LVMH: Excellent first half for LVMH
Paris, July 25, 2023
LVMH Moët Hennessy Louis Vuitton, the world’s
leading high-quality products group, recorded revenue of €42.2
billion in the first half of 2023, up 15%. Organic revenue growth
was 17% compared to the same period in 2022. All business groups
achieved double-digit organic revenue growth over the half year,
except for Wines & Spirits, which faced a particularly high
basis of comparison.In the second quarter, organic revenue growth
was 17%, in line with trends seen in the first quarter.
Profit from recurring operations for the first
half of 2023 was up 13% at €11 574 million. Operating margin
reached 27.4% of revenue. Group share of net profit was up 30% at
€8 481 million.
Bernard Arnault, Chairman and CEO of LVMH, said:
“LVMH achieved outstanding results during a six-month period of
ongoing economic and geopolitical uncertainty. The strong creative
momentum and excellent distribution of our Maisons continued to
inspire dreams, as demonstrated by the enthusiastic reception given
to Pharrell Williams’ first fashion show for Louis Vuitton as well
as the reopening of the New York “Landmark” of Tiffany & Co. We
continued to see progress relating to our environmental, social and
societal commitments, most notably in the recent announcement of an
ambitious water sobriety plan intended to reduce our overall water
consumption footprint by 30% by 2030. Thanks to the desirability of
our brands, we approach the second half of the year with confidence
and optimism but will remain vigilant within the current
environment and count on the agility and talent of our teams to
further strengthen our global leadership position in luxury goods
in 2023.”
Highlights of the first half of 2023
include:
- An excellent first half despite a disrupted environment,
- Significant revenue growth across all business groups except
Wines & Spirits, which faced a high basis of comparison,
- Strong growth in business in Europe and Asia;
- Solid performance by champagne thanks to its value-based
strategy, and a contraction in cognac compared to the first half of
2022 which benefited from the significant impact of inventory
rebuilding among distributors,
- Outstanding performance by the Fashion & Leather Goods
business group, in particular Louis Vuitton, Christian Dior,
Celine, Loro Piana, Loewe and all the other brands which gained
market share worldwide,
- Rapid growth in perfume, makeup, and skincare,
- Impressive growth in high jewelry, and strong creative momentum
among all Watches and Jewelry Maisons, in particular Tiffany,
Bulgari, and TAG Heuer,
- Exceptional performance by Sephora, confirming its position as
world leader in beauty retail,
- Return to profit for DFS, which benefited from the recovery in
international travel.
- Operating free cash flow halved due to major investments in
exceptional real estate and in operational inventories, notably in
high jewelry.
Key figures
Euro millions |
First half 2022 |
First half 2023 |
% change |
Revenue |
36 729 |
42 240 |
+ 15 % |
Profit from recurring operations |
10 235 |
11 574 |
+ 13 % |
Group share of net profit |
6 532 |
8 481 |
+ 30 % |
Net financial debt |
11 117 |
12 465 |
+ 12 % |
Total equity |
52 713 |
59 449 |
+ 13 % |
Revenue by business group:
Euro millions |
First half2022 |
First half2023 |
% change
Reported
Organic* |
Wines & Spirits |
3 327 |
3 181 |
- 4 % |
- 3 % |
Fashion & Leather Goods |
18 136 |
21 162 |
+ 17 % |
+ 20 % |
Perfumes & Cosmetics |
3 618 |
4 028 |
+ 11 % |
+ 13 % |
Watches & Jewelry |
4 909 |
5 427 |
+ 11 % |
+ 13 % |
Selective Retailing |
6 630 |
8 355 |
+ 26 % |
+ 26 % |
Other activities and eliminations |
109 |
87 |
- |
- |
Total LVMH |
36 729 |
42 240 |
+ 15 % |
+ 17 % |
* With comparable structure and constant
exchange rates. The structural impact for the Group compared to the
first half of 2022 was zero and the currency effect was -2%.
Profit from recurring operations by business
group:
Euro millions |
First half2022 |
First half 2023 |
% change |
Wines & Spirits |
1 154 |
1 046 |
- 9 % |
Fashion & Leather Goods |
7 509 |
8 562 |
+ 14 % |
Perfumes & Cosmetics |
388 |
446 |
+ 15 % |
Watches & Jewelry |
987 |
1 089 |
+ 10 % |
Selective Retailing |
367 |
734 |
+ 100 % |
Other activities and eliminations |
(170) |
(303) |
- |
Total LVMH |
10 235 |
11 574 |
+ 13 % |
Wines & Spirits: good half year for the Champagne
business; weak demand for Hennessy
The Wines & Spirits
business group recorded a slight revenue decline (3% organic) in
the first half of 2023, when compared to a particularly strong
first half of 2022. Profit from recurring operations was down 9%.
