In the second quarter, organic revenue growth was 17%, in line with trends seen in the first quarter.
Profit from recurring operations for the first half of 2023 was up 13% at €11 574 million. Operating margin reached 27.4% of revenue. Group share of net profit was up 30% at €8 481 million.
Highlights of the first half of 2023 include:
- An excellent first half despite a disrupted environment,
- Significant revenue growth across all business groups except
Wines & Spirits , which faced a high basis of comparison, - Strong growth in business in
Europe andAsia ; - Solid performance by champagne thanks to its value-based strategy, and a contraction in cognac compared to the first half of 2022 which benefited from the significant impact of inventory rebuilding among distributors,
- Outstanding performance by the Fashion & Leather Goods business group, in particular Louis Vuitton, Christian Dior, Celine,
Loro Piana , Loewe and all the other brands which gained market share worldwide, - Rapid growth in perfume, makeup, and skincare,
- Impressive growth in high jewelry, and strong creative momentum among all Watches and Jewelry Maisons, in particular Tiffany, Bulgari, and TAG Heuer,
- Exceptional performance by
Sephora , confirming its position as world leader in beauty retail, - Return to profit for DFS, which benefited from the recovery in international travel.
- Operating free cash flow halved due to major investments in exceptional real estate and in operational inventories, notably in high jewelry.
Key figures
Euro millions | First half 2022 | First half 2023 | % change |
Revenue | 36 729 | 42 240 | + 15 % |
Profit from recurring operations | 10 235 | 11 574 | + 13 % |
Group share of net profit | 6 532 | 8 481 | + 30 % |
Net financial debt | 11 117 | 12 465 | + 12 % |
Total equity | 52 713 | 59 449 | + 13 % |
Revenue by business group:
Euro millions | First half 2022 | First half 2023 | % change Reported Organic* | |
3 327 | 3 181 | - 4 % | - 3 % | |
Fashion & Leather Goods | 18 136 | 21 162 | + 17 % | + 20 % |
Perfumes & Cosmetics | 3 618 | 4 028 | + 11 % | + 13 % |
Watches & Jewelry | 4 909 | 5 427 | + 11 % | + 13 % |
Selective Retailing | 6 630 | 8 355 | + 26 % | + 26 % |
Other activities and eliminations | 109 | 87 | - | - |
Total | 36 729 | 42 240 | + 15 % | + 17 % |
* With comparable structure and constant exchange rates. The structural impact for the Group compared to the first half of 2022 was zero and the currency effect was -2%.
Profit from recurring operations by business group:
Euro millions | First half 2022 | First half 2023 | % change |
1 154 | 1 046 | - 9 % | |
Fashion & Leather Goods | 7 509 | 8 562 | + 14 % |
Perfumes & Cosmetics | 388 | 446 | + 15 % |
Watches & Jewelry | 987 | 1 089 | + 10 % |
Selective Retailing | 367 | 734 | + 100 % |
Other activities and eliminations | (170) | (303) | - |
Total | 10 235 | 11 574 | + 13 % |
The
Fashion & Leather Goods: remarkable performances by Louis Vuitton, Christian Dior, Celine,
The Fashion & Leather Goods business group recorded organic revenue growth of 20% in the first half of 2023. Profit from recurring operations was up 14%. Louis Vuitton had an excellent first half, still driven by its exceptional creativity, the quality of its products and its strong links with art and culture. Nicolas Ghesquière's talent for creating a dialogue between fashion and architecture continued to elevate the strong desirability of his Women's collections to the highest level. A new chapter opened with the arrival of
Perfumes & Cosmetics: strong momentum in perfumes and makeup, supported by a highly selective and high-quality distribution policy
The Perfumes & Cosmetics business group recorded organic revenue growth of 13% in the first half of 2023 thanks to strong momentum achieved through innovation, combined with a highly selective distribution policy. Profit from recurring operations was up 15%. Christian Dior enjoyed a remarkable performance, strengthening its leadership in its strategic markets. Sauvage confirmed its position as the world's leading perfume, while the iconic women's fragrances J'adore and
Watches & Jewelry: strong growth in jewelry, sustained innovation in watchmaking
The Watches & Jewelry business group achieved organic revenue growth of 13% in the first half of 2023. Profit from recurring operations was up 10%. In jewelry, Tiffany enjoyed excellent momentum with the exceptional success of the reopening of the “Landmark” in
Selective Retailing: excellent performance by
In Selective Retailing, organic revenue growth was 26% in the first half of 2023. Profit from recurring operations was up 100%.
Outlook 2023
In an uncertain geopolitical and economic environment, 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.
Our strategy of focusing on the highest quality across all of our activities, combined with the energy and unparalleled creativity of our teams, will enable us to reinforce
An interim dividend of €5.50 will be paid on
Regulated information related to this press release, the half year results presentation and the half year financial statement are available on the website www.lvmh.com.
Limited review procedures have been carried out and the related report will be issued following the board meeting.
Details of the webcast relating to the publication of the 2023 half year results are available at: www.lvmh.com.
ANNEX
The condensed consolidated financial statements for the first half of 2023 are included in the PDF version of the press release.
Revenue first half 2023 (Euro millions)
2023 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective Retailing | Other activities and eliminations | Total | |
First quarter | 1 694 | 10 728 | 2 115 | 2 589 | 3 961 | (52) | 21 035 |
Second quarter | 1 486 | 10 434 | 1 913 | 2 839 | 4 394 | 140 | 21 206 |
First half | 3 181 | 21 162 | 4 028 | 5 427 | 8 355 | 87 | 42 240 |
Revenue first half 2023 (organic growth compared to the first half of 2022)
2023 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective Retailing | Other activities and eliminations | Total | |
First quarter | + 3 % | + 18 % | + 10 % | + 11 % | + 28 % | - | + 17 % |
Second quarter | - 8 % | + 21 % | + 16 % | + 14 % | + 25 % | - | + 17 % |
First half | - 3 % | + 20 % | + 13 % | + 13 % | + 26 % | - | + 17 % |
Revenue first half 2022 (Euro millions)
2022 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective Retailing | Other activities and eliminations | Total | |
First quarter | 1 638 | 9 123 | 1 905 | 2 338 | 3 040 | (41) | 18 003 |
Second quarter | 1 689 | 9 013 | 1 714 | 2 570 | 3 591 | 149 | 18 726 |
First half | 3 327 | 18 136 | 3 618 | 4 909 | 6 630 | 109 | 36 729 |
Alternative performance indicators
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS/IFRS,
The table below lists these indicators and the reference to their definition and their reconciliation with the aggregates defined by IAS/IFRS standards, in the published documents.
Indicators | Reference to published documents |
Free operating cash flow | URD (consolidated accounts, consolidated cash flow statement) |
Net Financial debt | URD (notes 1.23 and 19 of the appendix to the consolidated accounts) |
Gearing | URD (part 2, Comments on the consolidated balance sheet) |
Organic Growth | URD (part 1, Comments on the consolidated income statement) |
URD: Universal Registration Document as at
“This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH’s Universal Registration Document which is available on the website (www.lvmh.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH’s views as of the date of this document, and
Analysts and investors Chris Hollis / Rodolphe Ozun LVMH + 33 1 44 13 21 22 / + 33 1 44 13 27 21 | Media Jean-Charles Tréhan LVMH + 33 1 44 13 26 20 |
MEDIA CONTACTS | |
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Attachment
LVMH 2023 Half Year Results
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