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Moet Hennessy set for Cognac slowdown as supply constraints continue in H1 2017 - results

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  • Moet Hennessy net sales rise 12% to EUR2.29bn (US$2.67bn)
  • Organic sales up 10%
  • Operating profits in six months to end of June jump 21% to EUR681m

Cognac and the US market have continued to drive Moet Hennessy's performance in the first half of 2017, though the firm has again warned of constraints around Hennessy Cognac stock.

Moet Hennessy expects Cognac constraints to continue into the second half of the year

Moet Hennessy expects Cognac constraints to continue into the second half of the year

LVMH said late yesterday that net sales for its wine & spirits division - Moet Hennessy - were up 12%. On an organic basis, sales rose 10% in the six-month period. 

The company said the division has seen a good start to the year with "solid growth" in the US and improved momentum in China. 

Within the unit, LVMH said it was expecting to experience a "slowdown" in volumes growth for Cognac in the second half, "given the existing supply constraints". The company flagged stock issues in its first-quarter results, following a significant increase in Hennessy volumes during the first three months of the year. 

Outside of Cognac, LVMH said all of its Champagne Houses "have performed well" in H1. The group also highlighted Europe and the US as being "particularly dynamic" in the period. 

Speaking about the group as a whole, which also includes fashion, perfumes and watches, LVMH chairman & CEO Bernard Arnault said: "In the current climate of geopolitical and economic instability, creativity and quality, the founding values of our group, have more than ever become benchmarks for all."

Looking forward, Arnault said that "in an environment that remains uncertain, we approach the second half of the year with caution".

To read the company's official release, click here


Sectors: Company results, Spirits, Wine

Companies: LVMH Group

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