Bernard Arnault, Chairman and CEO of LVMH, said:
"2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets. Profit from recurring operations exceeded €6 billion for the first time. A significant event during the year was the acquisition of Loro Piana, a company famous for its unrivalled work with cashmere and rare textiles, and with which we share the same values of family and craftsmanship. All our brands have proven to be exceptionally dynamic. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy.
In 2014, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”
Highlights of 2013 include:
• Profit from recurring operations exceeded 6 billion Euros for the first time
• Good momentum in Asia and the United States and continued growth in Europe
• A remarkable performance in Wines & Spirits
• The launch of very high quality leather products at Louis Vuitton whose profitability remains at an exceptional level
• Further investment in our fashion brands
• The strength and success of the iconic lines from Parfums Christian Dior
• Excellent results from Bulgari
• Continued progress at Sephora and DFS, driven by innovation in products and services
• A 20% increase in free cash flow to 3 billion Euros
• A gearing ratio of less than 20% at the end of December 2013
Watches & Jewelry: focus on high-end and strengthened quality of distribution
The Watches & Jewelry business group recorded organic revenue growth of 4% in 2013. Profit from recurring operations rose 12%. An excellent performance in the directly owned boutiques, where the network continues to expand around the world, contributed to strengthening the image of the brands and the quality of their distribution.
The LVMH watch brands continued to invest in innovation and development of industrial capacity, such as the new TAG Heuer movement manufacturing facility. In Jewelry, the success of Bulgari’s Serpenti line was confirmed and the new high-end jewelry Diva collection achieved excellent results. Presence in multi-brand stores continues to be more selective.
Confidence for 2014
Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2014. The Group will maintain a strategy focused on developing its brands by continuing to build on their savoir-faire, as well as through strong innovation and expansion in fast growing markets.
Driven by the agility of its organization, the balance of its different businesses and geographic diversity, LVMH enters 2014 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.