Moët Hennessy Posts 6% Sales Growth In Fiscal First HalfJuly 26, 2019
Moët Hennessy saw revenues climb 6% to €2.5 billion ($2.79b) on an organic basis in the six months through June, representing the first half of its fiscal year. Operating profit also increased by 6%, reaching €772 million ($861m).
The French luxury group said momentum was particularly strong in the U.S. and Asia in the first half, with price increases and prestige variants driving growth in its Champagne unit, which includes Moët & Chandon, Veuve Clicquot, Dom Pérignon, and Ruinart, among others. Despite capacity constraints, the company said Hennessy Cognac also recorded solid gains during the period, and it flagged the potential of its recent acquisition, Côtes de Provence wine brand Château du Galoupet, as it begins to compete in the thriving upscale rosé segment.
Moët Hennessy CEO Philippe Schaus recently told SND that the group is making moves to alleviate the shortage that’s been hampering Hennessy’s growth. “We’ve been able to convince the Bureau National Interprofessionel du Cognac (BNIC) to increase Cognac’s planting area for the first time in many years,” he said. “Last year, the 75,000-hectare total planting area was expanded by 1,500 hectares, and this year we’ll see an increase of 3,000 hectares. We want to continue expanding next year, because Cognac producers are confident there will be enough demand to support it.”Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.