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LVMH Posts Q2
Posted: July 31, 2008LVMH Moët Hennessy Louis Vuitton recorded revenues of €7.8 billion in the first half of 2008, reflecting organic growth of 12%. The group, according to a release, had excellent performances in Asia, the U.S. and Europe. Profit from recurring operations increased by 7% to €1,541 million. The current operating margin improved to 20%. This performance was achieved in an unfavorable currency environment and is even more noteworthy given the strong growth in the first half of 2007. At constant exchange rates, profit from recurring operations increased by 19%. Group share of net profit increased by 7% in the first half of 2008.
“The first half results once again demonstrate the exceptional appeal of our brands as well as the effectiveness of our strategy, particularly remarkable given the adverse currency and economic environment seen during this period,” said Bernard Arnault, chairman and CEO, LVMH. “Reassured by the strong momentum in the first half of the year, the group approaches the second half with confidence. It will rely upon the creativity and quality of its products as well as the efficiency of its teams to pursue further development in its historical markets as well as in high potential emerging markets. All these elements enable us to confirm our objective of a tangible increase in results for 2008.”
Perfumes and cosmetics recorded organic revenue growth of 13% and a 22% increase in profit from recurring operations in the first half of 2008. Parfums Christian Dior won further market share and continued its remarkable momentum. Dior benefited from the vitality of its major classic product lines, particularly J’Adore, Miss Dior Chérie, Poison and Eau Sauvage, which continue to achieve exceptional growth. The success of its makeup range is also notable. Dior skin care is progressing regularly. Guerlain achieved further growth boosted in particular by its star makeup line Terracotta, its new mascara Le 2, and its skin care line Orchidée Impériale. The increasing strength of Ange ou Démon at Givenchy and the strong momentum of BeneFit, Make Up For Ever and Kenzo also contributed to the performance of this business group.