Moët Hennessy Sales Hit By China Destocking, But U.S. Remains “Dynamic”July 25, 2014
Moët Hennessy posted declines in sales and profits for the first half of this year, as difficult conditions in China’s drinks market continue to hinder luxury-end growth. The French company’s sales fell 7% on a reported basis (and 1% organically) to €1.7 billion ($2.3b) in the six months through June, while profit from recurring operations was down 15% to €461 million ($621m).
Destocking by distributors in China was blamed for holding down the performance of Hennessy Cognac during the period. But Moët Hennessy said its Champagne business had a good start to the year—with its prestige vintages expanding rapidly—and noted that while it sees “persistent uncertainty in Europe, the U.S. market continues to enjoy good dynamics.”Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.