Record revenue of €16.7 bn for LVMH in the first half of 2015
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €16.7 billion in the first half of 2015, an increase of 19%. Organic revenue growth was 6% compared to the same period in 2014. The Group recorded strong growth in Europe and the United States. Louis Vuitton had an excellent start to the year. Wines and Spirits continued to grow despite destocking of the distribution in China.
In the second quarter, revenue increased by 23% compared to the same period in 2014. Organic sales growth was 9% marking an increase from the first quarter.
Profit from recurring operations was €2 955 million for the first half of 2015, an increase of 15%, to which all the business groups contributed. Group share of net profit amounted to €1 580 million.
Bernard Arnault, Chairman and CEO of LVMH, commented:
“The excellent results of the first half are witness to the efficiency of our strategy, which relies upon the strength of our brands and a very entrepreneurial style of management. Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products.”
Highlights of the first half of 2015 include:
- Solid growth in Europe and the United States,
- Strong positive exchange rate effect,
- Good performance from Wines and Spirits in all global regions with the exception of China, impacted by the continued destocking of distributors,
- Double-digit organic revenue growth in the second quarter for Fashion & Leather Goods
- Major success of new products at Louis Vuitton, where profitability remains at an exceptional level,
- Continued investment in the fashion brands
- Excellent performance at Parfums Christian Dior,
- Strong growth in Bvlgari’s results and the continued repositioning of TAG Heuer on its core offering,
- Remarkable momentum at Sephora which is strengthening its position in all operating regions and in the digital universe,
- DFS continues to be impacted by the currency and geopolitical environment in Asia,
- Cash from operations before changes in working capital of €3.4 billion,
- Net debt to equity ratio of 25% as of the end of June 2015.\