LVMH reports 12% increase in organic growth in perfumes and cosmetics

11 Oct 2023 --- LVMH (Moët Hennessy Louis Vuitton) has released its financial report for the first nine months this year. It recorded organic revenue growth of 14% compared with the same period in 2022.

In the perfume and cosmetics sector, LVMH gained €5.57 million (US$5.91 million) in nine months last year and €6.02 million (US$6.38 million) in the same period this year with a reported 8% increase and 12% organic increase. 

LVMH says its organic increase was driven by its “powerful, innovative momentum,” which maintained its “highly selective distribution strategy.”

The perfume and cosmetics sector received the following in revenue in 2023: 

• The first quarter: €2.12 million (US$2.24 million).
• The second quarter: €1.91 million (US$2.03 million). 
• The year’s first half: €4.03 (US$4.27 million). 
• The third quarter: €1.99 (US$2.12 million). 

The perfume and cosmetics sector received the following in organic growth in 2023 compared to 2022: 

• The first quarter: +10%.
• The second quarter: +16%. 
• The year’s first half: +13%. 
• The third quarter: +9%. 

Personal care growth
Christian Dior extended its lead in its key markets. Fragrances saw “major” growth, carried by the success of women’s scents. 

LVMH’s Sephora will open a brick-and-mortar store in the UK.Miss Dior and J’adore were enriched with Francis Kurkdjian’s latest creation — L’Or de J’adore and the continued worldwide success of Sauvage. The Dior Addict makeup collection and Prestige in skin care also contributed to the Maison’s rapid growth.

Guerlain continued to grow, driven in particular by its popular Aqua Allegoria scents, premium fragrance collection l’Art et la Matière, and “excellent” response to its Terracotta Le Teint makeup. 

In perfumes, Givenchy’s fragrances saw “ongoing success.” Additionally, Benefit’s growth was driven by the successful launch of its new Fan Fest mascara and the popularity of Pore Care.

Sephora expansion
In selective retailing, organic revenue growth was 26% in the first nine months of 2023. Sephora performed “exceptionally well” and continued to gain market share, with solid momentum in North America, Europe and the Middle East.

Sephora’s distribution network continued to expand, particularly in the UK, where a second store is due to open soon, following its first store opening at the beginning of the year. 

Overall, for LVMH, after considering the negative 4% exchange rate impact, revenue for the group was up 10%. Europe, Japan and the rest of Asia achieved double-digit organic growth. In the third quarter, organic revenue growth came to 9%.

By Sabine Waldeck