LVMH drinks profits up 35%
French drinks and luxury goods group LVMH has reported a 35% increase in operating profit in its wines and spirits division.
A rebound in Champagne sales and a strong performance from Hennessy Cognac in its key markets helped raise profits from €241 million in the first half of 2009 to €326 million in 2010.
The group had been hit by heavy trade destocking last year.
Revenue in wines and spirits was €1.3 billion in the first six months of this year against €1.1 billion in 2009, an increase of 21%.
Chairman and chief executive officer Bernard Arnault said: “Operating margin has improved considerably thanks to robust revenue growth and the control over operating costs.
“This focus on cost control will continue into the second half of the year, despite the momentum in the markets.”