In view of its 2022 results published yesterday Thursday January 26, it is confirmed that LVMH is sapping the champagne and breaking records in the billions. Undisputed world number one in the luxury industry, the French group has never done so well despite a slowdown in growth in the fourth quarter due to health restrictions in China. The rich know no crisis. Thanks for them.
For the whole of the 2022 financial year, the group with 75 luxury brands recorded a turnover of 79.18 billion euros, up 23% and 17% at constant exchange rates and perimeter.
Its net profit reached 14.08 billion euros, an increase of 17% and a new record, while the group had crossed the 12 billion profit mark for the first time in 2021. he past year, LVMH’s current operating profit amounted to 21.06 billion euros, while analysts were anticipating a result of 21.63 billion euros. Between 2017 and 2022, turnover has almost doubled (+86%) and net profit almost tripled (+180%).
Louis Vuitton accounts for 25% of the group’s turnover
Another highlight of the 2022 financial year, Louis Vuitton exceeded 20 billion euros in turnover for the first time and therefore accounts for more than 25% of the group’s total turnover. “All activities achieved significant organic growth in their sales over the year,” LVMH said in a press release. Demand was notably driven by the resumption of international travel but also by an influx of local customers in Europe, the United States and Japan.
The only downside is China, where the health situation has prevented consumers from rushing to the shops. For this reason, sales in the Asia-Pacific zone remained stable at constant exchange rates over the whole year, underlined the group chaired and directed by Bernard Arnault who delighted Jeff Bezos of Amazon, the title of the richest man in the world.
On the stock market, the LVMH group, which is close to its historic high reached at the start of 2023, with a market capitalization of more than 400 billion euros, will propose at the next general meeting a dividend of 12 euros per share for the past financial year.