Fragrance and skincare boost LVMH beauty sales
LVMH has released its financial results for the first half of 2022, revealing a 28% increase in revenue to £30.8 billion (€36.7 billion).
For H1 2022, LVMH shared the following results:
- Profit from recurring operations was up 34% at £8.5 billion (€10.2 billion).
- Operating margin reached 27.9% of revenue, up 1.3 points compared to 2021.
- Perfume and cosmetics organic revenue was up 13% to £3 billion (€3.6 billion).
- Fashion and leather goods organic revenue was up 24% to £15.2 billion (€18.1 billion).
- Watches and jewellery organic revenue was up 16% to £4.1 billion (€4.9 billion).
Revenue in Europe and the US has been up since the start of the year, whilst Asia saw a lower level of growth due to COVID-19 restrictions in China.
LVMH's Perfumes & Cosmetics performance was attributed to "rapid growth" in fragrance and skincare, from brands including Parfums Christian Dior, Guerlain and Maison Francis Kurkdjian.
Growth in fashion and leather goods was driven by brands including Louis Vuitton, Christian Dior, Fendi, Celine and Loewe. Whereas growth in watches and jewellery was boosted by brands including Chaumet and Fred, Tiffany & Co. and Bulgari.
Bernard Arnault, Chairman and CEO of LVMH, said: "LVMH has enjoyed an excellent start to the year, to which all of our business groups contributed. It is the creativity and quality of our products, the excellence of their distribution and the rich cultural heritage of our Maisons, fuelled by their history and know-how, that enable the group to excel around the world.
"We approach the second half of the year with confidence, but given the current geopolitical and health situation, we will remain vigilant and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2022."