LVMH, the French luxury goods conglomerate has expressed confidence in its ability to continue the growth the group observed in 2022.
“With the month of January having started well and despite an uncertain geopolitical and economic environment, LVMH is confident in its ability to continue the growth observed in 2022,” it said.
The Group will pursue its brand development focused strategy, underpinned by continued innovation and investment as well as a constant quest for desirability and quality in its products and their distribution.
All business groups achieved significant organic revenue growth over the year. Fashion and Leather Goods notably reached record levels, with organic revenue growth of 20%. Profit from recurring operations stood at €21.1 billion for 2022, up 23%. Operating margin remained at the same level as 2021. Group share of net profit was €14.1 billion, up 17% compared to 2021. Operating free cash flow surpassed €10 billion.
Europe, the United States and Japan rose sharply, benefiting from strong demand from local customers and the recovery of international travel. Asia was stable over the year due to developments in the health situation in China.
Bernard Arnault, Chairman and CEO of LVMH, said: “Our performance in 2022 illustrates the exceptional appeal of our Maisons and their ability to create desire during a year affected by economic and geopolitical challenges. The Group once again recorded significant growth in revenue and earnings. Our growth strategy, based on the complementary nature of our activities, as well as their geographic diversity, encourages innovation and the quality of our creations, the excellence of their distribution, and adds a cultural and historical dimension thanks to the heritage of our Maisons.”
Driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across businesses and geographic areas in which its customers are located, LVMH enters 2023 with confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.
Meanwhile, at the General Meeting of April 20, 2023, LVMH will propose a dividend of 12 euros per share. An interim dividend of 5 euros per share was paid on December 5 of last year. The balance of 7 euros will be paid on April 27, 2023.
LE