. Revenue
. Profit from recurring operations
. Both up 23%
. A strong social and economic footprint in
All business groups achieved significant organic revenue growth over the year (see table on page 3). Fashion & 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.
Highlights of 2022 include:
- A record year despite the geopolitical and economic situation,
- Significant revenue growth for all business groups and market share gains worldwide,
- Strong growth in business in
Europe ,Japan andthe United States , - Good growth in Champagne and
Cognac , based on a value creation strategy, - A remarkable performance by the Fashion & Leather Goods business group, notably Louis Vuitton, Christian Dior, Celine, Fendi,
Loro Piana , Loewe andMarc Jacobs , which are gaining market share globally and reaching record levels of revenue and earnings, - Louis Vuitton revenue surpassed
20 billion euros , for the first time, - Strong growth in perfumes. The continued global success of Dior’s Sauvage, once again world leader in 2022,
- Sustained creative momentum for all our Watches & Jewelry Maisons, in particular Tiffany, Bulgari and TAG Heuer,
- A remarkable rebound for
Sephora , which confirmed its place as world leader in the distribution of beauty products, - Operating investments of nearly €5 billion, mainly dedicated to the expansion of the store network, the development of production facilities and employment,
- Operating free cash flow of more than €10 billion.
- 39,000 young people recruited worldwide in 2022.
- In
France ,LVMH recruited more than 15,000 people in 2022, which makes the Group the leading private recruiter in the country. - In 2022,
LVMH invested nearly215 million euros in training its employees. - In
France , one job created directly byLVMH generates four for the French economy. That is equivalent to around 160,000 people working indirectly for the Group. - More than 500 stores and 110 manufacturing facilities and workshops located across
France . LVMH opens several manufacturing facilities each year inFrance , notably for Louis Vuitton.- Five billion in corporation taxes paid worldwide, almost half of which in
France . - More than
one billion euros invested inFrance each year. - On average over recent years, the total fiscal footprint (corporation tax + VAT + social charges) of
LVMH inFrance is more than4.5 billion euros per year. - The salaries of the group's employees are among the most competitive in their sector of activity.
- Most of our employees in
France benefit from profit-sharing, with an overall total for the group of400 million euros in 2022. LVMH has been recognized for its leadership in terms of transparency and performance in matters concerning the protection of the climate, forests and water by the CDP (Carbon Disclosure Project ), a global not-for-profit environmental organization and is now one of 12 companies in the world to have obtained a triple “A” rating out of more than 15,000 rated companies.
Key figures
Euro Millions | 2021 | 2022 | Change 2022/2021 |
Revenue | 64 215 | 79 184 | + 23 % |
Profit from recurring operations | 17 151 | 21 055 | + 23 % |
Group share of net profit | 12 036 | 14 084 | + 17 % |
Operating free cash flow | 13 531 | 10 113 | - 25% |
Net financial debt | 9 607 | 9 201 | - 4 % |
Total equity | 48 909 | 56 604 | + 16 % |
Revenue by business group:
Euro Millions | 2021 | 2022 | Change 2022/2021 Reported Organic* | |
5 974 | 7 099 | + 19 % | + 11 % | |
Fashion & Leather Goods | 30 896 | 38 648 | + 25 % | + 20 % |
Perfumes & Cosmetics | 6 608 | 7 722 | + 17 % | + 10 % |
Watches & Jewelry | 8 964 | 10 581 | + 18 % | + 12 % |
Selective Retailing | 11 754 | 14 852 | + 26 % | + 17 % |
Other activities and eliminations | 19 | 282 | - | - |
Total | 64 215 | 79 184 | + 23 % | + 17 % |
* with comparable structure and constant exchange rates. The structural impact for the Group was zero and the currency effect was +6 %.
