2 LVMH LETTER TO SHAREHOLDERS AUGUST 2019
EXCELLENT FIRST HALF FOR LVMH
LVMH Moët Hennessy - Louis Vuitton, the world s leading luxury products group, recorded revenue of 25.1 billion euros in the first half of 2019, up 15%. Organic revenue growth was 12% compared to the same period in 2018. In the second quarter, revenue increased by 15% compared to the same period in 2018. Organic revenue growth was 12%, a performance in line with the trends of the beginning of the year. The United States, Asia and Europe saw good growth with, in particular, a rebound in France in the second quarter. Profit from recurring operations was 5,295 million for the first half of 2019, an increase of 14%. Operating margin reached 21.1%, broadly in-line with the first half of 2018. Group share of net profit amounted to 3,268 million, an increase of 9%.
2019 OUTLOOK In the buoyant environment of the beginning of this year, albeit marked by geopolitical uncertainties, LVMH will continue to pursue gains in market share through the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs. Our strategy of focusing on the highest quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce LVMH s global leadership position in luxury goods once again in 2019.
Bernard Arnault, Chairman and CEO of LVMH, said: LVMH has made an excellent start to the year. These results once again illustrate the effectiveness of our strategy and the exceptional desirability of our Maisons, whose products transcend time. Their constant demand for quality and their consistently refreshed creativity are key to LVMH s success, always guided by a long-term vision, combining exemplarity and responsibility in all the Company s actions. Despite buoyant demand, we will continue to manage costs and remain vigilant into the second half of the year. We are therefore entering the second half of the year with confidence and count on the talent of our teams and their shared entrepreneurial passion to further increase, once again in 2019, our leadership in the world of high-quality products.
Highlights of the first half of 2019 include: Further double-digit increases in revenue and profit from
recurring operations, Strong growth in Asia, the United States and Europe, particularly
in France, which saw a rebound in the second quarter, Good start to the year for Wines and Spirits, Remarkable momentum at Louis Vuitton where profitability
remains at an exceptional level, Remarkable performance of Christian Dior Couture, Rapid progress of LVMH s Perfumes and Cosmetics flagship brands, Good progress in jewelry, in particular for Bvlgari, Sephora s strong revenue growth in stores and online, Solid progress of DFS, particularly in Europe, benefiting from the rise
in international travelers, The completion in April of the acquisition of the Belmond hotel group,
whose activity will be consolidated in the third quarter of 2019, Announcement of the agreement with Stella McCartney House.
REVENUE 25,082m +12% (1)
PROFIT FROM RECURRING OPERATIONS 5,295m +14%
OPERATING MARGIN 21.1% GROUP SHARE OF NET PROFIT 3,268m + 9%
CASH FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 7,399m(2) NET FINANCIAL DEBT/ EQUITY RATIO 24.5% INTERIM DIVIDEND PER SHARE 2.20(3)
(1) With comparable structure and constant exchange rates. On a reported basis, revenue growth was 15%, including a currency effect of +3%.
(2) Non comparable to cash from operations before changes in working capital for first-half 2018.
(3) Payable on December 10, 2019.
All documentation related to the 2019 half-year results can be found on the LVMH website (www.lvmh.com) under Investors/Events/Results.
The financial statements as of June 30, 2019 incorporate for the first time the effects of the application of IFRS 16 Leases. In accordance with the standard, data for fiscal year 2018 was not restated. The impact of applying IFRS 16 on profit from recurring operations and net profit is not significant.
