FRANCE: LVMH Moet Hennessy continues rebound in H1
- LVMH H1 net profits jump by 25% to EUR1.3bn (US$1.88bn)
- Profits from recurring operations up by 22% to EUR2.22bn
- Net sales rise by 13% to EUR10.29bn
- Moët Hennessy profits surpass 2007 levels for first time
Moët Hennessy Louis Vuitton reports strong H1 trading
Moët Hennessy Louis Vuitton's drinks division has continued to rebound from the height of the global recession, with strong rises in half-year sales and profits.
Net sales at the Moët Hennessy business, which includes Hennessy Cognac, Moët & Chandon Champagne and Glenmorangie Scotch whisky, rose by 10% for the six months to the end of June, to EUR1.43bn (US$2.08bn). The division's profits from recurring operations increased by 27% on the same period of last year to EUR413m, it said late yesterday (26 July).
The rises mean that Moët Hennessy has, for the first time, surpassed both sales and profits reported in the first half of 2007, prior to the financial crisis.
However, in the second quarter of 2011 Moët Hennessy's net sales rose by just 0.9%, representing a sharp slowdown in momentum from the first three months of the year. This may be partially explained by a high comparative figure due to the later timing of Chinese New Year, a key Cognac drinking period, in 2010.
While the global economic outlook remains uncertain, hit by concerns over debt in Greece and the US, LVMH said that it expects to continue gaining market share in all business divisions in the second half of 2011.
Premium Champagne performed particularly well for Moët Hennessy in the first-half, with strong demand for Dom Perignon and Krug. Cognac, meanwhile, "continued to record strong performances" in Asia, the group said. Glenmorangie and Belvedere vodka also sold well in the period.
LVMH's overall business reported net sales up by 13% for the half-year, to EUR10.29bn. Profits from recurring operations increased by 22% to EUR2.22bn, while net profits rose by 25% to EUR1.3bn.
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