Organic revenue growth of 36%
Of which Fashion & Leather Goods +47% (and 51% in Q4 vs 2019)
Doubled operating profit
The Group’s organic revenue growth of 22% in the fourth quarter compared to 2019 reflects the accelerated growth of its activities. Fashion & Leather Goods notably reached record levels over the period, recording organic revenue growth of 51% compared to 2019.
Profit from recurring operations stood at €17 151 million for 2021, more than double 2020, and up 49% compared to 2019. Operating margin reached 26.7%, up 8 points compared to 2020 and 5 points compared to 2019. Group share of net profit amounted to €12 036 million, up 156% compared to 2020 and up 68% compared to 2019. Operating free cash flow, which exceeded €13 billion, was more than twice that of both 2020 and 2019.
Highlights of 2021 include:
- A record year, especially for the major brands,
- Major success of champagne and cognac,
- Exceptional performance by the Fashion & Leather Goods business group, in particular Louis Vuitton, Christian Dior, Fendi, Celine and Loewe, which achieved record levels of revenue and profitability,
- Worldwide success of Christian Dior’s Sauvage fragrance,
- Strong revenue growth in
Asia andthe United States and a gradual recovery inEurope , - Successful integration, in its first year in the Group, of Tiffany, which produced a record performance,
- Good performance of the other Watches & Jewelry Maisons,
- Continued growth in online sales,
- Strong rebound of
Sephora , - Travel retail activities still held back by international travel,
- A record level of operating free cash flow,
- Gross capital expenditures over €3 billion.
Key figures
Euro Millions | 2020 | 2021 | Change 2021/2020 | Change 2021/2019 |
Revenue | 44 651 | 64 215 | + 44 % | + 20 % |
Profit from recurring operations | 8 305 | 17 151 | + 107 % | + 49 % |
Group share of net profit | 4 702 | 12 036 | + 156 % | + 68 % |
Operating free cash flow | 6 117 | 13 531 | + 121 % | + 119 % |
Net financial debt | 4 241 | 9 607 | + 127 % | + 54 % |
Total equity | 38 829 | 48 909 | + 26 % | + 27 % |
Revenue by business group:
Euro Millions | 2020 | 2021 | Change 2021/2020 Reported Organic* | Change 2021/2019 Organic | |
4 755 | 5 974 | + 26 % | + 26 % | + 9 % | |
Fashion & Leather Goods | 21 207 | 30 896 | + 46 % | + 47 % | + 42 % |
Perfumes & Cosmetics | 5 248 | 6 608 | + 26 % | + 27 % | - 1 % |
Watches & Jewelry | 3 356 | 8 964 | + 167 % | + 40 % | + 7 % |
Selective Retailing | 10 155 | 11 754 | + 16 % | + 18 % | - 18 % |
Other activities and eliminations | (70) | 19 | - | - | - |
Total | 44 651 | 64 215 | + 44 % | + 36 % | + 14 % |
* with comparable structure and constant exchange rates. The structural impact for the Group compared to 2020 was +10% mainly related to the consolidation of Tiffany & Co. for the first time. The currency effect was -2%.
Profit from recurring operations by business group:
Euro Millions | 2020 | 2021 | Change 2021/2020 | Change 2021/2019 |
1 388 | 1 863 | + 34 % | + 8 % | |
Fashion & Leather Goods | 7 188 | 12 842 | + 79 % | + 75 % |
Perfumes & Cosmetics | 80 | 684 | x 8.6 | 0 % |
Watches & Jewelry | 302 | 1 679* | x 5.6 | + 128 % |
Selective Retailing | (203) | 534 | na | - 62 % |
Other activities and eliminations | (450) | (451) | - | - |
Total | 8 305 | 17 151 | + 107 % | + 49 % |
* non-comparable structure.
