Half Year 2025 LVMH Moet Hennessy Louis Vuitton SE Earnings Call Transcript
Key Points
- Lvmh Moet Hennessy Louis Vuitton SE (LVMHF) reported a strong financial position with a free cash flow increase to EUR4 billion and gearing at 15.2%.
- The company maintained an excellent operating margin of 22.6%, which is 150 basis points above the first half of 2019.
- Louis Vuitton continued to innovate with new collaborations and product launches, including a new cosmetics segment, La Beauté Louis Vuitton.
- Sephora showed solid growth in the Americas, Europe, and the Middle East, gaining market share and improving profitability.
- Parfums Christian Dior maintained its leadership in strategic markets with good growth, notably in China, America, and the Middle East.
- Lvmh Moet Hennessy Louis Vuitton SE (LVMHF) experienced a 3% decline in revenue on an organic basis and a 15% decrease in profit from recurring operations compared to the first half of 2024.
- The Wines and Spirits Business Group saw a 7% decrease in revenue on an organic basis, with Cognac and Spirits experiencing a 15% decline.
- Fashion and Leather Goods revenue decreased by 7% on an organic basis, with a significant impact from weaker touristic demand in Asia.
- The Watches and Jewelry division reported a 13% decline in profit from recurring operations year on year.
- The company faced macroeconomic uncertainties and currency swings, impacting short-term performance, particularly in Asia and Japan.
Welcome to our H1 results conference call. I'm here with Rodolphe. We are very happy to have you with us and we will start now. What we'll do is I will start with the key highlights, then Rodolphe will give you a bit more details in terms of the divisions and activities performance. Then I'll go through the key numbers and we will open for Q&A.
Maybe before we start, I invite you to go to page two and read the safe harbor statement. So I give you a few seconds to do that. And then, I propose we start with slide 3. LVMH showed good resilience in the first half of 2025 recording EUR40 billion in revenue, down 3% on an organic basis with disparities by region as I will explain later.
In terms of profit, the profit from recurring operations is EUR9 billion, down 15% versus the first half of 2024, although operating margin remains excellent at 22.6%, which is 150 basis points above the first half of 2019. Finally, very strong financial situation with the free cash flow
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