The Champagne business recorded an increase in revenue over the
half year, driven by its value-based strategy. Hennessy cognac was
impacted by the economic environment in the United States and by
the continued high stock level of its retailers. Among Provence
rosé wines, LVMH acquired the prestigious, world leading domain
Minuty, and Château d'Esclans stepped up its international
expansion. The Joseph Phelps Vineyard, one of the most renowned
wine properties in Napa Valley, California, was included in the
first half accounts for the first time. Glenmorangie whisky and
Belvedere vodka continued to show strong momentum in
innovation.
Fashion & Leather Goods: remarkable
performances by Louis Vuitton, Christian Dior, Celine, Loro Piana,
Loewe and Marc Jacobs
The Fashion & Leather Goods
business group recorded organic revenue growth of 20% in the first
half of 2023. Profit from recurring operations was up 14%. Louis
Vuitton had an excellent first half, still driven by its
exceptional creativity, the quality of its products and its strong
links with art and culture. Nicolas Ghesquière's talent for
creating a dialogue between fashion and architecture continued to
elevate the strong desirability of his Women's collections to the
highest level. A new chapter opened with the arrival of Pharrell
Williams as Men's Creative Director. Set on the stage of the
Pont-Neuf bridge in Paris, his first fashion show was met with huge
enthusiasm and more than 1.1 billion views on social media reaching
an all-time high. Christian Dior continued to enjoy remarkable
growth in all its product categories. Whether in Mumbai, Mexico
City or Paris, each of the fashion shows inspired by Maria Grazia
Chiuri showcased the exceptional craftsmanship of the Maison. The
Lady Dior bag, an icon of the Maison Dior, was also featured in the
“Christian Dior, Designer of Dreams” Exhibition at the Tokyo Museum
of Contemporary Art. The exceptional Dior Homme designs by Kim
Jones and the unique high jewelry creations by Victoire de
Castellane elevated the superb craftsmanship of the Maison to an
unprecedented new contemporary level. The success of Hedi Slimane's
creations and fashion shows has continued to increase the
desirability of Celine. Driven by the bold creativity of J.W.
Anderson, Loewe continued to strengthen its distribution network,
most notably with the opening of Casa Dubaï. Fendi opened new
stores in Seoul and Tokyo. Loro Piana, Rimowa, Marc Jacobs and
Berluti enjoyed an excellent start to the year.
Perfumes & Cosmetics: strong
momentum in perfumes and makeup, supported by a highly selective
and high-quality distribution policy
The Perfumes & Cosmetics
business group recorded organic revenue growth of 13% in the first
half of 2023 thanks to strong momentum achieved through innovation,
combined with a highly selective distribution policy. Profit from
recurring operations was up 15%. Christian Dior enjoyed a
remarkable performance, strengthening its leadership in its
strategic markets. Sauvage confirmed its position as the world's
leading perfume, while the iconic women's fragrances J'adore and
Miss Dior saw continued success. Makeup also contributed to the
strong set of results from the Maison, particularly Dior Addict Lip
Maximizer and Forever Skin Correct foundation. Finally, skincare
had an excellent performance, particularly in the premium segment
in Asia with its iconic Prestige range. Guerlain continued to grow,
driven notably by the vitality of its Abeille Royale skincare and
its high-end perfumery collection l’Art et la Matière, enriched
with a new Jasmin Bonheur creation. Givenchy benefited from the
excellent reception of its new fragrance Gentleman Society. Benefit
successfully expanded its The Porefessional skincare range, while
Fenty Beauty's latest creation, Hella Thicc mascara, is already one
of the Maison’s bestsellers.
Watches & Jewelry: strong growth in
jewelry, sustained innovation in watchmaking
The Watches & Jewelry
business group achieved organic revenue growth of 13% in the first
half of 2023. Profit from recurring operations was up 10%. In
jewelry, Tiffany enjoyed excellent momentum with the exceptional
success of the reopening of the “Landmark” in New York; The
Landmark has once again become an emblematic venue for New York
life. The new Lock collection continued to be rolled out worldwide
and the first High Jewelry collection by Artistic Director Nathalie
Verdeille was unveiled. Bulgari, which experienced strong growth,
celebrated the 75th anniversary of its iconic Serpenti collection.
Its high jewelry, with notably the launch of the Mediterranea
collection, saw outstanding performance. Chaumet and Fred
experienced strong growth over the first half. TAG Heuer celebrated
60 years of its Carrera collection. The LVMH watchmaking Maisons
TAG Heuer, Hublot and Zenith unveiled many new products during LVMH
Watch Week and the Watches & Wonders trade show.
Selective Retailing: excellent
performance by Sephora; DFS growth supported by the recovery in
international travel
In Selective Retailing, organic
revenue growth was 26% in the first half of 2023. Profit from
recurring operations was up 100%. Sephora performed exceptionally
well and continued to gain market share thanks to its distinct and
innovative product and service offering. Momentum was particularly
strong in North America, Europe and the Middle East. Its
distribution network continued to expand, particularly in the
United Kingdom where its first store opening proved a huge success.
