Revenue growth for LVMH wine and spirits arm in H1

Revenue growth for LVMH wine and spirits arm in H1

Total LVMH revenue hit €25.1 billion (US$27.9bn) over the period, an increase of 15% with “strong growth” in Asia, the US and Europe, particularly in France. Profit for the period hit €5.2bn (US$5.7bn), an increase of 14%.

Belvedere vodka owner LVMH saw its drinks revenue reach €2.48bn (US$2.7bn).

The Paris-headquartered firm said it had “pursued its value strategy based on a strong policy of innovation and targeted investments in communication”.

LVMH’s wine and spirits arm was “particularly strong” in the US, Asia, and emerging markets.

Volumes of Hennessy were up by 8%, driven by the VS and VSOP variants. LVMH said the Cognac’s “solid performance” established Hennessy as “the world’s leading spirits brand”.

Hennessy performed well in its key markets – the US, China, and travel retail – and witnessed a “surge” in emerging markets, including Africa and the Caribbean.

The firm also benefited from the launch of its new marketing campaign for Hennessy XO, which was directed by Ridley Scott, as well as the “reinforced development” of Glenmorangie Scotch and Belvedere vodka in high-end products.

Scotch brands Glenmorangie and Ardbeg were “boosted by growing demand for high-quality products”.

Belvedere vodka “continued its global expansion” and distinguished itself in the US with its terroir-focused Single Estate Rye Series. The Polish distillery also worked on an “ambitious green energy plan”.

Woodinville Whiskey Company, which LVMH acquired in July 2017, “continued its development” in a number of US states.

Volcán De Mi Tierra Tequila recorded “very solid growth” in North America.

In the company’s 2019 outlook for wines and spirits, LVMH will focus on “product innovations, new ways to consume and online communication to win over new consumers” and develop production facilities to support future growth.

‘Excellent start’

Bernard Arnault, chairman, and CEO of LVMH said: “LVMH has made an excellent start to the year. These results once again illustrate the effectiveness of our strategy and the exceptional desirability of our Maisons, whose products transcend time.

“Their constant demand for quality and their consistently refreshed creativity are key to LVMH’s success, always guided by a long-term vision, combining exemplarity and responsibility in all the company’s actions.

“Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year.

“We are therefore entering the second half of the year with confidence and count on the talent of our teams and their shared entrepreneurial passion to further increase, once again in 2019, our leadership in the world of high-quality products.”

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