FRANCE: LVMH toasts sales rise

French luxury goods firm LVMH has announced a 5% sales rise for its first half, with wine and spirits brands showing a strong recovery in the second quarter.

LVMH sales reached EUR7.8bn (US$12.2bn) for the six months to the end of June, reflecting 12% organic growth excluding currency fluctuations, the firm said today (30 July). Net profit rose by 7% to EUR891m, beating several analysts' predictions.

The group's wine and spirits division, which includes Champagne brand Moët & Chandon and Hennessy Cognac, was the weak point in the results. Sales dipped 2% to EUR1.29bn for the half due to retail price rises in the first quarter.

But LVMH said it remained confident after a strong recovery in the second quarter, led by emerging markets Russia, China and the Middle East, as well as a good performance from Champagne brands Veuve Clicquot Ponsardin, Moët & Chandon and Ruinart. Organic growth for the wine and spirits division, excluding currency changes, was 6% for the half-year. 

Bernard Arnault, LVMH chairman, said: "The first half results once again demonstrate the exceptional appeal of our brands as well as the effectiveness of our strategy, particularly remarkable given the adverse currency and economic environment seen during this period."

An interim dividend payment of EUR0.35 will be paid on 2 December.