EXECUTIVE AND SUPERVISORY BODIES; STATUTORY AUDITORS AS OF JUNE 30, 2024

FINANCIAL HIGHLIGHTS

HIGHLIGHTS

Highlights of the first half of 2024 included the following:

●   Continued organic revenue growth.

●   Substantial negative impact of exchange rate fluctuations, particularly on Fashion and Leather Goods.

●   Growth in revenue in Europe and the United States, exceptional growth in Japan arising in particular from purchases made by Chinese travelers.

●   Performance of Wines and Spirits reflecting the ongoing normalization of demand that began in 2023.

●   Good resilience in Fashion and Leather Goods, which saw its operating margin remain at an exceptional level, especially for flagship brands Louis Vuitton and Christian Dior.

●   Rapid growth in fragrances and makeup, and ongoing success of our Maisons’ iconic lines.

●   Powerful creative momentum at all the Watches and Jewelry Maisons, and sustained investments in communications and in renovating stores.

●   Exceptional performance by Sephora, which consolidated its position as world leader in beauty retail.

●   Significant increase in operating free cash flow, which came to more than 3 billion euros.

SHARE CAPITAL AND VOTING RIGHTS

(a)  Voting rights that may be exercised at Shareholders’ Meetings.

(b)  Including 597,202 treasury shares, i.e. 0.12% of the share capital.

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1.     Comments on the consolidated income statement

1.1         Breakdown of revenue

Change in revenue per quarter (EUR millions and as %)

(a)  The principles used to determine the impact of exchange rate fluctuations on the revenue of entities reporting in foreign currencies and the impact of changes in the scope of consolidation are described on page 9.

(b)  Negligible effect in the first half of 2024.

Consolidated revenue for the period ended June 30, 2024 was 41,677 million euros, down 1% from the first half of 2023. It was adversely affected by 3 points as a result of many of the Group’s invoicing currencies weakening on average against the euro, in particular the Chinese renminbi and the Japanese yen.

The following changes to the Group’s consolidation scope took place after January 1, 2023: in the Wines and Spirits business group, the consolidation of Château Minuty in February 2023; in the Watches and Jewelry business group, the consolidation of Pedemonte in March 2024; in the Selective Retailing business group, the disposal of Starboard in December 2023. These changes in the scope of consolidation had a negligible effect on the Group’s half-year revenue growth.

On a constant consolidation scope and currency basis, revenue increased by 2%.

Revenue by invoicing currency

The breakdown of revenue by invoicing currency changed as follows with respect to the first half of 2023: the contribution of the Japanese yen rose by 2 points to 9%; the contributions of the euro and the US dollar rose by 1 point each to 20% and 28%, respectively; the contribution of the Hong Kong dollar remained stable at 3%, while that of “Other currencies” fell by 4 points to 40%.

Revenue by geographic region of delivery

By geographic region of delivery, the relative contribution of Japan to Group revenue rose by 2 points to 9%, and the contributions of Europe (excluding France) and the United States rose by 1 point each to 16% and 25%, respectively. The relative contributions of France and “Other markets” remained stable at 8% and 12%, respectively, while that of Asia (excluding Japan) fell 4 points to 30%.

Revenue by business group

The breakdown of Group revenue by business group changed as follows: the contribution of Watches and Jewelry fell 1 point to 12%, while that of Selective Retailing increased by 1 point to 21%. The contributions made by Wines and Spirits, Fashion and Leather Goods, and Perfumes and Cosmetics held steady at 7%, 50% and 10%, respectively.

Revenue for Wines and Spirits decreased by 12% based on published figures. Affected by a negative 4-point exchange rate impact, which was partially offset by the impact of changes in scope arising from the consolidation of Château Minuty, revenue for this business group was down 9% on a constant consolidation scope and currency basis. Revenue from champagne and wines decreased 12% based on published figures and 8% on a constant consolidation scope and currency basis; revenue from cognac and spirits was down 12% based on published figures and 10% on a constant consolidation scope and currency basis. Europe, the United States and China were the regions most affected by lower consumer demand.

Revenue for Fashion and Leather Goods increased by 1% in terms of organic growth but decreased by 2% based on published figures. Japan delivered an excellent performance and Europe posted slight growth, while revenue declined in the United States and Asia (excluding Japan). Loewe, Loro Piana and Rimowa achieved outstanding results.

Revenue for Perfumes and Cosmetics increased by 6% in terms of organic growth and by 3% based on published figures. Japan was the country where revenue increased the most.

