LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €46.8 billion in 2018, an increase of 10% over the previous year. Organic revenue growth was 11%, and 12% excluding the impact of the closure of the Hong Kong airport concessions at the end of 2017. All business groups recorded excellent performances.
Organic revenue growth in the fourth quarter was 10%* (excluding the impact of the closure of the Hong Kong airport concessions). The quarter continued the trend that has been underway since the beginning of the year.
Profit from recurring operations amounted to €10 billion in 2018, up 21%. Operating margin reached a level of 21.4%, an increase of 1.9 percentage points. Group share of net profit amounted to €6.4 billion, up 18%.
Bernard Arnault, Chairman and CEO of LVMH, commented, “LVMH had another record year, both in terms of revenue and results. In particular, profit from recurring operations crossed the €10 billion mark. The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the Group’s strengths and have once again made the difference. In 2019 LVMH will continue its strong dynamic of innovation, targeted investments, combining tradition and modernity, long-term vision and responsiveness, entrepreneurial spirit and a sense of responsibility. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high quality products.”
Key highlights from 2018 include:
- Further double-digit increase in revenue and profit from recurring operations, which reached record levels,
- Continued growth in Europe, the United States, Asia and Japan,
- Excellent performance in Wines and Spirits and exceptional grape harvests,
- Success of both iconic and new products at Louis Vuitton, whose profitability remains at an exceptional level,
- Very good first year for Christian Dior Couture within LVMH,
- Creative renewal at several Maisons,
- Strong growth at the flagship brands of Perfumes and Cosmetics,
- Excellent year for Bvlgari and good development of Hublot and TAG Heuer,
- Growth at Sephora, which strengthened its positions in all its markets and in digital,
- Agreement with the Belmond group,
- Free cash flow of €5.5 billion, up 16%,
- Gearing of 16.2% at the end of December 2018.
*Organic growth of 9% including the impact of the closure of the Hong Kong airport concessions.
