Hennessy Cognac finally returns to growth

The drinks arm of French group LVMH, owner of Glenmorangie Scotch whisky and Hennessy Cognac, has finally seen a return to growth due to “strong momentum” in the US.

Hennessy Cognac has finally reported a return to growth despite continued difficulties in China

Reporting its half year financial results for 2015/16, the firm saw organic revenue growth of 2% to €1.9 billion, while profit from recurring operations grew 5% to €482m.

Despite continued destocking in China, which hit both Moet Hennessy’s latest quarterly and full year financial results, the second quarter of 2015/16 saw a return to growth for Cognac brand Hennessy thanks to “sustained strong performance” in the US.

Meanwhile, Belvedere vodka and Glenmorangie Scotch whisky “continued their development”. The group also noted the positive effects of “recovery” in Europe.

LVMH said that overall, its wine and spirits portfolio experienced a “good performance” in all global regions except China, which is continuing its long-running crackdown on conspicuous spending and gifting.

In total, LVMH saw its organic revenues rise 6% to €16.7bn across its drinks, fashion, cosmetics and jewellery portfolios.

“The excellent results of the first half are witness to the efficiency of our strategy, which relies upon the strength of our brands and a very entrepreneurial style of management,” said Bernard Arnault, chairman and CEO of LVMH.

“Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products.”