LVMH Moët Hennessy Louis Vuitton has recorded 2004 operating income growth of 11% to €2.420 million ($3.245 million) on sales of €12.6 billion ($16.902 billion). Net income before amortisation increased by 26% compared to 2003 and net income increased by 40% exceeding the one billion Euro threshold for the first time.

Organic growth continued at the group’s leading brands, especially Louis Vuitton, Moët & Chandon, Hennessy, Veuve Clicquot, Parfums Christian Dior and TAG Heuer. The operating margin rose by 19% from 2003, largely due to Louis Vuitton which recorded sales increases, notably in the USA and Asia. The group has also reported improved profitability in selective retailing and an increased cash flow from operations for the fourth consecutive year for a total of €2.1 billion ($2.818 billion). The watches and jewellery business group recorded a notable turnaround in 2004, returning to profitability.

In 2004 LVMH also celebrated its 150th anniversary and opened new stores, notably in New York, Osaka, London, Shanghai and China.

Initial indications for 2005 look strong as the group achieved organic sales growth of 12% over the first two months of the year. LVMH believes to be well positioned for 2005 and will continue its strategy of concentrating on internal growth and the development of its leading brands in 2005.

Share this story: