Moet Hennessys performance was above expectations, according to Nomura

Moet Hennessy's performance was above expectations, according to Nomura

Moet Hennessy's Q1 results were "better than expected", but was the division's slowest quarter for over two years, according to an analyst.

The wine and spirits unit of luxury goods group LVMH reported earlier this week that sales in the three months to the end of March totalled EUR979m (US$1.28bn), a year-on-year increase of 7%. Globally, sales of Hennessy Cognac rose by 10% against the division's Champagne brands, which were up by 3%.

In a note yesterday (16 April), analyst Nomura said that the numbers were "better than expected" but noted that it is the divsion's "slowest quarter for over two years" in terms of sales growth.

The strongest performance was in Asia, where sales rose by 12% in the three months."The Asia momentum may have been helped by price increases on VSOP (+4.5%) and on XO (slightly more) also made in March," the note said. 

In the US, sales increased by 9% in the three months and by 7% in Japan, Nomura flagged.

In a conference call, the company pointed to “good momentum in the US” and “continued progress in China” for the unit. 

"We are not surprised by the positive comments on US where the spirits industry continues to accelerate, but China sounds more positive than was indicated by Pernod (Ricard) on its Asia call at the end of March," Nomura added.