The profit from continuing operations of the world's largest manufacturer of luxury goods – LVMH Moet Hennessy Louis Vuitton SA (PA: LVMH) increased by 6% in 2016 and reached a record 7.026 billion euro against 6.605 billion euro in 2015. Net profit increased by 11% to 3.981 billion euro, according to a company press release.
Revenue rose 5% and reached a record 37.6 billion euro compared with 35.664 billion euro a year earlier.
The net financial debt of the company for the past year fell 23%, to 3.265 billion euro.
"LVMH achieved brilliant results in 2016, despite the geopolitical and economic instability", - said chairman and CEO Bernard Arnault.
The revenues of network of retail stores (Sephora, DFS, Le Bon Marche and other) were the most significant among LVMH divisions, up 7%, to €11.973 billion. The good results of this segment are caused, in particular, by an increase in the share of Sephora in all regional markets.
Sales of perfumes and cosmetics rose 6% to 4.953 billion euro. In particular, the share of the brand Christian Dior has grown in all regions of the world, including through the continued popularity of such well-known fragrances like J'adore and Miss Dior, as well as the success of the new men's toilet water Sauvage, is said in the press release.
Sales of alcoholic beverages rose over the year by 5%, to 4.835 billion euro.
Sales of watches and jewelry rose 5% to € 3.468 billion. The last year was the best in history for Hublot watches.
The sales of clothing and bags unit rose 3% and amounted to 12.775 billion euro.
In December, LVMH sold Donna Karan to American G-III, and also bought the German suitcase manufacturer Rimowa.
The company plans to increase its dividends by 13%, to 4 euro per share.
LVMH Moet Hennessy Louis Vuitton, controlled by the French billionaire Bernard Arnault, is the world's largest producer of luxury goods, including accessories (Louis Vuitton and Fendi), cognac, champagne (Moet & Chandon, Dom Perignon, Veuve Cliquot and Krug), watches (TAG Heuer , Hublot, Zenith), jewelry (Bulgari, Chaumet, Fred), clothing (Givenchy, Loewe, Marc Jacobs, etc.), perfumes and cosmetics (Christian Dior, Guerlain, Givenchy, Kenzo, Sephora store chain). The number of stores in the world exceeds 3800 and the number of employees is more than 120,000 people, 80% of whom work outside of France.