Beauty Industry

LVMH Reports on a Positive 2011

The Perfumes & Cosmetics business recorded organic revenue growth of 9%.

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By: Jamie Matusow

Editor-in-Chief

Leading luxury products group LVMH Moët Hennessy Louis Vuitton recorded a 16% increase in revenue reaching 23.7 billion Euros in 2011. This includes the integration of Bulgari as of June 30, 2011. Overall, organic revenue growth was 14%. All business groups saw excellent momentum in Europe, Asia and the United States. Louis Vuitton, in particular, once again recorded double-digit revenue growth during the year. Revenue increased by 20% in the fourth quarter with organic growth of 12%. This performance is in line with the favorable trends observed since the beginning of the year, and compares to the fourth quarter of 2010 which also grew.

The Perfumes & Cosmetics business recorded organic revenue growth of 9%. All of the brands contributed to the strong momentum of the Asian and American markets. Europe, despite the uncertain environment at the end of the year, also contributed to their growth. Parfums Christian Dior had good momentum, supported by its recent innovations and the strength of its star lines. J’adore was once again the leading female perfume in France in 2011. Guerlain continued its development in its key markets and benefited from the force of Shalimar. At Parfums Givenchy, the new women’s fragrance Dahlia Noir, launched in the second half of the year, enjoyed a promising start. Benefit and Make Up For Ever continued their strong growth across all their markets, the company reported.

“2011 was another great vintage for LVMH, highlighting once again the power of our brands, the excellence of our craftsmanship and the appeal of our products,” said Bernard Arnault, chairman and CEO of LVMH. “Our businesses enjoyed excellent momentum and profit from recurring operations passed the threshold of €5 billion for the first time. The agreement with the Bulgari family was one of the key moments of the year. In 2012, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”

The company’s outlook for 2012 is excellent, he said. At the Annual Shareholders Meeting on April 5, 2012, LVMH will propose a dividend of 2.60 Euros per share, an increase of 24%. An interim dividend of 0.80 Euros per share was paid on December 2 of last year. The balance of 1.80 Euros per share will be paid on April 25, 2012.

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