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.
While there has been huge focus in the spirits sector on emerging markets in recent years, a new report from Euromonitor International suggests prioritising development in these up-and-coming regions ...
Poor weather means there will be no 2012 vintage of the prestigious Château d'Yquem - a Sauternes premier cru supérieur....
Berry Bros & Rudd have appointed two new directors, including an eighth-generation member of the founding family....
- How to turn a domestic spirit into a global brand
- Whatever happened to binge Britain? - comment
- This week in spirits & wine
- Mahou San Miguel - just the Facts
- Britvic's FY Performance by Region - Focus
- Captain Morgan distillation trial queried by USVI
- Sazerac sues Brown-Forman over Tennessee Fire
- Craft, imports near 50% share in US on-trade
- Beam Suntory's Laphroaig Brodir - NPD
- Diageo sells off United Spirits' Bouvet Ladubay
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Wine Market to 2019 - Market Size, Development, and Forecasts