In a day of European price gains due to chip shortage concerns, the Paris Stock Exchange (-0,5%) clings to Lvmh earning 1,68% at 684,7 euros in the wake of the stratospheric accounts presented yesterday evening. A half-yearly report that certifies the resurrection of luxury, or at least of its spearhead, after the severe difficulties experienced due to the Covid-19 pandemic.
The numbers revealed by the French giant led by Bernard Arnault show not only that the group has recovered pre-Covid levels, but that it has gone further, registering strong growth compared to 2019.
Going into detail, the net profit in the first six months of 2021 it increased tenfold compared to the same period of 2020, reaching 5,3 billion euros. However, what amazes investors the most is the comparison with 2019, when the pandemic did not exist yet and Lvmh ran at full speed. Compared to the first half of two years ago, the growth is in fact 62%.
Also on the rise the revenues, up 53% compared to 2020 and 11% compared to 2019 to 28,7 billion euros, a result slightly higher than expected by analysts. The Operating income it rose to 7,6 billion (+44% compared to 2019), while the operating margin it is equal to 26,6%, an improvement of 5,5 points on 2019. Lvmh finally underlined that the cash flow exceeded 5 billion, a level three times higher than that of 2019.
Moving on to the various divisions, that fashion and leather goods grew by 81% compared to 2020 and by 38% compared to 2019, generating revenues of 13,8 billion, with an operating result of 5,6 billion (three times higher than in 2020 and +74% compared to 2019) . Sales were mainly driven by the United States and Asia, the two reference markets of the group.
Speaking of singles brands, Lvmh highlights the excellent performance of its flagship brands: Louis Vuitton, Christian Dior, Fendi, Loewe and Celine.
The performance is also excellent Wines and Spirits division which marked an organic increase of 44% compared to last year and 12% on 2019 with a turnover of 2,7 billion. The operating result was 924 million (+68% and +20%).
