LVMH delivers record first half performance
Paris, July 26, 2021
LVMH Moët Hennessy Louis Vuitton, the world’s
leading high-quality products group, recorded revenue of 28.7
billion euros in the first half of 2021, up 56% compared to the
same period in 2020. Organic revenue growth was 53% compared to
2020 and 11% compared to 2019. This performance reflects
accelerated growth in the second quarter of 2021, which saw organic
revenue increase by 14% compared to 8% in the first quarter.The
first half of this year marks a return to strong growth momentum
after a severely disrupted year in 2020 resulting from the global
pandemic. The largest business group, Fashion & Leather Goods,
achieved record levels of revenue with organic growth of 81%
compared to 2020, and 38% compared to 2019. The United States and
Asia are up sharply since the start of the year while Europe is
experiencing a gradual recovery.
Profit from recurring operations was €7 632
million for the first half of 2021, up 44% compared to the first
half of 2019 and more than four times higher than that of 2020.
Operating margin reached 26.6%, up 5.5 points compared to 2019.
Profit from recurring operations for the Fashion & Leather
Goods business group stood at €5 660 million for the first half,
more than three times that of 2020, and up 74% compared to 2019.
Group share of net profit amounted to €5 289 million, up 62%
compared to 2019 and 10 times higher than 2020. Operating free cash
flow exceeded €5 billion, more than three times that of 2019.
Bernard Arnault, Chairman and CEO of LVMH, said:
“LVMH has enjoyed an excellent half-year and is reaping the
benefits of having continued to innovate and invest in its
businesses throughout the pandemic despite being in the midst of a
global crisis. The creativity, the high-quality and enduring nature
of our products and the sense of responsibility that drives us,
have been critical in enabling us to successfully withstand the
effects of the pandemic; they will remain firmly embedded in all
our Maisons, thereby ensuring their continued desirability.
Highlights from the first half include the integration of the
Maison Tiffany and the inauguration of La Samaritaine after an
ambitious renovation program. Within the current context, as we
emerge from the health crisis and see a recovery in the global
economy, I believe that LVMH is in an excellent position to
continue to grow and further strengthen our lead in the global
luxury market in 2021. As France is the principal recruitment area
and the country of origin of many of our products, the growth of
LVMH benefits the country today, and even more tomorrow, with all
our Maisons being proud to make their contributions.”
Highlights of the first half of 2021
include:
- Excellent start to the year, in particular for the largest
brands, during a period marked by the first signs of an exit from
the current health crisis yet also by a continued lack of return to
international travel,
- Remarkable performance by the Fashion & Leather Goods
business group, particularly Louis Vuitton, Christian Dior, Fendi,
Loewe and Celine which are gaining market share across all
geographies and achieving record levels of revenue and
profitability,
- Sustained revenue growth in Asia and the United States and a
gradual recovery in Europe,
- Successful integration of Tiffany, which has performed
extremely well since its acquisition,
- Strong growth in direct sales to customers, both in-store and
remotely,
- Travel retail and hotel activities still held back by the
limited recovery in international travel,
- Remarkable operating free cash flow.
Key figures
Euro millions |
First half 2020 |
First half 2021 |
% change 2021/2020 |
% change 2021/2019 |
Revenue |
18 393 |
28 665 |
+ 56 % |
+ 14 % |
Profit from recurring operations |
1 671 |
7 632 |
x 4.6 |
+ 44 % |
Group share of net profit |
522 |
5 289 |
x 10.1 |
+ 62 % |
Operating free cash flow |
(1 721) |
5 288 |
- |
x 3.1 |
Net Financial debt |
8 230 |
15 265 |
x 1.9 |
x 1.8 |
Total equity |
37 532 |
42 624 |
+ 14 % |
+ 21 % |
Revenue by business group:
Euro millions |
First half 2020 |
First half 2021 |
% change First half 2021/2020
Reported
Organic* |
% change First half 2021/2019
Organic |
Wines & Spirits |
1 985 |
2 705 |
+ 36 % |
+ 44 % |
+ 12 % |
Fashion & Leather Goods |
7 989 |
13 863 |
+ 74 % |
+ 81 % |
+ 38 % |
Perfumes & Cosmetics |
2 304 |
3 025 |
+ 31 % |
+ 37 % |
- 3 % |
Watches & Jewelry |
1 319 |
4 023 |
x 3.1 |
+ 71 % |
+ 5 % |
Selective Retailing |
4 844 |
5 085 |
+ 5 % |
+ 12 % |
- 25 % |
Other activities and eliminations |
(48) |
(36) |
- |
- |
- |
Total LVMH |
18 393 |
28 665 |
+ 56 % |
+ 53 % |
+ 11 % |
* With comparable structure and constant exchange rates. The
structural impact for the Group compared to the first half of 2020
was +10% linked entirely to the consolidation of Tiffany & Co.
for the first time. The currency effect was - 7 %.
