China Rebound Helped Lift LVMH Wines & Spirits’ Revenue by 44% in 1H 2021
The Wines and Spirits division of French luxury giant LVMH Moët Hennessy Louis Vuitton delivered a 44% organic revenue growth in the first half of 2021.
The business posted 2.7 billion euros in revenues between January and June this year, which also represents a 12% rise over revenues netted before the pandemic in the first half of 2019.
The multinational firm, known for its Moët & Chandon and Dom Pérignon brands, attributed its revenue growth to a “strong rebound” in its Chinese market, as well as sustained demand in the US.
Earnings from the business’s recurring operations jumped by 60% year on year to 924 million euros in the first six months of the year.
LVMH’s champagne volumes increased by a tenth from the level recorded in the same period two years ago as it made “good momentum” in the US and Europe.
The cognac volumes of its brand Hennessy also went up by 6% compared to 2019, albeit growth was “limited by supply constraints.”
LVMH has made a comeback to “strong growth momentum” since the start of the year after its operations were “severely” disrupted in 2020 due to the global Covid-19 pandemic.
It pocketed 7.6 billion euros in profits from recurring operations in the Jan-June period, climbing more than four times from last year’s first half. It raked in revenues worth 28.7 billion euros in the period, soaring by 56% year on year.
Bernard Arnault, chairman and CEO of LVMH, said the company is in an “excellent” position to maintain its growth and lead the pack in the global luxury market in the midst of global economic recovery.
“LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high quality and enduring nature of our products and the sense of responsibility that drives us have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability,” Arnault said.
