LVMH Perfumes & Cosmetics Business Organic Revenue Up 13% to €4.03 billion in 2023 H1
- Chaileedo Press
- Jul 26, 2023
- 2 min read
Updated: Jul 27, 2023
Revenue of Perfumes and Cosmetics at LVMH grew 16% organically in the second quarter to €1.913 billion ($2.1 billion).
On July 25, LVMH released its 2023 semi-annual financial results. In the three months ended June 30, the group achieved revenues of €42.2 billion ($46.7 billion), up 15% year-on-year. Organic revenues were up 17% compared to the same period in 2022.
Bernard Arnault, Chairman and Chief Executive Officer at LVMH, said: "LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty. Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023."
In addition, LVMH achieved double-digit organic revenue growth in the first half of 2023 in all of its business units, except for Wines & Spirits. Profit from the main businesses increased by 13% to €11.574 billion ($12.8 billion). The operating margin reached 27.4% of revenues and the Group's net profit rose 30% year-on-year to €8.481 billion ($9.38 billion).
(Credit: from the LVMH financial report)
In terms of specific segments, the Perfumes & Cosmetics reported organic revenue growth of 16% to €1.913 billion ($2.1 billion) in the second quarter and 13% to €4.028 million ($4.45 billion) in the first half of the year, while recurring profit rose by 15%, thanks to the strong momentum of innovative products and the success of the highly selective distribution policy.
(Credit: from the LVMH financial report)
Among them, the performance of the Dior is also impressive. In addition to the classic perfume Sauvage, J'adore released the first alcohol-free long-lasting perfume J'adore d'Ea, and Miss Dior launched in the first half of the year Miss Dior Blooming Bouguet. Both of them have further consolidated the performance of the brand's perfume and its skincare products and foundations have a strong performance. In addition, Guerlain and Givenchy launched new or limited edition products in the first half of the year, which also boosted overall performance.
In terms of selective retail, LVMH's selective retail business grew organic revenue by 26% and recurring business profit by 100% in the first half of 2023.
(Credit: from LVMH's financial results)
Sephora performed well, with an expanding distribution network and particularly strong growth in North America, Europe and the Middle East, while DFS benefited from a gradual recovery in international tourism, particularly in Hong Kong and Macau, China.
LVMH said it will continue to enhance the appeal of its brands in the second half of the year, relying on its superior product quality and distribution channels to gain incremental performance, in order to consolidate LVMH's global leadership in the luxury sector, given the current unstable geopolitical environment.
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