Excellent performance for LVMH in 2012

Thu Jan 31, 2013 11:46am EST

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Paris, 31 January 2013

LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded revenue of
EUR28.1 billion in 2012, an increase of 19% compared to 2011. This includes the integration of
Bulgari as of June 30, 2011. Organic revenue growth was 9%. All business groups saw excellent
momentum in Europe, Asia and the United States. Louis Vuitton, in particular, once again recorded
double-digit revenue growth during the year.

Revenue increased by 12% in the fourth quarter, compared to the same period in 2011, with organic
revenue growth of 8%. The last quarter saw a modest increase in growth compared to the third
quarter of 2012.

Profit from recurring operations increased by 13% to EUR5 921 million, a performance which is even
more remarkable when compared to the strong growth in 2011. Current operating margin was 21% in
2012. Group share of net profit was EUR3 424 million, an increase of 12% compared to 2011.  

Bernard Arnault, Chairman and CEO of LVMH, said: "2012 was another remarkable year for LVMH,
especially in the context of the economic slowdown in Europe. All of our businesses demonstrated
excellent momentum driven by innovation and the quality of their products, thereby strengthening
their positions in traditional markets while continuing to develop in new ones. Looking beyond the
appeal of our brands, it is the talent of our teams and their motivation that enables us to so
effectively execute our strategy. In 2013, LVMH intends to further strengthen its global
leadership position in high quality products by relying on its sound, long-term strategy."

Highlights of 2012 include: 

*Profit from recurring operations close to 6 billion Euros 
*Further market share gains throughout the world 
* Strong momentum in the United States
*Continued rapid growth in Asia 
* Strong progression in Wines & Spirits
* Double-digit revenue growth and exceptional profitability at Louis Vuitton
* Improved performance of other Fashion & Leather Goods brands
*Remarkable year for Parfums Christian Dior which gained market share in a competitive environment
* On-going strengthening of the market positions of DFS and Sephora due to their innovative
products and services
* Excellent results for TAG Heuer and the integration of the first full year of Bulgari
* Free cash flow of EUR2.5 billion

 Euro millions                      2011    2012   % Change  
 Revenue                            23 659  28 103    + 19 % 
 Profit from recurring operations    5 263   5 921    + 13 % 
 Group share of net profit           3 065   3 424    + 12 % 
 Free cash flow*                     2 177   2 474    + 14 % 

* Before available for sale financial assets and investments, transactions relating to equity
and financing activities

Revenue by business group:

 Euromillions                        2011    2012   % change                    
Reported      Organic*     
 Wines & Spirits                      3 524   4 137        + 17 %        + 11 % 
 Fashion & Leather Goods              8 712   9 926        + 14 %         + 7 % 
 Perfumes & Cosmetics                 3 195   3 613        + 13 %         + 8 % 
 Watches & Jewelry                    1 949   2 836        + 46 %         + 6 % 
 Selective Retailing                  6 436   7 879        + 22 %        + 14 % 
 Other activities and eliminations    (157)   (288)             -             - 
 Total LVMH                          23 659  28 103        + 19 %         + 9 % 

*With comparable structure and exchange rates

Profit from recurring operations by business group:

 Euro millions                       2011   2012  % change  
 Wines & Spirits                     1 101  1 260    + 14 % 
 Fashion & Leather Goods             3 075  3 264     + 6 % 
 Perfumes & Cosmetics                  348    408    + 17 % 
 Watches & Jewelry                     265    334    + 26 % 
 Selective Retailing                   716    854    + 19 % 
 Other activities and eliminations   (242)  (199)         - 
 Total LVMH                          5 263  5 921    + 13 % 

Wines & Spirits: strong growth in vintages and prestige qualities 

The Wines & Spirits business group recorded organic revenue growth of 11%. Profit from recurring
operations increased by 14%. Continuing the favorable trend for the wines and spirits market in
2011, demand remained strong in 2012. In addition to volume growth, improved product mix and a
policy of adjusted price contributed to this excellent performance. Champagne recorded a strong
performance in its rosé and prestige vintages. Sparkling and still wines from Estates & Wines
experienced strong new growth. Hennessy cognac saw a very good year for all its qualities and in
all regions. Belvedere vodka enjoyed good momentum outside the U.S. while the single malt whiskeys
Glenmorangie and Ardbeg recorded rapid increases in their key markets. All maisons in this
business group thus benefit fully from their value enhancing strategy, based on the image of their
brands and the strength of their distribution network.

Fashion & Leather Goods: excellent performance from Louis Vuitton and other brands 

The Fashion & Leather Goods business group recorded organic revenue growth of 7% in 2012. Profit
from recurring operations increased by 6%. Louis Vuitton, which had another record year, increased
its lead over other artisanal brands of leather goods. With double-digit revenue growth, Louis
Vuitton maintained its historic strategy based on the extraordinary quality of its products and
its excellent distribution. The Maison continues to record an exceptional level of profitability
in a context of sustained investment dedicated to strengthening its savoir-faire. The opening of
its first dedicated jewelry boutique complete with its first Haute Joaillerie workshop at Place
Vendôme in Paris and the reopening of the Maison Louis Vuitton in Shanghai are among the
highlights of the year. Fendi continued the qualitative expansion of its distribution network. Its
iconic handbag Baguette experienced a record year on its 15th anniversary. As the brand continues
to strengthen its identity, Céline showed excellent performance in all its products and in all
geographic areas. The performance of the other fashion brands continued to improve.

