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LVMH: Excellent performance of LVMH in 2015 - Record revenue and Operating Profit
Paris, 2 February 2016
LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded revenue of EUR35.7 billion in 2015, an increase of 16% over the previous year. Organic revenue growth was 6%. The Group turned in strong momentum in Europe, the United States and Japan while other Asian countries demonstrate contrasting tendancies.
In the fourth quarter, revenue increased by 12% compared to the same period of 2014. Organic growth was 5%.
Profit from recurring operations reached EUR6 605 million in 2015, an increase of 16%, to which all business groups contributed. Group share of net profit was EUR3 573 million. Excluding the capital gain realized in 2014 following the distribution of Hermès shares, Group share of net profit increased by 20%.
Bernard Arnault, Chairman and CEO of LVMH, said: "The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty. Revenue and operating profit reached new record levels. Commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum and are all values epitomised by the Fondation Louis Vuitton and its emblematic building that welcomed over one million visitors in 2015. All our Maisons demonstrated outstanding flexibility in 2015. By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen in 2016 our leadership in the world of high quality products."
Key highlights from 2015 include:
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The business group recorded an increase in organic revenue of 6%. On a reported basis, revenue growth was 16%. Profit from recurring operations increased by 19%. Champagne experienced good growth in 2015 with an excellent performance in Europe, the United States and Japan. Hennessy demonstrated strong momentum in the United States across all ranges. In China, the second half of the year was marked by a rebound in revenue during a year characterised by continued destocking by distributors. Other spirits, Glenmorangie and Belvedere, continued a sustained growth.
The business group recorded organic revenue growth of 4% in 2015. On a reported basis, revenue growth was 14%. Profit from recurring operations increased by 10%. Louis Vuitton had a remarkable year driven by the enthusiastic welcome of both its iconic products as well as the new models created by Nicolas Ghesquière. The Cruise Collection shown in Palm Springs and the exhibition at the Grand Palais in Paris retracing the history of the Maison were among the highlights for the year. Fendi recorded exceptional growth with the success of its iconic leather goods and the inauguration of Palazzo Fendi in the center of Rome. Loro Piana continued to invest in its production capacity and launched an exceptional new material combining vicuña wool and baby cashmere. Celine's growth was driven by all its product categories. Givenchy and Kenzo each had a good year. Donna Karan and Marc Jacobs continued to work on changes to their product lines.
The business group recorded organic revenue growth of 7%. On a reported basis, revenue growth was 15%. Profit from recurring operations increased by 26%. Christian Dior accelerated its growth and increased worldwide market share. The new men's fragrance experienced unprecedented worldwide success. The vitality of its iconic perfumes and together with the excellent reception of new make-up products contributed to the Maison's remarkable performance. Guerlain demonstrated profitable growth notably driven by the progress of and the continued success of the skincare ranges and . Benefit experienced strong growth driven by the originality of its products. Fresh and Make Up For Ever performed very well.
The business group recorded organic revenue growth of 8%. On a reported basis, revenue growth was 19%. Profit from recurring operations increased by 53%. Bvlgari had an excellent year driven by its iconic creations and its new and collections. Bvlgari's stores delivered excellent performances. The watch brands were impacted by the cautious purchasing behaviour of multi-brand retailers. TAG Heuer launched with enormous success its smartwatch developed in partnership with Google and Intel while continuing to develop its core offering. Given its strong growth, Hublot strengthened its production capacity with the opening of a second manufacturing facility in Nyon, Switzerland.
The business group recorded organic revenue growth of 5%. On a reported basis, revenue growth was 18%. Profit from recurring operations increased by 6%. Sephora had an exceptional year in terms of revenue and results and continued to gain market share in all its markets. The omni-channel strategy accelerated with numerous initiatives in several countries. DFS continues to experience an uncertain environment in Asia as a result of currency and geopolitical changes, while its business in Japan benefited from a boom in Chinese tourism. Significant cost containment efforts were continued at DFS.
Despite a climate of economic, currency and geopolitical uncertainties, LVMH is well-equipped to continue its growth momentum across all business groups in 2016. The Group will maintain a strategy focused on developing its brands by continuing to build on strong innovation and a constant quest for quality in their products and their distribution.
Driven by the agility of its teams, their entrepreneurial spirit, the balance of its different businesses and geographic diversity, LVMH enters 2016 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.
At the Annual Shareholders' Meeting on April 14, 2016, LVMH will propose a dividend of EUR3.55 per share, an increase of 11%. An interim dividend of EUR1.35 per share was paid on December 3 of last year. The balance of EUR2.20 per share will be paid on April 21, 2016.
Copyright GlobeNewswire
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