LVMH : 2016 record results
(Thomson Reuters ONE) -
Paris, 26 January 2017
LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group,
recorded revenue of ?37.6 billion in 2016, an increase of 5% over the previous
year. Organic revenue growth was 6%.
In the fourth quarter, revenue increased by 9% compared to the same period of
2015. Organic growth was 8%. The American market remains on a good track as
does Europe. Asia, excluding Japan, continued its good momentum.
Profit from recurring operations reached ?7 billion in 2016, an increase of 6%,
to which all business groups, apart from selective distribution, contributed.
This result compares to 2015 which was itself a year of growth. Operating
margin reached 18.7%. Group share of net profit was ?3 981 million, representing
growth of 11%.
Bernard Arnault, Chairman and CEO of LVMH, said: "LVMH achieved an excellent
performance in 2016 within a context of geopolitical and economic instability.
Continued innovation, entrepreneurial spirit and the quest for excellence: all
Maisons continue to assert these core values while maintaining rigorous
execution of their strategies on the ground. 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."
Key highlights from 2016 include:
* Record revenue and profit from recurring operations
* Growth in the United States, Europe and Asia
* Good performance of Wines & Spirits in all regions
* The success of both iconic and new products at Louis Vuitton, where
profitability remains at an exceptional level
* Progress at Fendi
* The sale of Donna Karan and the acquisition of Rimowa, leader in luggage of
excellence
* Good momentum at Parfums Christian Dior driven by successful product
innovations
* Market share gains at Bvlgari and TAG Heuer
* Growth at Sephora which strengthened its position in all its markets and in
digital
* Free cash flow of ?3 974 million, an increase of 8%
* Gearing of 12% at end of December 2016
Key figures:
+----------------------------------+--------+--------+----------+
| | | | |
| | 2015 | 2016 | % change |
| Euro millions | | | |
+----------------------------------+--------+--------+----------+
| Revenue | 35 664 | 37 600 | + 5 % |
+----------------------------------+--------+--------+----------+
| Profit from recurring operations | 6 605 | 7 026 | + 6 % |
+----------------------------------+--------+--------+----------+
| Group share of net profit | 3 573 | 3 981 | + 11 % |
+----------------------------------+--------+--------+----------+
| Free cash flow* | 3 679 | 3 974 | + 8 % |
+----------------------------------+--------+--------+----------+
| Net financial debt | 4 235 | 3 265 | - 23 % |
+----------------------------------+--------+--------+----------+
| Total equity | 25 799 | 27 903 | + 8 % |
+----------------------------------+--------+--------+----------+
* Before available for sale financial assets and investments, transactions
relating to equity and financing activities
Revenue by business group:
+-----------------------------------+--------+--------+--------------------+
| | | | % change |
| | | | |
| Euro millions | 2015 | 2016 | 2016/2015 |
| | | | |
| | | | Reported Organic* |
+-----------------------------------+--------+--------+-------+------------+
| Wines & Spirits | 4 603 | 4 835 | + 5 % | + 7 % |
+-----------------------------------+--------+--------+-------+------------+
| Fashion & Leather Goods | 12 369 | 12 775 | + 3 % | + 4 % |
+-----------------------------------+--------+--------+-------+------------+
| Perfumes & Cosmetics | 4 671 | 4 953 | + 6 % | + 8 % |
+-----------------------------------+--------+--------+-------+------------+
| Watches & Jewelry | 3 308 | 3 468 | + 5 % | + 5 % |
+-----------------------------------+--------+--------+-------+------------+
| Selective Retailing | 11 193 | 11 973 | + 7 % | + 8 % |
+-----------------------------------+--------+--------+-------+------------+
| Other activities and eliminations | (480) | (404) | - | - |
+-----------------------------------+--------+--------+-------+------------+
| Total LVMH | 35 664 | 37 600 | + 5 % | + 6 % |
+-----------------------------------+--------+--------+-------+------------+
* With comparable structure and exchange rates.
