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Excellent first half for LVMH
JULY 24, 2019
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LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of 25.1 billion euros in the first half of 2019, up 15%. Organic sales growth was 12% compared to the same period in 2018.
In the second quarter, revenue increased by 15% compared to the same period in 2018. Organic revenue growth was 12%, a performance in line with the trends of the beginning of the year. The United States, Asia and Europe saw good growth with, in particular, a rebound in France in the second quarter.
Profit from recurring operations was € 5 295 million for the first half of 2019, an increase of 14%. Operating margin reached 21.1%, broadly in-line with the first half of 2018. Group share of net profit amounted to € 3 268 million, an increase of 9%.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH has made an excellent start to the year. These results once again illustrate the effectiveness of our strategy and the exceptional desirability of our Maisons, whose products transcend time. Their constant demand for quality and their consistently refreshed creativity are key to LVMH’s success, always guided by a long-term vision, combining exemplarity and responsibility in all the company’s actions. Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year. We are therefore entering the second half of the year with confidence and count on the talent of our teams and their shared entrepreneurial passion to further increase, once again in 2019, our leadership in the world of high-quality products.”
Highlights of the first half of 2019 include:
Further double-digit increases in revenue and profit from recurring operations,
Strong growth in Asia, the United States and Europe, particularly in France, which saw a rebound in the second quarter,
Good start to the year for Wines and Spirits,
Remarkable momentum at Louis Vuitton where profitability remains at an exceptional level,
Remarkable performance of Christian Dior Couture,
Rapid progress of LVMH’s perfumes and cosmetics flagship brands,
Good progress in jewelry, in particular for Bvlgari,
Sephora’s strong revenue growth in stores and online,
Solid progress of DFS, particularly in Europe, benefiting from the rise in international travelers,
The completion in April of the acquisition of the Belmond hotel group, whose activity will be consolidated in the third quarter of 2019,
Announcement of the agreement with Stella McCartney House,
Operating free cash flow of €1.7 billion,
Net debt to equity ratio (“gearing”) of 24.5% as at the end of June 2019.
Key figures
Euro millions First half 2018 First half 2019* % change
Revenue 21 750 25 082 + 15 %
Profit from recurring operations 4 648 5 295 + 14 %
Group share of net profit 3 004 3 268 + 9 %
Cash from operations before changes in working capital 5 464 7 399 n.a
Net cash from operating activities 3 161 4 189 n.a
Net Financial Debt 7 359 8 684 + 18 %
Total equity 31 482 35 390 + 12 %
2019 First Half Results - LVMH
