LVMH Moët Hennessy Louis Vuitton recorded a 16% increase in revenue reaching €23.7 billion in 2011. Organic revenue growth was 14%. All the company’s business groups saw excellent momentum in Europe, Asia and the United States. Revenue increased by 20% in the fourth quarter with organic growth of 12%. This performance is in line with the favorable trends observed since the beginning of the year, and compares to the fourth quarter of 2010, which also grew. And profit from recurring operations increased by 22% to €5.263 million, a performance which is even more remarkable when compared to the strong growth recorded in 2010. Current operating margin continued to improve, reaching 22% in 2011.
Bernard Arnault, chairman and CEO of LVMH, said, “2011 was another great vintage for LVMH, highlighting once again the power of our brands, the excellence of our craftsmanship and the appeal of our products. Our businesses enjoyed excellent momentum and profit from recurring operations passed the threshold of €5 billion for the first time. In 2012, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
LVMH’s perfumes and cosmetics business division recorded organic revenue growth of 9%. Profit from recurring operations on a comparable structure basis increased by 8% in the context of sustained commercial investments. All of the brands played a part in the strong momentum of the Asian and American markets. Europe, despite the uncertain environment at the end of the year, also contributed to their growth. Parfums Christian Dior successfully adhered to its values of creativity and high quality, and confirmed its good momentum, supported by its recent innovations and the strength of its star lines. J’adore was once again the leading female perfume in France in 2011, Guerlain continued its development in its key markets and benefited from the force of its emblematic perfume, Shalimar, and at Parfums Givenchy, the new women’s fragrance Dahlia Noir launched in the second half of the year, enjoyed a promising start. Benefit and Make Up For Ever also continued their strong growth across all their markets.
The company’s selective retailing business group recorded organic revenue growth of 19% in 2011. Profit from recurring operations increased by 34%. DFS’s performance benefited from continued growth in Asian tourism. The Gallerias in Hong Kong and Macao recorded distinct growth, while North America and the Pacific zone also strengthened. Also, DFS’s renovation program and the expansion of its leading stores continued throughout the year. Sephora recorded solid revenue growth and increased market share across all its regions. Alongside the selective expansion of its network, numerous store renovations accompanied the increase in the brand’s development. Growth for Sephora continued, notably in Russia where it increased its shareholding in the Ile de Beauté chain to 65%. The brand opened in two new countries in 2011: Malaysia and Mexico.