// LVMH welcomes another record year of growth
// Full-year revenue up 10% year-on-year
// Profit from recurring operations surged 21%
LVMH has hailed another set of record full-year results, with the luxury retail firm booking double-digit increases in revenue and profit from recurring operations.
The parent company of Louis Vuitton, Dior, Sephora, Bvlgari and Kenzo recorded full-year revenue of €46.8 billion (£40.85 billion) in 2018, an increase of 10 per cent over the previous year.
Meanwhile, profit from recurring operations surged 21 per cent year-on-year to €10 billion (£8.72 billion) in 2018, and operating margin reached a level of 21.4 per cent – an increase of 1.9 percentage points.
LVMH’s group share of net profit grew 18 per cent to €6.4 billion (£5.58 billion), while free cash flow increased 16 per cent to €5.5 billion (£4.79 billion).
The company’s fashion and leather goods division was the star performer, with revenue surging 19 per cent year-on-year to €18.45 billion (£16.09 billion).
This was in part due to the strong first year of Dior’s couture operations falling under LVMH’s umbrella, and strong sales from classic and new products at Louis Vuitton.
Perfumes and cosmetics also recorded double-digit growth, and LVMH said it enjoyed continued overall growth in its Europe, the US, Asia and Japan markets.
However, the division that recorded the best profit from recurring operations was watches and jewelry, which skyrocketed 37 per cent year-on-year to €703 million (£613 million).
Profit from recurring operations in fashion and leather goods grew 21 per cent year-on-year to €5.94 billion (£5.17 billion).
“The desirability of our brands, the creativity and quality of our products, the unique experience offered to our customers, and the talent and the commitment of our teams are the group’s strengths and have once again made the difference,” LVMH chief executive Bernard Arnault said.
“In 2019 LVMH will continue its strong dynamic of innovation, targeted investments, combining tradition and modernity, long-term vision and responsiveness, entrepreneurial spirit and a sense of responsibility.
“In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2019, our leadership in the universe of high quality products.”