FRANCE: Moet Hennessy Q1 sales hit by China destocking
The unit has suffered from its performance in China
Moet Hennessy has become the latest drinks firm to be seriously affected by the slowdown in China after reporting a slide in first-quarter sales.
The wine and spirits arm of French luxury goods group LVMH saw sales in the three months to the end of March down by 8% to EUR888m (US$1.2bn) on a reported basis. Sales on an organic basis slid by 3% in the period, it said yesterday (9 April).
The company pointed to the performance of its Cognac portfolio in China, due to restocking by retailers, as the reason for the fall. The Cognac category has suffered as a result of anti-gifting measures, introduced as part of an anti-corruption crackdown by the Chinese Government last year. Rival firms Diageo, Pernod Ricard and Remy Cointreau have all been affected.
However, Moet Hennessy said it had seen some “resilience” by Cognac in “certain segments of the Chinese market”. The category had also delivered “solid growth” for the unit in the US, it said.
Other spirits, Glenmorangie and Belvedere, recorded “good growth” in volumes, Moet Hennessy said.
Meanwhile, the group's Champagne portfolio had seen a “good start” to the year, it said, with prestige vintages, in particular, recording “strong” growth.
LVMH's group sales rose by 4% on reported basis in the quarter to EUR7.2bn.
To read the company's full statement, click here
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