Profit from recurring operations by business
group:
Euro millions |
First half 2020 |
First half 2021 |
% change 2021/2020 |
% change 2021/2019 |
Wines & Spirits |
551 |
924 |
+ 68 % |
+ 20 % |
Fashion & Leather Goods |
1 769 |
5 660 |
x 3.2 |
+ 74 % |
Perfumes & Cosmetics |
(30) |
393 |
- |
+ 1 % |
Watches & Jewelry |
(17) |
794* |
- |
x 2.2 |
Selective Retailing |
(308) |
131 |
- |
- 82 % |
Other activities and eliminations |
(294) |
(270) |
- |
- |
Total LVMH |
1 671 |
7 632 |
x 4.6 |
+ 44 % |
* incomparable structural impact.
Wines & Spirits: sustained demand in
the United States and strong rebound in China
The Wines & Spirits
business group recorded organic revenue growth of 44% in the first
half of 2021 compared to the same period of 2020 and 12% compared
to that of 2019. Profit from recurring operations was up 20%
compared to the first half of 2019. Champagne volumes rose 10%
compared to the first half of 2019, driven by the good momentum in
Europe and the United States. Hennessy cognac volumes increased by
6% compared to 2019, limited by supply constraints. China, which
was the first market to have been impacted by the pandemic in early
2020, experienced a strong rebound over the first half of this
year. Demand in the United States held up well. LVMH took a 50%
equity stake in the Champagne Maison Armand de Brignac.
Fashion & Leather Goods: remarkable
performances at Louis Vuitton, Christian Dior, Fendi, Loewe and
Celine.
The Fashion & Leather Goods
business group recorded organic revenue growth of 81% in the first
half of 2021 compared to the same period of 2020. Organic revenue
growth compared to the first half of 2019 was 38%. Profit from
recurring operations was up 74% compared to the first half of 2019
and represents more than three times that of 2020. Louis Vuitton,
driven as always by its creativity and the artisanal excellence of
its products, delivered a remarkable performance and maintained its
profitability at an exceptional level. Due to the desirability of
its iconic designs, purchases of many are subject to a waiting
list. The Maison continues to offer its customers a unique
experience, whether in its stores or through its many original
initiatives. Christian Dior had an excellent first half with strong
growth among local customers across all its product categories.
Several innovations were unveiled during the first half. Celine’s
ready-to-wear and leather goods collections created by Hedi Slimane
were hugely successful. Loewe continues to surprise with its
innovative digital concepts in connection with the new collections
created by J.W. Anderson. Fendi presented a ready-to-wear capsule
by Kim Jones, the first collections of which debuted in July. Marc
Jacobs performed very well over the period.
Perfumes & Cosmetics: rapid growth in
direct sales and continued selective distribution
The Perfumes & Cosmetics
business group recorded organic revenue growth of 37% in the first
half of 2021 compared to the same period of 2020. Organic revenue
was down 3% compared to the first half of 2019. Profit from
recurring operations was up 1% compared to the first half of 2019.
The Group’s major brands have maintained a policy of selective
distribution unlike many competitors who have increased their
proportion of discounted sales or sales in parallel networks, as a
means of supporting their revenues. Our brands are benefiting from
continued growth in online sales, partially offsetting the impact
of the suspension of international travel and the closure of many
points of sale. Parfums Christian Dior enjoyed a strong
acceleration in its business with local customers, extending the
recovery that began at the end of 2020. The continued success in
iconic perfumes Sauvage, Miss Dior and J'Adore, the roll-out of
Rouge Dior lipstick and the rapid progress of skincare lines
Prestige and Capture contributed to the excellent performance of
the Maison. Guerlain showed very positive momentum, driven by
skincare, thanks to the exceptional vitality of Abeille Royale and
Orchidée Impériale. Parfums Givenchy is gaining market share due to
the success of L’Interdit perfume and the promising relaunch of the
Irresistible collection. Fresh confirmed its presence in
ultra-premium skincare and Maison Francis Kurkdjian continues to
post remarkable growth.
