Louis Vuitton and Moët Hennessy (LVMH) Financial Performance from Time to Time

Louis Vuitton and Moët Hennessy (LVMH) Financial Performance from Time to Time- Louis Vuitton and Moët Hennessy commonly known as “LVMH” is the world’s leading luxury goods group. Many People knows this company which produces the luxury products with miscellaneous brands. By the way, Louis Vuitton (LV), Tag Heuer, Tiffany & Co, Hublot, Christian Dior are some of the popular fashion brands of LMVH. As of 2022, There are more than 70 brands that this groups have owned. Many of high-class people still searches and buy the products of LVMH.

Louis Vuitton and Moët Hennessy (LVMH) History and Business Development

Historically, this luxury business group was started on 3 June 1987 with initiative of Bernard Arnault, Alain Chevalier, and Henry Racamier. Along with business development, this group has expanded its business by doing some acquisitions, namely of 50 % stake of Bulgari (Italian jeweller) in 2011, 55% of Château d’Esclan’s stake in 2019 and others. To date, this group has done some business into Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing.

Louis Vuitton and Moët Hennessy (LVMH) Financial Performance - Founder of Louis Vuitton

In Wine & Spirit, this group has some brands, namely Ao Yun, Ardbeg, Belvedere, Bodega Numanthia, Cape Mentelle, Chandon, Château d’Esclans, Château Cheval Blanc, Château d’Yquem, Cheval des Andes, Clos des Lambrays, Cloudy Bay, Colgin Cellars, Dom Pérignon, Glenmorangie, Hennessy, Krug, Mercier, Moët & Chandon, Newton Vineyard, Ruinart, Terrazas de los Andes, Veuve Clicquot, Volcan de mi Tierra, and Woodinville. Meanwhile, in the fashion and Leathers goods, LMVH has some brands, namely Berluti, Birkenstock, Celine, Christian Dior, Emilio Pucci, Fendi, Givenchy, JW Anderson, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Off-White, Patou, Phoebe Philo, Rimowa, and Stella McCartney.

In perfumes and cosmetics products, LVMH has some brands including Acqua di Parma, Benefit Cosmetics, BITE Beauty, Cha Ling, Fenty Beauty by Rihanna, Fresh Beauty, Parfums Givenchy, Guerlain, Kenzo Parfums, KVD Vegan Beauty, Maison Francis Kurkdjian, Make Up for Ever, Marc Jacobs Beauty, Officine Universelle Buly, Ole Henriksen, Parfums Christian Dior, Perfumes Loewe, and Sephora. In Watchs and Jewelry, LVMH has some brands including Bulgari, Chaumet, Daniel Roth, Fred, Hublot, Gerald Genta, Repossi, TAG Heuer, Tiffany & Co., and Zenith.

Furthermore, in Selective retailing, LVMH has some facilities and products including DFS, La Grande Epicerie, La Samaritaine, Le Bon Marché, and Starboard Cruise Services. Moreover, in other activities business, LVMH has some properties and facilities including Belmond, Maisons Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d’Acclimatation, Le Parisien, Les Echos, Radio Classique, and Royal Van Lent.

As of 2022, based on annual report, LVMH group has 5,664 stores with 196,006 of employees. Its group also has 110 production sites in France. Based on the business contributions, The Fashion & Leather goods still become the backbone of the company that contributes 49% of revenue or € 38 billion, Selective retailing and other activities contributes 19% or € 14.8 billion, Watches & Jewellery contributes 13% or € 10.5 billion, and the others are Perfumes & Cosmetics (10%) or € 7.7 billion and Wine & Spirits (9%) or € 7 billion. Based on the marketing areas of all products, The revenue of products came from several regions. These regions include Asia (except Japan) with contributing around 30% of revenue, followed by United States with 27% of revenue, Europe with 16%, France with 8%, and Japan with 7%.

Business Performance of Louis Vuitton From Time To Time

Based on the company’s ownership according to Annual Report, 2022, LVMH was owned by some groups. Arnault Family Group owns 48.2% of all of the stake, Followed by Foreign Institutional Investors with 38.2 %, French Institutional Investors with 7.3%, and Individuals ownership with 5.9%. Bernard Arnault still becomes the key person of this group with his role as Chairman and Chief Executive Officer until now. With his ownership in LVMH, Bernard Arnault become one of the richest people in the World with Real Time Net Worth $235.7 Billion based on Forbes.

Louis Vuitton and Moët Hennessy (LVMH) Financial Conditions and Performances

Years	Revenue	Net Profit
	(EUR millions)	(EUR millions)
2022	79,184	14,084
2021	64,215	12,036
2020	44,651	4,702
2019	53,670	7,171
2018	46,826	6,354
2017	42,636	5,365
2016	37,600	3,981
2015	35,664	3,573
2014	30,638	5,648
2013	29,149	3,436
2012	28,103	3,424
2011	23,659	3,065
2010	20,320	3,319
2009	17,053	1,973
2008	17,193	2,318
Source:Louis Vuitton and Moët Hennessy (LVMH) Annual Report, 2010-2022

As a one of the biggest companies in the world, LVMH has shown some incredible financial condition and performance from time to time. The positive performance from time to time always can be seen in their annual report. In this article, we analyze the financial condition and performance of LVMH based on annual report in 2008-2022. All of the data was obtained from Consolidated Balance sheet and Income statements of LVMH from 2008 to 2022.

The Assets, Liabilities, Equities of The Louis Vuitton and Moët Hennessy (LVMH)

Years	Assets	Liabilities	Equities
	(EUR millions)	(EUR millions)	(EUR millions)
2022	134,646	78,042	56,604
2021	125,311	76,402	48,909
2020	108,671	69,842	38,829
2019	96,507	58,142	38,365
2018	74,300	40,343	33,957
2017	69,755	39,378	30,377
2016	59,622	31,719	27,903
2015	57,601	31,802	25,799
2014	53,362	30,359	23,003
2013	55,674	27,951	27,723
2012	49,998	24,490	25,508
2011	47,113	23,687	23,426
2010	37,164	18,960	18,204
2009	32,106	17,321	14,785
2008	31,483	17,690	13,793
Source: Louis Vuitton and Moët Hennessy (LVMH) Annual Report, 2010-2022

The data was analyzed by assets, liabilities, and equities. Commonly, assets are the physical and non-physical properties that company has owned while doing the business. In addition, Liabilities is the financial obligation to other parties that company must pay off. Equities is the difference value between assets and liabilities. In 2022, the LVMH has assets around € 134,646 million with liabilities around € 78,042 million, and Equities with € 56,604 million. This condition has grown more than 3 times if compared with conditions in 2008. In the year of 2008, the assets are just € 31 million, liabilities around € 17 million, and equities around € 13 million.

Meanwhile, based on the business performance from time to time. The LVMH has grown its business. The revenue and net profit always shown the positive performance. Financially, in 2022, the LVMH can generate revenue around € 79,184 million and net profit around € 14,084 million. This performance of 2022 has increased more than 5-fold if compared in the business performance in 2008. In 2008, the revenue of LVMH is around EUR 17,193 million and EUR 2,318 million. Overall, the Revenue and Net Profits of LVMH in 2022 is the highest financial achievement than business performance in the year before.

The business performance in 2019-2022 shown that business of LVMH was not affected by global recession. In the pandemic of Covid-19 and economic recession, LVMH has grown gradually. It was difference from other companies that experience the slowdown performance. Maybe, it’s a sign that people still bought the luxury goods in recession conditions. Thank You, Hopefully, it can be useful articles.