LVMH: Organic revenue growth of 4% in the first half of 2016
(Thomson Reuters ONE) -
LVMH: Organic revenue growth of 4% in the first half of 2016
Paris, 26 July 2016
LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group,
recorded revenue of ?17.2 billion in the first half of 2016, an increase of 3%.
Organic revenue growth was 4% compared to the same period in 2015. The American
market is dynamic, while Europe remains on track, with the exception of France,
which has been affected by a decrease in tourism. Asia improved steadily during
the period.
In the second quarter, revenue increased by 2% compared to the same period in
2015. Organic revenue growth was 4% marking a slight increase compared with the
first quarter.
Profit from recurring operations was ?2 959 million for the first half of 2016,
consistent with the same period in 2015. Group share of net profit amounted to
?1 711 million, an increase of 8%.
Bernard Arnault, Chairman and CEO of LVMH, commented:
"LVMH's results for the first half of 2016 reflect, more than ever, the strength
of our business model, which allows us to continue to grow even during an
unstable geopolitical environment and economic and monetary uncertainties. The
diversity of our businesses, the entrepreneurial style of our brands and the
agility of our organization all contribute to the growth of the Group. By
remaining vigilant, 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 in 2016."
Highlights of the first half of 2016 include:
* Strong momentum in the United States, and continued growth in the European
market,
* Excellent performance from Wines and Spirits in all regions,
* Success of iconic lines and new products at Louis Vuitton, where
profitability remains at an exceptional level,
* Impressive growth of Fendi, which celebrates its 90(th) year,
* Continued investment in the fashion brands,
* Strong momentum at Parfums Christian Dior, led by successful innovations,
* Market share gains at Bvlgari and the successful refocusing of TAG Heuer on
its core range,
* Exceptional progress at Sephora which is strengthening its position in all
operating regions and in the digital universe,
* Cash from operations before changes in working capital of ?3.7 billion, an
increase of 8%
* Net debt to equity ratio of 20% as of the end of June 2016.
Key figures
+--------------------------------+------------------+----------------+--------+
| |First half 2015|First half 2016|% change|
|Euro millions | | | |
| | | | |
+--------------------------------+------------------+----------------+--------+
|Revenue | 16 707| 17 188| + 3 %|
| | | | |
|Profit from recurring operations| 2 955| 2 959| 0 %|
| | | | |
|Group share of net profit | 1 580| 1 711| + 8 %|
| | | | |
|Cash from operations* | 3 368| 3 650| + 8 %|
| | | | |
|Net Financial Debt | 6 034| 5 303| - 12 %|
| | | | |
|Total Equity | 24 445| 26 073| + 7%|
+--------------------------------+------------------+----------------+--------+
* Before changes in working capital.
Revenue by business group:
+---------------------------+---------------+---------------+------------------+
| |First half 2015|First half 2016| % change |
|Euro millions | | | Reported |
| | | | Organic* |
+---------------------------+---------------+---------------+-----+------------+
|Wines & Spirits | 1 930| 2 056|+ 7 %| + 9 %|
+---------------------------+---------------+---------------+-----+------------+
|Fashion & Leather Goods | 5 933| 5 885|- 1 %| 0 %|
+---------------------------+---------------+---------------+-----+------------+
|Perfumes & Cosmetics | 2 228| 2 337|+ 5 %| + 8%|
+---------------------------+---------------+---------------+-----+------------+
|Watches & Jewelry | 1 552| 1 609|+ 4 %| + 4 %|
+---------------------------+---------------+---------------+-----+------------+
|Selective Retailing | 5 275| 5 480| + 4%| + 5 %|
+---------------------------+---------------+---------------+-----+------------+
|Other activities and| (211)| (179)| - | - |
|eliminations | | | | |
+---------------------------+---------------+---------------+-----+------------+
|Total LVMH | 16 707| 17 188|+ 3 %| + 4 %|
+---------------------------+---------------+---------------+-----+------------+
* With comparable structure and constant exchange rates. The exchange rate
impact is -2% and the structural impact is 1%.
