LVMH breaks €20bn mark for the first time in 2010
Cosmetic highlights include Sephora and iconic Dior fragrances
Luxury products group LVMH recorded a 19% increase in revenue in 2010, exceeding the €20bn mark for the first time. The company says all business groups saw excellent momentum in Europe, Asia and the US.
Revenue was up 20% in Q4 with organic growth up 13%. This performance is in line with the favourable trends observed since the beginning of the year, and compares to Q4 2009 which also grew. Profit from recurring operations increased by 29% to €4,321m.
LVMH chairman and ceo Bernard Arnault says: “2010 was a great vintage for LVMH. The quality of our products, the originality of our brands and the talent of our teams bolstered by the economic recovery allowed us once again to gain market share throughout the world.
The perfume and cosmetics sector overall recorded revenue growth of 12% in 2010 and an increase in profit from recurring operations of 14%.
Highlights in the cosmetics sector in 2010 included strong results from Sephora, which continues to increase its lead over competitors across all regions in which it operates, and momentum at Parfums Christian Dior thanks to the continued success of iconic perfumes such as J’adore, Poison and Eau Sauvage, while maintaining focus on innovation.
Also enjoying strong performance was the new Rouge Dior lipstick range and Capture skin care. Guerlain’s new Idylle fragrance did well as did Shalimar, which remains solid, and the Orchidée Impériale skin care line. LVMH says the new Play for Her fragrance from Parfums Givenchy was well received while Benefit and Make Up For Ever enjoyed “outstanding momentum throughout the world”.
“In 2011, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound long-term strategy,” continues Arnault. The outlook for 2011 is considered excellent and LVMH says it is well equipped to continue growth momentum across all business groups. Strategy will remain focused on developing its brands through innovation, quality and expansion in high potential markets.
