FRANCE: Drinks results soar in LVMH Moët Hennessy Louis Vuitton H1
- Moet Hennessy H1 profits from recurring operations leap by 20% to EUR496m (US$608.9m)
- Unit's sales follow suit, jumping by 23% to EUR1.76bn
- Q2 sales increase 23.8% to EUR833m
- Asia, US highlighted as H1 drivers
LVMH released its H1 results earlier today
The wine and spirits division of LVMH Moët Hennessy Louis Vuitton has posted strong rises in sales and profits in the first half of this year.
Profits from Moet Hennessy leapt 20% in the six months to the end of June, as unit sales were up 23% to EUR1.76bn, the company announced today (27 July). Sales in Q2 jumped 23.8% to EUR833m.
This followed a strong Q1 when sales jumped 22% in the division.
The group attributed the performance to "product mix improvements" and the "continued application of a premium pricing policy" since the start of the year.
Champagne volumes were up 6% on last year's first half, with "solid gains in all markets". Veuve Clicquot Ponsardin made "further headway" in the US and Asia, while Krug grew in Europe and performed well in Japan and Asia-Pacific, the group said.
Cognac volumes rose by 8% on last year's H1, with profits up 22% to EUR311m. The group said Hennessy enjoyed good growth in Asia where the brand has "successfully combined controlled increases in volumes and limited availability of its prestige qualities".
In the US, the brand "reaffirmed" its status as the top-selling Cognac, the group said, while making "strong advances" in Vietnam, Mexico, Russia and Nigeria.
Bernard Arnault, LVMH's chairman & CEO, said: “LVMH’s excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the pertinence of our strategy."
Looking ahead, the group posted an upbeat forecast, noting the "ever increasing desire for quality" as the "dominant market trend around the world".
But, it said it will continue to control volume increases for Champagne and Cognac. The division's strategy includes "innovation, premium prices, as well as targeted media investments aimed at reinforcing recognition for brands and encouraging enthusiasm for products".
For the company's official announcement, click here.
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