DFS benefited from the gradual recovery in international travel
and, in particular, from the return of tourists to the flagship
destinations of Hong Kong and Macau. In France, the strong
performance of La Samaritaine in Paris confirmed its appeal as a
destination, within the context of an increasing number of Asian
tourists. Le Bon Marché, which is growing strongly, continued to
develop innovative concepts and benefit from a loyal French
customer base as well as a return of international travelers.
Outlook 2023
In an uncertain geopolitical and economic
environment, the Group will maintain a strategy focused on
continuously strengthening the desirability of its brands, by
relying on the exceptional quality of its products and the
excellence of their distribution.Our strategy of focusing on the
highest quality across all of our activities, combined with the
energy and unparalleled creativity of our teams, will enable us to
reinforce LVMH's global leadership position in luxury goods once
again in 2023.
An interim dividend of €5.50 will be paid on
Wednesday, December 6th, 2023.
Regulated information related to this press
release, the half year results presentation and the half year
financial statement are available on the website
www.lvmh.com.Limited review procedures have been carried out and
the related report will be issued following the board meeting.
Details of the webcast relating to the
publication of the 2023 half year results are available at:
www.lvmh.com.
ANNEX
The condensed consolidated financial statements
for the first half of 2023 are included in the PDF version of the
press release.
LVMH – Revenue by business group and by
quarter
Revenue first half 2023 (Euro
millions)
2023 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1
694 |
10 728 |
2 115 |
2 589 |
3 961 |
(52) |
21 035 |
Second
quarter |
1 486 |
10 434 |
1 913 |
2 839 |
4 394 |
140 |
21 206 |
First half |
3 181 |
21 162 |
4 028 |
5 427 |
8 355 |
87 |
42 240 |
Revenue first half 2023 (organic growth
compared to the first half of 2022)
2023 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
+ 3
% |
+ 18 % |
+ 10 % |
+ 11 % |
+ 28 % |
- |
+ 17 % |
Second
quarter |
- 8 % |
+ 21 % |
+ 16 % |
+ 14 % |
+ 25 % |
- |
+ 17 % |
First half |
- 3 % |
+ 20 % |
+ 13 % |
+ 13 % |
+ 26 % |
- |
+ 17 % |
Revenue first half 2022 (Euro
millions)
2022 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1
638 |
9 123 |
1 905 |
2 338 |
3 040 |
(41) |
18 003 |
Second
quarter |
1 689 |
9 013 |
1 714 |
2 570 |
3 591 |
149 |
18 726 |
First half |
3 327 |
18 136 |
3 618 |
4 909 |
6 630 |
109 |
36 729 |
Alternative performance
indicators For the purposes of its financial
communication, in addition to the accounting aggregates defined by
IAS/IFRS, LVMH uses alternative performance indicators established
in accordance with AMF position DOC-2015-12.The table below lists
these indicators and the reference to their definition and their
reconciliation with the aggregates defined by IAS/IFRS standards,
in the published documents.
Indicators |
Reference to published documents |
Free operating cash flow |
URD (consolidated accounts, consolidated cash flow statement) |
Net Financial debt |
URD (notes 1.23 and 19 of the appendix to the consolidated
accounts) |
Gearing |
URD (part 2, Comments on the consolidated balance sheet) |
Organic Growth |
URD (part 1, Comments on the consolidated income statement) |
URD: Universal Registration Document as at
December 31, 2022
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, 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, Newton, Bodega Numanthia,
Ao Yun, Château d’Esclans, Château Galoupet and Joseph Phelps. Its
Fashion and Leather Goods division includes Louis Vuitton,
Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio
Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA, 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, Maison Francis Kurkdjian and Officine
Universelle Buly. LVMH's Watches and Jewelry division comprises
Bulgari, Tiffany & Co., TAG Heuer, Chaumet, 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, Starboard Cruise Services, Belmond 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
Universal Registration 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 /
Rodolphe Ozun LVMH + 33 1 44 13 21 22 / + 33 1 44 13 27
21 |
Media Jean-Charles
Tréhan LVMH + 33 1 44 13 26 20 |
MEDIA CONTACTS |
|
France Charlotte
Mariné / +33 6 75 30 43 91Axelle Gadala / +33 6 89 01 07 60Publicis
Consultants+33 1 44 82 46 05 |
France Michel Calzaroni / + 33 6 07 34
20 14Olivier Labesse / Hugues Schmitt / Thomas Roborel de
Climens + 33 6 79 11 49 71 |
Italy Michele Calcaterra / Matteo
Steinbach SEC and Partners + 39 02 6249991 |
UK Hugh Morrison / Charlotte
McMullen Montfort Communications + 44 7921
881 800 |
US Nik Deogun / Blake
Sonnenshein Brunswick Group + 1 212 333 3810 |
China Daniel
Jeffreys Deluxewords + 44 772 212 6562 +
86 21 80 36 04 48 |
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