PARIS, Jan 28 — LVMH, the world’s leading luxury group, more than recovered from the coronavirus pandemic, posting Thursday record sales and net profit for 2021.
The group which includes the Louis Vuitton, Dior and Celine fashion brands as well as Moet & Chandon champagne, took in a record €64.2 billion (RM300.1 billion) in 2021.
An increase of 44 per cent from last year, when the sector took a major hit from store closures, it was also a 20 per cent rise from before the pandemic in 2019.
Net profit hit €12 billion, a 156 per cent increase from 2020 and up 68 per cent compared to 2019.
“Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market,” chief executive Bernard Arnault said in a statement.
The company’s results easily surpassed the analyst consensus forecast compiled by Bloomberg, which was for €62.2 billion in sales and €10.7 billion in net profit.
One reason for the luxury group’s out-performance was an improvement in profitability. Its operating margin rose to 26.7 per cent, up from 21.4 per cent in 2019.
LVMH plans to reward shareholders with a dividend of €10, up from €6 last year. — AFP