Profit from recurring operations by business group:
+---------------------------------+-----------------+---------------+--------+
|Euro millions |First half 2015|First half 2016|% change|
+---------------------------------+-----------------+---------------+--------+
|Wines & Spirits | 482| 565| + 17 %|
+---------------------------------+-----------------+---------------+--------+
|Fashion & Leather Goods | 1 661| 1 630| - 2 %|
+---------------------------------+-----------------+---------------+--------+
|Perfumes & Cosmetics | 249| 272| + 9 %|
+---------------------------------+-----------------+---------------+--------+
|Watches & Jewelry | 205| 205| 0 %|
+---------------------------------+-----------------+---------------+--------+
|Selective Retailing | 433| 410| - 5 %|
+---------------------------------+-----------------+---------------+--------+
|Other activities and eliminations| (75)| (123)| - |
+---------------------------------+-----------------+---------------+--------+
|Total LVMH | 2 955| 2 959| 0 %|
+---------------------------------+-----------------+---------------+--------+
Wines & Spirits: excellent start to the year with strong growth in the United
States, and improved momentum in China
The Wines & Spirits business group recorded organic revenue growth of 9%. On a
reported basis, revenue growth was 7% and profit from recurring operations
increased by 17%. The champagne business had a good start to the year,
especially in Europe and the US. The prestige vintages performed particularly
well. Hennessy recorded strong growth in the American market and improved
momentum in China following 2015 which was marked by a period of destocking by
distributors. Other spirits, Glenmorangie and Belvedere continue their
development.
Fashion & Leather Goods: excellent creative momentum at Louis Vuitton and
further strengthening of other brands
The Fashion & Leather Goods business group recorded stable revenue and profit
from recurring operations. Louis Vuitton continued to illustrate its creative
momentum across its collections. Leather goods' performance was based on both
the continued development of its iconic models, as well as on the success of its
more recent creations. The presentation of the Cruise Collection in the Niterói
Museum of Contemporary Art in Brazil was a highlight of the first half. Loro
Piana opened a flagship store on Avenue Montaigne in Paris. Fendi recorded an
excellent performance in the first half. Céline and Kenzo showed strong growth.
Marc Jacobs continued the repositioning of its collections. Other brands are
further strengthening their positions. An agreement was announced for the sale
of the Donna Karan business.
Perfumes & Cosmetics: innovations meet with great success.
The Perfumes & Cosmetics business group recorded organic revenue growth of 8%.
On a reported basis, revenue growth was 5% and profit from recurring operations
increased by 9%. Christian Dior gained market share in all regions, underscoring
its strong performance, driven by the international success of Sauvage and the
vitality of its iconic perfumes, J'adore and Miss Dior. Its new fragrance,
Poison Girl, and its latest makeup creations also contributed to the excellent
performance of the brand. Strengthened by the success of its perfumes, Guerlain
introduced La Petite Robe Noire to the makeup market. Benefit's new eyebrow
collection received an excellent reception. Make Up For Ever and the portfolio
of Kendo brands grew rapidly.
Watches & Jewelry: market share gains of our brands and successful refocusing of
TAG Heuer in its core offering
In the first half of 2016, the Watches & Jewelry business group recorded organic
revenue growth of 4%. On a reported basis, revenue growth was 4% and profit from
recurring operations was stable. Bvlgari continued its growth and outperformed
the market. The brand maintained its strong creative momentum, notably with the
enhancements to the iconic B Zero 1 and Diva collections. With good progress in
a difficult market, TAG Heuer gained market share and recorded the first
positive effects of the development of its core offering. Its new Connected
watch was an immense success.
Selective Retailing: excellent performance at Sephora; DFS impacted by the
difficult tourist environment in Asia.
The Selective Retailing business group recorded organic revenue growth of 5%. On
a reported basis, revenue growth was 4% and profit from recurring operations
decreased by 5%. Sephora continued to gain market share in all regions,
recording double digit-growth in its revenue and profits. Its performances were
outstanding throughout the world. DFS continues to face challenges in Asia due
to the difficult environment for tourism, particularly in Macau and Hong Kong.
Its geographic expansion continues with the opening of a new T Galleria in Siem
Reap in Cambodia and another will open in the coming months in Venice, Italy.
