Paris, 29 January 2019
LVMH Moët Hennessy Louis Vuitton,
the world's leading luxury products group, recorded revenue of
€46.8 billion in 2018, an increase of 10% over the previous year.
Organic revenue growth was 11%, and 12% excluding the impact of the
closure of the Hong Kong airport concessions at the end of 2017.
All business groups recorded excellent performances.
Organic revenue growth in the
fourth quarter was 10%* (excluding the impact of the closure of the
Hong Kong airport concessions). The quarter continued the trend
that has been underway since the beginning of the year.
Profit from recurring operations
amounted to €10 billion in 2018, up 21%. Operating margin reached a
level of 21.4%, an increase of 1.9 percentage points. Group share
of net profit amounted to €6.4 billion, up 18%.
Bernard Arnault, Chairman and CEO
of LVMH, commented, "LVMH had another record year, both in terms of
revenue and results. In particular, profit from recurring
operations crossed the €10 billion mark. The desirability of our
brands, the creativity and quality of our products, the unique
experience offered to our customers, and the talent and the
commitment of our teams are the Group's strengths and have once
again made the difference. In 2019 LVMH will continue its strong
dynamic of innovation, targeted investments, combining tradition
and modernity, long-term vision and responsiveness, entrepreneurial
spirit and a sense of responsibility. In an environment that
remains uncertain, we can count on the appeal of our brands and the
agility of our teams to strengthen, once again in 2019, our
leadership in the universe of high quality products."
Key highlights from 2018
include:
-
Further double-digit increase in revenue and
profit from recurring operations, which reached record
levels,
-
Continued growth in Europe, the United States,
Asia and Japan,
-
Excellent performance in Wines and Spirits and
exceptional grape harvests,
-
Success of both iconic and new products at Louis
Vuitton, whose profitability remains at an exceptional level,
-
Very good first year for Christian Dior Couture
within LVMH,
-
Creative renewal at several Maisons,
-
Strong growth at the flagship brands of Perfumes
and Cosmetics,
-
Excellent year for Bvlgari and good development
of Hublot and TAG Heuer,
-
Growth at Sephora, which strengthened its
positions in all its markets and in digital,
-
Agreement with the Belmond group,
-
Free cash flow of €5.5 billion, up 16%,
-
Gearing of 16.2% at the end of December
2018.
*Organic growth of 9% including the impact of the
closure of the Hong Kong airport concessions.
Key figures
Euro millions |
2017* |
2018 |
% change |
Revenue |
42 636 |
46 826 |
+10 % |
Profit from recurring operations |
8 293 |
10 003 |
+ 21 % |
Group
share of net profit |
5 365 |
6 354 |
+ 18 % |
Free cash
flow |
4 696 |
5 452 |
+ 16 % |
Net
financial debt |
7 153 |
5 487** |
- 23 % |
Total
equity |
30 377 |
33 957 |
+ 12 % |
* Restated to
account for the impact of the application of IFRS 9 Financial
Instruments.
** Excluding the acquisition of Belmond shares at
the end of 2018 for €274m.
Revenue by business group :
Euro
millions |
2017 |
2018 |
% change 2018/2017
Reported
Organic* |
Wines & Spirits |
5 084 |
5 143 |
+ 1 % |
+ 5 % |
Fashion & Leather Goods |
15 472 |
18 455 |
+ 19 % |
+ 15 % |
Perfumes & Cosmetics |
5 560 |
6 092 |
+ 10 % |
+ 14 % |
Watches & Jewelry |
3 805 |
4 123 |
+ 8 % |
+ 12 % |
Selective Retailing |
13 311 |
13 646 |
+ 3 % |
+ 6 %** |
Other activities and eliminations |
(596) |
(633) |
- |
- |
Total LVMH |
42 636 |
46 826 |
+ 10 % |
+ 11 % |
* With comparable
structure and exchange rates. The currency effect was -4% and the
structural impact was + 3%.
** + 12% excluding the closure of Hong Kong
airport concessions in 2017.
Profit from
recurring operations by business group:
Euro
millions |
2017 |
2018 |
% change |
Wines & Spirits |
1 558 |
1 629 |
+ 5 % |
Fashion & Leather Goods |
4 905 |
5 943 |
+ 21
% |
Perfumes & Cosmetics |
600 |
676 |
+ 13 % |
Watches & Jewelry |
512 |
703 |
+ 37 % |
Selective Retailing |
1 075 |
1 382 |
+ 29 % |
Other activities and eliminations |
(357) |
(330) |
- |
Total LVMH |
8 293 |
10 003 |
+ 21 % |
Wines & Spirits: good
momentum in China and significant growth in Europe and the United
States, despite supply constraints
The Wines &
Spirits business group achieved organic revenue growth of 5%.
Profit from recurring operations increased by 5%. The business
group reaffirmed its leadership position by pursuing its value
strategy and balanced geographic development. In the champagne
business, prestige vintages performed remarkably well, while a firm
price increase policy continued. A key highlight of the year was
the exceptional harvest both in terms of quantity and quality.