Revenue for Watches and Jewelry decreased by 3% in terms of organic growth and by 5% based on published figures. The most buoyant regions were Japan, France and the Middle East.

Revenue for Selective Retailing increased by 8% in terms of organic growth and by 3% based on published figures. Sephora turned in an excellent performance in most regions, particularly in Europe, the United States and the Middle East.

1.2         Profit from recurring operations

The Group’s gross margin came to 28,693 million euros, down 2% compared to the first half of 2023; as a percentage of revenue, the gross margin was 68.8%, down 0.6 points with respect to 2023.

Marketing and selling expenses totaled 14,999 million euros, up 1% based on published figures and up 4% on a constant consolidation scope and currency basis. The level of these expenses expressed as a percentage of revenue came to 36.0%, up 0.7 points with respect to the first half of 2023.

This increase in marketing and selling expenses was mainly due to the development of retail networks. Among these marketing and selling expenses, advertising and promotion expenses amounted to 11% of revenue, decreasing by 4% on a constant consolidation scope and currency basis.

The geographic breakdown of stores is as follows:

General and administrative expenses totaled 3,035 million euros, up 8% based on published figures and 9% on a constant consolidation scope and currency basis. They amounted to 7.3% of revenue.

Profit from recurring operations by business group

The Group’s profit from recurring operations was 10,653 million euros, down 8% from June 30, 2023. The Group’s operating margin as a percentage of revenue was 25.6%, down 1.8 points with respect to the first half of 2023.

Change in profit from recurring operations (EUR millions)

(a)  The principles used to determine the impact of exchange rate fluctuations on the profit from recurring operations of entities reporting in foreign currencies and the impact of changes in the scope of consolidation are described on page 9.

Exchange rate fluctuations had a negative overall impact of 607 million euros on profit from recurring operations compared to the first half of 2023. This total comprises the following three items: (i) the impact of exchange rate fluctuations on export and import sales and purchases by Group companies, (ii) the change in the net impact of the Group’s policy of hedging its commercial exposure to various currencies, and (iii) the impact of exchange rate fluctuations on the consolidation of profit from recurring operations of subsidiaries outside the eurozone.

Wines and Spirits

Profit from recurring operations for Wines and Spirits was 777 million euros, down 26% relative to the first half of 2023. Champagne and wines contributed 351 million euros, while cognac and spirits accounted for 426 million euros. The business group’s operating margin as a percentage of revenue came to 27.7%.

Fashion and Leather Goods

Fashion and Leather Goods posted profit from recurring operations of 8,058 million euros, down 6% compared with the first half of 2023. Louis Vuitton and Christian Dior Couture maintained an exceptional level of profitability. The business group’s operating margin as a percentage of revenue was 38.8%.

Perfumes and Cosmetics

Profit from recurring operations for Perfumes and Cosmetics remained stable with regard to the first half of 2023, coming in at 445 million euros. The business group’s operating margin as a percentage of revenue was 10.8%.

Watches and Jewelry

Profit from recurring operations for Watches and Jewelry was 877 million euros, down 19% relative to the first half of 2023. The business group’s operating margin as a percentage of revenue was 17.0%.

Selective Retailing

Profit from recurring operations for Selective Retailing was 785 million euros, up 7% relative to June 30, 2023, reflecting the very good performance achieved by Sephora worldwide. The business group’s operating margin as a percentage of revenue was 9.1%.

Other activities

The loss from recurring operations of “Other activities and eliminations” was 289 million euros, compared with a loss of 303 million euros as of June 30, 2023. In addition to headquarters expenses, this heading includes the results of the hotel and media divisions, Royal Van Lent yachts, and the Group’s real estate activities.

1.3         Other income statement items

“Other operating income and expenses” amounted to a net expense of 29 million euros, compared with 10 million euros in the first half of 2023. As of June 30, 2024, this item mainly included depreciation, amortization and impairment charges for brands, goodwill and investments in joint ventures and associates, as well as transaction costs generated by the acquisition of consolidated companies.

The Group’s operating profit was 10,624 million euros, down 8% from the first half of 2023.