Watches & Jewelry: strong rebound in
own stores and integration of Tiffany
The Watches & Jewelry
business group recorded organic revenue growth of 71% in the first
half of 2021 compared to the same period in 2020 and 5% compared to
that in 2019 (excluding Tiffany). Profit from recurring operations
was up 122% compared to the first half of 2019 and 27% excluding
the effect of the integration of Tiffany. The first half saw the
integration for the first time of iconic jewelry Maison Tiffany,
which has benefited from the new team's focus on its iconic
products. Honouring its long-standing tradition of expressing love
and diversity, the Maison has successfully launched its first
engagement ring for men, the Charles Tiffany Setting. Bvlgari saw
good growth in jewelry, in particular in its network of own stores.
The new Magnifica high-end jewelry collection was unveiled in June.
Chaumet inaugurated its new exhibition “Joséphine et Napoléon” at
its recently restored historic address at 12 place Vendôme. In
watchmaking, TAG Heuer signed a major partnership with Porsche and
launched the Carrera Porsche chronograph to mark the occasion.
Official watch for the Euro 2020, Hublot enjoyed high visibility
during the second quarter.
Selective Retailing: good performance from
Sephora; DFS still held back by a limited recovery in international
travel
In Selective Retailing, organic
revenue was up 12% compared to the first half of 2020 and down 25%
compared to the first half of 2019. Profit from recurring
operations was once again positive but was down 82% compared to the
first half of 2019. Sephora achieved a good level of performance in
a commercial environment which was impacted by store closures in
several countries in Europe. Online sales continue to progress all
over the world. A strategic partnership has been signed with
Zalando, which is expected to launch in Germany by the end of the
year. DFS continued to be impacted by the lack of recovery in
international travel to most destinations. Following an ambitious
renovation program, faithful to the history of this flagship store
and maintaining high environmental standards, the reopening of La
Samaritaine on June 23 was an historic success.
Outlook 2021
Within the context of emerging from the health
crisis, the Group will maintain a strategy focused on continuously
strengthening the desirability of its brands, by relying on the
exceptional quality of its products and the excellence of their
distribution.Our strategy of focusing on the highest quality across
all our activities, combined with the dynamism and unparalleled
creativity of our teams, will enable us to reinforce LVMH’s global
leadership position in luxury goods once again in 2021.
An interim dividend of 3 Euros will be paid on
Thursday December 2, 2021.
Regulated information related to this press
release, the half-year results presentation and the half-year
financial statement are available on our internet site
www.lvmh.com.
Limited review procedures have been carried out,
the related report will be issued following the board meeting.
ANNEX
The condensed consolidated financial statements
for the first half of 2021 are included in the PDF version of the
press release.
