LVMH's Champagne portfolio, which includes Moët & Chandon, Krug and Veuve Clicquot, helped boost the performance of its Wines & Spirits business in the first half of the year, although sales were still down.
The French luxury group's Wines & Spirits arm reported first-half revenue of €3.18 billion in the period, which was down 4% on a reported basis and down 3% on an organic basis.
Profit in the segment stood at €1.046 billion, a decline of 9% on the previous year (€1.15 billion).
LVMH said the Champagne business recorded an increase in revenue in the period, 'driven by its value-based strategy'.
Hennessy Cognac
The performance of Hennessy cognac, however, was impacted by the economic environment in the United States, a key market, as well as the continued high stock levels among its retailers.
Other spirits, including Glenmorangie whisky and Belvedere vodka 'continued to show strong momentum in innovation', the group said.
During the period, LVMH acquired the Minuty brand, a Provence winemaker, while also stepping up international expansion for its Château d’Esclans business.
Group-Wide Performance
At group level, LVMH reported revenue of €42.2 billion in the first half of its financial year, up 15%. Organic revenue growth was 17% compared to the same period in 2022.
All business groups achieved double-digit growth, the group said, except for Wines & Spirits – Fashion & Leather Goods was up 20%, with Perfumes & Cosmetics up 13%.
“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty," commented Bernard Arnault, chairman and CEO of LVMH.
"Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism, but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023.”
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