New records for LVMH in 2021
Organic revenue growth of 36%Of which
Fashion & Leather Goods +47% (and 51% in Q4 vs
2019)Doubled operating profit
Paris, January 27th, 2022
LVMH Moët Hennessy Louis Vuitton, the world’s
leading luxury goods group, recorded revenue of 64.2 billion euros
in 2021, up 44% compared to 2020 and up 20% compared to 2019.
Organic revenue growth was 36% compared to 2020 and 14% compared to
2019. The performance for the year confirms a return to strong
growth momentum following the severe disruption to the first half
of 2020 resulting from the global pandemic.
The Group’s organic revenue growth of 22% in the
fourth quarter compared to 2019 reflects the accelerated growth of
its activities. Fashion & Leather Goods notably reached record
levels over the period, recording organic revenue growth of 51%
compared to 2019. The United States and Asia rose
sharply over the course of the year, while Europe, which is
experiencing a gradual recovery, returned to growth in the fourth
quarter compared to 2019.
Profit from recurring operations stood at €17
151 million for 2021, more than double 2020, and up 49% compared to
2019. Operating margin reached 26.7%, up 8 points compared to 2020
and 5 points compared to 2019. Group share of net profit amounted
to €12 036 million, up 156% compared to 2020 and up 68% compared to
2019. Operating free cash flow, which exceeded €13 billion, was
more than twice that of both 2020 and 2019.
Bernard Arnault, Chairman and CEO of LVMH, said:
“LVMH enjoyed a remarkable performance in 2021 against the backdrop
of a gradual recovery from the health crisis. The Group's record
results could not have been achieved without the efficiency and
exceptional ability of our teams to adapt and notably to remain
connected to our customers, continuing to inspire dreams, despite
the crisis. 2021 was also a year in which LVMH was deeply moved by
the tragic passing of Virgil Abloh, whose creative genius I would
like to applaud. His immense visionary talent and his great wisdom
will forever be embedded within the history of our Group. Our
objective to strive for solid financial performance and our
relentless quest for excellence remind us of our daily commitment
to act in such a way as to make the world a better place. The Group
and its Maisons carried out numerous actions in 2021 to promote
biodiversity, protect nature and to preserve skills and
craftsmanship, and will continue to do so in the years to come.
Despite the uncertainties that remain at the start of this new
year, which continues to be disrupted by health concerns, we
approach 2022 with confidence and are convinced that LVMH is in an
excellent position to further strengthen its lead in the global
luxury market.”
Highlights of 2021 include:
-
A record year, especially for the major brands,
-
Major success of champagne and cognac,
-
Exceptional performance by the Fashion & Leather Goods business
group, in particular Louis Vuitton, Christian Dior, Fendi, Celine
and Loewe, which achieved record levels of revenue and
profitability,
-
Worldwide success of Christian Dior’s Sauvage fragrance,
-
Strong revenue growth in Asia and the United States and a gradual
recovery in Europe,
-
Successful integration, in its first year in the Group, of Tiffany,
which produced a record performance,
-
Good performance of the other Watches & Jewelry Maisons,
-
Continued growth in online sales,
-
Strong rebound of Sephora,
-
Travel retail activities still held back by international
travel,
-
A record level of operating free cash flow,
-
Gross capital expenditures over €3 billion.
Key figures
Euro Millions |
2020 |
2021 |
Change 2021/2020 |
Change 2021/2019 |
Revenue |
44 651 |
64 215 |
+ 44 % |
+ 20 % |
Profit from recurring operations |
8 305 |
17 151 |
+ 107 % |
+ 49 % |
Group share of net profit |
4 702 |
12 036 |
+ 156 % |
+ 68 % |
Operating free cash flow |
6 117 |
13 531 |
+ 121 % |
+ 119 % |
Net financial debt |
4 241 |
9 607 |
+ 127 % |
+ 54 % |
Total equity |
38 829 |
48 909 |
+ 26 % |
+ 27 % |
Revenue by business group:
Euro Millions |
2020 |
2021 |
Change 2021/2020
Reported
Organic* |
Change 2021/2019
Organic |
Wines & Spirits |
4 755 |
5 974 |
+ 26 % |
+ 26 % |
+ 9 % |
Fashion & Leather Goods |
21 207 |
30 896 |
+ 46 % |
+ 47 % |
+ 42 % |
Perfumes & Cosmetics |
5 248 |
6 608 |
+ 26 % |
+ 27 % |
- 1 % |
Watches & Jewelry |
3 356 |
8 964 |
+ 167 % |
+ 40 % |
+ 7 % |
Selective Retailing |
10 155 |
11 754 |
+ 16 % |
+ 18 % |
- 18 % |
Other activities and eliminations |
(70) |
19 |
- |
- |
- |
Total LVMH |
44 651 |
64 215 |
+ 44 % |
+ 36 % |
+ 14 % |
* with comparable structure and constant exchange rates. The
structural impact for the Group compared to 2020 was +10% mainly
related to the consolidation of Tiffany & Co. for the first
time. The currency effect was -2%.
