The world’s biggest luxury group LVMH has reported strong growth in the first quarter of 2022 despite Covid disruptions in its key market in China and Ukraine crisis.
All business groups achieved double-digit revenue growth, except for wines & spirits, which are hampered by global supply constraints, the group says in its latest financial report.
LVMH’s organic revenue was up by 23% to 18 billion euros in the first quarter of 2022, compared to the same period in 2021.
The luxury groups’ weakest performance was in wine and spirits, which has 23 houses from Champagne Moët & Chandon to Hennessey Cognac. It recorded organic revenue growth of 2% in the first quarter of 2022 compared to the same period of 2021.
Hennessy cognac saw its volumes decrease compared to the first quarter of 2021 due to supply and logistical constraints at the beginning of the year, according to the group.
Otherwise, the Champagne business had an excellent start to the year, with volumes rising sharply, particularly in Europe and Japan, and a firm price increase policy.
Maison Armand de Brignac, which has been 50% owned by LVMH since May 2021, is included for the first time in the first quarter accounts. Glenmorangie whisky and Belvedere vodka also recorded strong growth.
The group’s fashion and leather business which includes brands such as Louis Vuitton, Dior, Fendi and Celine led the growth with 30% organic growth.
It’s not sure how Covid disruptions in China’s major cities such as the country’s economic center Shanghai will play out on the group’s performance in the later part of the year.
Earlier this year, the luxury group closed its stores in Russia as a response to its invasion into Ukraine.