News In 2012 LVMH recorded a 19% increase in sales, a remarkable performance in view of its very strong showing in 2011. The group also maintained excellent momentum in Europe, Asia and the United States.
Sales of LVMH, Moët Hennessy Louis Vuitton, the world’s leading luxury products group, rose 19% to €28.1 billion. This figure takes into account the integration of Bulgari from 30 June 2011. Operating profit was up 13%, to €5.92 billion, a performance that is even more remarkable when set against the excellent results of 2011. Net profit was €3.42 billion (+12%).
All groups of activity recorded increases in sales and operating profit. The Watches and Jewellery segment posted organic revenue growth of 6%, to €2.84 billion. Current operating margin rose 26% (€334 million) driven in particular by the performance of Bulgari, consolidated since 30 June 2011. LVMH watch brands are in good shape, supported by numerous innovations and the strength of iconic models, as borne out by the excellent results of the Carrera line at TAG Heuer, the King Power at Hublot and the El Primero at Zenith. In the jewellery segment, Bulgari confirmed the success of its Serpenti and B.Zero1 collections, enhanced by new designs, and improved the quality of its distribution. Chaumet and Fred continue to develop their flagship lines.
The Wines and Spirits segment recorded organic revenue growth of 11% (€4.14 billion). Operating profit was up 14%, to €1.26 billion. The Fashion and Leather Goods segment recorded revenue growth of 7%, to €9.93 billion, and a 6% increase in operating profit, to €3.26 billion. Louis Vuitton, with another record year under its belt, continues to consolidate its success with artisanal brands in the leather goods segment. The opening of its first boutique and first luxury jewellery workshop on the Place Vendôme in Paris, and the re-opening of the Maison Louis Vuitton in Shanghai, are among the highlights of the year. Fendi is continuing the qualitative expansion of its distribution network. Its emblematic Baguette bag posted a record year to coincide with its fifteenth anniversary. The Perfumes and Cosmetics activity recorded organic growth of 8%, to €3.61 billion, while operating profit was up 17% (€408 million). Christian Dior turned in a remarkable performance, still buoyed by the vitality of its flagship lines, in particular Miss Dior and J’adore. Selective Retailing recorded organic revenue growth of 14% in 2012 (€7.88 billion), while operating profit rose to €854 million (+19%).
In an uncertain European economic environment, LVMH is well placed to continue its growth dynamic in all areas in 2013. The group will maintain a strategy focused on brand development, supported by a strengthening of its expertise and a sustained policy of innovation and expansion in growth markets.
At the group’s general meeting, which will be held on 18 April this year, LVMH will propose a dividend of €2.90 per share, an increase of 12%.
February 22, 2013