- First quarter sales increase 3% to EUR1.69bn [US$1.85bn]
- ‘Cognac & Spirits’ division down 5% in three months to end of March to EUR899m
- ‘Champagne & Wines’ climbs 14%, sales hit EUR796m
Moët Hennessy has started this year as it finished the last, with a low single-digit lift in quarterly sales.
The wine and spirits division of LVMH saw its top line come in up 3% during the three months to the end of March. In January, the Hennessy Cognac owner delivered a rise of 4% in the closing quarter of 2022, with its ‘Champagne & wines’ unit outperforming ‘Cognac & spirits’.
The disparity between the two divisions continued into Q1: a double-digit sales increase for the former contrasted with 'Cognac & Spirits', which closed the three months down 5% on the corresponding period last year. While "continued robust progress" was observed for the combined Champagne and wine portfolio, assisted also by the ongoing benefit felt by pricing, the Hennessy brand was negatively impacted by the "softer" economic environment in the US. The admission mirrors recent figures from the US Control States that showed 'Brandy & Cognac' as the worst-performing spirits segment in February.
On the plus side, demand for spirits in China is "gradually recovering", according to the company, for whom the country is a key market for Hennessy.
In a subsequent presentation, Moët, which is 35%-owned by Diageo, singled out vodka brand Belvedere and Glenmorangie single malt for displaying "solid momentum" in the quarter, although numbers were not disclosed.
Earlier this year, the group acquired majority control of rosé producer Château Minuty in the south of France.
Moët Hennessy's official Q1 results announcement.
Group presentation on recent performance.
How premium brown spirits can ride out the macroeconomic storm – Category Intel
