French fashion conglomerate LVMH reports €86.2 bn revenue in 2023

27 Jan '24

3 min read

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LVMH Moët Hennessy Louis Vuitton reported a revenue of €86.2 billion in 2023, a 13 per cent organic growth from 2022.
Profit from recurring operations rose 8 per cent to €22,802 million, and net profit increased by 8 per cent to €15,174 million.
The Fashion and Leather Goods segment saw a 9 per cent revenue increase to €42,169 million in 2023.

LVMH Moët Hennessy Louis Vuitton, the world's pre-eminent luxury goods conglomerate, has reported a revenue of €86.2 billion in 2023, marking a robust 13 per cent organic growth compared to 2022. The profit from recurring operations saw an increase of 8 per cent, rising from €21,055 million in 2022 to €22,802 million in 2023. Similarly, the net profit attributable to the Group share grew by 8 per cent, from €14,084 million to €15,174 million.

However, the operating free cash flow decreased by 20 per cent, falling from €10,113 million in 2022 to €8,104 million in 2023. The net financial debt of the company increased by 17 per cent, reaching €10,746 million in 2023, up from €9,201 million in 2022. Total equity showed an upward trend, with an 11 per cent increase from €56,604 million in 2022 to €62,701 million in 2023, the company said in its financial statement.

The Fashion and Leather Goods segment's reported revenue increased by 9 per cent to €42,169 million in 2023, while its organic revenue growth is pegged at 14 per cent. The profit from recurring operations for this segment increased by 7 per cent to €16,836 million.

Europe, Japan, and other Asian regions recorded double-digit organic growth, contributing significantly to the group's success.

The fourth quarter of 2023 alone witnessed an organic revenue growth of 10 per cent. Profit from recurring operations rose to €22.8 billion, an increase of 8 per cent from the previous year. Furthermore, the group's share of net profit also surged by 8 per cent, reaching €15.2 billion.

Bernard Arnault, chairman and CEO of LVMH, commented: “Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges. The Group once again recorded significant growth in revenue and profits.

“2023 also saw us make progress in several key areas that are essential components of our long-term vision: protecting the environment, developing our talent, and preserving and passing on our expertise. While remaining vigilant in the current context, we enter 2024 with confidence, backed by our highly desirable brands and our agile teams.”

While the geopolitical and macroeconomic environment remains uncertain, LVMH is confident in its ability to continue to grow in 2024, in the highly distinctive quality and creativity that its products offer its customers, as well as in the professionalism of its management, to stand out and gain market share. LVMH will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as an extremely exacting quest for desirability and quality in its products and their highly selective distribution, the statement added.

Fibre2Fashion News Desk (KD)

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