The wine and spirits business of luxury group LVMH has reported a 23% increase in revenue in the first nine months of 2022, with strong performance in Europe, the United States and Japan.
The company's policy of price increases across all regions offset the effects of the logistical disruptions in the United States and the impact of health restrictions in China.
LVMH’s Champagne Maisons enjoyed excellent momentum, which increased pressure on supplies, the company noted.
Elsewhere, Hennessy cognac's growth was driven by consistent strategy of value creation.
In this period, Moët Hennessy strengthened its global portfolio of wines with the acquisition of the Joseph Phelps vineyard, one of the most renowned wine properties in Napa Valley, California.
Overall Performance And Outlook
The luxury group reported 28% year-on-year increase in revenue to €56.5 billion in the first nine months of 2022.
The fashion and leather goods business recorded revenue growth of 31%, while the perfumes and cosmetics unit saw 19% growth.
In the third quarter, the company registered organic revenue growth of 19%, which it says was in line with the trends observed in the first half of the year.
LVMH is confident that its current growth momentum will continue amid an uncertain geopolitical and economic backdrop. It will continue its policy of cost control and selective investment.
The group will focus on continuously strengthening the desirability of its brands by relying on the authenticity and quality of its products and its distribution network, it said.
© 2022 European Supermarket Magazine – your source for the latest drinks news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