“Net financial income/(expense)” amounted to a net expense of 255 million euros as of June 30, 2024, compared with net income of 467 million euros as of June 30, 2023. This item comprised the following:

●   the aggregate cost of net financial debt, which was a cost of 235 million euros, versus 171 million euros as of June 30, 2023, representing a negative change of 64 million euros, mainly due to the increase in interest rates;

●   interest on lease liabilities recognized under IFRS 16, which increased in particular due to the change in interest rates, amounting to an expense of 241 million euros, compared with an expense of 160 million euros a year earlier;

●   other financial income and expenses, which amounted to net income of 221 million euros, compared to income of 798 million euros as of end-June 2023. Included in this amount was the expense related to the cost of foreign exchange derivatives, 177 million euros, versus an expense of 179 million euros a year earlier. In addition, fair value adjustments of available for sale financial assets amounted to net income of 421 million euros, compared to net income of 1,000 million euros in the first half of 2023.

The Group’s effective tax rate in the first half of 2024 was 27.0%, up 1.0 point from its level in the first half of 2023. It included in particular the implementation, starting in 2024, of the global minimum tax, known as Pillar Two.

Profit attributable to minority interests totaled 297 million euros, compared to 421 million euros in the first half of 2023; this total mainly includes profit attributable to minority interests in Moët Hennessy.

The Group’s share of net profit was 7,267 million euros, down 14% relative to the first half of 2023, when it totaled 8,481 million euros. This represented 17.4% of revenue.

The impact of exchange rate fluctuations is determined by translating the financial statements for the fiscal year of entities with a functional currency other than the euro at the prior fiscal year’s exchange rates, without any other restatements.

The impact of changes in the scope of consolidation is determined as follows:

-   for the fiscal year’s acquisitions, by deducting from revenue for the fiscal year the amount of revenue generated during that fiscal year by the acquired entities, as of their initial consolidation;

-   for the prior fiscal year’s acquisitions, by deducting from revenue for the fiscal year the amount of revenue generated over the months during which the acquired entities were not consolidated in the prior fiscal year;

-   for the fiscal year’s disposals, by adding to revenue for the fiscal year the amount of revenue generated by the divested entities in the prior fiscal year over the months during which those entities were no longer consolidated in the current fiscal year;

-   for the prior fiscal year’s disposals, by adding to revenue for the fiscal year the amount of revenue generated in the prior fiscal year by the divested entities.

Profit from recurring operations is restated in accordance with the same principles.

2.     Wines and Spirits

Highlights

Amid an overall downturn in consumer spending, retailer destocking and an unfavorable market environment in China, the normalization of demand that began in 2023 continued throughout the first half of 2024. LVMH’s Maisons drew on the strength of their retail networks and on proactive sales strategies to win market share and consolidate their leadership in cognac, champagne and Provence rosé wines. They also continued to manage costs while pursuing growth opportunities and enhancing the desirability of their brands.

Despite falling in the first half of the year, champagne volumes remained above pre-pandemic levels. Moët & Chandon continued with the international rollout of its Collection Impériale prestige cuvée and offered a limited “France” edition of its Impérial Brut in the colors of the French flag. As part of its Natura Nostra sustainable farming program, the Maison inaugurated a conservatory of regional grape varieties in response to the challenges posed by climate change. Dom Pérignon saw fresh momentum in its most exclusive product lines and strengthened its ties with the fine-dining segment while continuing its creative collaboration with Lady Gaga. Sales of Armand de Brignac declined in the United States but remained buoyant in Japan. Veuve Clicquot stepped up its brand elevation strategy, rolling out its “Solaire Culture” program, and offered new ways to enjoy its products with the relaunch of its Rich cuvée and its Sun Club terraces all over the world. Krug unveiled Krug Grande Cuvée 172^e Édition, Krug Rosé 28^e Édition and Krug 2011, and celebrated the 10th anniversary of its Single Ingredient program with a focus on flowers. Ruinart continued to enhance the desirability of its Blanc de Blancs cuvée through its partnership with six artists from a diverse range of origins and cultures on the theme of “conversations with nature”, as well as the success of its innovative new Blanc Singulier cuvée, which reflects changing climate conditions.

The Estates & Wines Maisons expanded their presence across all regions. Joseph Phelps ramped up its development outside the United States. In the Provence rosé wines category, which continued to grow, Moët Hennessy strengthened its leadership position thanks to gains made by Château d’Esclans, Minuty (consolidated for the first time in the interim financial statements) and Château Galoupet. Terrazas de los Andes (Argentina) was very highly rated by critics, a ringing endorsement of the strategic choices made to develop the profile of its wines. Cloudy Bay consolidated its leading position in New Zealand Sauvignon Blanc wines.