Outlook 2016
Despite the context of geopolitical and currency uncertainties, LVMH will
continue to gain market share thanks to the numerous product launches planned
before the end of the year and its geographic expansion in promising markets,
while continuing to manage costs.
Our strategy of focusing on quality across all our activities, combined with the
dynamism and unparalleled creativity of our teams, will enable us to reinforce,
once again in 2016, LVMH's global leadership position in luxury goods.
An interim dividend of 1.40 Euro will be paid on December 1st, 2016.
Regulated information related to this press release, the half year results
presentation and the half year financial statement are available on our internet
site www.lvmh.com
Limited review procedures have been carried out, the related report will be
issued following the Board meeting.
ANNEXE
LVMH - Revenue by business group and by quarter
First Half 2016
-------------------------------------------------------------------------------
Fashion Watches Other
(Euro Wines & & Perfumes & & Selective activities & Total
millions) Spirits Leather Cosmetics Jewelry Retailing Eliminations
Goods
-------------------------------------------------------------------------------
First 1 033 2 965 1 213 774 2 747 (112) 8 620
quarter
Second 1 023 2 920 1 124 835 2 733 (67) 8 568
quarter
--------------------------------------------------------------------
Total 2 056 5 885 2 337 1 609 5 480 (179) 17 188
revenue
-------------------------------------------------------------------------------
First Half 2016 (organic growth compared to the first half 2015)
-------------------------------------------------------------------------------
Fashion Watches Other
Wines & & Perfumes & & Selective Activities & Total
Spirits Leather Cosmetics Jewelry Retailing Eliminations
Goods
-------------------------------------------------------------------------------
First +6% 0% +9% +7% +4% - +3%
quarter
Second +13% +1% +6% +2% +7% - +4%
quarter
----------------------------------------------------------------------
Total +9% 0% +8% +4% +5% - +4%
revenue
-------------------------------------------------------------------------------
First Half 2015
-------------------------------------------------------------------------------
Fashion Watches Other
(Euro Wines & & Perfumes & & Selective activities & Total
millions) Spirits Leather Cosmetics* Jewelry Retailing* Eliminations
Goods
-------------------------------------------------------------------------------
First 992 2 975 1 129 723 2 648 (144) 8 323
quarter
Second 938 2 958 1 099 829 2 627 (67) 8 384
quarter
--------------------------------------------------------------------
Total 1 930 5 933 2 228 1 552 5 275 (211) 16 707
revenue
-------------------------------------------------------------------------------
* reclassification of the cosmetics business Kendo from Selective Retailing to
Perfumes & Cosmetics.
LVMH
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a
portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot
Ponsardin, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des
Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wenjun,
Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape
Mentelle, Newton and Bodega Numanthia. Its Fashion and Leather Goods division
includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi,
Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro
Piana. LVMH is present in the Perfumes and Cosmetics sector with Parfums
Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as
well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever,
Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as
in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Royal
Van Lent and Cheval Blanc hotels. LVMH's Watches and Jewelry division comprises
Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers
Diamond Jewellers Ltd, a joint venture created with the world's leading diamond
group.
"Certain information included in this release is forward looking and is subject
to important risks and uncertainties and factors beyond our control or ability
to predict, that could cause actual results to differ materially from those
anticipated, projected or implied. It only reflects our views as of the date of
this presentation. No undue reliance should therefore be based on any such
information, it being also agreed that we undertake no commitment to amend or
update it after the date hereof."
Contacts:
Analysts and investors: Chris Hollis + 33 1.4413.2122
LVMH
Media:
France : Michel Calzaroni/Olivier Labesse/ + 33 1.4070.1189
Sonia Fellmann/Hugues Schmitt
DGM Conseil
UK: Hugh Morrison / Charlotte McMullen +44 7921.881.800
Montfort Communications
Italy: Michele Calcaterra/ Matteo Steinbach +39 02 6249991
SEC and Partners
US: James Fingeroth/Molly Morse/ +1 212.521.4800
Anntal Silver
Kekst & Company
PDF version:
http://hugin.info/143740/R/2030808/755454.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: LVMH via GlobeNewswire
[HUG#2030808]
Unternehmensinformation / Kurzprofil:
Datum: 26.07.2016 - 17:45 Uhr
Sprache: Deutsch
News-ID 485467
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