(BFM Bourse) – The luxury giant had resisted the pandemic crisis rather well by limiting the drop in its net profit to 34% in 2020. And the rebound is spectacular in 2021: +156%, to more than 12 billion euros in profit.
The world leader in luxury goods recorded a turnover of 64.21 billion euros last year, up 44% compared to a 2020 financial year weighed down (-17%) by the health crisis. The increase amounts to +20% compared to 2019, to take a basis of comparison not affected by the pandemic.
Apart from a 167% rebound in the Watches & Jewelry branch, the most lagging division in 2020, it was once again Fashion & Leather Goods (including Louis Vuitton) which was the most dynamic, with sales expanding by 46% year-on-year (+47% in organic data) to 30.896 billion euros in revenue in 2021. Each of the other business groups delivered double-digit growth, i.e. +26% for Wines & Spirits as for Perfumes & Cosmetics, and +16% for Selective Retailing.
Current operating profit for the year, down 28% in 2020, rebounded 107% to 17.15 billion euros, corresponding to a current operating margin rate of 26.7% (it had fallen to 18 .6% in 2020, compared to 21.4% in 2019).
As for net income (group share), it amounted to 12 billion euros, up 156%.
Operating free cash flow exceeded €13 billion, more than twice that of 2020 and 2019.
“LVMH achieved a remarkable performance in 2021 in a context of gradual exit from the health crisis. The group’s record results could not have been achieved without the efficiency and exceptional ability to adapt of our teams, who were able to maintain the link with our customers despite the crisis and continue to make people dream”, commented Bernard Arnault. But 2021 “will also have been a tragic year for LVMH with the death of Virgil Abloh, whose creative genius I would like to salute. His immense visionary talent and his great wisdom will forever mark the history of our group”.
“Our objective of a solid financial performance and our relentless quest for excellence do not make us forget our daily commitment to act to make the world a better place. Many actions in favor of biodiversity, nature protection, preservation of know-how were thus carried out by the group and its Houses in 2021, and will continue in the years to come. with confidence and we are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market”, concluded the CEO, using the usual formula used by the group since it no longer communicates a quantified outlook.
Guillaume Bayre – ©2022 BFM Bourse
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