First-half revenue for Hennessy cognac was adversely affected by weak local demand in the Chinese market. In the United States, the recovery that began in late 2023 was confirmed in 2024, with the Maison gaining market share. The launch of the new “Made for More” campaign, to be fully rolled out in the second half of the year, should give this upturn a further boost. The Asia-Pacific and Latin America regions experienced strong growth, buoyed by the expansion of local distribution hubs. Hennessy stepped up its commitment to sustainability through a new sustainable winegrowing model, “Living Landscapes”, drawing on agroforestry and biodiversity. The program is the first ever to bring together the wine trading Maisons in a joint effort to revitalize the winegrowing landscape in the Cognac region.

Glenmorangie launched a new No-Age-Statement (NAS) whisky, Triple Cask Reserve, which took home awards at the 2024 San Francisco World Spirits Competition. Another winner in that same competition, Ardbeg, once again won the award for the Best Scotch Islay Single Malt for Ardbeg 25 Years Old at the World Whiskies Awards. Belvedere benefited from the ongoing success of its Belvedere 10 luxury vodka, backed by a campaign featuring rapper Future. A four-time winner at the ASCOT Awards, Woodinville is now available throughout the United States. Volcán de mi Tierra launched its Blanco Tahona prestige tequila. Eminente rum experienced strong growth in Europe, buoyed in France by its first advertising campaign.

Outlook

2024 looks set to be a year of consolidation amid cautious management of inventory levels among distributors. Confident in its Maisons’ leadership positions, the Wines and Spirits business group will continue to pursue its strategy of winning market share while continuing to carefully manage costs. Brand visibility remains a key priority in seizing growth opportunities: following strong brand activation in connection with the Paris 2024 Olympic and Paralympic Games, the Maisons will continue to raise their profiles in the run-up to the year-end. Moët Hennessy will continue to showcase the environmental and social commitments pursued through its “Living Soils Together” program, whose efforts have helped significantly reduce carbon emissions and expand the use of regenerative agriculture practices across all vineyards. The second World Living Soils Forum is scheduled to be held in Arles this October.

3.     Fashion and Leather Goods

Highlights

The Fashion and Leather Goods Maisons drew on the vibrant appeal of their iconic collections. Driven by a desire to offer their customers exceptional products and experiences, they continued to pursue creativity, masterful craftsmanship and retail excellence.

Louis Vuitton had a good start to the year, once again driven by its creativity, its cultural dimension, the quality of its products and its boundless capacity for innovation in the world of travel – a core part of its identity. Nicolas Ghesquière’s Fall/Winter fashion show was the opportunity to celebrate ten years of his visionary designs at the Maison. Following his Voyager show in Shanghai in April, he chose Barcelona’s Park Güell for the 2025 Cruise collection, infusing his creative universe with Spanish influences. For his second Men’s fashion show at the Jardin d’Acclimatation in Paris, Pharrell Williams took guests on a journey into the American West. His Spring/Summer 2025 collection, entitled “The World is Yours”, was unveiled at UNESCO’s headquarters in Paris, an ideal setting to celebrate the Maison’s spirit of travel. Many new designs were unveiled in leather goods, including the Low Key bag and the Speedy P9 in fresh colors, which enjoyed considerable success. In jewelry, the LV Diamonds collection introduced an innovative cut in the shape of the Monogram flower and extended the Maison’s commitment to sustainable practices by ensuring that every diamond is fully traceable. For its 10th anniversary, the Escale watch released its first three-hand model, combining exceptional craftsmanship with the Maison’s distinctive trunk-making design codes. The Maison unveiled the latest chapter of its iconic Core Values campaign, featuring tennis champions Roger Federer and Rafael Nadal.

Christian Dior continued to show remarkable creative momentum, driven by the desirability of its designers’ new collections, whose fashion shows attracted a record number of viewers. At the Brooklyn Museum, Maria Grazia Chiuri retraced the origins of Dior ready-to-wear, drawing inspiration from the 1967 Miss Dior collection. Her 2025 Cruise show at Drummond Castle in Scotland showcased a collection inspired by Scottish craft traditions and the iconic figure of Mary Stuart. Kim Jones unveiled a tailored men’s collection and designed the Dior Gravity leather goods line, crafted using a unique embossing technique that delicately marks the leather with the aid of gravity. Victoire de Castellane’s high jewelry designs received a remarkable welcome, especially the enchanting Diorama and Diorigami collections, presented in Florence in May. Reflecting the Maison’s prestige, The New Look – a TV series that premiered on February 14 to coincide with the anniversary of Monsieur Dior’s first fashion show in 1947 – retraced the founder’s rise to prominence in 1940s Paris. Lastly, a major highlight in retail was the opening of an exceptional store in Geneva, designed by Christian de Portzamparc.

