LVMH wine and spirits sales climb in Q3
The wine and spirits business of LVMH saw revenue rise by double digits during its third quarter of 2022.
LVMH’s wine and spirits sales increased by 14% to €5.22 billion (US$5.07bn) for the nine-month period. During the company’s first quarter, the wine and spirits arm was the only sector that did not record double-digit growth.
The French company’s total organic revenue climbed by 20% to reach €56.5bn (US$54.9bn) for the first nine months of 2022. Organic revenue for the third quarter rose by 19%.
The luxury goods firm noted that Europe, the US and Japan were up ‘sharply’ since of the start of 2022, due to ‘solid demand’ from local consumers and the recovery of international travel.
Asia experienced a ‘lower level of growth’ during the first nine months of the year, the company noted, however growth in the last quarter ‘accelerated’ due to the partial easing of health restrictions in China.
Within the wine and spirits division, Cognac and spirits sales grew by 16% over the nine-month period, while Champagne and wines soared by 32%.
LVMH said Hennessy Cognac was driven by its ‘consistent strategy of value creation’. Furthermore, the company’s policy of price increases across all regions offset the impact of logistical disruptions in the US and health restrictions in China.
The company also noted ‘strong momentum’ for its Scotch whiskies Glenmorangie and Ardbeg, and an ‘excellent performance’ for Belvedere vodka.
In its outlook for the future, the company said it was ‘confident in the continuation of current growth and will maintain a policy of cost control and selective investment’.
LVMH will also focus on ‘strengthening the desirability of its brands, by relying on the authenticity and quality of its products, the excellence of their distribution and the reactivity of its organisation’.
In July, the CEO of Hennessy told us about the company’s long-term strategies and his views on the future of Cognac.