Profit from recurring operations by business group:
+-----------------------------------+-------+-------+----------+
| Euro millions | 2015 | 2016 | % change |
+-----------------------------------+-------+-------+----------+
| Wines & Spirits | 1 363 | 1 504 | + 10 % |
+-----------------------------------+-------+-------+----------+
| Fashion & Leather Goods | 3 505 | 3 873 | + 10 % |
+-----------------------------------+-------+-------+----------+
| Perfumes & Cosmetics | 524 | 551 | + 5 % |
+-----------------------------------+-------+-------+----------+
| Watches & Jewelry | 432 | 458 | + 6 % |
+-----------------------------------+-------+-------+----------+
| Selective Retailing | 940 | 919 | - 2 % |
+-----------------------------------+-------+-------+----------+
| Other activities and eliminations | (159) | (279) | - |
+-----------------------------------+-------+-------+----------+
| Total LVMH | 6 605 | 7 026 | + 6 % |
+-----------------------------------+-------+-------+----------+
Wines & Spirits: good year with progress in the United States and rebound in
shipments to China
The Wines & Spirits business group recorded an increase in organic revenue of 7
%. On a reported basis, revenue growth was 5 %. Profit from recurring operations
increased by 10 %. With volumes up 3%, solid growth continues for champagne and
prestige cuvees performed particularly well. Hennessy cognac enjoyed an
excellent year with 10% volume growth. The American market is growing well and
China saw better momentum after a tough 2015 due to destocking by distributors.
Other spirits, Glenmorangie and Belvedere, continued their growth.
Fashion & Leather Goods: good performance of Louis Vuitton, other brands
strengthened their positions
The Fashion & Leather Goods business group recorded organic revenue growth of
4% in 2016. On a reported basis, revenue growth was 3 %. Profit from recurring
operations increased by 10%. Louis Vuitton had a good year driven by the level
of creativity across all its businesses. The continued success of its iconic
product range and the strong demand for recent creations such as the new luggage
designed by Marc Newson and the Louis Vuitton fragrances, all contributed to
this growth. Fendi recorded robust growth crossing the symbolic revenue
threshold of 1 billion euros during the year. Loro Piana continued to expand
its distribution network and opened a flagship store in Paris. Céline, Loewe and
Kenzo all continued to grow. Marc Jacobs continued to work on changes to its
collection. Donna Karan was sold in December to the American G-III group.
Rimowa, world leader in luggage of excellence, joined the LVMH group.
Perfumes & Cosmetics: continued success of innovations; excellent performance in
makeup
The Perfumes & Cosmetics business group recorded organic revenue growth of 8%.
On a reported basis, revenue growth was 6%. Profit from recurring operations
increased by 5%. The inauguration of the new atelier for the creation of
fragrances, Les Fontaines Parfumées, at Grasse was a highlight of the
year. Parfums Christian Dior grew market share in all regions, driven by the
worldwide success of Sauvage and the vitality of its iconic perfumes J'adore and
Miss Dior. The progress of makeup also contributed to the Maison's excellent
performance. Guerlain benefitted from the successful launch of its new makeup
collection inspired by its fragrance La Petite Robe Noire. Benefit experienced
strong growth driven by the success of its new collection for eyebrows. Make Up
For Ever, Fresh and Kat Von D performed well.
Watches & Jewelry: market share gains for Bvlgari and TAG Heuer
The Watches & Jewelry business group recorded organic revenue growth of 5%. On a
reported basis, revenue growth was 5%. Profit from recurring operations
increased by 6%. Bvlgari continued to gain market share with enhancements to its
Serpenti, Diva and B.zero1 lines. Growth continued in China, Korea and in the
Middle East. TAG Heuer grew despite a difficult market for watches, gained
market share and benefitted from the success of its new collections and its
connected watch. Hublot accelerated its development in Asia and recorded the
best year in its history. Chaumet continued to move its product lines upmarket
and inaugurated a new boutique concept in Hong Kong.
Selective Retailing: good performance at Sephora, DFS impacted by a difficult
tourism context in Asia
The Selective Retailing business group recorded organic revenue growth of 8%. On
a reported basis, revenue growth was 7%. Profit from recurring operations
declined by 2%. Sephora gained market share across all regions and once again
recorded double-digit growth in both revenue and profits. More than a hundred
stores were opened in 2016 including notably a flagship store in the World Trade
Center in New York and major renovations in Boston and Singapore. Its online
offer accelerated with the launch in six new countries. DFS continued to face a
difficult environment, notably in Hong Kong. The expansion into new
destinations continued. The opening of the T Galleria in Angkor in Cambodia and
one in Venice, Italy were the highlights of the year.
