted revenue of €35.7 billion in 2015, an increase of 16% over the previous year. Organic revenue growth was 6%. The exchange rate impact was +10%.
LVMH Group key figures full year 2015
Bernard Arnault, LVMH chairman and CEO of, said: “The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty. Revenue and operating profit reached new record levels.
“All our Maisons demonstrated outstanding flexibility in 2015. By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen in 2016 our leadership in the world of high quality products.”
While the Wine & Spirits division performed well, LVMH’s duty free retail business, DFS Group “continues to experience an uncertain environment in Asia as a result of currency and geopolitical changes,” the Group said in its statement. While its business in Japan benefited from a boom in Chinese tourism, “significant cost containment efforts” continued in the business.
Despite “economic, currency and geopolitical uncertainties”, LVMH says it is “well-equipped” to continue to grow across all business groups in 2016.
“LVMH enters 2016 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods,” the company said.
The full year 2015 results show a marked improvement for 2014 figures, when the Wine & Spirits division slumped 3%, largely due to destocking in China.
