GLOBAL: Moet Hennessy fizzes in FY 2011
- Profits from recurring operations up by 18% to EUR1.1bn
- Net sales up by 8% to EUR3.5bn
- LVMH net sales rise by 16% to EUR23.6bn
Rebounding Champagne sales and the Asian thirst for Cognac have propelled Moet Hennessy to strong rises in sales and profits in 2011.
The wine and spirits division of LVMH reported net sales for the 12 months to the end of December up by 8% to EUR3.5bn (US$4.6bn). Profits from recurring operations jumped by 18% versus 2010, to EUR1.1bn, Moet Hennessy said yesterday (2 February).
The strong results helped to lift the full-year performance of LVMH, which saw rises across all of its business divisions and reported group net sales up by 16% to EUR23.6bn. Group net profits crept up by 1% to EUR3.06bn.
Over the year, Moet Hennessy continued to enjoy success with premium Hennessy Cognac in China. However, it singled out higher pricing in Champagne as a key results driver.
"Having maintained a strategy of value during the difficult period in 2009, the Champagne business fully benefited from the return in demand," the wine and spirits arm said. Glenmorangie Scotch whisky and Belvedere vodka saw volume gains during the year.
In the fourth quarter, Moet Hennessy's sales rose by 9.4% to EUR1.2bn. As a group, LVMH reported fourth-quarter sales up by 20% to EUR7.3bn, including the contribution of newly-integrated Bulgari.
To view the company's release, click here.
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