Cautiously confident for 2017
Despite a climate of geopolitical and currency uncertainties, LVMH is well-
equipped to continue its growth momentum across all business groups in 2017. The
Group will maintain a strategy focused on developing its brands by continuing to
build on strong innovation and a constant quest for quality in their products
and their distribution.
Driven by the agility of its teams, their entrepreneurial spirit, the balance of
its different businesses and geographic diversity, LVMH enters 2017 with caution
but has, once again, set an objective of increasing its global leadership
position in luxury goods.
Dividend increase of 13%
At the Annual Shareholders' Meeting on April 13, 2017, LVMH will propose a
dividend of ?4 per share, an increase of 13%. An interim dividend of ?1.40 per
share was paid on December 1 of last year. The balance of ?2.60 per share will
be paid on April 21, 2017.
The LVMH Board met on 26 January 2017 to approve the financial statements for
2016.
Audit procedures have been carried out and the audit report is being issued.
Regulated information related to this press release, the presentation of annual
results and the report "Financial Documents" are available at www.lvmh.fr.
APPENDIX
LVMH - Revenue by business group and by quarter
2016 Revenue (Euro millions)
-------------------------------------------------------------------------------
Fashion Watches Other
FY 2016 Wines & & Perfumes & & Selective activities & Total
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
First 2 056 5 885 2 337 1 609 5 480 (179) 17 188
Half
-------------------------------------------------------------------------------
Third 1 225 3 106 1 241 877 2 803 (114) 9 138
Quarter
-------------------------------------------------------------------------------
Nine 3 281 8 991 3 578 2 486 8 283 (293) 26 326
months
-------------------------------------------------------------------------------
Fourth 1 554 3 784 1 375 982 3 690 (111) 11 274
Quarter
-------------------------------------------------------------------------------
Total 4 835 12 775 4 953 3 468 11 973 (404) 37 600
2016
-------------------------------------------------------------------------------
2016 Revenue (Organic growth versus same period of 2015)
-------------------------------------------------------------------------------
Fashion Watches Other
FY 2016 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
First +9% 0% +8% +4% +5% - +4%
Half
-------------------------------------------------------------------------------
Third + 4% +5% +10% +2% +8% - +6%
Quarter
-------------------------------------------------------------------------------
Nine +7% +2% +8% +4% +6% - +5%
months
-------------------------------------------------------------------------------
Fourth +7% +9% +7% +8% +11% - +8%
Quarter
-------------------------------------------------------------------------------
Total +7% +4% +8% +5% +8% - +6%
2016
-------------------------------------------------------------------------------
2015 Revenue (Euro millions)
-------------------------------------------------------------------------------
Fashion Watches Other
FY 2015 Wines & & Perfumes & & Selective activities & Total
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
First 1 930 5 933 2 228 1 552 5 275 (211) 16 707
Half
-------------------------------------------------------------------------------
Third 1 199 2 939 1 143 852 2 603 (155) 8 581
Quarter
-------------------------------------------------------------------------------
Nine 3 129 8 872 3 371 2 404 7 878 (366) 25 288
months
-------------------------------------------------------------------------------
Fourth 1 474 3 497 1 300 904 3 315 (114) 10 376
Quarter
-------------------------------------------------------------------------------
Total 4 603 12 369 4 671 3 308 11 193 (480) 35 664
2015
-------------------------------------------------------------------------------
*Reclassification of cosmetics company Kendo from Selective retailing to
Perfumes and 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, Belvedere,
Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle,
Newton, Bodega Numanthia and Ao Yun. Its Fashion and Leather Goods division
includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi,
Emilio Pucci, Marc Jacobs, Berluti, Nicholas Kirkwood, Loro Piana and Rimowa.
LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian
Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, 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/2073763/779560.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: LVMH via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.01.2017 - 17:45 Uhr
Sprache: Deutsch
News-ID 520226
Anzahl Zeichen: 21946
contact information:
Town:
Paris
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 374 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"LVMH : 2016 record results"
steht unter der journalistisch-redaktionellen Verantwortung von
LVMH (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
