French luxury goods maker, LVMH Moet Hennessy Louis Vuitton said its revenue in the first-half of the year grew 3% from last year to €17.2bn, while the group’s net profits totaled €1.7bn, an increase of 8% on the previous year.
The company which makes high-end perfumes, cosmetics, fashion and jewellery, among others said that its wine and spirits brands had an “excellent performance” with Hennessy Cognac recording double digit growth. The brand saw a 13% volume increase in the first-half, helped by “substantial momentum” in the US, the Caribbean, Africa and Travel Retail channels.
Wines and spirits recorded 7% revenue growth to €2.6bn in the first-half of 2016, compared to €1.9bn in the first-half of 2015. Profit from recurring operations increased by 17% to €565 million, from €482 million. The champagne business which includes Moët & Chandon, Dom Pérignon and Krug had a good start to the year, especially in Europe and the US with prestige vintages highlighted as the category’s key driver.
LVMH attribute the increased momentum and brand’s desirability to new communication campaigns, especially the first worldwide campaign devoted to Hennessy X.O.
The company also saw “Strong growth” in the group’s Scotch whisky portfolio which includes Glenmorangie and Ardbeg brands, while super-premium brand Belvedere vodka also witnessed strong performances.
The luxury goods maker said that its outlook is “confident” for its wine and spirits brands in the second-half of 2016, when it is planning to launch several new products and increase production capacity for its Hennessy brand.
“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,” said Bernard Arnault, chairman and CEO of LVMH.
“The diversity of our businesses, the entrepreneurial style of our brands and the agility of our organisation 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.”