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LVMH posts strong 2015 results on back of healthy drinks sector sales

Published:  03 February, 2016

The wines and spirits division of luxury goods group LVMH posted sales growth of 16% in 2015, with organic growth at 6%, the company has reported.

Total sales for the division hit €4,603 million for the year.

The figures helped the group's overall turnover rack up 6% growth year on year.

Profits from recurring operations in the division were up 19% to €1,363 million, with Champagne and wine contributing 47% and cognac and spirits 53%.

The sector began 2015 with a 1% fall in the first quarter, but rebounded strongly in the second half of the year, with third quarter organic growth rocketing to 16%.

Champagne had a strong 2015, the group said in a statement, particularly in Europe, the United States and Japan.

Sales of Hennessy rebounded in China in the second half, as the company pushed volumes despite ongoing destocking in China.

The company reports promising growth for Hennessy in the Philippines and Indonesia, as well as a number of emerging African and American markets.

Glenmorangie and Belvedere continue to show growth.

Bernard Arnault, chairman and chief executive of LVMH, said: "The 2015 results confirm the capacity for LVMH to progress and gain market share despite economic and geopolitical uncertainty. Revenue and operating profit reached new record levels.

"By adapting their strategies to global changes and by continuing to evolve, they have shown the creativity and entrepreneurship that drive them forward. In an uncertain economic environment, we can rely on the desirability of our brands and the agility of our teams to further strengthen in 2016 our leadership in the world of high quality products."