FRANCE: LVMH in high spirits as Moet Hennessy FY shines

• Moet Hennessy FY operating profits climb by 14% to EUR1.26bn (US$1.71bn)
• Wine and spirits sales up by 11% to EUR4.14bn in 2012
• Spirits brands singled out for special mention
• Group profits up by 13%, sales up by 9%

LVMH has posted double-digit rises in both full-year sales and profits from its wine and spirits division, Moet Hennessy.

The French group said late yesterday (31 January) that operating profits from Moet Hennessy in 2012 were up by 14% year-on-year, at EUR1.26bn (US$1.71bn). Sales performed similarly, rising by 11% in organic terms - 17% in reported terms - to hit EUR4.14bn.

LVMH credited Moet Hennessy's performance to "volume growth, improved product mix and a policy of adjusted price". While its rosé and "prestige vintage" Champagnes were highlighted, it was the spirits portfolio that was especially praised.

"Hennessy Cognac saw a very good year for all its qualities and in all regions," LVMH said. "Belvedere vodka enjoyed good momentum outside the US while the single malt whiskeys (sic) Glenmorangie and Ardbeg recorded rapid increases in their key markets."

Total group operating profits last year increased by 13% on 2011, to EUR5.92bn, as sales climbed by 9% organically - 19% reported - to EUR28.10bn.

The group said that it was starting the new year "with confidence and has ... set an objective of increasing its global leadership position in luxury goods".

Moet Hennessy is 34%-owned by Diageo.

For just-drinks' coverage of LVMH's half-year results, released in July, click here.