LVMH wine and spirits unit registers single-digit growth

The wine and spirits arm of LVMH recorded an organic revenue growth of 5% to €5.1 billion (US$5.8bn) in 2018, boosted by China, Europe and the US.

LVMH, the producer of Glenmorangie Scotch whisky, saw its total revenue increase by 10% last year

Profits for LVMH’s wine and spirits business grew by 5% to €1.6bn (US$1.8bn).

Hennessy Cognac’s volumes increased by 3%, aided by “good growth” in the US despite a backdrop of tight supply. The Chinese market also experienced “good momentum”.

Scotch whisky brands Glenmorangie and Ardbeg, meanwhile, “grew rapidly” in the year. The group also said a “key highlight” of 2018 was the “exceptional harvest both in terms of quantity and quality”.

In total, Paris-based LVMH recorded a 10% increase in revenue to €46.8bn (US$53.5bn) in 2018, while profit increased by 21% to €10bn (US$11.4bn).

Bernard Arnault, chairman and CEO of LVMH, said: “LVMH had another record year, both in terms of revenue and results. In particular, profit from recurring operations crossed the €10 billion mark.

“In 2019 LVMH will continue its strong dynamic of innovation, targeted investments, combining tradition and modernity, long-term vision and responsiveness, entrepreneurial spirit and a sense of responsibility.

“In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high quality products.”

Looking ahead, LVMH said it enters 2019 with “cautious confidence” and is “well-equipped to continue its growth momentum across all business groups”.

The firm will continue its strategy of building on “strong innovation and investments”.