Wines & Spirits: very strong demand in
The Wines & Spirits business group recorded organic revenue growth of 26% in 2021 compared to 2020 and 9% compared to 2019. Profit from recurring operations was up 34% compared to 2020. The rebound in consumption, in an environment which was already seeing supply constraints, brought further impetus to the strategy of value creation. Champagne volumes were up compared to 2019. Growth was particularly strong in
Fashion & Leather Goods: exceptional performances from Louis Vuitton, Christian Dior, Fendi, Celine and Loewe
The Fashion & Leather Goods business group recorded organic revenue growth of 47% in 2021 compared to 2020 and 42% compared to 2019. With organic revenue growth of 51% compared to 2019, the fourth quarter showed a sharp rise compared to previous quarters. Profit from recurring operations was up 79% compared to 2020 and 75% compared to 2019. The end of the year has been marked by the premature passing of
Perfumes & Cosmetics: policy of selective distribution maintained, strong rebound in perfumes and rapid progress in skincare
The Perfumes & Cosmetics business group recorded organic revenue growth of 27% in 2021 compared to 2020. Organic revenue was stable compared to 2019. Profit from recurring operations was nearly nine times higher than 2020 and returned to 2019 levels. In an environment marked by a limited recovery in international travel and the closure of many points of sale over a period of several months,
Watches & Jewelry: strong rebound in own stores and successful integration of Tiffany
The Watches & Jewelry business group recorded revenue growth of 167% in 2021 compared to 2020 thanks to Tiffany, consolidated for the first time. Profit from recurring operations was almost six times higher than in 2020 and up 128% compared to 2019. For its first year in the Group, Tiffany saw record performance in terms of revenue, profits and cash flow, and increased its global attractivity as a result of its high impact innovations and collaborations. High-end Jewelry sales in particular reached an all-time high with the huge success of its annual High-End Jewelry Blue Book collection. Honouring its long tradition of expressing love and diversity, a global “About Love” campaign featuring
Selective Retailing: good performance of
In Selective Retailing, organic revenue was up 18% compared to 2020 and down 18% compared to 2019 due to the impact of travel retail. Profit from recurring operations was back in positive territory in 2021.
Confident outlook for 2022
Within the context of a gradual recovery from the health crisis,
Driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across its activities and the geographic areas in which it operates,
Dividend 2021
At the Annual General Meeting on
The Board of Directors met on
The regulated information related to this press release as well as the presentation of annual results and the "Financial Documents" report are available on www.lvmh.com.
APPENDIX
Condensed consolidated accounts for 2021 are included in the PDF version of the press release.
2021 Revenue (Euro millions)
Year 2021 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | 1 510 | 6 738 | 1 550 | 1 883 | 2 337 | (59) | 13 959 |
Second quarter | 1 195 | 7 125 | 1 475 | 2 140 | 2 748 | 23 | 14 706 |
First half | 2 705 | 13 863 | 3 025 | 4 023 | 5 085 | (36) | 28 665 |
Third quarter | 1 546 | 7 452 | 1 642 | 2 137 | 2 710 | 25 | 15 512 |
First nine months | 4 251 | 21 315 | 4 668 | 6 160 | 7 795 | (12) | 44 177 |
Fourth quarter | 1 723 | 9 581 | 1 941 | 2 804 | 3 959 | 30 | 20 038 |
Total 2021 | 5 974 | 30 896 | 6 608 | 8 964 | 11 754 | 19 | 64 215 |
2021 Revenue (Organic change verses same period of 2020)