Profit from recurring operations by business group:
Euro Millions | 2021 | 2022 | Change 2022/2021 |
1 863 | 2 155 | + 16 % | |
Fashion & Leather Goods | 12 842 | 15 709 | + 22 % |
Perfumes & Cosmetics | 684 | 660 | - 3 % |
Watches & Jewelry | 1 679 | 2 017 | + 20% |
Selective Retailing | 534 | 788 | + 48 % |
Other activities and eliminations | (451) | (274) | - |
Total | 17 151 | 21 055 | + 23 % |
The
Fashion & Leather Goods: exceptional performances by Louis Vuitton, Christian Dior, Celine, Fendi,
The Fashion & Leather Goods business group recorded revenue growth of 25% in 2022 (20% on an organic basis). Profit from recurring operations was up 22%. Louis Vuitton had an excellent year, again driven by its exceptional creativity, the quality of its products and its strong ties with art and culture. The women's ready-to-wear fashion shows created by Nicolas Ghesquière were extremely well-received. Many new products were unveiled in leather goods, jewelry and watches. Meanwhile, the new "LV Dream" exhibition in
Perfumes & Cosmetics: strong momentum in perfume and continued selective distribution
The Perfumes & Cosmetics business group recorded revenue growth of 17% in 2022 (10% on an organic basis). Profit from recurring operations was slightly down as a result of a very selective policy of distribution to assert itself in the prestige universe. Christian Dior enjoyed a remarkable performance, strengthening its lead. Sauvage confirmed its position as the world's leading perfume, while the iconic women's fragrances
Watches & Jewelry: rapid growth in jewelry and watches
The Watches & Jewelry business group recorded revenue growth of 18% in 2022 (12% on an organic basis). Profit from recurring operations was up 20%. Tiffany & Co. had a record year, driven by its increasing desirability. While its High Jewelry revenue doubled, the new Lock bracelet collection, rolled out in
Selective Retailing: excellent performance by
Selective Retailing revenue was up 26% in 2022 (17% on an organic basis). Profit from recurring operations was up 48%. With a strong rebound in activity in its stores,
Confidence in 2023
With the month of January having started well and despite an uncertain geopolitical and economic environment,
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,
Dividend 2022
At the General Meeting of
The Board of Directors met on
The regulated information related to this press release as well as the presentation of the annual results and the “Financial documents” report are available on the website www.lvmh.com.
Details of the webcast relating to the publication of the 2022 annual results are available at: https://www.lvmh.com/.
APPENDIX
Condensed consolidated accounts for 2022 are included in the PDF version of the press release.
2022 Revenue (Euro millions)
Year 2022 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | 1 638 | 9 123 | 1 905 | 2 338 | 3 040 | (41) | 18 003 |
Second quarter | 1 689 | 9 013 | 1 714 | 2 570 | 3 591 | 149 | 18 726 |
First half | 3 327 | 18 136 | 3 618 | 4 909 | 6 630 | 109 | 36 729 |
Third quarter | 1 899 | 9 687 | 1 959 | 2 666 | 3 465 | 79 | 19 755 |
First nine months | 5 226 | 27 823 | 5 577 | 7 575 | 10 095 | 189 | 56 485 |
Fourth quarter | 1 873 | 10 825 | 2 145 | 3 006 | 4 757 | 93 | 22 699 |
Total 2022 | 7 099 | 38 648 | 7 722 | 10 581 | 14 852 | 282 | 79 184 |
2022 Revenue (Organic change verses same period of 2021)
Year 2022 | Fashion & Leather Goods | Perfumes & Cosmetics | Watches & Jewelry | Selective retailing | Other activities and eliminations | Total | |
First quarter | + 2 % | + 30 % | + 17 % | + 19 % | + 24 % | - | + 23 % |
Second quarter | + 30% | + 19 % | + 8 % | + 13 % | + 20 % | - | + 19 % |
First half | + 14 % | + 24 % | + 13 % | + 16 % | + 22 % | - | + 21 % |
Third quarter | + 14 % | + 22 % | + 10 % | + 16 % | + 15 % | - | + 19 % |
First nine months | + 14 % | + 24 % | + 12 % | + 16 % | + 20 % | - | + 20 % |
Fourth quarter | + 4 % | + 10 % | + 5 % | + 3 % | + 12 % | - | + 9 % |
Total 2022 | + 11 % | + 20 % | + 10 % | + 12 % | + 17 % | - | + 17 % |
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 |
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 -
LVMH 2022 FY Results
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