FRANCE: Emerging markets help Moet Hennessy but Q3 sales slow
LVMH remains confident despite a slowdown on the year's previous quarters
A strong emerging markets performance has seen Moet Hennessy report double-digit Q3 sales growth, but the performance marks a slowdown on its previous two quarters.
The wine and spirits arm of luxury goods group LVMH reported yesterday (15 October) that sales grew by 15.5% year-on-year to EUR1bn (US$1.3bn) in the three months to the end of September. However, this represented a slowdown after a 23.8% sales rise in Q2 and a 22% jump in Q1 for the division.
In the year-to-date, organic sales grew year-on-year by 12% to EUR2.77bn, with reported sales in the nine months to the end of September up by 20%.
"The group’s Champagne brands achieved a sustained increase in volume over the period," LVMH said. The rise was helped by an "improvement in product mix" and price increases at the start of the year, it said.
"Strong advances" in emerging markets was also noted, while its wine business was boosted by "rapid development" of sparkling wines.
"Hennessy Cognac continued to see strong momentum across all categories," the group added.
The group as a whole saw a 10% rise in organic revenues in the year's first nine months, while total sales in Q3 rose by 15% to EUR6.9bn year-on-year.
Looking ahead, the group said it remains "confident", despite Europe's economic slowdown. It added: "The group will continue to pursue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets."
The group's share price is currently down around 1% at EUR122.55.
To view the company's full announcement, click click here
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