Year 2021 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | + 36 % | + 52 % | + 18 % | + 35 % | - 5 % | - | + 30 % |
Second quarter | + 55 % | x 2.2 | + 67 % | x 2.2 | + 31 % | - | + 84 % |
First half | + 44 % | + 81 % | + 37 % | + 71 % | + 12 % | - | + 53 % |
Third quarter | + 10 % | + 24 % | + 19 % | + 18 % | + 15 % | - | + 20 % |
First nine months | + 30 % | + 57 % | + 30 % | + 49 % | + 13 % | - | + 40 % |
Fourth quarter | + 18 % | + 28 % | + 20 % | + 21 % | + 30 % | - | + 27 % |
Total 2021 | + 26 % | + 47 % | + 27 % | + 40 % | + 18 % | - | + 36 % |
2021 Revenue (Organic change verses same period of 2019)
Year 2021 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | + 17 % | + 37 % | - 4 % | + 1 % | - 30 % | - | + 8 % |
Second quarter | + 7 % | + 40 % | - 1 % | + 9 % | - 19 % | - | + 14 % |
First half | + 12 % | + 38 % | - 3 % | + 5% | - 25 % | - | + 11 % |
Third quarter | + 7 % | + 38 % | 0 % | + 1 % | - 19 % | - | + 11 % |
First nine months | + 10 % | + 38 % | - 2 % | + 4 % | - 23 % | - | + 11 % |
Fourth quarter | + 4 % | + 51 % | + 1 % | + 18 % | - 5 % | - | + 22 % |
Total 2021 | + 9 % | + 42 % | - 1 % | + 7 % | - 18 % | - | + 14 % |
2020 Revenue (Euro millions)
Year 2020 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | 1 175 | 4 643 | 1 382 | 792 | 2 626 | (22) | 10 596 |
Second quarter | 810 | 3 346 | 922 | 527 | 2 218 | (26) | 7 797 |
First half | 1 985 | 7 989 | 2 304 | 1 319 | 4 844 | (48) | 18 393 |
Third quarter | 1 364 | 5 945 | 1 370 | 947 | 2 332 | (3) | 11 955 |
First nine months | 3 349 | 13 934 | 3 674 | 2 266 | 7 176 | (51) | 30 348 |
Fourth quarter | 1 406 | 7 273 | 1 574 | 1 090 | 2 979 | (19) | 14 303 |
Total 2020 | 4 755 | 21 207 | 5 248 | 3 356 | 10 155 | (70) | 44 651 |
2019 Revenue (Euro millions)
Year 2019 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | 1 349 | 5 111 | 1 687 | 1 046 | 3 510 | (165) | 12 538 |
Second quarter | 1 137 | 5 314 | 1 549 | 1 089 | 3 588 | (133) | 12 544 |
First half | 2 486 | 10 425 | 3 236 | 2 135 | 7 098 | (298) | 25 082 |
Third quarter | 1 433 | 5 448 | 1 676 | 1 126 | 3 457 | 176* | 13 316 |
First nine months | 3 919 | 15 873 | 4 912 | 3 261 | 10 555 | (122) | 38 398 |
Fourth quarter | 1 657 | 6 364 | 1 923 | 1 144 | 4 236 | (52) | 15 272 |
Total 2019 | 5 576 | 22 237 | 6 835 | 4 405 | 14 791 | (174) | 53 670 |
* Includes all Belmond revenue for the period from April to
Alternative performance measures
For the purposes of its financial communication, in addition to the accounting aggregates defined by the IAS/IFRS standards,
The table below lists these measures and the reference to their definition and their reconciliation with the aggregates defined by the IAS/IFRS in the published documents
Measures | Reference to published documents |
Operating free cash flow | FD (condensed consolidated financial statements, consolidated cash flow statement) |
Net financial debt | FD (Notes 1.23 and 19 of the appendix to the consolidated financial statements) |
Gearing | FD (Part 7, Comments on the Consolidated Balance Sheet) |
Organic growth | FD (Part 1, Comments on the Consolidated Income Statement) |
FD: Financial documents as at
“This document may contain certain forward looking statements which are based on estimations and forecasts. By their nature, these forward looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict, in particular those described in LVMH’s Universal Registration Document which is available on the website (www.lvmh.com). These forward looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward looking statements only reflect LVMH’s views as of the date of this document, and
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Attachment
- Press Release - 2021
LVMH Full Year results
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