LVMH cognac rebound in China

Luxury products group, Louis Vuitton Moet Hennessy (LVMH) has reported its wine and spirits division has made a strong return to growth in the first half of the year.

Following a poor first half in 2009, sales have recovered particularly in the Champagne sector. The wine and spirits group recorded revenue growth of 21% to 1.3 billion euro. Profits increased 35% to 326 million euro.

Champagne sales, particularly its prestige brands such as Dom Perignon and Krug rebounded after a dismal first half in 2009. The Cognac business, Hennessy, experienced strong momentum, particularly in China and the United States.

The entire group posted a 53% rise in profit to 1.05 billion euro.

Bernard Arnault, chairman and CEO of LVMH, said: "The 2010 first half results, once again, demonstrate the exceptional appeal of our brands as well as the effectiveness of our strategy, as pertinent in the context of a recovery in 2010 as it was during the global economic crisis in 2009."