With an organic revenue decline of only 3% in the fourth quarter, the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. Fashion & Leather Goods in particular, enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters. While
Profit from recurring operations, which amounted to
Key highlights from 2020 include:
- Highest priority given to the health and safety of our employees and our customers,
- Direct support in the fight against the pandemic,
- Good resilience, notably from the major brands, in an economic environment disrupted by the health crisis,
- Impact of the crisis on revenue trends around the world, with however, a second half marked by a strong recovery in
Asia , which saw double-digit growth, and a significant improvement in trends inthe United States andJapan , - Double-digit organic revenue growth at Louis Vuitton and Christian Dior over the last two quarters of 2020,
- Success of both iconic and new products at Louis Vuitton, whose profitability remains at an exceptional level,
- Remarkable resilience of Cognac,
- Sharp acceleration in online sales, partially offsetting the effect on revenue caused by the closure of the Group's stores for several months,
- Suspension of international travel, severely penalizing hotel and travel retail activities,
- Operating free cash flow equivalent to that of 2019,
- The completion of the agreement with the iconic American jewelry
Maison Tiffany .
Key figures
Euro millions | 2019 | 2020 | % change |
Revenue | 53 670 | 44 651 | - 17 % |
Profit from recurring operations | 11 504 | 8 305 | - 28 % |
Group share of net profit | 7 171 | 4 702 | - 34 % |
Operating free cash flow | 6 167 | 6 117 | - 1 % |
Net Financial debt | 6 206 | 4 241 | - 32 % |
Total equity | 38 365 | 38 829 | + 1 % |
Revenue by business group:
Euro millions | 2019 | 2020 | Change 2020 / 2019 Reported Organic* | Change Q4 2020 / Q4 2019 Organic* | |
5 576 | 4 755 | - 15 % | - 14 % | - 11% | |
Fashion & Leather Goods | 22 237 | 21 207 | - 5 % | - 3 % | + 18% |
Perfumes & Cosmetics | 6 835 | 5 248 | - 23 % | - 22 % | - 15% |
Watches & Jewelry | 4 405 | 3 356 | - 24 % | - 23 % | - 2% |
Selective Retailing | 14 791 | 10 155 | - 31 % | - 30 % | - 26% |
Other activities and eliminations | (174) | (70) | - | - | - |
Total | 53 670 | 44 651 | - 17 % | - 16 % | - 3% |
* With comparable structure and constant exchange rates. For 2020, the currency effect was -1% and the structural impact was almost zero
For the fourth quarter of 2020, the currency effect was -4% and the structural impact was almost zero
Profit from recurring operations by business group:
Euro millions | 2019 | 2020 | % change |
1 729 | 1 388 | - 20 % | |
Fashion & Leather Goods | 7 344 | 7 188 | - 2 % |
Perfumes & Cosmetics | 683 | 80 | - 88 % |
Watches & Jewelry | 736 | 302 | - 59 % |
Selective Retailing | 1 395 | (203) | - |
Other activities and eliminations | (383) | (450) | - |
Total | 11 504 | 8 305 | - 28 % |
The
Fashion & Leather Goods: remarkable resilience
In 2020, the Fashion & Leather Goods, business group recorded a decrease in organic revenue of only 3% in an environment marked by the closure of stores over a period of several months. The second half saw a noteworthy rebound in activity, with double-digit organic revenue growth in both quarters.
Perfumes & Cosmetics: continuous innovation and rapid growth in online sales
The Perfumes & Cosmetics business group recorded a 22% decline in organic revenue in 2020. Profit from recurring operations was down 88%. In a sector suffering from the decline in international traveller spend and makeup, LVMH’s major brands chose to be selective in their distribution and, unlike certain competitors, limited promotions and refused to sell indirectly to the Chinese parallel market, which presents major risks to the medium term desirability for brands that follow that route. The Perfumes and Cosmetics brands are showing good resilience resulting from the growth of skincare and online sales, particularly in
Watches & Jewelry: strong rebound in
The Watches & Jewelry business group saw its organic revenue decline by 23% in 2020, with a strong improvement in trends in the fourth quarter, which fell only 2%. Profit from recurring operations was down 59%.
Selective retailing: good resilience at
The Selective Retailing business group saw organic revenue decline by 30% in 2020. Profit from recurring operations amounted to
Cautious confidence for 2021
In a very turbulent context,
Driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across its activities and the geographic areas in which it operates,
Dividend 2020
At the Annual General Meeting of
The Board of Directors met on
The regulated information related to this press release as well as the presentation of annual results and the “Financial documents” report are available on the website www.lvmh.com.
