LVMH reports strong Q1 results in Wine & Spirits division

French luxury product group LVMH (Louis Vuitton Moet Hennessy) reported strong Q1 2021 sales, beating analysts’ expectations. Sales growth of Wine & Spirits group exceeded total company’s growth.

LVMH recorded revenue of 14 billion Euros for Q1 2021, up 32% compared to Q1 2020, and up 30% on an organic basis. 2020 marked a decline for the group with severe disruption by COVID-19. Compared to pre-pandemic Q1 2019, organic revenue grew 8%.

Wine & Spirits outperformed total group sales: organic growth was 36% compared to Q1 2020 (total LVMH: 30%) and 17% compared to Q1 2019 (total LVMH: 8%). Champagne volumes were up 22% year over year, with good performances in Europe and the United States. China, which is the first market to have been affected by COVID-19, experienced a strong rebound.

The division includes 23 houses, including champagnes Dom Perignon, Krug, Moet & Chandon, Ruinart and Veuve Clicquot; and wine labels Ao Yun, Chateau Cheval Blanc, Chateau d’Yquem, Cheval des Andes and Clos de Lambrays. In Februry this year, LVMH bought a 50% stake in champagne brand Armand de Brignac from musician and entrepreneur Jay-Z.