Page 4 - Letter to shareholders – March 2019 - LVMH

RECORD RESULTS FOR LVMH IN 2018

REVENUE
Key highlights from 2018 include:
— Further double-digit increase in revenue and profit from recurring €46,826m
operations, which reached record levels, +10% (1)
— Continued growth in Europe, the United States, Asia and Japan,
— Excellent performance in Wines and Spirits and exceptional grape PROFIT FROM
harvests,
— Success of both iconic and new products at Louis Vuitton, whose RECURRING
OPERATIONS
profitability remains at an exceptional level,
— Very good first year for Christian Dior Couture within LVMH, €10,003m
— Creative renewal at several Maisons, +21%
— Strong growth at the flagship brands of Perfumes and Cosmetics,
— Excellent year for Bvlgari and good development of Hublot and TAG
Heuer, CURRENT
— Growth at Sephora, which strengthened its positions in all its markets and OPERATING
in digital, MARGIN
— Agreement with the Belmond group, 21.4%
— Free cash flow of €5.5 billion, up 16%,
— Gearing of 16.2% at the end of December 2018.
GROUP SHARE
OF NET PROFIT
LVMH Moët Hennessy - Louis Vuitton, the world’s leading luxury products group,
recorded revenue of €46.8 billion in 2018, an increase of 10% over the previous €6,354m
year. Organic revenue growth was 11%, and 12% excluding the impact of the +18%
closure of the Hong Kong airport concessions at the end of 2017. All business
groups recorded excellent performances.
FREE CASH FLOW
Organic revenue growth in the fourth quarter was 10% (excluding the impact
of the closure of the Hong Kong airport concessions). The quarter continued €5,452m
the trend that has been underway since the beginning of the year. +16%
Profit from recurring operations amounted to €10 billion in 2018, up 21%.
Operating margin reached a level of 21.4%, an increase of 1.9 percentage points. NET FINANCIAL DEBT/
Group share of net profit amounted to €6.4 billion, up 18%. TOTAL EQUITY RATIO (2)
16.2%
CAUTIOUSLY CONFIDENT FOR 2019

In an uncertain geopolitical and monetary context, LVMH is well-equipped to DIVIDEND
continue its growth momentum across all business groups in 2019. The Group PER SHARE
will pursue its strategy focused on developing its brands by continuing to build on €6.00 (3)
strong innovation and investments as well as a constant quest for quality in their
products and their distribution. +20%
Driven by the agility of its teams, their entrepreneurial spirit, the balance between
its different businesses and geographic diversity, LVMH enters 2019 with cautious Further information can be found
confidence and once again, sets an objective of reinforcing its global leadership in the 2018 Reference Document.
position in luxury goods.

(1) Organic growth of 11%. The currency effect
was - 4% and the structural impact was +3%.
(2) Excluding the acquisition of Belmond shares
at the end of 2018 for €274m.
(3) Amount proposed at the Shareholders’ Meeting
of April 18, 2019.

4 – LVMH – LETTER TO SHAREHOLDERS – MARCH 2019