Hennessy cognac recorded good growth in the US market against a
backdrop of tight supply; the Chinese market experienced strong
momentum. Glenmorangie and Ardbeg whiskies grew rapidly. Our
prestige wines obtained the best ratings.
Fashion & Leather Goods:
exceptional performance of Louis Vuitton across all its businesses
and strengthening of other brands
The Fashion &
Leather Goods business group achieved organic revenue growth of
15% in 2018. Profit from recurring operations was up 21%. Louis
Vuitton delivered an exceptional performance, to which all
businesses and regions contributed. Its creative strength lies
notably in its iconic leather goods lines which are continuously
rejuvenated, and in its ready-to-wear and shoe lines, designed by
the respective Louis Vuitton Creative and Artistic Directors,
Nicolas Ghesquière for the women's collections and Virgil Abloh,
who joined in 2018, for the men's collections. The qualitative
development of its stores continued in a very selective way. It is
noteworthy that Louis Vuitton is the only brand in the world to
never hold sales nor sell through outlets. Christian Dior had an
excellent first full year within LVMH thanks to the creativity of
Maria Grazia Chiuri for the Women's collections and to the arrival
of Kim Jones, the new Artistic Director of Dior Homme. Fendi and
Loro Piana continued to assert their know-how throughout their
collections. Celine entered a new and ambitious stage of its
development with the arrival of Hedi Slimane as Artistic, Creative
and Image Director of the brand. His first runway show in October
was a global success. Givenchy, Loewe and Kenzo progressed well.
The other brands, Berluti with the arrival of Kris Van Assche, and
Rimowa continued their dynamic momentum.
Perfumes &
Cosmetics: successful innovation and rapid progress in Asia
The Perfumes
& Cosmetics business group achieved organic revenue growth
of 14%, driven by the performance of its flagship brands. Profit
from recurring operations was up 13%. Parfums Christian Dior
experienced remarkable growth and increased its market share in all
regions of the world. The launch of its new perfume Joy and the exceptional worldwide success of Sauvage and the other iconic perfumes J'adore and Miss Dior are behind
the strong growth of the Maison. Makeup and skincare also grew
rapidly. Guerlain progressed well, driven in particular by the
success of Abeille Royale in skincare and
Rouge G in makeup. Benefit strengthened its
leading position in the eyebrow segment and Parfums Givenchy
accelerated its performance, thanks in particular to makeup and its
new perfume L'interdit. Fresh and Fenty Beauty
by Rihanna continued their exceptional growth.
Watches &
Jewelry: excellent year for Bvlgari and good progress of watch
brands
The Watches &
Jewelry business group recorded organic revenue growth of 12%.
Profit from recurring operations was up 37%. Bvlgari performed very
well and gained market share. Its iconic jewelry and watchmaking
lines Serpenti, Diva's
Dream, B.Zero1, Lvcea
and Octo grew strongly. Among the new product
launches of the year, the Octo Finissimo watch
and the Fiorever jewelry collection, designed
around a central diamond, were exceptionally well received.
Chaumet's growth was driven by the success of the Liens and Joséphine collections,
particularly in Asia. The exhibition on its history at the
Mitsubishi Ichigokan Museum in Tokyo was an immense success. In the
watchmaking sector, TAG Heuer continued to develop its iconic lines
and introduced a new variant of the smart watch. Hublot, which
continued its progress, enjoyed strong growth in 2018 and
considerable visibility as the FIFA World Cup Official
Timekeeper.
Selective
Retailing: sustained growth at Sephora and rebound of DFS's
profitability
The Selective
Retailing business group achieved organic revenue growth of 6%,
up 12% excluding the Hong Kong airport concession closures. Profit
from recurring operations was up 29%. Sephora had another year of
growth and market share gains. Online sales grew rapidly,
especially in North America and Asia. The extension and renovation
of its distribution network continued in 2018 with around one
hundred new stores opening around the world, including the new
Nanjing Road store in Shanghai and the first Sephora-branded stores
in Russia. Le Bon Marché accelerated the development of its loyalty
program and launched a new children's department in the last
quarter. The online platform, 24 Sèvres, launched a year ago,
developed actively. DFS progressed strongly thanks to a
particularly good performance in Hong Kong and Macao. The recently
opened Gallerias in Cambodia and Italy also grew rapidly. The
closure of the loss-making Hong Kong Airport concessions at the end
of 2017 contributed to the rebound in profitability.
Cautiously
confident for 2019
In an uncertain geopolitical and
monetary context, LVMH is well-equipped to continue its growth
momentum across all business groups in 2019. The Group will pursue
its strategy focused on developing its brands by continuing to
build on strong innovation and investments as well as a constant
quest for quality in their products and their distribution.
Driven by the agility of its
teams, their entrepreneurial spirit, the balance between its
different businesses and geographic diversity, LVMH enters 2019
with cautious confidence and once again, sets an objective of
reinforcing its global leadership position in luxury
goods.
Dividend up by
20%
At the Annual General Meeting on
April 18, 2019, LVMH will propose a dividend of €6 per share, an
increase of 20%. An interim dividend of €2 per share was paid on
December 6 of last year. The balance of €4 per share will be paid
on April 29, 2019.
