INTERNATIONAL. LVMH Moët Hennessy Louis Vuitton posted revenue of €37.6 billion in 2016, an increase of +5% over the previous year. Organic revenue growth was +6%.
The Selective Retailing business group, which includes DFS, recorded organic revenue growth of +8%. On a reported basis, revenue growth was +7%. Profit from recurring operations declined by -2%.
LVMH said in a statement today: “DFS continued to face a difficult environment, notably in Hong Kong. The expansion into new destinations continued. The opening of the T Galleria in Angkor in Cambodia and one in Venice, Italy were the highlights of the year.”
Group profit from recurring operations reached €7 billion in 2016, an increase of +6%, to which all business groups, apart from Selective Distribution, contributed. Operating margin reached 18.7%. Group share of net profit was €3,981 million, representing growth of +11%.
LVMH Chairman and CEO Bernard Arnault said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.”
The Wines & Spirits business group recorded an increase in organic revenue of +7%. On a reported basis, revenue growth was +5%. Profit from recurring operations increased by +10%. With volumes up +3%, solid growth continues for Champagne and prestige cuvees performed particularly well, said the company.
Hennessy Cognac enjoyed an “excellent year” with +10% volume growth. LVMH said: “The American market is growing well and China saw better momentum after a tough 2015 due to destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued their growth.”
The Fashion & Leather Goods business group recorded organic revenue growth of +4% year-on-year in 2016. On a reported basis, revenue growth was +3%. Profit from recurring operations increased by +10%. Louis Vuitton had a good year, Fendi recorded “robust growth” crossing the revenue threshold of €1 billion during the year. Loro Piana continued to expand its distribution network and opened a flagship store in Paris. Céline, Loewe and Kenzo all continued to grow. Marc Jacobs continued to work on changes to its collection while Donna Karan was sold in December to the American G-III group. Luggage brand Rimowa joined the LVMH group.
The Perfumes & Cosmetics business group recorded organic revenue growth of +8%. On a reported basis, revenue growth was +6%. Profit from recurring operations increased by +5%. The inauguration of the new atelier for the creation of fragrances, Les Fontaines Parfumées, at Grasse was a highlight of the year, said LVMH.
Parfums Christian Dior grew market share in all regions, it claimed, driven by Sauvage, J’adore and Miss Dior. The progress of makeup also contributed to the performance. Guerlain benefitted from the launch of its new makeup collection inspired by its fragrance La Petite Robe Noire. Benefit experienced “strong growth” driven by its new collection for eyebrows. Make Up For Ever, Fresh and Kat Von D performed well, added the company.
The Watches & Jewelry business group recorded organic revenue growth of +5%. On a reported basis, revenue growth was +5%. Profit from recurring operations increased by +6%.
LVMH said: “Bulgari continued to gain market share with enhancements to its Serpenti, Diva and B.zero1 lines. Growth continued in China, Korea and in the Middle East. TAG Heuer grew despite a difficult market for watches, gained market share and benefitted from the success of its new collections and its connected watch. Hublot accelerated its development in Asia and recorded the best year in its history. Chaumet continued to move its product lines upmarket and inaugurated a new boutique concept in Hong Kong.”
The company concluded: “Despite a climate of geopolitical and currency uncertainties, LVMH is well-equipped to continue its growth momentum across all business groups in 2017. The group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and a constant quest for quality in their products and their distribution.”