APPENDIX
Condensed consolidated accounts for 2020 are included in the PDF version of the press release.
2020 Revenue (Euro millions)
2020 | Wines & Spirits | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities & eliminations | Total |
First Quarter | 1 175 | 4 643 | 1 382 | 792 | 2 626 | (22) | 10 596 |
Second Quarter | 810 | 3 346 | 922 | 527 | 2 218 | (26) | 7 797 |
Total First Half | 1 985 | 7 989 | 2 304 | 1 319 | 4 844 | (48) | 18 393 |
Third Quarter | 1 364 | 5 945 | 1 370 | 947 | 2 332 | (3) | 11 955 |
Nine months | 3 349 | 13 934 | 3 674 | 2 266 | 7 176 | (51) | 30 348 |
Fourth Quarter | 1 406 | 7 273 | 1 574 | 1 090 | 2 979 | (19) | 14 303 |
Total 2020 | 4 755 | 21 207 | 5 248 | 3 356 | 10 155 | (70) | 44 651 |
2020 Revenue (Organic change versus same period of 2019)
2020 | Wines & Spirits | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities & eliminations | Total |
First Quarter | -14% | -10% | -19% | -26% | -26% | - | -17% |
Second Quarter | -33% | -37% | -40% | -52% | -38% | - | -38% |
Total First Half | -23% | -24% | -29% | -39% | -33% | - | -28% |
Third Quarter | -3% | +12% | -16% | -14% | -29% | - | -7% |
Nine months | -15% | -11% | -25% | -30% | -31% | - | -21% |
Fourth Quarter | -11% | +18% | -15% | -2% | -26% | - | -3% |
Total 2020 | -14% | -3% | -22% | -23% | -30% | - | -16% |
2019 Revenue (Euro millions)
2019 | Wines & Spirits | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities & eliminations | Total |
First Quarter | 1 349 | 5 111 | 1 687 | 1 046 | 3 510 | (165) | 12 538 |
Second Quarter | 1 137 | 5 314 | 1 549 | 1 089 | 3 588 | (133) | 12 544 |
Total First Half | 2 486 | 10 425 | 3 236 | 2 135 | 7 098 | (298) | 25 082 |
Third Quarter | 1 433 | 5 448 | 1 676 | 1 126 | 3 457 | 176* | 13 316 |
Nine months | 3 919 | 15 873 | 4 912 | 3 261 | 10 555 | (122) | 38 398 |
Fourth Quarter | 1 657 | 6 364 | 1 923 | 1 144 | 4 236 | (52) | 15 272 |
Total 2019 | 5 576 | 22 237 | 6 835 | 4 405 | 14 791 | (174) | 53 670 |
* Includes all Belmond revenue for the period April to
Alternative performance measures
For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS / IFRS,
The table below lists these measures and the reference to their definition and their reconciliation with the aggregates defined by IAS / IFRS in published documents.
Measures | Reference to published documents |
Operating free cash flow | FD (condensed consolidated financial statements, consolidated cash flow statement) |
Net financial debt | FD (Notes 1.22 and 19 of the appendix to the consolidated financial statements) |
Gearing | FD (Part 7, Comments on Consolidated Balance Sheet) |
Organic growth | FD (Part 1, Comments on the Consolidated Income Statement) |
FD: Financial documents as of
“This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH’s Universal Registration Document which is available on the website (www.lvmh.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH’s views as of the date of this document, and
Analysts and investors Chris Hollis LVMH + 33 1 44 13 21 22 | Media Jean-Charles Tréhan LVMH + 33 1 44 13 26 20 |
MEDIA CONTACTS | |
France Aymeric Granet Brune Diricq / Charlotte Mariné Publicis Consultants + 33 1 44 82 47 20 | France Michel Calzaroni / Hugues Schmitt / Thomas Roborel de Climens DGM Conseil + 33 1 40 70 11 89 |
Italy Michele Calcaterra, SEC and Partners + 39 02 6249991 | Hugh Morrison, Montfort Communications + 44 7921 881 800 |
US James Fingeroth, Kekst & Company + 1 212 521 4800 | Deluxewords +44 772 212 6562 +86 21 80 36 04 48 |
Attachment
- Press release-
LVMH Annual Results 2020
© OMX, source