Profit from recurring
operations by business group:
Euro Millions |
2020 |
2021 |
Change 2021/2020 |
Change 2021/2019 |
Wines & Spirits |
1 388 |
1 863 |
+ 34 % |
+ 8 % |
Fashion & Leather Goods |
7 188 |
12 842 |
+ 79 % |
+ 75 % |
Perfumes & Cosmetics |
80 |
684 |
x 8.6 |
0 % |
Watches & Jewelry |
302 |
1 679* |
x 5.6 |
+ 128 % |
Selective Retailing |
(203) |
534 |
na |
- 62 % |
Other activities and eliminations |
(450) |
(451) |
- |
- |
Total LVMH |
8 305 |
17 151 |
+ 107 % |
+ 49 % |
* non-comparable structure.
Wines &
Spirits: very
strong demand in the United
States, in Asia
and rebound in
Europe
The Wines
& Spirits business group
recorded organic revenue growth of 26% in 2021 compared to 2020 and
9% compared to 2019. Profit from recurring operations was up 34%
compared to 2020. The rebound in consumption, in an environment
which was already seeing supply constraints, brought further
impetus to the strategy of value creation. Champagne volumes were
up compared to 2019. Growth was particularly strong in the United
States and Europe, which benefited from the reopening of
restaurants and the gradual recovery in regional tourism. The year
marked the integration, from the third quarter onwards, of the
prestigious Champagne House Armand de Brignac, in which LVMH holds
a 50% stake. Hennessy cognac performed well with an increase in
volumes compared to 2019, despite supply constraints. China and the
United States experienced a strong rebound. Within the flourishing
market for high-end rosé wines, Château d'Esclans enjoyed rapid
growth and Château Galoupet continued its conversion to organic
viticulture.
Fashion &
Leather Goods: exceptional
performances from Louis
Vuitton, Christian Dior, Fendi, Celine
and Loewe
The Fashion
& Leather Goods business
group recorded organic revenue growth of 47% in 2021 compared to
2020 and 42% compared to 2019. With organic revenue growth of 51%
compared to 2019, the fourth quarter showed a sharp rise compared
to previous quarters. Profit from recurring operations was up 79%
compared to 2020 and 75% compared to 2019. The end of the year has
been marked by the premature passing of Virgil Abloh, Men’s
Artistic Director of Louis Vuitton since March 2018. The Maison
paid tribute to the life and legacy of this creative genius with
the Miami fashion show, “Virgil Was Here”. Louis Vuitton, which
celebrated the 200th anniversary of the birth of its founder,
enjoyed a remarkable performance, driven by the success of Nicolas
Ghesquière’s creations for the feminine universe of the Maison.
Christian Dior Couture had an excellent year with exceptional
growth in all its product categories among local customers. The
latest fashion shows in Athens and Paris, highlighting the
inspiring collections of Maria Grazia Chiuri and Kim Jones,
received a tremendous reception. Following its huge success in
Paris, London and Shanghai, the Christian Dior, Designer of Dreams
exhibition was inaugurated in New York. Celine, thanks to Hedi
Slimane and to the success of his collections, and Fendi, driven by
the success of Kim Jones collections, had a record year. Loewe,
energized by the talent of JW Anderson, and Marc Jacobs also
performed particularly well.
Perfumes &
Cosmetics: policy of selective
distribution maintained, strong
rebound in
perfumes and
rapid progress in skincare
The Perfumes
& Cosmetics business group
recorded organic revenue growth of 27% in 2021 compared to 2020.
