Moët Hennessy full-year profits climb 10% on US momentum, China rebound

French luxury goods maker Louis Vuitton Moët Hennessy (LVMH) said on Thursday that revenue for the full-year ending 31 December 2016 grew 5% to €37.6bn, with the fourth quarter posting a 9% growth. Profit from recurring operations for the group reached €7 billion in 2016, an increase of 6%.

The company which makes high-end fashion & leather goods, perfumes & cosmetics, wines & spirits, and watches & jewelry said that the wines and spirits division – Moët Hennessy added €4.8bn ($5.1bn) to group sales, a 5% growth over the previous year, with good performance in all regions.

Champagne and wines reported 3% growth over the previous year to €2.3bn, from €2.2bn, while cognac and spirits grew 7% to €2.5bn, from €2.4bn in 2015.

Profit from recurring operations in the wines and spirits division climbed 10%, with volumes up 3%. The company noted that Hennessey cognac had an excellent year with 10% volume growth, fuelled by “good growth” in the US and a “rebound” of shipments in China.

LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability. Continued innovation, entrepreneurial spirit and the quest for excellence,” said Bernard Arnault, Chairman and CEO of LVMH.

Glenmorangie Scotch whisky and Belvedere vodka continued their growth, the statement said.

In an environment that remains uncertain we can count on the desirability of our brands and the agility of our teams to reinforce again in 2017 our advance in the universe of high-quality products,” Arnault added.

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