LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, recorded 2006 profit from recurring operations of 3 172 million Euros, an increase of 16% over 2005's already strong performance.
Revenue rose to 15.3 billion Euros, showing organic growth of 12% to which all business groups and every region contributed. The Group's operating margin thus improved to reach 21% in 2006.
This performance is even more noteworthy in view of the strong negative impact of exchange rates which particularly affected the second half of 2006. At constant exchange rates, growth in profit from recurring operations increased by 19% in 2006.
The Group share of net profit increased by 30% in 2006, following growth of 21% in 2005. This increase is mainly attributable to the improvement in the Group's operating profitability and financial results.
Bernard Arnault, Chairman and CEO of LVMH, commented: "The excellent performance in 2006 illustrates the vitality of our major brands which continue to strengthen and gain market share. The year also confirmed the strong potential of our high growth rising star brands and the Group's leading position in emerging markets."
"LVMH has shown record revenue in 2006 and has once again improved its profitability. In a difficult currency environment at the beginning of this year, we will rely on the strength of our growth model, the exceptional innovation of our brands and the talent of our teams to make 2007 another year of strong growth."
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