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LMVH drinks division rebounds with major third-quarter growth

Published:  13 October, 2015

Strong quarterly growth in the wine and spirits division has helped push luxury goods group LVMH to revenues of €25.3 billion for the first nine months of the year, according to figures released today.

The wine and spirits division posted 7% organic growth for the period.

However that figure masks a significant acceleration for the division in the third quarter, during which it grew 16%.

Revenues for the division are up 19% to just over €3 billion, reflecting the benefit of a weak Euro to the export-heavy luxury goods market.

The watches and jewelry division grew 11% in the third quarter, perfumes and cosmetics 7% and fashion and leather goods 3%.

Organic revenue for the group as a whole grew 6% in the period, compared to 2014.

LVMH wine and spirits division returns to growth

The third-quarter figures represent a strong rebound for the group's wine and spirits operation, after disappointing results in 2014 which saw its revenue fall by 5%.

The area continued its contraction into 2015, with growth down a further 1% in the first quarter. It only managed  2% growth over the first six months of the year.

Volume sales of Hennessy Cognac increased by 12% in the nine-month period, with a particularly strong performance in China in the third quarter. The brand continues to report excellent momentum in the United States.

Champagne saw volume growth of 5% for the period.

The company also highlights rapid growth in both Glenmorangie and Belvedere.