Celine continued to enhance its desirability through the success of its ready-to-wear and Triomphe leather goods lines, as well as the burgeoning popularity of its accessories. The Maison’s new Women’s collection – La Collection de l’Arc de Triomphe – paid tribute to its Triomphe logo and the aesthetics of the 1960s. The Men’s fashion show, entitled Symphonie Fantastique, was filmed in the Mojave Desert.

Fendi launched the Pequin line, reinterpreting the Maison’s signature stripe, along with a collection of seven exclusive fragrances that evoke the Fendi family’s history and passion for exquisite materials.

Loro Piana’s momentum was driven by the success of its collections and its exceptional materials. Highlights included the strong performance of the Resort 2024 line and its Icons products, particularly the Spagna jacket, as well as the launch of the Into the Wild capsule dedicated to outdoor wear. The Maison continued to focus on the growth of its rapidly expanding leather goods division, establishing it as a cornerstone of its development strategy.

Growth at Loewe was driven by the combination of JW Anderson’s bold creativity and the Maison’s exceptional craftsmanship. The Maison held its first exhibition in Shanghai, Crafted World, celebrating its heritage, Spanish roots and commitment to craftsmanship.

Marc Jacobs celebrated its 40th anniversary. To mark the occasion, the Maison brought together friends from past and present for collaborations that revisited the brand’s iconic looks and styles.

In March, Givenchy presented a collection inspired by the style of its founder Hubert de Givenchy’s muses. In leather goods, the Antigona Cube bag was launched, featuring a versatile origami-inspired design.

The show for Kenzo’s Spring/Summer 2025 collection was held in the gardens of the Palais-Royal in Paris, featuring updated takes on traditional cuts and looks inspired by archive pieces.

Berluti’s growth was driven by the success of its ready-to-wear and footwear lines, featuring new collections and signature models. The iconic Fast Track sneaker returned to the spotlight with an innovation that added unique comfort to its distinctive design.

Rimowa continued to expand across all regions. The Maison’s success was driven in particular by the popularity of its new color options for Essential suitcases, new collaborations and the revival of its historic Hammerschlag line with a limited edition in hammered aluminum. The new “Engineered for Life” marketing campaign was launched, emphasizing the lifetime guarantee offered on all suitcases and their repairability.

In April, Pucci released its Very Vivara collection, a tribute to the Maison’s creative heritage inspired by its distinctive Vivara pattern, launched in 1965.

Outlook

As the Fashion and Leather Goods Maisons approach the future, their ambition remains unchanged: to further elevate their desirability and press ahead with their strategy of responsible growth. Louis Vuitton will focus its attention over the months ahead on its ongoing quest for perfection in all its professions. The Maison will continue to revisit its iconic product lines rooted in the art of travel and pursue the quality-driven development of its store network. Illustrating Louis Vuitton’s long history as a master trunk-maker, the unique trunks crafted at its Asnières workshops will house the medals and torches for the Paris 2024 Olympic and Paralympic Games, adding to the long line of trophy cases crafted since 1988 for the world’s most prestigious sports competitions. For the 37th America’s Cup sailing competition, which starts in August in Barcelona, Louis Vuitton will return as Title Partner and organizer of the Louis Vuitton Cup qualifying regattas. Exciting initiatives will help drive Christian Dior’s growth. Its designers will continue to pay tribute to the Maison’s elegance and signature looks. The Dioriviera collection, which has successfully expanded year after year, will be available throughout the summer at the world’s most sought-after locations. A number of events and store openings will take place in the coming months. Celine will focus on expanding its stores and elevating the brand while maintaining its unique spirit of casual sophistication. Fendi will open a flagship store in the Miami Design District and inaugurate its first location in Vietnam. The new Peekaboo Soft bag will be one of the key launches in the second half of the year. Loro Piana will launch a Loro Denim capsule collection as a tribute to Japanese denim – a material of exceptional quality woven on antique looms – and will continue to expand its range of leather goods. The Maison’s 100th anniversary will be celebrated with an exhibition in Shanghai. Loewe will continue to expand its store network with major new openings in the United States and Europe. A new Casa Loewe store will open in Seoul in July. Marc Jacobs will focus on expanding its network of directly operated stores in the United States and growing its online sales. Berluti will be outfitting Team France for the opening ceremonies of the Paris 2024 Olympic and Paralympic Games. In the United States and South Korea, Rimowa will roll out its Re-Crafted program, which aims to extend the lifespan of aluminum luggage through reuse, repair and recycling initiatives.

