LVMH Wine and Spirits Profit Plunges 35.7%

Luxury conglomerate LVMH reported a 35.7% decline in operating profit for its wine and spirits division in 2024, as weaker demand in China and a challenging global market weighed on sales.

The company, which owns Hennessy Cognac, Moët & Chandon, Veuve Clicquot, and Château d’Yquem, said revenue from its wine and spirits unit fell 11% to €5.86 billion (US$6.35 billion), while group-wide revenue slipped 1% to €84.68 billion (US$91.8 billion).

Wine and Sparkling Wine Buck the Trend

LVMH’s champagne and wine revenue dropped 8.1% to €3.18 billion ($3.45 billion), while cognac and spirits sales fell 14.6% to €2.68 billion ($2.91 billion). Sales volumes declined across most categories, except for wine and sparkling wine, which saw a slight 0.3% increase.

• Cognac sales: 80.8 million bottles, down 2.9%.
• Champagne sales: 61.7 million bottles, down 7.2%.
• Wine & sparkling wine sales: 61.3 million bottles, up 0.3%.
• Other spirits sales: 20.8 million bottles, down 3.3%.

Explaining on the drop in Champagne sales, LVMH attributed inclement weather at the beginning of the summer for poor harvest in the Champagne region, weighing on the division’s performance. Despite that, the group still accounts for more than 22% of all Champagne-appellation shipments.

The group owns 29 maisons including including Ao Yun in Yunnan and Chandon in Ningxia, China.

China’s Economic Slowdown Hits Sales

The U.S. remains LVMH’s largest market for wines and spirits, accounting for 34% of sales, followed by Europe at 27% and Asia at 18 %. Japan, a key market in the region, contributed 6%.

LVMH cited slowing Chinese consumer spending as a major reason for the downturn. The company noted that cognac sales were particularly affected by “weak local demand in China and a challenging market environment in the United States.”

Outlook for 2025

Looking ahead, LVMH signaled a cautious approach to 2025, citing market uncertainties. The company said it will focus on cost control, enhancing consumer experiences, and maintaining its sustainability strategy to reinforce its position as a leader in luxury wines and spirits.