FRANCE: LVMH posts record full-year results
LVMH Moët Hennessy Louis Vuitton has reported record sales for 2007, with its wine and spirits unit delivering double-digit profit growth.
The French luxury products group said today (7 February) that total sales last year rose in organic terms by 13% year-on-year to EUR16.5bn (US$24.06bn). Group net income for 2007 was up by 8% on 2006, at EUR2.02bn. Profit from recurring operations, meanwhile, climbed by 12% to EUR3.55bn.
The Wines & Spirits division delivered organic revenue growth of 13% in 2007 to EUR3.22bn, with profit from recurring operations up by 10% to EUR1.06bn. The company credited the strong figures to a continued increase in Champagne volumes during the period, accompanied by an improvement in product mix driven by rosés. The company's Hennessy Cognac brand demonstrated "strong momentum" with "robust growth" in volumes, LVMH said.
Growth coming from the US and Europe was "remarkable" in the period, while China, Vietnam and Russia were also "very strong". The company also highlighted its acquisition of a 55% stake in Chinese spirit producer Wen Jun Spirits in 2007.
LVMH chairman and CEO Bernard Arnault said: "In an economic environment unsettled since the beginning of the year, we will rely on the strength of our growth model, the exceptional innovation of our brands and the talent of our teams to make 2008 another year of growth."
LVMH will propose a dividend of EUR1.6 per share at its shareholder's AGM on 15 May. An interim dividend of EUR0.35 per share was paid out on 3 December. The balance of EUR1.25 will be paid on 23 May.
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