France’s LVMH Group reported on January 26 revenue of EUR 79.2 billion for the year 2022 and profit from recurring operations of EUR 21.1 billion, both up 23 percent, adding its Asia region revenues remained “stable” over the year, due to developments in the health situation in China.
SEE ALSO: LVMH maintains strong growth in the first nine months
Europe, the United States and Japan rose sharply, benefiting from strong demand from local customers and the recovery of international travel, said LVMH.
The luxury behemoth said fashion and leather goods notably reached record levels, with organic revenue growth of 20 percent, while its wines and spirits business group recorded revenue growth of 19 percent in 2022 (11 percent on an organic basis). The Paris-based company said momentum was particularly strong in Europe, Japan and in emerging markets, particularly in “high energy” channels and gastronomy, offsetting the effects of the Covid lockdowns in China.
The watches and jewellery business group recorded revenue growth of 18 percent in 2022 (12 percent on an organic basis), with Bvlgari confirming its strong momentum, particularly in Europe, Japan and the United States.
LVMH said company operating margin remained at the same level as 2021. Group share of net profit was EUR 14.1 billion, up 17 percent compared to 2021. Operating free cash flow surpassed EUR 10 billion, it said.
“Our performance in 2022 illustrates the exceptional appeal of our maisons and their ability to create desire during a year affected by economic and geopolitical challenges,” said Bernard Arnault, chairman and CEO of LVMH.
“The group once again recorded significant growth in revenue and earnings. Our growth strategy, based on the complementary nature of our activities, as well as their geographic 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 maisons. This was showcased during our hugely successful LVMH Journées Particulières, when we opened our doors to all in fifteen countries in 2022 and saw a record number of visitors come to learn about the know-how of our artisans.
“We approach 2023 with confidence but remain vigilant due to current uncertainties. We count on the desirability of our maisons and the agility of our teams to further strengthen our lead in the global luxury market and support France’s prestige throughout the world,” concluded Arnault.