LVMH's revenue and market capitalization

  •   DEHOUI Lionel

The LVMH group is a major player in the luxury goods industry. On a global level, it is recognised as the number one in the luxury sector. The company has more than 150,000 employees worldwide. In 2021, its activity increased. This was due in part to the impact of the Covid-19 health crisis. Here are the highlights of the group's annual results.

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LVMH's revenue and market capitalization
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Overall annual performance of LVMH in 2021

For the full year 2021, the LVMH group's revenue will amount to 64.2 billion euros, compared to 44.7 billion euros in 2020. This is an increase of 44% over one year.

For the year 2021, the company generated a current operating profit of 17.5 billion euros, compared to 8.3 billion euros a year earlier. 8.3 billion a year earlier. This is an increase of 107% compared to 2020. Net income (group share) increased by 68% over 12 months to €12.04 billion in 2021, compared to €4.7 billion the previous year. This is a record in the history of the group. In 2021, the operating margin will be 26.7% compared to 18.6% in 2020.

 

Details of the annual results by group activity

The LVMH Group is organised around five (05) business segments. Here is the performance of each of them during the 2021 fiscal year.

 

Wines & Spirits

In 2021, sales for the Wines & Spirits business were 5.9 billion euros, compared to 4.7 billion euros in 2020. 4.7 billion in 2020, an increase of 25.53% (on a comparable basis) over one year. 1.9 billion in 2021, compared to 1.4 billion euros a year earlier. 1.4 billion a year earlier. It increased by 35.71% year-on-year.

In 2021, this segment experienced a strong recovery in the United States. In the United States, the Champagne business showed a clear improvement in trends and is second only to the Cognac business.

 

Fashion & Leather Goods

The Fashion & Leather Goods division proved resilient in 2021. It recorded total sales of 30.9 billion euros, compared to 21.2 billion euros in 2020. 21.2 billion in 2020. They increased by 45.7% (on a like-for-like basis) over one year.

There was a strong recovery in sales in Asia (excluding Japan). This was observed in the United States from July onwards. In addition, profit from recurring operations for this division increased by 77.8% over 12 months to 12.8 billion euros in 2021, compared to 7.2 billion euros a year earlier.

 

Perfumes and Cosmetics

During 2021, the Perfumes and Cosmetics business experienced rapid advances in online sales. In total, it recorded sales valued at 6.6 billion euros, compared to 5.2 billion euros in 2020. 5.2 billion in 2020. This represents a growth of 26.92% (on a like-for-like basis) over the one-year period.

The increase can also be seen in the current operating result. 80 million in the previous year. 80 million in the previous year, representing strong growth of 755% compared to 2020.

 

Watches & Jewellery

For the full twelve months of 2021, Watches & Jewellery recorded sales of 8.9 billion euros, compared to 3.3 billion euros in 2020. 3.3 billion in 2020. This represents a year-on-year increase of 169.7% (on a like-for-like basis). However, the largest sales were recorded in Asia (excluding Japan).

During the year 2021, the current operating profit of this business line reached 1.68 billion euros. It increased by 460% compared to 2020 (302 million euros).

 

Selective Retailing

During the year 2021, the Selective Retailing business showed good resilience. For the full year 2021, this division's sales amounted to 11.7 billion euros, compared to 10.1 billion euros in 2020. 10.1 billion in 2020. They increased by 15.84% over one year (on a like-for-like basis). 230 million the previous year, an increase of 163%. 230 million the previous year, an increase of 163%. Operating investments are down for this division. In 2021, operating investments will represent 370 million euros compared to 410 million euros in 2020.

The other activities of the LVMH group brought in 19 million dollars in 2021 compared to 70 million dollars in 2020.

 

Financial situation at the end of 2021 for LVMH

At the end of 2021, the LVMH group has a strengthened financial structure. Free cash flow from operations increased by 121% to 13.53 billion euros at the end of December 2021, compared to 6.11 billion euros a year earlier.

The company's net financial debt at 31 December 2021 was €9.6 billion, compared to €4.2 billion at the same time last year. At the end of 2021, the company's cash flow is estimated at €22.6 billion, compared with €13.9 billion at the end of December 2020. This marks a growth of 8.6 billion dollars.

The group's equity increased by 26.03% to €48.9 billion at 31 December 2021, compared to €38.8 billion at year-end 2020.

 

LVMH dividend and market capitalisation in 2021

At the Annual General Meeting of Shareholders held on April 21, 2021, the Board of Directors of the LVMH Group proposed the payment of a dividend of 10 euros per share for the 2021 fiscal year, compared to 6 euros per share in 2020. Taking into account an interim dividend of 3 euros paid on December 2, 2021, the balance of 7 euros was paid on April 28, 2022. The payout ratio is therefore 42% in 2021 compared to 64% for the financial year 2020.

In addition, the LVMH share is listed on the Paris Stock Exchange. It is part of the CAC 40 stock market index. As of April 2022, the company's market capitalisation is estimated at 323 billion euros.

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