The Board of Directors met on
January 29th to approve the financial statements for 2018. 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.com.
APPENDIX
LVMH - Revenue by
business group and by quarter
2018 Revenue (Euro
millions)
2018 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective Retailing |
Other
activities & eliminations |
Total |
First Quarter |
1
195 |
4
270 |
1
500 |
959 |
3
104 |
(174) |
10 854 |
Second
Quarter |
1 076 |
4 324 |
1 377 |
1 019 |
3 221 |
(121) |
10 896 |
Total First Half |
2 271 |
8 594 |
2 877 |
1 978 |
6 325 |
(295) |
21 750 |
Third
Quarter |
1 294 |
4 458 |
1 533 |
1 043 |
3 219 |
(168) |
11 379 |
Nine Months |
3 565 |
13 052 |
4 410 |
3 021 |
9 544 |
(463) |
33 129 |
Fourth
Quarter |
1 578 |
5 403 |
1 682 |
1 102 |
4 102 |
(170) |
13 697 |
Total 2018 |
5 143 |
18 455 |
6 092 |
4 123 |
13 646 |
(633) |
46 826 |
2018 Revenue (Organic growth
versus same period of 2017)
2018 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective Retailing |
Other
activities & eliminations |
Total |
First Quarter |
+10% |
+16% |
+17% |
+20% |
+9% |
- |
+13% |
Second
Quarter |
+3% |
+13% |
+14% |
+12% |
+9% |
- |
+11% |
Total First Half |
+7% |
+15% |
+16% |
+16% |
+9% |
- |
+12% |
Third
Quarter |
+7% |
+14% |
+11% |
+10% |
+5% |
- |
+10% |
Nine Months |
+7% |
+14% |
+14% |
+14% |
+8% |
- |
+11% |
Fourth
Quarter |
+2% |
+17% |
+13% |
+7% |
+3% |
- |
+9% |
Total 2018 |
+5% |
+15% |
+14% |
+12% |
+6% |
- |
+11% |
2017 Revenue (Euro
millions)
2017 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective Retailing |
Other
activities & eliminations |
Total |
First Quarter |
1
196 |
3
405 |
1
395 |
879 |
3
154 |
(145) |
9 884 |
Second
Quarter |
1 098 |
3 494 |
1 275 |
959 |
3 126 |
(122) |
9 830 |
Total First Half |
2 294 |
6 899 |
2 670 |
1 838 |
6 280 |
(267) |
19 714 |
Third
Quarter |
1 220 |
3 939 |
1 395 |
951 |
3 055 |
(179) |
10 381 |
Nine Months |
3 514 |
10 838 |
4 065 |
2 789 |
9 335 |
(446) |
30 095 |
Fourth
Quarter |
1 570 |
4 634 |
1 495 |
1 016 |
3 976 |
(150) |
12 541 |
Total 2017 |
5 084 |
15 472 |
5 560 |
3 805 |
13 311 |
(596) |
42 636 |
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, Colgin Cellars,
Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de
Mi Tierra, 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, Christian Dior Couture, Celine, Loewe, Kenzo,
Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs, Berluti,
Nicholas Kirkwood, Loro Piana, RIMOWA and Jean Patou. LVMH is
present in the Perfumes and Cosmetics sector with Parfums Christian
Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe,
Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty
Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and
Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior
Watches, Zenith, Fred and Hublot. LVMH is also active in selective
retailing as well as in other activities through DFS, Sephora, Le
Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin
d'Acclimatation, Royal Van Lent and Cheval Blanc hotels.
"This document may contain certain forward looking
statements which are based on estimations and forecasts. By their
nature, these forward looking statements are subject to important
risks and uncertainties and factors beyond our control or ability
to predict, in particular those described in LVMH's Reference
Document which is available on the website (www.lvmh.com). These
forward looking statements should not be considered as a guarantee
of future performance, the actual results could differ materially
from those expressed or implied by them. The forward looking
statements only reflect LVMH's views as of the date of this
document, and LVMH does not undertake to revise or update these
forward looking statements. The forward looking statements should
be used with caution and circumspection and in no event can LVMH
and its Management be held responsible for any investment or other
decision based upon such statements. The information in this
document does not constitute an offer to sell or an invitation to
buy shares in LVMH or an invitation or inducement to engage in any
other investment activities."
LVMH CONTACTS
Analysts and investors
Chris Hollis
LVMH
+ 33 1 4413 2122 |
Media
Jean-Charles Tréhan
LVMH
+ 33 1 4413 2620 |
MEDIA CONTACTS |
|
France
Michel Calzaroni, Olivier Labesse, Hugues
Schmitt,
Thomas Roborel de Climens
DGM Conseil
+ 33 1 4070 1189 |
Italy
Michele Calcaterra, Matteo Steinbach
SEC and Partners
+ 39 02 6249991 |
UK
Hugh Morrison, Charlotte McMullen
Montfort Communications
+ 44 7921 881 800 |
US
James Fingeroth, Molly Morse, Anntal
Silver
Kekst & Company
+ 1 212 521 4800 |
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information contained therein.
Source: LVMH via Globenewswire
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