LVMH posts 23% profit growth amidst CN business disruptions

Lower revenues were seen in Asia due to lockdowns in China.

LVMH Moët Hennessy Louis Vuitton reported its group share of net profit rose 23% year-on-year to €6.532b in the first half of the year despite lower revenues in Asia. 

LVMH recorded sharp increases in Europe and the United States. It however saw a lower level of growth in Asia after it was dragged by its China market, resulting from new health restrictions in place.

“We approach the second half of the year with confidence, but given the current geopolitical and health situation, we will remain vigilant and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2022,” Bernard Arnault, Chairman and CEO of LVMH, said. 

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LVMH’s revenue climbed 28%YOY to €36.7b, whilst its organic revenue grew 21%. The company also reported that it recorded double-digit organic revenue growth across all its business groups. 

In particular, LVMH reported a 14% organic revenue growth in its wines and spirits business, 24% in fashion and leather goods, 13% in perfumes and cosmetics, 16% in watches and jewellery, and 22% in selective retailing. 

“Given the current geopolitical environment and taking into account the health situation, 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,” LVMH also said in a statement.

LVMH announced an interim dividend of €5 that will be paid in early December.