Sales, profits for Moet Hennessy pick up in H1
- Half-year operating profits from wines & spirits rise by 4.6% to EUR482m (US$533.3m)
- Reported sales in six months to end of June jump by 15.1% to EUR1.93bn
- Sales shine in Q2 after dip in Q1
Moet Hennessy posted a healthy Q2 after a downbeat Q1
Moet Hennessy has hailed "strong momentum" in the US and "recovery" in Europe for turning its sales around in its second quarter.
The wine & spirits unit of LVMH said late yesterday that sales in the six months to the end of June rose by 2% in organic terms. The performance compares to a 1% dip in Q1 organic sales, reported in April.
In reported terms, sales were up by just over 15%, with the pattern of a positive Q2 after a poor Q1 echoing the same period a year ago.
Operating profits in the half-year increased by almost 5%, with the division delivering a "good performance" in all regions, with the exception of China, where distributor destocking of Cognac has continued. Hennessy had a good second quarter in the US, however, resulting in "a return to organic revenue growth" for the Cognac brand.
The unit also flagged a "good start to the year" for its Champagne operations.
LVMH group operating profits in H1 rose by 15% on a 19% lift in sales on a reported basis. In organic terms, group sales increased by 6%.
On outlook, the group said it expects to "continue to gain market share thanks to the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs".
To read the company's official statement, click here.
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