French luxury goods giant LVMH has seen some green shoots for its wine and spirits business in the third quarter of its fiscal 2025, driven by improvements in Champagne and wines.
In its results for the quarter period published yesterday (14 October), the Moët & Chandon brand owner posted organic revenue growth of 1% in its alcohol segment, reaching €1.33bn ($1.55bn).
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Revenues for Champagne and wines grew 7% organically in the quarter while Cognac and spirits dipped 6%, director of financial communications Rodolphe Ozun explained in prepared remarks on a call with analysts.
The wine and spirits business however still saw organic and reported revenues dip 4% and 7% respectively in the first nine months of 2025 to €3.9bn, with reported declines being attributed to negative currency impact.
Champagne and wines saw organic revenues grow 3% in the first nine months of 2025, to €2.16bn. Reported revenues were up 1% when accounting for positive currency impact.
Cognac and spirits revenues meanwhile declined 12% organically and 4% in reported terms to €1.76bn. The business said the “trends” seen in this segment were fairly similar to those seen in 2024, being affected by “the impact of trade tensions weighing on demand in the key markets of the United States and China”.
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By GlobalDataTotal group revenues in the third quarter were up 1% on an organic basis and down 4% on a reported basis in the third quarter to €18.3bn. In the first nine months of the fiscal year, revenues dropped 2% organically and 4% on a reported basis to €58bn.
In a statement alongside its results, LVMH pointed to “sequential improvement in Champagne and wines and a good performance in Provence rosé wines”.
Speaking in the investor call, Ozun said the group’s Champagne and wines were continuing “to benefit from resilience demand in Champagne”, attributed to “solid depletions in the US year-to-date”.
While Cognac continued to see an impact from “trade tensions and soft depletions in the US and China”, the Chinese market did see a benefit from restocking of VSOP in the third quarter, Ozun added.
Soft Cognac demand and global Champagne sales have been weighing on the Hennessy distiller in earlier quarters.
In its first quarter of 2025, the business booked revenue declines in the wine and spirits business driven by weak demand for Cognac in both the US and China.
In its Cognac and spirits segment, organic sales dropped 17% on the prior year to €736m, which LVMH had put down to ongoing “soft demand” for Cognac in China and the US, and “uncertainties” linked to US tariffs.
Champagne revenue in the period dipped 1% on an organic basis to €680m in the quarter, “reflecting the ongoing normalisation of demand”, the group said.
In its first half, LVMH’s organic revenue for the wine and spirits business dipped 8% to €2.59bn with profit from occurring operations down 33% on 2024.
Cognac and spirits revenues slid 15% in the period but Champagne sales picked up, growing organically by 2%, driven by “improvement in trends” in Europe and the US in the second quarter.
