News

Moet Hennessy heralds Cognac strength as FY sales grow - results

Most popular

The 'metaverse' opportunity for beverage brands

Campari faces familiar troubles - analysis

Sustainability and responsibility activations

Beverage companies set for tough pricing desicions

India - Still spirits promised land? - comment

MORE
  • Full-year sales climb 5% to EUR4.8bn (US$5.1bn)
  • Profits from recurring operations jump 10% to EUR1.5bn
  • Hennessey volumes up 10%

Moët Hennessy has posted a strong jump in full-year sales and profits as healthy Cognac growth in China fuelled increasing optimism over the rebounding spirit.

Moet Hennessys Hennessy Cognac was up 10% in volumes for the year

Moet Hennessy's Hennessy Cognac was up 10% in volumes for the year

The spirits & wine unit of luxury goods maker LVMH said yesterday that sales for 2016 were up 5% to EUR4.8bn (US$5.1bn). Organic sales increased 7%, while profits from recurring operations jumped by 10% to EUR1.5bn.

The growth follows a 16% sales jump and 19% increase in profits from recurring operations in 2015.

Hennessy Cognac led the 2016 performance, with a 10% jump in volumes over the year. Moët Hennessy said growth in the US was continuing while momentum in China improved over the year-prior. China volumes would also have been boosted by an earlier Chinese New Year this year.

The volumes jump for Hennessy continues the good news for Cognac after Remy Cointreau this month delivered a 22% Q3 sales growth for House of Remy Martin

Cognac's global sales levels dropped after the introduction in China of extravagance laws that clamped down on gifting and banqueting by government officials. Cognac suppliers were forced to shift supply to other markets such as the US, however signs of a turnaround that began last year are growing in strength.

Remy Cointreau's bellwether Q3 signals blue sky ahead for Cognac – Analysis

Overall, LVMH today delivered growth in all of its categories, which include fashion & leather goods and perfumes & cosmetics. Sales for the group were up 5% to EUR37.6bn and profits from recurring operations climbed by 6% to EUR7.02bn.

Bernard Arnault, LVMH's chairman & CEO, said: "LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products."

The company announced its results after the close of trading on the Paris bourse. In trading today, the stock was down 0.5% as of 13:22.

To read the company's full results, click here.


Sectors: Company results, Spirits, Wine

Companies: LVMH Group

Related Content

Moet Hennessy sales decelerate in Q4 as 2019 finishes up - results data

Moet Hennessy sales decelerate in Q4 as 2019 finishes up - results data...

Moet Hennessy Performance Trends 2016-2020 - results data

Moet Hennessy Performance Trends 2016-2020 - results data...

Moet Hennessy shows resilience for LVMH in H1 - results

Moet Hennessy shows resilience for LVMH in H1 - results...

"We have to be able to have honest dialogue" - just-drinks speaks to Moet Hennessy NA diversity & in...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?