By James Atkinson
A decline in spirits sales to China hampered an otherwise impressive annual result for French luxury goods company LVMH.
LVMH yesterday recorded revenue of €30.6 billion for 2014, an increase of six per cent, as well as a major increase in net profit to €5.65 billion.
Revenue in all business groups increased with the exception of Wines & Spirits, which reported a three per cent decline in organic revenue due to the destocking of distributors in China.
"This situation is essentially explained by the evolution of cognac in China linked to the continued destocking by distributors," the company said.
"Against this background, Hennessy leveraged its extensive portfolio and global presence, in particular in the United States, where its growth remains strong.
"Other spirits, Glenmorangie and Belvedere continue their development. The champagne business performed well, driven in particular by its prestige vintages. The American and Asian markets benefited from strong demand."
The Wines & Spirits business reported profit from recurring operations of €1.15 billion, down 16 per cent.