Leading luxury products group LVMH Moët Hennessy Louis Vuitton reported a revenue of €53.7 billion for 2019; marking an increase of 15% year-on-year. The Company recorded an organic revenue growth of 10%.

“Europe and the United States experienced good growth over the year, as did Asia, despite a difficult environment in Hong Kong in the second half of 2019,” LVMH said announcing its results.

While revenue growth in the fourth quarter was 12% compared to the same period in 2018, organic revenue growth was 8% for the quarter. “Restated for the non-recurring effects of the VAT increase in Japan and the stock movements of distributors of cognac in the US, the Group’s organic growth was at a similar level in the third and fourth quarters,” the Company remarked.

In 2019, profit from recurring operations amounted to €11.5 billion showing an increase of 15%, “compared to an already high level in 2018”, the Company reported. While the operating margin reached a level of 21.4%; the group share of net profit amounted to €7.2 billion, up 13% y-o-y.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “LVMH had another record year, both in terms of revenue and results. The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the Group’s strengths and have, once again, made the difference. In addition to the many successes of our Maisons, highlights of the year include the arrival of the exceptional hotel group Belmond, the partnership with Stella McCartney and the agreement with prestigious jewellery Maison, Tiffany & Co. LVMH is driven by a permanent commitment to perfection and quality, and by a long-term vision combined with a sense of responsibility in all our corporate actions, notably in its commitment for the preservation of the environment, sustainability and inclusion.”

He added: “In a buoyant environment that remains uncertain in 2020, we continue to be vigilant and focused on our objectives for progress. We can count on the strength of our brands and the agility of our teams to reinforce, once again in 2020, our leadership in the universe of high-quality products."

Against a background of strong growth at Bvlgari and the continued repositioning of TAG Heuer, LVMH’s Watches and Jewelry business group recorded a revenue €4,405 million compared to a revenue of € 4,123 million recorded in the previous year; marking an organic revenue growth of 3%. Profit from recurring operations for this division increased by 5%. 

“The agreement with Tiffany & Co was a strategic highlight of the year,” LVMH said. “Bvlgari continued to perform very well and to strongly increase its market share.”

The high points of Bvlgari’s performance were high end jewellery and the iconic lines Serpenti, B.Zero 1 and Diva’s Dream, which were enriched with many new products; and the Fiorever collection, launched at the end of 2018, combining flowers and diamonds, contributed significantly to growth, the luxury retailer said.

The Group’s two leading divisions, the Fashion & Leather Goods business and the Wines & Spirits business also performed very well.

The Company announced that at the Annual General Meeting scheduled to be held on April 16, 2020, LVMH will propose a dividend of €6.80 per share, an increase of 13%. “An interim dividend of €2.20 per share was paid on December 10 of last year,” LVMH stated. “The balance of €4.60 will be paid on April 23, 2020.”

The Company has expressed its cautious optimism for the forthcoming months. “In an uncertain geopolitical context, LVMH is well-equipped to continue its growth momentum across all business groups in 2020,” the Company stressed. “The Group will pursue its strategy focused on developing its brands by continuing to build on strong innovation and investments as well as a constant quest for quality in their products and their distribution.”