Moët Hennessy-Louis Vuitton Group (LVMH), a global leader in luxury goods, achieved annual revenue of 37.6 billion euros in 2016, an increase of 5% year-on-year, and endogenous revenue increased 6% year-on-year %. In the fourth quarter, LVMH Group’s revenue increased by 9% year-on-year, and endogenous revenue increased by 8% year-on-year. The US market and the European market are on a normal track, and the Asian market (excluding Japan) continues to maintain a good momentum.
In 2016, the profit from continuing operations reached 7 billion euros, an increase of 6% compared to 2015, which is a year of growth. All except the boutique retail sector contributed. Operating margin reached 18.7%. The net profit attributable to the LVMH Group was 3.981 billion euros, an increase of 11% year-on-year.
Bernard Arnault, Chairman and Chief Executive Officer of LVMH Group, said: ‘The LVMH Group achieved outstanding results in 2016 in the face of unstable geopolitical environment and uncertain economic exchange rates. Continuous innovation, enterprise Family spirit and pursuit of excellence: All departments adhere to the core value concept and strictly ensure that the brand strategy is effectively implemented. In a still uncertain environment, we can rely on the attraction of the brand and the flexibility of the team, and further in 2017 Strengthen the Group’s leadership in the world of premium luxury goods. ‘
· Revenue and profit from continuing operations hit a record high.
Growth in the US, Europe and Asia markets.
· The success of the Louis Vuitton logo series and new products, the profitability is extraordinary.
· Bvlgari and Tag Heuer achieved market share gains.
· Free cash flow reached 3.974 billion euros, an increase of 8% year-on-year.
· The net asset-liability ratio at the end of December 2016 was 12%.
Watch and Jewellery Division
The watch and jewelry division’s revenue increased by 5% year-on-year, of which endogenous revenue increased by 5% year-on-year, and profit from continuing operations increased by 6%. By further enriching the Serpenti, Diva and B.zero1 product lines, Bvlgari continues to expand its market share. Growth in China, South Korea and the Middle East continues. Despite the difficult time in the watch market, TAG Heuer was able to achieve growth and increase market share thanks to the success of the new series and Connected smartwatches. Hublot has accelerated its development in the Asian market and achieved the best results in history. Chaumet Paris continues to develop along the high-end boutique route and has opened a new boutique in Hong Kong.
Caution and confidence in 2017
Despite geopolitical and currency exchange rate uncertainties, the LVMH Group has the ability to continue the growth momentum of all business units in 2017. The Group will continue to adhere to and implement the brand development strategy, based on strong innovation, continuously improve product quality and optimize distribution and retail. The Group’s team is flexible, has an entrepreneurial spirit, has a wide range of businesses, and has a balanced geographical layout. LVMH entered the 2017 with a cautious attitude and set goals to further consolidate the Group’s leadership in the global luxury goods sector.