LVMH: Cognac issue remains as wine and spirits dip 5%
Hennessy Cognac owner LVMH was once again weighed down by its spirits segment in its full-year financial results for 2025.
LVMH posted a 5% drop in organic revenue for its wine and spirits division for the full year 2025. Sales totalled €5.358 billion (US$6.414bn), down from 2024’s €5.862bn (US$7bn) figure.
The segment’s profit from recurring operations fell by 25%.
Wine and spirits revenue for the third quarter of 2025 reached €1.330bn (US$1.592bn), up by 1% on the previous year. However, fourth-quarter sales declined by 9%.
The group’s spirits portfolio includes Hennessy Cognac, Belvedere Vodka, American whiskey Sir Davis, Scotch brands Glenmorangie and Ardbeg, and Volcan De Mi Tierra Tequila.
LVMH singled out Hennessy Cognac for the drop in revenue, which it said was ‘held back by weaker local demand, mainly due to issues with customs duties in China and the United States’.
In June last year, China’s Ministry of Commerce ended its anti-dumping investigation into EU brandy imports, which gave partial relief to a select group of Cognac makers including Hennessy.
Trade tensions in China and the US, viewed as key markets, were also attributed to the decline.
Despite spirits lagging, the group’s Champagne houses “maintained their market share of 22% of all Champagne-appellation shipments”, while Provence rosé wines “outperformed” the rosé category worldwide.
LVMH’s overall revenue for 2025 was €80.8bn (US$96.7bn), down by 1% on an organic basis. Its fourth quarter showing, however, showed a slight lift of 1%.
Addressing the results, Bernard Arnault, chairman and CEO, said the results “showed good resilience and maintained its innovative momentum despite a disrupted geopolitical and economic environment.”
He also provided an outlook for the year ahead: “In an environment that remains uncertain, our maisons’ ability to inspire dreams – coupled with the highest levels of vigilance with regard to cost management, and our environmental and social commitments – will once again be a decisive asset underscoring our leadership position in the luxury goods market.
“We will remain true to our entrepreneurial tradition as a forward-looking family group focused on sustainable creativity in high-quality products, exceptional spaces and the long-term future of our outstanding craftsmanship.”
Arnault also highlighted the firm’s partnership with Formula One, of which many of its spirits brands are official partners. “The first year of our 10-year partnership with Formula 1 was an exciting opening into a world that shares our passion for excellence and innovation.”
Volcan was named the official Tequila partner of Formula One last year, followed by Glenmorangie for whisky and Belvedere for vodka.
Related news
Cognac slowdown hits LVMH spirits sales