Organic revenue was stable compared to 2019. Profit from recurring
operations was nearly nine times higher than 2020 and returned to
2019 levels. In an environment marked by a limited recovery in
international travel and the closure of many points of sale over a
period of several months, LVMH's major brands chose to maintain a
policy of selective distribution, limiting promotions and growing
online sales on their own website. Christian Dior benefited from
the enormous success of Miss Dior and Sauvage. In 2021, Sauvage
became the highest selling fragrance in the world (women’s and
men’s lines included) which is a worldwide first for a male
fragrance. The continued growth of the Collection Privée and the
skincare lines Prestige,Capture Totale and L’Or de Vie also
contributed to the progress of the Maison. Guerlain recorded
excellent performance, driven by its Abeille Royale and Orchidée
Impériale skincare lines. Maison Francis Kurkdjian continued to
enjoy rapid growth momentum thanks to the ongoing success of Rouge
540, particularly in the United States. Officine Universelle Buly,
which differentiates itself through its range of valuable,
effective, and authentic products, joined LVMH.
Watches &
Jewelry: strong rebound in own stores and
successful integration of
Tiffany
The Watches
& Jewelry business group
recorded revenue growth of 167% in 2021 compared to 2020 thanks to
Tiffany, consolidated for the first time. Profit from recurring
operations was almost six times higher than in 2020 and up 128%
compared to 2019. For its first year in the Group, Tiffany saw
record performance in terms of revenue, profits and cash flow, and
increased its global attractivity as a result of its high impact
innovations and collaborations. High-end Jewelry sales in
particular reached an all-time high with the huge success of its
annual High-End Jewelry Blue Book collection. Honouring its long
tradition of expressing love and diversity, a global “About Love”
campaign featuring Beyoncé and Jay-Z was launched. The revenue and
profits achieved a sharp increase compared to 2019. Bvlgari enjoyed
good momentum, driven by the growth of the iconic lines in its own
stores. The Maison accelerated the selectivity of its multi-brand
network distribution and expanded its own boutiques. Chaumet
unveiled an exclusive diamond cut, the Taille Impératrice, and
showcased its unique heritage through the “Joséphine and Napoléon”
exhibition at the heart of the Maison’s iconic 12 place Vendôme
address in Paris. In watchmaking, TAG Heuer inaugurated a major
partnership with Porsche and successfully launched a Super Mario
limited edition of its smartwatch for gaming enthusiasts. Hublot
had an excellent performance, particularly in the United States and
China. Fred continued its strong growth. The new products at Zenith
have been highly successful.
Selective
Retailing: good
performance of Sephora; DFS still
impacted by limited recovery in
international travel
In Selective
Retailing, organic revenue was up 18% compared to
2020 and down 18% compared to 2019 due to the impact of travel
retail. Profit from recurring operations was back in positive
territory in 2021. Sephora surpassed its 2019 level of activity,
benefiting from the strong rebound in its stores and the continued
momentum of its online sales. The expansion of its store network
continued, mainly in China and the United States, notably following
on from its major partnership with the American retailer Kohl's. In
addition to signing a partnership with the European online platform
Zalando, Sephora acquired the British online distributor
Feelunique, which specialises in prestige beauty. The health crisis
continued to weigh on the activities of DFS due to the persistent
weakness in the numbers of travelers. The T Gallerias in Macau
nevertheless performed well thanks to growing demand from local
customers and DFS launched operations in Hainan. La Samaritaine,
which reopened in Paris in June after an ambitious renovation, saw
an encouraging level of customer traffic. Le Bon Marché continued
to develop innovative concepts and benefited from the return of a
loyal French customer base. The 24S digital platform recorded
strong growth, driven by the unique nature of its selection process
and its Parisian market positioning.
Confident outlook for
2022
Within the context of a gradual recovery from
the health crisis, LVMH is confident in its ability to maintain its
current growth momentum. The Group will continue to pursue a
strategy focused on developing its brands building on strong
innovation and investments as well as a constant quest for quality
of their products, of their desirability and of their
distribution.
Driven by the agility of its teams, their
entrepreneurial spirit and its well diversified presence across its
activities and the geographic areas in which it operates, LVMH
enters 2022 with confidence and, once again, sets an objective of
reinforcing its global leadership position in luxury goods.
Dividend 2021
At the Annual General Meeting on April 21, 2022,
LVMH will propose a dividend of 10 euros per share. An interim
dividend of 3 euros per share was paid on December 2 of last year.
The balance of 7 euros will be paid on April 28, 2022.
The Board of Directors met on January
27th to approve the financial statements for 2021.
