The wine and spirits arm of LVMH was the only part of the business to experience a decline in sales in the company’s full-year sales results.
Wine and spirits sales fell from €7.099 billion (US$7.604bn) in 2022 to €6.602bn (US$7.156bn) in 2023, representing a 4% organic revenue decline (7% on a reported basis).
Profit from recurring operations fell by 2% to €2.109bn (US$2.286bn).
LVMH attributed the drop to a high basis of comparison and high inventory stocks last year.
Hennessy Cognac faced mixed recovery in China while demand softened in the US in the wake of the Covid-19 pandemic.
In a closing statement, the French company said it was confident in its ability to grow in 2024 despite ongoing geopolitical and macroeconomic environment uncertainties.
“LVMH will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as an extremely exacting quest for desirability and quality in its products and their highly selective distribution,” LVMH said.
The company had a strong 2022 financial year with double-digit growth. Revenue rose by 19% in 2022 to €7.09 billion (US$54.9bn). Profit from recurring operations rose by 16%, equating to €2.15bn.
In November last year, Hennessy unveiled a limited edition bottle collection, designed by Chinese artist Yang Yongliang, to welcome the Year of the Dragon.
Last year, LVMH also unveiled a multi-million-euro investment to open a five-floor bar in Paris, France.
Hennessy Cognac celebrated 50 years of hip hop last year by partnering with Grammy Award-winning rapper Nas.
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Author: Melita Kiely