LVMH Revenue Fell 9% in First Half; Wine & Spirits Plunge 9%

Louis Vuitton Moet Hennessy's wine and spirits business saw revenue in the first half decline 9%. Profit from recurring operations in the wines and spirits group was down 26%, the company said.

The Wines & Spirits business group saw a revenue decline (-9% organic) in the first half of 2024. Profit from recurring operations was down 26%, the company said, despite a geopolitical and economic environment that remained uncertain. Europe and the United States achieved growth on a constant consolidation scope and currency basis; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan. In the second quarter, organic revenue growth was 1%. 

Champagne was down, reflecting the ongoing normalization of post-Covid demand, but remained significantly higher than in 2019. LVMH the beginning of the year was compared to a good first half of 2023. Hennessy cognac was held back by weak local demand in the Chinese market, while the United States saw a return to growth in sales volumes in the second quarter, in a market that remained cautious. In Provence rosé wines, Château d’Esclans stepped up its international expansion while the prestigious Minuty estate was consolidated for the first time in the accounts.

For the company as a whole, whose luxury business covers everything from wines and spirits to Sephora, revenue was up 2% and profit from recurring operations was off 8% despite a geopolitical and economic environment that remained uncertain. Europe and the United States achieved growth on a constant consolidation scope and currency basis; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan. In the second quarter, organic revenue growth was 1%.

Profit from recurring operations for the first half of 2024 came to €10.7 billion, equating to an operating margin of 25.6%, significantly exceeding pre-Covid levels.

Bernard Arnault, chairman/CEO, commented:

“The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty. Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs.

"In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honored to share our creativity, excellent craftsmanship and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage. While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024,” he said.