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Record profits for luxury business

LVMH, the luxury goods maker behind the Glenmorangie and Ardbeg malts, has booked profit from recurring operations in excess of €6 billion (£5bn) for the first time.

The listed, Paris-based company saw profits rise by 2% came as its wine and spirits business booked a 9% rise in like for like profit to €1.37bn, helped by "rapid increases in volumes" of its flagship whisky brands.

LVMH's overall drinks business saw a 6% increase organic revenue growth to €4.19bn, with good momentum in Asia and the US countered by contrasting fortunes in Europe. It saw "sustained demand" for vintage Champagne and growth in Hennessy Cognac driven by the US market.

Organic revenue across the group rose by 8% to €29.2bn, boosted by what the firm said were exceptional profits from its Louis Vuitton leather products, the strength of Christian Dior perfumes and "excellent results" from Bulgari, its Italian watch, jewellery and leather goods business.

Bernard Arnault, chairman and chief executive, said: "2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets.

"A significant event was the acquisition of Loro Piana, famous for its unrivalled work with cashmere and rare textiles, with which we share the same values of family and craftsmanship. All our brands have proven to be exceptionally dynamic. Looking beyond their appeal, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy."

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