Audit procedures have been carried out and the audit report is
being issued.The regulated information related to this press
release as well as the presentation of annual results and the
"Financial Documents" report are available on www.lvmh.com.
APPENDIX
Condensed consolidated accounts for 2021 are
included in the PDF version of the press release.
LVMH - Revenue by business
group and by quarter
2021 Revenue
(Euro
millions)
Year 2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
First quarter |
1 510 |
6 738 |
1 550 |
1 883 |
2 337 |
(59) |
13 959 |
Second quarter |
1 195 |
7 125 |
1 475 |
2 140 |
2 748 |
23 |
14 706 |
First half |
2 705 |
13 863 |
3 025 |
4 023 |
5 085 |
(36) |
28 665 |
Third quarter |
1 546 |
7 452 |
1 642 |
2 137 |
2 710 |
25 |
15 512 |
First nine months |
4 251 |
21 315 |
4 668 |
6 160 |
7 795 |
(12) |
44 177 |
Fourth quarter |
1 723 |
9 581 |
1 941 |
2 804 |
3 959 |
30 |
20 038 |
Total 2021 |
5 974 |
30 896 |
6 608 |
8 964 |
11 754 |
19 |
64 215 |
2021
Revenue (Organic change
verses same period of
2020)
Year 2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
First quarter |
+ 36 % |
+ 52 % |
+ 18 % |
+ 35 % |
- 5 % |
- |
+ 30 % |
Second quarter |
+ 55 % |
x 2.2 |
+ 67 % |
x 2.2 |
+ 31 % |
- |
+ 84 % |
First half |
+ 44 % |
+ 81 % |
+ 37 % |
+ 71 % |
+ 12 % |
- |
+ 53 % |
Third quarter |
+ 10 % |
+ 24 % |
+ 19 % |
+ 18 % |
+ 15 % |
- |
+ 20 % |
First nine months |
+ 30 % |
+ 57 % |
+ 30 % |
+ 49 % |
+ 13 % |
- |
+ 40 % |
Fourth quarter |
+ 18 % |
+ 28 % |
+ 20 % |
+ 21 % |
+ 30 % |
- |
+ 27 % |
Total 2021 |
+ 26 % |
+ 47 % |
+ 27 % |
+ 40 % |
+ 18 % |
- |
+ 36 % |
2021 Revenue
(Organic
change verses same period
of 2019)
Year 2021 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
First quarter |
+ 17 % |
+ 37 % |
- 4 % |
+ 1 % |
- 30 % |
- |
+ 8 % |
Second quarter |
+ 7 % |
+ 40 % |
- 1 % |
+ 9 % |
- 19 % |
- |
+ 14 % |
First half |
+ 12 % |
+ 38 % |
- 3 % |
+ 5% |
- 25 % |
- |
+ 11 % |
Third quarter |
+ 7 % |
+ 38 % |
0 % |
+ 1 % |
- 19 % |
- |
+ 11 % |
First nine months |
+ 10 % |
+ 38 % |
- 2 % |
+ 4 % |
- 23 % |
- |
+ 11 % |
Fourth quarter |
+ 4 % |
+ 51 % |
+ 1 % |
+ 18 % |
- 5 % |
- |
+ 22 % |
Total 2021 |
+ 9 % |
+ 42 % |
- 1 % |
+ 7 % |
- 18 % |
- |
+ 14 % |
2020 Revenue
(Euro
millions)
Year 2020 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
First quarter |
1 175 |
4 643 |
1 382 |
792 |
2 626 |
(22) |
10 596 |
Second quarter |
810 |
3 346 |
922 |
527 |
2 218 |
(26) |
7 797 |
First half |
1 985 |
7 989 |
2 304 |
1 319 |
4 844 |
(48) |
18 393 |
Third quarter |
1 364 |
5 945 |
1 370 |
947 |
2 332 |
(3) |
11 955 |
First nine months |
3 349 |
13 934 |
3 674 |
2 266 |
7 176 |
(51) |
30 348 |
Fourth quarter |
1 406 |
7 273 |
1 574 |
1 090 |
2 979 |
(19) |
14 303 |
Total 2020 |
4 755 |
21 207 |
5 248 |
3 356 |
10 155 |
(70) |
44 651 |
2019 Revenue
(Euro
millions)
Year 2019 |
Wines & Spirits |
Fashion & Leather Goods |
Perfumes & Cosmetics |
Watches & Jewelry |
Selective retailing |
Other activities and eliminations |
Total |
First quarter |
1 349 |
5 111 |
1 687 |
1 046 |
3 510 |
(165) |
12 538 |
Second quarter |
1 137 |
5 314 |
1 549 |
1 089 |
3 588 |
(133) |
12 544 |
First half |
2 486 |
10 425 |
3 236 |
2 135 |
7 098 |
(298) |
25 082 |
Third quarter |
1 433 |
5 448 |
1 676 |
1 126 |
3 457 |
176* |
13 316 |
First nine months |
3 919 |
15 873 |
4 912 |
3 261 |
10 555 |
(122) |
38 398 |
Fourth quarter |
1 657 |
6 364 |
1 923 |
1 144 |
4 236 |
(52) |
15 272 |
Total 2019 |
5 576 |
22 237 |
6 835 |
4 405 |
14 791 |
(174) |
53 670 |
* Includes all Belmond revenue for the period from April to
September 2019.
