Page 5 - Letter to shareholders – March 2019 - LVMH

WINES & SPIRITS

GOOD MOMENTUM IN CHINA

AND SIGNIFICANT GROWTH IN

EUROPE AND THE UNITED STATES,

DESPITE SUPPLY CONSTRAINTS

Hennessy

The Wines & Spirits business group achieved organic revenue growth REVENUE
of 5%. Profit from recurring operations increased by 5%. €5,143m
The business group reaffirmed its leadership position by pursuing its + 5% (1)
value strategy and balanced geographic development. In the champagne
business, prestige vintages performed remarkably well, while a firm price PROFIT FROM
increase policy continued. A key highlight of the year was the exceptional RECURRING
harvest both in terms of quantity and quality. Hennessy cognac recorded OPERATIONS
good growth in the US market against a backdrop of tight supply;
the Chinese market experienced strong momentum. Glenmorangie and €1,629m
Ardbeg whiskies grew rapidly. Our prestige wines obtained the best ratings.
+5%

CURRENT
OPERATING MARGIN
31.7%

(1) With comparable structure and exchange rates.

LVMH – LETTER TO SHAREHOLDERS – MARCH 2019 – 5