LVMH wine and spirits sales soar 44% in H1By Melita Kiely
The wine and spirits arm of luxury goods company LVMH experienced significant double-digit growth during the first half of its 2021 financial year.
The company’s wine and spirits sector, which includes Hennessy Cognac, experienced organic revenue growth of 44% in the first half of the year, compared with the same six months in 2020, and 12% higher than 2019. The group’s revenue reached €2.71 billion (US$3.19bn) in 2021.
LVMH attributed the sales performance to ‘sustained demand’ in the US and a ‘strong rebound’ in China.
Profit from recurring operations was up by 20% compared with the first half of 2019, driven by ‘good momentum’ in Europe and the US.
Hennessy Cognac volumes rose by 6% compared with 2019, ‘limited by supply constraints’, according to LVMH.
Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis.
“The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability.
“Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021.
“As France is the principal recruitment area and the country of origin of many of our products, the growth of LVMH benefits the country today, and even more tomorrow, with all our Maisons being proud to make their contributions.”