Moët Hennessy Louis Vuitton (LVMH) has announced a return to strong growth momentum in the first half of FY21, after a severely disrupted year in 2020 as a result of the global pandemic.
It recorded revenue of 28.7 billion euros in the first half of 2021, up 56% compared to the same period in 2020. Organic revenue growth was 53% compared to 2020 and 11% compared to 2019. This performance reflects accelerated growth in the second quarter of 2021, which saw organic revenue increase by 14% compared to 8% in the first quarter.
Its Wines & Spirits business group recorded organic revenue growth of 44% in the first half of 2021 compared to the same period of 2020 and 12% compared to that of 2019. Profit from recurring operations was up 20% compared to the first half of 2019.
Champagne volumes rose 10% compared to the first half of 2019, driven by “good momentum” in Europe and the United States. Hennessy cognac volumes increased by 6% compared to 2019, limited by supply constraints.
Hennessy also introduced its National Basketball Association (NBA) partnership to Australia in May, with an immersive take-over that saw the Bondi Icebergs ocean pool – one of Australia’s most iconic locations – transformed as a first-of-its-kind basketball court. Images of the takeover attracted worldwide attention.
China, which was the first market to have been impacted by the pandemic in early 2020, experienced a strong rebound over the first half of this year.
The Estates & Wines Maisons recorded strong growth, supported in particular by Cloudy Bay (New Zealand) and the launch of a new range by Terrazas de Los Andes (Argentina).
LVMH said demand in the United States held up well and it was looking forward to reporting on taking a 50% equity stake in Jay-Z’s Champagne Maison Armand de Brignac.
As for the outlook for wine and spirits, LVMH said: “Due to the combined impact of sector-specific supply constraints and the excellent momentum achieved in the first half of the year, the Wines and Spirits business group is taking a measured yet
optimistic approach to the second half of the year, in what is still an uncertain public health environment.
“In a fast-changing sector, the Maisons remain committed to their long-term vision. They will continue to build on their value-enhancing strategy and the strengths associated with the authenticity and excellence of their products, while leveraging the acceleration of online sales, particularly through the partnership with Campari.”
Moët Hennessy and Campari Group announced earlier this month that they had formed a 50/50 joint venture to advance their global e-commerce strategy.
As part of the partnership, Campari will be contributing its stake in Tannico to the JV. Tannico focuses on online sales of wines and premium spirits under the Tannico brand with a share of around 30% of this segment. Tannico also owns a majority stake in Ventealapropriete.com, a major e-commerce platform for the sale of premium wines and spirits in France.
The joint venture aims at building a premium pan-European e-commerce player for the benefit of all wine and spirits brands and their European consumers.