LVMH revenues surpass 2019 figure by 20 percent
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Management
The company said in a release that the group’s organic revenue growth of 22 percent in the fourth quarter compared to 2019 reflects the accelerated growth of its activities. Fashion & leather goods notably recorded organic revenue growth of 51 percent compared to 2019.
Profit from recurring operations stood at 17,151 million euros for 2021, more than double over 2020, and up 49 percent compared to 2019. Operating margin reached 26.7 percent, up 8 points compared to 2020 and 5 points compared to 2019. Group share of net profit amounted to 12,036 million euros, up 156 percent compared to 2020 and up 68 percent compared to 2019.
Commenting on the performance, Bernard Arnault, chairman and CEO of LVMH, said: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis. 2021 was also a year in which LVMH was deeply moved by the tragic passing of Virgil Abloh, whose creative genius I would like to applaud. Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence.”
Review of LVMH’s results across core segments
The group’s fashion & leather goods business group recorded organic revenue growth of 47 percent in 2021 to 30.9 billion euros compared to 2020 and 42 percent compared to 2019. With organic revenue growth of 51 percent compared to 2019, the fourth quarter showed a sharp rise compared to previous quarters. Profit from recurring operations was up 79 percent compared to 2020 and 75 percent compared to 2019.
The perfumes & cosmetics business group recorded organic revenue growth of 27 percent in 2021 to 6,608 million euros compared to 2020. Organic revenue was stable compared to 2019. The company added that profit from recurring operations was nearly nine times higher than 2020 and returned to 2019 levels.
The watches & jewelry business group recorded revenue growth of 167 percent in 2021 to 8,964 million euros compared to 2020 thanks to Tiffany, consolidated for the first time. Profit from recurring operations was six times higher than in 2020 and up 128 percent compared to 2019. For its first year in the Group, Tiffany saw record performance in terms of revenue, profits and cash flow, and increased its global attractivity as a result of its innovations and collaborations. In selective retailing, organic revenue was up 18 percent compared to 2020 and down 18 percent compared to 2019 due to the impact of travel retail. Profit from recurring operations was back in positive territory in 2021.
Sephora surpassed its 2019 level of activity, benefiting from the strong rebound in its stores and the continued momentum of its online sales. The expansion of its store network continued, mainly in China and the United States, notably following on from its partnership with the American retailer Kohl's. In addition to signing a partnership with the European online platform Zalando, Sephora acquired the British online distributor Feelunique, which specialises in prestige beauty.
At the annual general meeting on April 21, 2022, LVMH will propose a dividend of 10 euros per share. LVMH said that an interim dividend of 3 euros per share was paid on December 2 of last year and the balance of 7 euros will be paid on April 28, 2022.