LVMH Moët Hennessy Louis Vuitton recorded revenue of €13 billion in the first half 2012, representing an increase of 26%. Organic revenue growth was at 12%. All business groups contributed to this performance, which is even more remarkable coming on top of the strong growth in first half of 2011, and the company continued its sustained growth in the US, Europe and Asia.
Profit from recurring operations for the first half of 2012 rose to €2 659 million, an increase of 20% compared to the same period in 2011. This performance compares to the first half of 2011, which itself had shown strong growth. Current operating margin reached 21%. Group share of net profit rose to €1 681 million, an increase of 28%.
Bernard Arnault, chairman and CEO of LVMH, commented, “LVMH’s excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the pertinence of our strategy. A host of initiatives, including constant innovation, successful iconic product lines, the development of our craftsmanship and targeted expansion, reinforce our Maisons. We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets.”
The perfumes and cosmetics business group recorded organic revenue growth of 9% for the company, with €1,727 million in revenue. Europe posted good growth over the first half and Asia confirmed its strong potential. Within the context of continued investments, profit from recurring operations increased by 9% compared to the first half of 2011. Driven by the exceptional global desirability of the brand, Christian Dior continued to demonstrate strong momentum supported both by the brand’s iconic products and innovations: continued growth of the perfumes J’Adore, Miss Dior and Dior Homme. The makeup and skin care segments made further progress, as Guerlain benefited from the promising results of its latest creation, La Petite Robe Noire, launched in France in the first half. Givenchy’s growth was driven notably by the roll-out of the perfume Very Irresistible, and the Benefit and Make Up For Ever brands maintained a high level of growth.
The company’s selective retailing business group recorded organic revenue growth of 16% for €3,590 million, as well as a 30% increase in its profit from recurring operations in the first half of 2012. DFS saw excellent momentum, driven by growth in its Asian clientele. Operations in Hong Kong, Macao, Singapore and North America recorded strong increases. Three new concessions obtained at Hong Kong airport will open at the end of the year. Sephora also achieved remarkable performance and continued to gain market share. Despite a challenging economic environment, Europe made solid progress. A first store was opened in Denmark, while in Russia, the Ile de Beauté stores, consolidated since June 2011, recorded an excellent performance. Sephora maintained its exceptional momentum in the US and Canada, and its presence in China continued to grow at a sustained level. In Latin America, a first store in Brazil has added to its presence which has, until now, been exclusively online.
For its 2012 outlook, LVMH noted that, in a global market experiencing strong growth but an uncertain economic environment in Europe, the company will likely continue to gain market share thanks to its numerous product launches planned before the end of the year and to its geographic expansion in promising markets while continuing to manage costs.