Wines and Spirits Struggle at LVMH

Sales in the Wines & Spirits division have declined significantly. Despite this, the French conglomerate LVMH managed to achieve modest growth in the first half of 2024.

Reading time: 1m

Luxury is also affected. (Photo: belyaaa/stock.adobe.com - generated with AI)
Luxury is also affected. (Photo: belyaaa/stock.adobe.com - generated with AI)

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods conglomerate, recorded revenues of €41.7 bn in the first half of 2024. This nearly matched the revenue of the same period last year. However, the Wines & Spirits division saw a 9% drop in sales, with profits falling by 26%.

According to the company, demand for champagne has declined, dropping from 30.2m bottles to 25.6m compared to the same period last year. LVMH attributes this to a normalization following the COVID-19 pandemic, though profits remain higher than in 2019. The "Rosé wines from Provence" category has grown, driven by international expansion at Château d'Esclans and the addition of Minuty Winery, which was acquired in 2023 and included in the balance sheet for the first time.

"While remaining vigilant in the current context, the Group approaches the second half of the year with confidence."

"The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty, commented Bernard Arnault, President and CEO of LVMH. "While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”

The company plans to pay an interim dividend of €5.50 on December 4. PD

Opinion

A pair of leading critics disagree on how to react to a wine they find unimpressive. Robert Joseph weighs into the argument.

Reading time: 4m 45s

 

 

Latest Articles