LVMH up 26% in H1 with €13bn profit

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Moët Hennessy Louis Vuitton (LVMH), the world’s leading luxury products group, has dubbed H1 of 2012 “excellent”, recording revenue of €13 billion (£10.1bn) in the first half 2012, an increase of 26% year-on-year.

The group says all of its business sectors – across leather goods, watches, jewellery, perfumes and wines and spirits – contributed to its performance, something it says is “even more remarkable coming on top of the strong growth in H1 of 2011”

LVMH has also enjoyed sustained growth in the US, Europe and Asia.

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Its watch and jewellery sector recorded 13% organic revenue growth in H1 revenue totalling €1.3 billion (£1bn). Profit from recurring operations increased by 87%, notably as a result of Bulgari’s performance, consolidated since June 30 2011. Bulgari is also said to have enjoyed the growing success of its Serpenti collection.

LVMH’s watch brands had record orders during the watch fairs “thanks to the strength of their iconic product lines and the excellent reception given to their innovations”.

TAG Heuer’s new flagship range for women, Link Lady, has already been very successful while Zenith’s Pilot collection and Hublot’s innovation models made using “materials perfected by its research laboratory” piqued interest in the market.

LVMH has also been busy extending its store network and developing its industrial capacity within its watch and jewellery sector.

Overall group profit from recurring operations for the first half of 2012 rose to €2.6 billion (£2bn), an increase of 20% compared to the same period in 2011. Group share of net profit rose to €1.6 billion (£1.25bn), an increase of 28%.

Bernard Arnault, chairman and chief executive of LVMH, said: “LVMH’s excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the pertinence of our strategy.

“A host of initiatives, including constant innovation, successful iconic product lines, the development of our craftsmanship and targeted expansion, reinforce our maisons. We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets. ”

Highlights from across the group include continued rapid growth in the US and Asia and double-digit growth at Louis Vuitton, where profitability is said to be “exceptional”.

Looking ahead the group says its numerous planned product launches should help continue its gains in the market. The group also said that its geographic expansion “in promising markets” and its cost management will also increase its hold in the luxury goods market.

“Our strategy of focusing on quality across our entire product range, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce, once again in 2012, LVMH’s global leadership position in luxury goods,” said the results release from LVMH.
 

 

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