LVMH achieves a solid performance despite an unfavorable global economic environment

Core Insights - LVMH Moët Hennessy Louis Vuitton reported a revenue of €84.7 billion in 2024, reflecting a 1% organic growth despite a challenging economic environment [1][9] - The company demonstrated resilience with a profit from recurring operations of €19.6 billion and an operating margin of 23.1%, significantly above pre-Covid levels [2][9] - LVMH's net profit was €12.6 billion, and free cash flow increased by 29% to €10.5 billion [2][9] Financial Performance - Revenue for 2024 was down 2% reported but up 1% organically compared to 2023 [9] - Profit from recurring operations decreased by 14% year-over-year [9] - The Group's net financial debt reduced by 14%, while equity increased by 11% [9][10] Business Segment Performance - Wines & Spirits: Revenue decreased by 11% reported and 8% organically, with a significant drop in profit from recurring operations by 36% due to exchange rate fluctuations [9][12] - Fashion & Leather Goods: Revenue was down 3% reported and 1% organically, with a 10% decline in profit from recurring operations [9][13] - Perfumes & Cosmetics: Achieved a 2% increase in revenue reported and 4% organically, with a 6% decrease in profit from recurring operations [9][14] - Watches & Jewelry: Revenue decreased by 3% reported and 2% organically, with a 28% drop in profit from recurring operations [9][16] - Selective Retailing: Revenue grew by 2% reported and 6% organically, with stable profit from recurring operations [9][17] Strategic Initiatives - LVMH's partnership with the Paris 2024 Olympic and Paralympic Games highlighted its commitment to excellence and showcased French craftsmanship [3] - The company made significant progress under its LIFE 360 environmental program, achieving a 55% reduction in GHG emissions two years ahead of schedule [10] - LVMH continues to focus on innovation and investment to reinforce its leadership in the luxury market [18][19] Future Outlook - The company remains confident in its strategy for 2025, emphasizing brand development, innovation, and quality [18][19] - A proposed dividend of €13 per share reflects the company's strong financial position [20]