The uncertain macroeconomic picture, the war and inflation do not stop lvmh which continues to ring record after record. In 2022 the revenues of the French luxury giant touched the 80 billion euros, while profits from recurring operations soared above $21 billion, up 23 percent.
"Let's start 2023 with confidence, but remaining vigilant due to the current uncertainties,” commented the president and CEO, Bernard Arault. “Our performance in 2022 – he continued – illustrates the exceptional appeal of our Maisons and their ability to create desire in a year conditioned by economic factors and geopolitical challenges. The group once again recorded significant growth in revenues and profits. Our growth strategy, based on the complementary nature of our activities, as well as their geographical diversity, encourages innovation and the quality of our creations, the excellence of their distribution and adds a cultural and historical dimension thanks to the heritage of our Maison”.
The 2022 of Lvmh
The largest luxury group in the world closed 2022 with revenues equal to 79,2 billion and one ucurrent operating tile equal to 21,1 billion. In both cases, the increase is 23%.
Going forward with the data, the operating margin remained at the same level as in 2021, while theNet income it rose by 17% compared to the previous year, reaching 14,1 billion. The operating free cash flow exceeded 10 billion euros.
Geographically, they recorded strong growth in 2022 Europe, USA and Japan, benefiting from strong demand from local customers and the recovery in international travel. L'Asia remained stable during the year due to developments in the health situation in China.
Divisions and brands: Louis Vuitton flies, Dior, Tiffany and Sephora are doing well
The division Fashion and leather goods of Lvmh hit record levels in 2022, with turnover jumping to 38,6 billion, up 25% or 20% organically. The division's operating result increased by 22%, while the operating margin of the entire Fashion and Leather Goods division amounted to 15,7 billion. “Louis Vuitton closed an excellent year”, underlines Lvmh in a note, highlighting that the women's shows created by Nicolas Ghesquière have been well received. Not only: pFor the first time in history, the Louis Vuitton brand has exceeded 20 billion euros in turnover.
Also Christian Dior has continued along its evident growth path. And again if Celine recorded “strong growth”, it also went well Lion.
Strong growth of Wine and Spirits division, whose sales increased by 19% (11% organic) to 7 billion euros. Operating income grew by 16% to 2,1 billion. The group underlines in particular the increase (+6%) of the volumes of champagne, with very strong momentum in Europe, Japan and emerging markets.
And again: the turnover of the division Perfumes and Cosmetics grew by 17% in 2022 (+10% organically), to 7,7 billion. The operating result, on the other hand, fell by 3% to 660 million, reflecting the effects of a selective distribution policy. In the division, Christian Dior achieved a “remarkable” performance, with the women's perfume Sauvage remaining the first in the world (Dior recorded strong growth in all its product lines.. It should be noted that the brand Fenty Beauty by Rihanna which “doubled its sales”.
The growth of the division Jewelry & Watch it was 18% (+12% organic) to 10,5 billion, with an operating result of 2 billion (+20%). “Tiffany & Co. boasted a record year”; indicated Lvmh in the. Positive year also for Bulgari which confirmed its strong dynamics, especially in Europe, Japan and the United States.
Finally, the Distribution recorded sales of 14,8 billion (+26% or +17% organic) and an operating result of 788 million (+48%), thanks to the strong rebound of the activities of Sephora, which remains the world leader in the distribution of beauty products and has recorded a record performance in terms of sales and profits and despite the fact that the Russian operations have been divested. dfs however, it was affected by the situation in China.
As for the future, "we count on the desirability of our Houses and the agility of our teams to further strengthen our leadership in the global luxury market and sustain France's prestige around the world," said CEO Arnault. Lvmh ensures operational investments of almost 5 billion euros, mainly dedicated to the expansion of the store network, the development of production facilities and employment.
Lmvh: maxi dividend of 12 euro for shareholders
At the general meeting on 20 April 2023, LVMH will propose a dividend of 12 euros per share. On 5 December last year, an interim dividend of €5 per share was paid. The balance of 7 euros will be paid on April 27, 2023.
