LVMH Net Profit Up 12% in 2012

PARIS — LVMH Moët Hennessy Louis Vuitton said net profit rose 12 percent in 2012, as revenues were boosted by a slight acceleration in sales growth in the fourth quarter despite a challenging economic context.

The French luxury giant said net profit rose to 3.4 billion euros, or $4.40 billion, in 2012 as a whole, compared with 3.1 billion euros, or $4.26 billion, in 2011.

In the fourth quarter, sales advanced 12 percent to 8.2 billion euros, or $10.68 billion, versus 7.4 billion euros, or $9.92 billion, in the year-ago period. Dollar figures are converted from euros at average exchange rates for the periods to which they refer.

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In organic terms, revenue growth stood at 8 percent, compared with a 6 percent increase in the third quarter.

LVMH chairman and chief executive Bernard Arnault said “2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe."

The company said it expected another healthy performance in 2013. “Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2013,” it said.

The figures come on the heels of other company results suggesting the Asian growth locomotive is running out of steam. Last week, Compagnie Financière Richemont reported a slowdown in sales growth in its fiscal third quarter, saying sales in the Asia-Pacific region were flat year-on-year on a constant currency basis.

In the year ending Dec. 31, revenues for LVMH, the parent of brands including Bulgari, Guerlain, Givenchy, Sephora and Dom Perignon, rose 19 percent to 28.1 billion euros, or $36.13 billion, from 23.7 billion euros, or $32.94 billion, in 2011.