LVMH sees significant drop in wines and spirits revenue

Moët Hennessy Louis Vuitton (LVMH), the global luxury giant, has reported its financial results for 2024, revealing a decline in net profits and a slight drop in total revenue, despite signs of organic growth in specific market segments. During the period, net profits amounted to €12.55 billion, marking a 17.3% decrease compared to the previous year, while total revenue fell by 1.7% to €84.683 billion.

The company noted that despite the overall drop in sales figures, organic growth reached 1%. Within its business segments, the fashion and leather goods division, traditionally a key revenue driver, recorded €41.06 billion, reflecting a 2.6% decline. In contrast, the selective retail segment posted a 2.1% increase, reaching €18.262 billion.

The jewelry and watches segment saw a 3% decline in revenue, totaling €10.577 billion. Meanwhile, the perfumes and cosmetics sector showed growth, with sales rising 1.8% to €8.418 billion. However, the wines and spirits division experienced a significant contraction of 11.2%, with sales totaling €5.862 billion.

From a geographic perspective, LVMH reported mixed results. Revenue in Japan grew by 9%, while the rest of Asia saw a more pronounced increase of 28%. Sales in Europe and the United States rose by 25%, and other international markets recorded a 13% growth.

Bernard Arnault, chairman and CEO of LVMH, highlighted the company's resilience in a challenging global economic environment. "In 2024, in an uncertain environment, LVMH demonstrated great resilience. This ability to stay the course during turbulent times, as we have proven throughout our history, confirms the effectiveness of our strategy," Arnault stated.

Looking ahead, LVMH plans to continue strengthening its brands by fostering innovation, enhancing product quality, and maintaining a selective distribution strategy. Additionally, the company announced plans to propose a dividend of €13 per share at the upcoming shareholders' meeting on April 17. An interim dividend of €5.5 per share was already distributed in December, with the remaining €7.5 scheduled for payment on April 28.

While LVMH faced significant setbacks in 2024, its strategic management and adaptability allowed it to achieve growth in key areas, setting the stage for potential recovery and progress in 2025.