Ad hoc-Mitteilungen

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 €35.7 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 €6 605 million in 2015, an increase of 16%, to which all business groups contributed. Group share of net profit was €3 573 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:

  • Record revenue and profit from recurring operations
  • Strong progress in Europe, the United States and Japan
  • Positive impact of exchange rates
  • Good performance of Wines & Spirits in all regions with a progressive normalization of the situation in China
  • The success of both iconic and new products at Louis Vuitton, where profitability remains at an exceptional level
  • Progress at Fashion brands, in particular Fendi, Céline, Givenchy and Kenzo
  • Remarkable momentum at Christian Dior which gained market share globally
  • Excellent results at Bvlgari and success of TAG Heuer's refocusing strategy
  • Exceptional progress at Sephora which strengthened its position in all its markets and in digital
  • Free cash flow of €3.7 billion, an increase of 30%
  • A gearing of 16% as of the end of December 2015

Key figures:





Euro millions
2014 2015 % change
Revenue 30 638 35 664 + 16 %
Profit from recurring operations 5 715 6 605 + 16 %
Group share of net profit *2 971

5 648
3 573 *+20 %

-37 %
Free cash flow** 2 832 3 679 + 30 %
Net financial debt 4 805 4 235 - 12 %
Total equity 23 003 25 799 + 12 %

* Excluding the 2014 exceptional gain from the distribution of Hermès shares

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

Revenue by business group:

Euro millions 2014 2015 % change



 2015/2014



Reported  Organic*
Wines & Spirits 3 973 4 603 + 16 % + 6 %
Fashion & Leather Goods 10 828 12 369 + 14 % + 4 %
Perfumes & Cosmetics 3 916 4 517 + 15 % + 7 %
Watches & Jewelry 2 782 3 308 + 19 % + 8 %
Selective Retailing 9 534 11 233 + 18 % + 5 %
Other activities and eliminations (395) (366) - -
Total LVMH 30 638 35 664 + 16 % + 6 %

* With comparable structure and exchange rates. The exchange rate impact is +10%.

Profit from recurring operations by business group:

Euro millions 2014 2015 % change
Wines & Spirits 1 147 1 363 + 19 %
Fashion & Leather Goods 3 189 3 505 + 10 %
Perfumes & Cosmetics 415 525 + 26 %
Watches & Jewelry 283 432 + 53 %
Selective Retailing 882 934 + 6 %
Other activities and eliminations (201) (154) -
Total LVMH 5 715 6 605 + 16 %

Wines & Spirits: excellent growth in the United States and Japan, continued destocking in China

The Wines & Spirits 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.

Fashion & Leather Goods: strong creative momentum at Louis Vuitton, other brands strengthened their positions

The Fashion & Leather Goods 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.

Perfumes & Cosmetics: market share gains and successful innovations

The Perfumes & Cosmetics 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 Sauvage experienced unprecedented worldwide success. The vitality of its iconic perfumes J'adore and Miss Dior 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  L'Homme Idéal and the continued success of the skincare ranges Orchidée Impériale and Abeille Royale. Benefit experienced strong growth driven by the originality of its products. Fresh and Make Up For Ever performed very well.

Watches & Jewelry: good growth in jewelry and cautious purchasing behaviour of multi-brand watch retailers

The Watches & Jewelry 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 Diva and Lvcea 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.

Selective Retailing: excellent performance at Sephora, DFS's development impacted by economic changes in Asia

The Selective Retailing 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.

Confidence for 2016

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. 

Dividend increase of 11%

At the Annual Shareholders' Meeting on April 14, 2016, LVMH will propose a dividend of €3.55 per share, an increase of 11%. An interim dividend of €1.35 per share was paid on December 3 of last year. The balance of €2.20 per share will be paid on April 21, 2016.

The LVMH Board met on 2 February 2016 to approve the financial statements for 2015.

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.



APPENDIX

LVMH - Revenue by business group and by quarter

2015 Revenue (Euro millions)

FY 2015 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter 992 2 975 1 094 723 2 656 (117) 8 323
Second Quarter 938 2 958 1 065 829 2 635 (41) 8 384
Total First Half 1 930 5 933 2 159 1 552 5 291 (158) 16 707
Third Quarter 1 199 2 939 1 102 852 2 614 (125) 8 581
Nine months 3 129 8 872 3 261 2 404 7 905 (283) 25 288
Fourth Quarter 1 474 3 497 1 256 904 3 328 (83) 10 376
Total 2015 4 603 12 369 4 517 3 308 11 233 (366) 35 664

2015 Revenue (Organic growth versus same period of 2014)

FY 2015 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter -1% +1% +6% +7% +5% - +3%
Second Quarter +5% +10% +6% +13% +5% - +9%
Total First Half +2% +5% +6% +10% +5% - +6%
Third Quarter +16% +3% +7% +11% +5% - +7%
Nine months +7% +5% +7% +10% +5% - +6%
Fourth Quarter +4% +3% +7% +3% +5% - +5%
Total  2015 +6% +4% +7% +8% +5% - +6%

2014 Revenue (Euro millions)

FY 2014 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other activities & eliminations Total
First Quarter 888 2 639 941 607 2 222 (91) 7 206
Second Quarter 789 2 391 898 659 2 160 (94) 6 803
Total First Half 1 677 5 030 1 839 1 266 4 382 (185) 14 009
Third Quarter  948 2 647 961 706 2 234 (108) 7 388
Nine months 2 625 7 677 2 800 1 972 6 616 (293) 21 397
Fourth Quarter 1 348 3 151 1 116 810 2 918 (102) 9 241
Total 2014 3 973 10 828 3 916 2 782 9 534 (395) 30 638




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, Hennessy, Glenmorangie, Ardbeg, Wen Jun, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton et Numanthia. Its Fashion and Leather Goods division includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. 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 as in other activities through DFS, Sephora, Le Bon Marché, la Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, 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."

Contacts:    
Analysts and investors: Chris Hollis

LVMH
+ 33 1.4413.2122
     
Media:    
France : Michel Calzaroni/Olivier Labesse/

Sonia Fellmann/Hugues Schmitt
+ 33 1.4070.1189
  DGM Conseil  
     
UK: Hugh Morrison / Hannah Glynn + 44.203.770 7903
  Montfort Communications  
Italy: Michele Calcaterra/ Matteo Steinbach +39 02. 62.49991
  SEC and Partners  
US: James Fingeroth/Molly Morse/

Anntal Silver
+1 212.521.4800
  Kekst & Company  

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: LVMH via Globenewswire


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