The wine and spirits division of LVMH has seen a dip in sales and profits, as the producer flagged a “particularly high basis of comparison”.
The Hennessy Cognac owner said this week that reported sales were down 4% for the first half of 2023, to €3.18 billion. Profits slipped 9% in the same period, to just over €1 billion.
The company’s wine and spirits division saw its Champagne business record an increase in revenue over the half year, while Hennessy Cognac was impacted by the economic environment in the US and by the continued high stock level of its retailers.
Among Provence rosé wines, LVMH acquired domain Minuty earlier this year. The company also said Château d’Esclans has stepped up its international expansion.
The Joseph Phelps Vineyard, in Napa Valley, California, was included in the first half accounts for the first time.
Elsewhere in spirits, Glenmorangie whisky and Belvedere vodka continued to show “strong momentum” in innovation, the company said.
Overall, the LVMH group, which includes luxury goods across fashion, jewellery, perfume and retail, recorded sales of €42.2 billion in the first half of 2023, up 15%.