Alternative performance
measures
For the purposes of its financial communication,
in addition to the accounting aggregates defined by the IAS/IFRS
standards, LVMH uses alternative performance measures established
in accordance with AMF’s position DOC-2015-12.
The table below lists these measures and the
reference to their definition and their reconciliation with the
aggregates defined by the IAS/IFRS in the published documents
Measures |
Reference to published
documents |
Operating free cash flow |
FD (condensed consolidated financial statements, consolidated cash
flow statement) |
Net financial debt |
FD (Notes 1.23 and 19 of the appendix to the consolidated financial
statements) |
Gearing |
FD (Part 7, Comments on the Consolidated Balance Sheet) |
Organic growth |
FD (Part 1, Comments on the Consolidated Income Statement) |
FD: Financial documents as at December 31,
2021
LVMH
LVMH Moët Hennessy Louis Vuitton is represented
in Wines and Spirits by a portfolio of brands that includes Moët
& Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug,
Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays,
Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie,
Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon,
Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle,
Newton, Bodega Numanthia, Ao Yun, Château d'Esclans and Château du
Galoupet. Its Fashion and Leather Goods division includes Louis
Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy,
Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA,
Patou. LVMH is present in the Perfumes and Cosmetics sector with
Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums,
Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di
Parma, Fresh, Fenty Beauty by Rihanna, Maison Francis Kurkdjian and
Officine Universelle Buly. LVMH's Watches and Jewelry division
comprises Bvlgari, Tiffany & Co, TAG Heuer, Chaumet, Dior
Watches, Zenith, Fred and Hublot. LVMH is also active in selective
retailing as well as in other activities through DFS, Sephora, Le
Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin
d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc
hotels.
“This document may contain certain forward
looking statements which are based on estimations and forecasts. By
their nature, these forward looking statements are subject to
important risks and uncertainties and factors beyond our control or
ability to predict, in particular those described in LVMH’s
Universal Registration Document which is available on the website
(www.lvmh.com). These forward looking statements should not be
considered as a guarantee of future performance, the actual results
could differ materially from those expressed or implied by them.
The forward looking statements only reflect LVMH’s views as of the
date of this document, and LVMH does not undertake to revise or
update these forward looking statements. The forward looking
statements should be used with caution and circumspection and in no
event can LVMH and its Management be held responsible for any
investment or other decision based upon such statements. The
information in this document does not constitute an offer to sell
or an invitation to buy shares in LVMH or an invitation or
inducement to engage in any other investment activities.”
LVMH CONTACTS
Analysts and investors Chris Hollis / Rodolphe
Ozun LVMH+ 33 1 44 13 21 22 / + 33 1 44 13 27 21 |
Media Jean-Charles Tréhan LVMH + 33 1 44 13 26
20 |
MEDIA CONTACTS |
|
France Aymeric Granet / Charlotte Mariné Publicis
Consultants + 33 1 44 82 47 20 |
France Michel Calzaroni / Olivier Labesse / Hugues
Schmitt / Thomas Roborel de Climens DGM Conseil + 33 1 40 70 11
89 |
Italy Michele Calcaterra / Matteo Steinbach SEC
and Partners + 39 02 6249991 |
UK Hugh Morrison / Charlotte McMullen Montfort
Communications+ 44 7921 881 800 |
US Nik Deogun / Blake Sonnenshein Brunswick Group+
1 212 333 3810 |
China Daniel JeffreysDeluxewords
+44 772 212 6562 +86 21 80 36 04 48 |
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