Lvmh reports strong first-half results
Wines & Spirits business group recorded organic revenue growth of +10% in the half
All the champagne houses have performed well with Europe and the USA “particularly dynamic”
In its 1Half2017 report Lvmh announced that the wine and spirits arm recorded organic growth revenue of 10% from January to June, compared to the same period in 2016, a rise from € 2 billion to € 2.2 billion. Profits from recurring operations grew 21% meanwhile from € 565 million in the first half of 2016 to € 681 million in the first six months of this year. The group reported that all of its Champagne houses performed well, with Europe and the US proving particularly dynamic.
Hennessy Cognac meanwhile continued to show growth in the US and demand was “recovering” in China. However, Lvmh also noted that: “The second half of the year is expected to experience a slowdown in volume growth given the existing supply constraints.”
Overall the group reported revenue of € 19.7 billion in the first half of the year, an increase of 15%.
“Lvmh has enjoyed an excellent first half – said Bernard Arnault, chairman and ceo of Lvmh –, to which all our businesses contributed. In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our group, have more than ever become benchmarks for all. The increasing digitalisation of our activities furthermore reinforces the quality of the experience we bring to our customers. In an environment that remains uncertain, we approach the second half of the year with caution. We will remain vigilant and rely on the entrepreneurial spirit and talent of our teams to further increase our leadership in the world of high quality products in 2017”.
As a group, Lvmh H1 revenues reached € 19.7 billion, an increase of +15% year-on-year.
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