Perfumes & Cosmetics: excellent momentum

The Perfumes & Cosmetics business group recorded organic revenue growth of 8%. Profit from
recurring operations increased by 17%. Parfums Christian Dior saw excellent performance driven by
the strength of flagship lines, notably Miss Dior and J'adore. Dior Addict Lipstick confirmed its
leadership position in its main markets and the skin care line Prestige continued its sustained
growth. Guerlain continued to see strong growth momentum attributed notably to the performance of
its new fragrance La Petite Robe Noire. Parfums Givenchy saw strong growth in its makeup line due
to broader distribution and the success of its mascara Noir Couture. Benefit, Make Up For Ever and
Fresh continued their strong growth.

Watches & Jewelry: strong progress in iconic lines and development of industrial capacity 

The Watches & Jewelry business group recorded organic revenue growth of 6% in 2012. Profit from
recurring operations rose 26% notably due the performance of Bulgari, consolidated as of 30 June
2011. LVMH watch brands experienced good momentum supported by many innovations and the excellent
performance of their iconic models Carrera by TAG Heuer, King Power by Hublot and El Primero by
Zenith. In Jewelry, Bulgari confirmed the success of its Serpenti and B.Zerol collections,
enriched by new creations, and reinforced the quality of its distribution. Chaumet and Fred
continue to develop their star collections.

Selective Retailing: rapid growth thanks to its innovative product and service offering

The Selective Retailing business group recorded organic revenue growth of 14% in 2012. Profit from
recurring operations increased by 19%. Due to its strong commitment to the quality of its stores,
DFS benefitted from momentum among Asian customers. Three major concessions were won in 2012 at
Hong Kong Airport and the concession at Los Angeles Airport was renewed. The opening in Hong Kong
of a third Galleria is also a key highlight of the year.
Sephora continued to achieve an excellent level of performance and made market share gains across
all its regions. Online revenue is growing strongly. In Europe, new stores opened for the first
time in Denmark and Sweden. In the United States, the renovation of several flagship stores in New
York strengthened the appeal of the brand. Sephora continued its expansion in China while
accelerating the renovation of its existing network. Its first stores were opened in the high
potential markets of Brazil and India.

Favorable outlook for LVMH in 2013

Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth
momentum across all business groups in 2013. The Group will maintain a strategy focused on
developing its brands by continuing to build up its savoir-faire, as well as through strong
innovation and expansion in fast growing markets.

Driven by the agility of its organization, the balance of its different businesses and geographic
diversity, LVMH enters 2013 with confidence and has, once again, set an objective of increasing
its global leadership position in luxury goods. 

Dividend increase of 12%

At the Annual Shareholders Meeting on April 18, 2013, LVMH will propose a dividend of EUR2.90 per
share, an increase of 12%. An interim dividend of EUR1.10 per share was paid on December 4 of last
year. The balance of EUR1.80 per share will be paid on April 25, 2013.


The LVMH Board met on January 31 to approve the financial statements for 2012.
Audit procedures have been carried out and the audit report is being issued.
Regulated information related to this press release, the presentation of annual results and the
report "Financial Documents" are available at www.lvmh.fr

Revenue by business group and by quarter


 (Euro millions)   Wines & Spirits  Fashion & Leather Goods  Perfumes & Cosmetics  Watches & Jewelry  Selective Retailing  Other Activities and Eliminations   Total 
 First quarter                 926                    2 374                   899                630                1 823                               (70)   6 582 
 Second quarter                833                    2 282                   828                713                1 767                               (39)   6 384 
 Third quarter               1 006                    2 523                   898                690                1 862                               (79)   6 900 
 Fourth quarter              1 372                    2 747                   988                803                2 427                              (100)   8 237 
 Total revenue               4 137                    9 926                 3 613              2 836                7 879                              (288)  28 103 


 (Euro millions)   Wines & Spirits  Fashion & Leather Goods  Perfumes & Cosmetics  Watches & Jewelry  Selective Retailing  Other Activities and Eliminations   Total 
 First quarter                 762                    2 029                   803                261                1 421                               (29)   5 247 
 Second quarter                673                    1 942                   715                315                1 410                               (10)   5 045 
 Third quarter                 871                    2 218                   793                636                1 547                               (54)   6 011 
 Fourth quarter              1 218                    2 523                   884                737                2 058                               (64)   7 356 
 Total revenue               3 524                    8 712                 3 195              1 949                6 436                              (157)  23 659 

About 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, Hennessy, Glenmorangie, Ardbeg, Vodka  Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas
de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and
Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as
Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and
Berluti. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior,
Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic
companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in
selective retailing as well asin other activities through DFS, Sephora, Le Bon Marché, Samaritaine
and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet,
Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created with the
world's leading diamond group.

"Certain information included in this release is forward looking and is subject to important risks
and uncertainties and factors beyond our control or ability to predict, that could cause actual
results to differ materially from those anticipated, projected or implied. It only reflects our
views as of the date of this presentation. No undue reliance should therefore be based on any such
information, it being also agreed that we undertake no commitment to amend or update it after the
date hereof."

 Analysts and investors:  Chris Hollis                        + 33  
 France :                 Michel Calzaroni/Olivier Labesse/   + 33  
                          Sonia Fellmann/Hugues Schmitt                           
                          DGM Conseil                                             
 UK:                      Hugh Morrison                       + 44.207.920.2334   
                          M: Communications                   + 44.773.965 5492   
 Italy:                   Michele Calcaterra/Mateo Steinbach  +39  
 US:                      James Fingeroth/Molly Morse/        +1 212.521.4800     
                          Dawn Dover/Micheline Tang                               
                          Kekst & Company                                         

LVMH2012FullYearResults http://hugin.info/143740/R/1674723/545372.pdf 


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