Hennessy Cognac maker sales boosted by US

LVMH witnessed a 6% sales lift in its wine and spirits portfolio during the first financial quarter of 2016, with Hennessy Cognac experiencing a “remarkable performance” in the US.

LVMH, maker of Hennessy Cognac, has seen its Q1 organic sales for 2015/16 grow 6%

The firm’s organic sales for wine and spirits grew 6% to €1.03bn, while reported sales increased 4%.

As well as Hennessy’s performance in the United States, LVMH’s results were boosted by “better momentum” in China, which was hit by distributor destocking throughout 2015. The group also notes growth for its Glenmorangie Scotch and Belvedere vodka brands.

In total LVMH’s organic sales grew 3% to €8.6bn, buoyed by US.

The group notes that Europe remains “well orientated” but its domestic French market has been hit by a fall in tourism. LVMH describes its Asia markets as “varied”, adding that Japan “continues to progress”.

In ‘selective retailing’, organic revenues grew 4% with North America maintaining “exceptional growth rate”.

However LVMH’s duty free retail business, DFS Group, faced an “uncertain economic environment” in Asia. LVMH described the opening of the T Galleria duty free store in Siem Reap, Cambodia, as a “highlight” of the quarter.

“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 said in a forward-looking statement.

“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 revenue to increase, once again in 2016, its global leadership position in luxury goods.”

In its full year financial statement for 2015, LVMH’s wine and spirits division grew sales by 16% to €4.603bn thanks to “progressive normalisation” in China.