LVMH wine and spirits stagnant in Q1
The wine and spirits arm of LVMH was the only sector that did not record double-digit growth during the company’s first quarter.
Wine and spirits experienced organic revenue growth of 2% during the first quarter of 2022, compared with the same period last year.
Sales during Q1 reached €1.638 billion (US$1.775bn), up from €1.510bn (US$1.636bn) in 2021.
Hennessy Cognac saw sales decrease over the three-month period because of supply and logistical constraints at the start of the year.
However, this was offset by ‘strong growth’ from Glenmorangie whisky and Belvedere vodka, the firm said.
In its financial statement, LVMH said: “In the current geopolitical context and in light of the ongoing impact of the pandemic, LVMH remains both vigilant and confident at the beginning of this year.
“The group will continue to pursue its strategy focused on the development of its brands, driven by strong innovation and investment, as well as a constant quest for quality in its products and their distribution.”
LVMH noted a ‘good start’ overall to its 2022 financial year despite the ongoing pandemic and the war in Ukraine.
Total sales in the US and Europe rose by double digits. Asia also continued to grow despite fresh lockdown measures in China in March.
LVMH said it was ‘closely monitoring’ developments in Ukraine and the region, and would prioritise the safety of its employees in Ukraine.
A number of leading spirits producers, including Diageo and Pernod Ricard, have suspended operations in Russia since president Vladimir Putin invaded Ukraine.