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LVMH posts 7% revenue growth for wines and spirits in H1

Published:  27 July, 2016

Luxury wines and spirits producer LVMH Moët Hennessy Louis Vuitton has reported strong performance from wines and spirits in all regions, compared to flat profits in its fashion sector.

Luxury wines and spirits producer LVMH Moët Hennessy Louis Vuitton has reported strong performance from wines and spirits in all regions, compared to flat profits in its fashion sector.

Wines and spirits saw 7% growth compared to the first half of 2015, with reported revenue jumping from €1.9 billion to €2.6 billion.

Profit from recurring operations also grew from €482 million to €565 million - a 17% increase.

This is in comparison to its fashion sector, which post flat profits in the first half of 2016 compared to the same period in 2015.

The group reported an "excellent" start to the year in wines and spirits, with strong growth in the United States, and improved momentum in China.

The wines and spirits business group recorded organic revenue growth of 9%.

The champagne business had a good start to the year, especially in Europe and the US, the report said.

The prestige vintages performed particularly well.

Hennessy recorded strong growth in the American market and improved momentum in China following 2015, which was marked by a period of destocking by distributors.

Other spirits, Glenmorangie and Belvedere continue their development.

Overall, the luxury conglomerate reported net profit of €2.96 billion ($3.25 billion) for the six-month period, while revenue rose 3%, to €17.2 billion.

Bernard Arnault, chairman and CEO of LVMH, said: "LVMH's results for the first half of 2016 reflect, more than ever, the strength of our business model, which allows us to continue to grow even during an unstable geopolitical environment and economic and monetary uncertainties. The diversity of our businesses, the entrepreneurial style of our brands and the agility of our organization all contribute to the growth of the group.

"By remaining vigilant, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products in 2016."

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