Full Year 2024 LVMH Moet Hennessy Louis Vuitton SE Earnings Call Transcript
Key Points
- Lvmh Moet Hennessy Louis Vuitton SE (LVMHF) signed a 10-year contract with Formula 1, which is expected to positively impact the brands involved.
- Despite a challenging global environment, the company reported organic revenue growth in 2024.
- Sephora achieved exceptional growth, with revenues now more than ten times what they were in 1998.
- Fashion and leather goods, particularly Louis Vuitton and Christian Dior, reported strong performances with innovative events and product launches.
- The company maintained its commitments to diversity, employee well-being, and environmental sustainability.
- Operating income decreased, impacted by a EUR1 billion hit from outstanding items.
- The wines and spirits segment faced challenges, with a notable decrease in cognac and spirits demand.
- DFS, the company's tax-free retailing arm, struggled due to unfavorable currency conditions in key geographies like Hong Kong and Macau.
- The company faced a drop in recurring operating income due to high costs associated with major events like the Olympic Games and the renovation of Notre-Dame.
- The ForEx impact was negative, contributing to a EUR1 billion decrease in operating profit.
(video playing)
Good evening, everyone. It is a pleasure for me to be here with you tonight. We started by mentioning Formula 1 because we just signed a contract Vuitton, Moet & Chandon, TAG Heuer for Formula 1 for 10 years, starting this year, and I believe it is going to be quite impactful for the three relevant brands.
Today, I'm not going to report record revenue, but it was nonetheless a robust year, and I am rather confident for the year to come.
Indeed, in 2024, we managed to report a little bit of organic growth of our revenue, despite what some of you -- because there are a lot of analysts here, despite what quite a few of you expected. However, the operating income is going down, but let's look at the context. There is [EUR1 billion] coming from outstanding items. Besides, 2025 is starting well, and I will tell you all about it in a moment.
A robust year, despite a challenging global environment, with weaknesses in
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