LVMH's perfume and cosmetic division powers away
overall sales for the first six months of the year, backed up by an
impressive 80 per cent leap in profits for its perfumes and
cosmetics division.
The company said that the profits at its perfume and cosmetics division grew from €44m in the first half of 2005 to reach €79m in the first six months of the year.
Overall revenue, which includes the sales of the company's five other divisions, amounted to €6.96bn, an increase of 13 per cent on the corresponding six months in 2005.
Likewise overall profitability was up by 19 per cent on the same period last year, to reach €1.29bn, while operating profit increased by 35 per cent to €1.24bn.
"Our performance during the first half of the year once again demonstrates the exceptional appeal of our brands as well as the coherence and effectiveness of our strategy," said Bernard Arnault, Chairman and CEO of LVMH.
He went on to stress the groups improved profitability and the fact that the revenue growth over the first part of the summer has continued the strong start to the year.
"Numerous product launches alongside growth of our core brands, both in our traditional markets and in the emerging countries, should allow LVMH to continue its progress in the second half of the year in a well oriented economic environment," he added.The company said that in the perfumes and cosmetics division all categories had reported 'good momentum' in all markets, stressing that Parfums Christian Dior had continued to win market share, a factor that helped to contribute to the improved profitability.
Within the Christian Dior category, the launch of its skincare product Capture Totale, an anti-ageing cream retailing at €119 for a 50ml pot, had been a great success. Backing this up, the company said that make-up range J'Adore had also proved to be a 'remarkable success'.
Likewise the company also pointed out the success of Guerlain in Europe and Asia, particularly with the new Orchidée Imperiale skin care range, while Givenchy was earmarked for the strong performance of its Very Irrisistible and Benefit perfumes.Looking ahead to the rest of the year, the company said that continued strong revenues in both July and August, combined with a series of new product launches, should lead to the current growth in sales and profitability to be sustained for the full financial year if current economic conditions prevail.
