FRANCE: Moet Hennessy FY profits up as Cognac volumes grow
- FY profits from recurring operations in wines & spirits up 9% to EUR1.37bn
- Net sales up 1% to EUR4.19bn
- Operating margin widens from 30% to 33%
- Volumes up in all categories, including Cognac
LVMH found volumes growth in Cognac
Healthy Cognac sales in the US has helped the wine and spirits arm of LVMH, Moet Hennessy, secure a rise in full-year profits.
Profits from recurring operations in wines & spirits climbed 9% to EUR1.37bn in calendar 2013, the Hennessy Cognac owner said yesterday (30 January). Net sales in the unit were up 1% to EUR4.19bn while operating margins widened by three percentage points to 33%.
Volumes increased in all wines and spirits categories, including Cognac, which saw volumes grow by 3%. The rise suggests Hennessy has proved more resilient to anti-gifting measures in China than rival Cognac houses. In November, Remy Cointreau warned that its operating profits for the full year to the end of March will show a “substantial” double-digit decline because of underperformance in China.
The unit said yesterday of its Hennessy Cognac sales: “The growth was driven in large part by the US, which represented the biggest market by volume. In China, the brand’s firm historic foothold and momentum in the nightlife segment offset the impact of government measures affecting receptions and business gifts.”
Champagne volumes, meanwhile, increased by 1% for the year, with “robust” demand for prestige cuvées, the company said.
Yesterday's results were similar to Moet Hennessy performance in YTD numbers, when wine and spirits sales rose.
Group profit, across LVMH's portfolio of luxury goods, climbed 2% to EUR6.02bn as the company maintained good momentum in the US and Asia. Operating margin reached 21% and sales were up 4% to EUR29.1bn over the previous year.
Trading in LVMH's shares this morning increased, following the FY results release yesterday evening. At 1233 CET, stocks were 5.84% up at EUR129.50.
To read the company's full results, click here.
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