Louis Vuitton and Moet & Chandon owner reveals 2016 was a vintage year

 
Oliver Gill
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Louis Vuitton : Runway - Paris Fashion Week Womenswear Spring/Summer 2016
City A.M. understands LVMH's Louis Vuitton label makes very fashionable clothing (Source: Getty)

While last year might not have been everyone's favourite 12 months, luxury brand owner LVMH revealed "an excellent performance in 2016", posting solid revenue and cashflow growth.

The owner of a variety of posh labels including Louis Vuitton and Christian Dior said organic revenue growth during 2016 was six per cent with sales totalling €37.6bn (£31.9m).

Read more: Louis Vuitton LVMH buys stake in German luggage maker Rimowa

Net profit grew by 11 per cent to €4.0bn with cashflow for the year also €4.0bn, an increase of eight per cent.

Bernard Arnault, chairman and chief executive of LVMH, said: “LVMH achieved an excellent performance in 2016 within a context of geopolitical and economic instability.

In an environment which remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2017, our leadership in the universe of high quality products.

No wining about growth

Wine and spirits brands lead the way with 10 per cent revenue growth from recurring operations. Hennessy cognac grew volumes by 10 per cent. The group said the US market is growing "well" and Chinese demand turned a corner following a tough 2015 due to destocking by distributors.

Read more: LVMH revenue inches up for first quarter of 2016

The positive trading will provide a boost to shareholders as the firm said its dividend would grow by 13 per cent to €4 per share.

"LVMH is well-equipped to continue its growth momentum across all business groups in 2017," the group said in a statement.

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