FRANCE: Asia volumes prop up Moet Hennessy's H1
The company still sees challenges in Europe
LVMH's wine and spirits division, Moet Hennessy, has reported a 9% rise in operating profits in its first-half, with “sustained demand” in Asia propping up its overall volumes.
The Paris-based luxury goods group said yesterday (25 July) that the unit's operating profits in the six months to the end of June were EUR542m (US$719.8m), up from EUR496m the prior year. Reported sales in this year's H1 rose by 3% to EUR1.8bn.
The rise in sales marked a slowdown on the 6% reported in the group's first quarter.
LVMH said today its Champagne business in Europe has "shown good resilience in a difficult economic environment". It added: "The sustained demand enjoyed by LVMH brands in Asian markets has kept the volumes identical to those levels achieved in the first half of 2012."
Hennessy Cognac recorded volume growth of 3%, driven by younger varities, the company added.
It remains focussed on a “firm pricing policy” and “strong innovation accompanied by sustained investments”, it concluded.
LVMH as a group saw a 6% rise in sales to EUR13.7bn, while operating profits were up 2% to EUR2.7bn.
Shares in LVMH were today trading up 4.45% at EUR136.2.
To read the company's official statement, click here.
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