FRANCE: LVMH posts strong H1 profit rise
LVMH Moet Hennessy Louis Vuitton has posted an 11% rise in profit from recurring operations for the first half of 2005, from €982m to €1.09bn.
At constant exchange rates, profit from recurring operations increased by over 25%, the French drinks and luxury goods group said. Sales for the first half rose by 10% from €5.61bn to €6.17bn
"Our performance during the first half of the year once again demonstrates the exceptional appeal of our brands as well as the effectiveness of our strategy," said chairman and CEO Bernard Arnault. "Thanks to a successful combination of these factors, we have been able to deliver both a double-digit increase in the group's profit from recurring operations and gains in market share.
"Revenue growth during the summer has continued the strong trend we saw at the beginning of the year," Arnault continued. "A number of product launches in conjunction with the growth of our core brands in high-potential markets should allow LVMH to continue its progress in the second half of the year. All these elements enable us to confirm our objective of a significant increase in profit from recurring operations in 2005."
Profit from recurring operations in the wines and spirits division fell, however, from €343m to €321m which the company attributed to the negative impact of currency exchange. The wines and spirits division recorded organic revenue growth of 12%.
LVMH reported that the Dom Perignon, Krug and Veuve Cliquot Champagne brands progressed in all the key geographic regions, while Moet & Chandon enjoyed "significant growth" in Japan and Europe. The wine businesses continued to enjoy strong growth, the company said. Hennessy Cognac recorded an 8% volume increase, with particularly strong progress in the US and in China.
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