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Wine and spirits continue ‘negative impact’ on LVMH sales

The slide continues for the wine and spirits arm of LVMH after the Glenmorangie owner saw an 8% drop in revenue for the segment in 2024.

LVMH
Organic revenue for LVMH’s spirits division was down by 14% in 2024

LVMH confirmed the division had dipped even further in sales compared with previous years after amassing €5.862 billion (US$6.098bn) in revenue – equating to an 8% drop in organic revenue and an 11% decline on a reported basis.

For spirits separately, revenue was down by 14% organically. In comparison, the drop for wine and Champagne was 3%.

This marks another consecutive year in decline for LVMH’s wine and spirits segment, as in 2023 it saw revenue for its wine and spirits business down to €6.602bn (US$7.156bn) from the €7.099bn (US$7.604bn) recorded in 2022.

Meanwhile, wine and spirits also fell the hardest in profit from recurring operations out of all of LVMH’s divisions in 2024, falling from €2.109bn (US$2.286bn) in 2023 to €1.356bn (US$1.410bn) in 2024 – a steep 36% decline.

The French luxury goods conglomerate attributed the ‘substantial negative impact’ wine and spirits has had on its overall profit for 2024 (which was €84.4bn/US$87.8bn) to a fluctuating exchange rate, which hit the segment in particular.

The company also noted ‘post-Covid normalisation’ in the demand for Champagne and Cognac as a main factor to the declining wine and spirits sales.

First showing signs in 2023, the normalisation has seen consumption slow following the fall-out from Covid-19, while the market in China continues to present a ‘challenging environment’ on account of the ongoing anti-dumping enquiry.

Additionally, revenue for Hennessy Cognac was ‘held back by weaker local demand’.

In a statement addressing the performance, Bernard Arnault, chairman and CEO of LVMH, said: “In 2024, amid an uncertain environment, LVMH showed strong resilience. This capacity to weather the storm in highly turbulent times – already illustrated on many occasions throughout our Group’s history – is yet another testament to the strength and relevance of our strategy.

“While remaining highly vigilant with regard to cost management and our single-minded focus on the desirability of our designs, we enter 2025 with confidence. Guided by our mission – ‘Passionate about creativity’ – and our core values, the group will rely on the agility and talent of its teams to set the stage for future success and further extend its leadership in the luxury market.”

Last year, LVMH’s subsidiary Moët Hennessy teamed up with Beyoncé to create an American whiskey brand, named SirDavis.

Yesterday it was revealed that the firm’s Scotch whisky brand, Glenmorangie, had recruited Indiana Jones actor Harrison Ford for its latest marketing campaign.

In November, it was announced that Moët Hennessy CEO Philippe Schaus would be leaving his position in 2025, and will be replaced by the firm’s chief financial officer Jean-Jacques Guiony on 1 February.

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