LVMH – Revenue by business group and by
quarter
Revenue first half 2021 (Euro
millions)
2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1
510 |
6 738 |
1 550 |
1 883 |
2 337 |
(59) |
13 959 |
Second
quarter |
1 195 |
7 125 |
1 475 |
2 140 |
2 748 |
23 |
14 706 |
First half |
2 705 |
13 863 |
3 025 |
4 023 |
5 085 |
(36) |
28 665 |
Revenue first half 2021 (organic growth
compared to the first half of 2020)
2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First
quarter |
+ 36
% |
+ 52
% |
+ 18
% |
+ 35
% |
- 5 % |
- |
+ 30 % |
Second quarter |
+ 55 % |
x 2.2 |
+ 67 % |
x 2.2 |
+ 31 % |
- |
+ 84 % |
First half |
+ 44 % |
+ 81 % |
+ 37 % |
+ 71 % |
+ 12 % |
- |
+ 53 % |
Revenue first half 2021 (organic growth
compared to the first half of 2019)
2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First
quarter |
+ 17
% |
+ 37
% |
- 4 % |
+ 1
% |
-30% |
- |
+ 8 % |
Second quarter |
+ 7 % |
+ 40 % |
- 1 % |
+ 9 % |
-19% |
- |
+ 14 % |
First half |
+ 12 % |
+ 38 % |
- 3 % |
+ 5% |
- 25% |
- |
+ 11 % |
Revenue first half 2020 (Euro
millions)
2020 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1
175 |
4 643 |
1 382 |
792 |
2 626 |
(22) |
10 596 |
Second
quarter |
810 |
3 346 |
922 |
527 |
2 218 |
(26) |
7 797 |
First half |
1 985 |
7 989 |
2 304 |
1 319 |
4 844 |
(48) |
18 393 |
Revenue first half 2019 (Euro
millions)
2019 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective Retailing |
Other activities and eliminations |
Total |
First quarter |
1
349 |
5 111 |
1 687 |
1 046 |
3 510 |
(165) |
12 538 |
Second
quarter |
1 137 |
5 314 |
1 549 |
1 089 |
3 588 |
(133) |
12 544 |
First half |
2 486 |
10 425 |
3 236 |
2 135 |
7 098 |
(298) |
25 082 |
Alternative performance
indicators For the purposes of its financial
communication, in addition to the accounting aggregates defined by
IAS/IFRS, LVMH uses alternative performance indicators established
in accordance with AMF position DOC-2015-12.The table below lists
these indicators and the reference to their definition and their
reconciliation with the aggregates defined by IAS/IFRS standards,
in the published documents.
Indicators |
Reference to published documents |
Free operating cash flow |
URD (consolidated accounts, consolidated cash flow statement) |
Net Financial debt |
URD (notes 1.22 and 19 of the appendix to the consolidated
accounts) |
Gearing |
URD (part 2, Comments on the consolidated balance sheet) |
Organic Growth |
URD (part 1, Comments on the consolidated income statement) |
URD: Universal Registration Document as at 31
December 2020
LVMH
LVMH Moët Hennessy Louis Vuitton is represented
in Wines and Spirits by a portfolio of brands that includes Moët
& Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug,
Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays,
Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie,
Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon,
Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle,
Newton, Bodega Numanthia, Ao Yun, Château d'Esclans and Château du
Galoupet. Its Fashion and Leather Goods division includes Louis
Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy,
Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA,
Patou. LVMH is present in the Perfumes and Cosmetics sector with
Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums,
Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di
Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian.
LVMH's Watches and Jewelry division comprises Bvlgari, Tiffany
& Co, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and
Hublot. LVMH is also active in selective retailing as well as in
other activities through DFS, Sephora, Le Bon Marché, La
Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation,
Royal Van Lent, Belmond and Cheval Blanc hotels.
“This document may contain certain forward
looking statements which are based on estimations and forecasts. By
their nature, these forward looking statements are subject to
important risks and uncertainties and factors beyond our control or
ability to predict, in particular those described in LVMH’s
Universal Registration Document which is available on the website
(www.lvmh.com). These forward looking statements should not be
considered as a guarantee of future performance, the actual results
could differ materially from those expressed or implied by them.
The forward looking statements only reflect LVMH’s views as of the
date of this document, and LVMH does not undertake to revise or
update these forward looking statements. The forward looking
statements should be used with caution and circumspection and in no
event can LVMH and its Management be held responsible for any
investment or other decision based upon such statements. The
information in this document does not constitute an offer to sell
or an invitation to buy shares in LVMH or an invitation or
inducement to engage in any other investment activities.”
LVMH CONTACTS
Analysts and investors Chris
Hollis LVMH + 33 1 44 13 21 22 |
Media Jean-Charles
Tréhan LVMH + 33 1 44 13 26 20 |
MEDIA CONTACTS |
|
France Aymeric Granet
Brune Diricq / Charlotte Mariné Publicis
Consultants + 33 1 44 82 47 20 |
France Michel Calzaroni / Olivier
Labesse / Hugues Schmitt / Thomas Roborel de Climens DGM
Conseil + 33 1 40 70 11 89 |
Italy Michele Calcaterra, Matteo
Steinbach SEC and Partners + 39 02 6249991 |
UK Hugh Morrison, Charlotte
McMullen Montfort Communications + 44 7921
881 800 |
USNik Deogun / Blake
SonnensheinBrunswick Group+ 1 212 333 3810 |
China Daniel
Jeffreys Deluxewords +44 772 212 6562 +86
21 80 36 04 48 |
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