Profit from recurring operations for the first half of 2012 rose to €2 659 million, an increase of 20% compared to the same period in 2011.
This performance compares to the first half of 2011, which itself had shown strong growth. Current operating margin reached 21%. Group share of net profit rose to €1 681 million, an increase of 28%.
Bernard Arnault, Chairman and CEO of LVMH, commented: “LVMH’s excellent performance in the first half, once again, demonstrates the exceptional appeal of our brands, the attraction of our high quality artisanal products and the pertinence of our strategy.
"A host of initiatives, including constant innovation, successful iconic product lines, the development of our craftsmanship and targeted expansion, reinforce our Maisons. We approach the second half of the year with confidence and are relying upon the creativity and quality of our products as well as the effectiveness of our teams to pursue further market share gains in our historical markets as well as in high potential emerging markets. ”
Highlights of the first half of 2012 include:
• Double-digit organic revenue growth,
• Market share gains of all our brands,
• Continued rapid growth in Asia and the US,
• Double-digit revenue growth at Louis Vuitton, where profitability remains exceptional,
• Robust demand for Wines & Spirits and Watches & Jewelry,
• Continued innovation and success of star lines at Christian Dior,
• On-going integration of Bulgari within LVMH,
• Excellent performance of DFS and Sephora globally,
• Cash from operations before changes in working capital of €3.2 billion, up 26%,
• Net debt to equity ratio of 22% as at the end of June 2012.
Fashion & Leather Goods: sustained performance
The Fashion & Leather Goods business group recorded organic revenue growth of 10% in the first half of 2012. Profit from recurring operations increased by 10%. Louis Vuitton continued to register exceptional performance, confirming the brand’s strong appeal to its global clientele. All its business lines contributed to this momentum. A number of products have waiting lists.