Paris (AFP)

The global luxury giant LVMH had a new record year in 2019, garnering 53.7 billion euros in sales thanks to the success of its flagship brands Louis Vuitton and Christian Dior, but also to Chinese demand which is not weakening.

"I'm a bit repetitive, but it's still a record year," said CEO Bernard Arnault on Tuesday during the presentation of the group's annual results.

"Thanks to our teams, we managed to make a record in terms of turnover, we happily exceeded 50 billion, [a record] in operating profit. We have a very good financial situation, the cash flow significantly improves, "he said.

Last year, turnover increased by 15% in published data and by 10% in organic terms, reaching 53.7 billion euros, while net profit reached 7.17 billion euros (+ 13% over one year).

LVMH sales continue to be driven by the Asia region (excluding Japan), the group's first market where it achieved 30% of its total sales - compared to 29% the previous year - "despite a difficult context in Hong Kong the second half of 2019 ".

Revenues in this Asia zone increased by 14% over the full year, compared with + 11% for Europe, + 8% in Japan and 6% in the United States.

Asked about a possible impact of the coronavirus epidemic on the group's activity, Bernard Arnault estimated that it was still too early to answer precisely: "If it lasts two months, two and a half months, it will not be terrible . If it were to last two years, it would be a different story, "he said.

"When we ask our teams in China, they make several points to me: that apparently this virus is a little less aggressive than SARS, that the Chinese government reacts in an extremely strong way and we can say that their reaction will have very clear consequences on the fight against this epidemic ", underlined Mr. Arnault.

He added that his teams in China said "they had the impression that the peak of this epidemic should be reached in the coming weeks, and that perhaps it would be partly resolved during March or the end of March". "I'm not sure, I'm telling you what I hear," added Mr. Arnault.

- no interest in AC Milan -

In 2019, by sector of activity, the luxury goods giant remained supported by its flagship Fashion and Leather Goods division, whose sales jumped 17%, reaching 22.2 billion euros.

Louis Vuitton "has gone from success to success this year, and continues to be largely the first luxury brand in the world," said Bernard Arnault.

Second activity of the group, selective distribution (Sephora, DFS) sees its sales increase by 5%, to 14.7 billion euros, even if Duty Free Shops "faces in the second half of 2019 a slowdown in tourism in Hong Kong , which is an important market. "

As for Wines and Spirits, turnover increased by 6% to 5.5 billion euros. Mr. Arnault underlined "the very good development of champagne" and the fact that Hennessy cognac had "become the first + premium + spirit in the world", that is to say sold above 20 dollars, thus ahead of Jack Daniel's and Johnny Walker, two brands of whiskey.

For 2020, LVMH does not give quantified objectives, but indicates that "in a buoyant, but uncertain economy, [it would remain] vigilant and focused on [its] progress objectives". "We can count on the strength of our brands and the agility of our teams to further strengthen our lead in the world of high-quality products in 2020".

With the integration this summer of Tiffany, which LVMH has just bought for 16.2 billion dollars, the group of Bernard Arnault should further increase its turnover: the American jeweler has indeed achieved 4.4 billion dollars of sales in its last fiscal year.

In addition, Bernard Arnault wanted Tuesday to "deny, for the sixth or seventh time in six months, having the slightest conversation, and moreover the slightest operational interest, to buy this magnificent (football) club" that is Milan AC.

© 2020 AFP