4.     Perfumes and Cosmetics

Highlights

Growth in the Perfumes and Cosmetics business group was driven by powerful innovative momentum combined with a firmly selective retail strategy, in a highly competitive market environment.

Parfums Christian Dior turned in a solid performance, consolidating its leadership in its strategic markets, particularly Japan, Europe and the Middle East, and continuing to strengthen its positions in key markets such as South Korea and the United States. The Maison maintained a highly selective, quality-focused approach to its travel retail presence. Men’s fragrance Sauvage confirmed its global leadership, while iconic women’s fragrances J’adore and Miss Dior saw ongoing success, backed by a robust innovation strategy. The period’s achievements included the remarkable performance of the new Miss Dior Parfum edition – a contemporary reinterpretation of the legendary fragrance – since its launch at the beginning of the year. La Collection Privée Christian Dior will add a new scent – New Look – and continue elevating its position in the world of high perfumery. Makeup also contributed to the Maison’s strong results, particularly through its flagship lines, Dior Addict and Forever (Glow Maximizer and Star Filter), and the relaunch of Rouge Dior. Skincare turned in a solid performance in Asia in the premium segment with its Prestige and Capture lines. The Maison continued its sustainability initiatives, guided by its new purpose: “Making the world a happier, more beautiful place”. These initiatives focused in particular on women’s empowerment and biodiversity protection, implementing regenerative agriculture techniques for the flowers and plants grown to produce its fragrances, and rewilding large natural habitats in collaboration with its new partner, WWF.

Guerlain was buoyed by the strong performance of its fragrance innovations: Néroli Plein Sud, a travel-infused scent inspired by the works of Saint-Exupéry, joined its L’Art & La Matière premium fragrance collection, while the Aqua Allegoria collection was enriched with Florabloom, a unique floral bouquet. Skincare grew with innovative additions to the Orchidée Impériale and Abeille Royale lines, as well as new spas opened at hotels including the Beau Rivage in Lausanne and the Rosewood in São Paulo. Growth in makeup was fueled by the new Terracotta Blush and Concealer and by the success of KissKiss Bee Glow Oil tinted lip oil. Guerlain reaffirmed its commitment to biodiversity and bees – the Maison’s emblem – as well as its support for the arts. The Champs-Élysées store presented Or Norme, a gold-themed exhibition in celebration of the Olympic Games.

Parfums Givenchy saw further growth driven by fragrances, in particular L’Interdit, which continued to gain market share. Growth in makeup was fueled by foundation products in the lead-up to the relaunch of its iconic Poudre Libre. Benefit confirmed its leadership position in brow beauty, expanding its Precisely, My Brow collection, and added new shades to its best-selling BADgal Bang! mascara. Reaffirming its unique positioning as a sensory skincare brand, Fresh focused its marketing initiatives on its iconic products: Kombucha, Rose Face Cream, and Crème Ancienne. Make Up For Ever launched its Hydra Glow foundation, rounding out its HD Skin range launched in 2022. The return of its iconic HD Skin Face Essentials palette was another half-year highlight. Kenzo Parfums benefited from the success of the new Ikebana Eau de Parfum and Ikebana Mimosa additions to its Flower by Kenzo line. Maison Francis Kurkdjian opened a new store on Rue François 1^er in Paris and launched a new campaign for its Petit Matin and Grand Soir fragrance duo: an ode to the multifaceted French capital. The Maison continued its corporate giving initiatives with the Palace of Versailles, establishing a “Biodiversity Observatory”. Acqua di Parma launched Mandarino di Sicilia, a new expression of its expertise in sourcing singular raw materials native to Italy’s unique terroir. Other highlights included a number of lifestyle-related initiatives and the expansion of its presence in France, with the opening of its first summer store in Saint-Tropez. Loewe Perfumes expanded its international presence, particularly in Asian markets. Fenty Beauty established a presence in China and launched a new range of haircare products, Fenty Hair. Building on its success in Paris, Officine Universelle Buly expanded its operations in Japan by opening two new stores. The Maison celebrated the anniversary of its Jardins Français fragrance collection with the release of The Scented Herbarium, a perfumed botanical book.

Outlook

While remaining vigilant, as called for by the uncertainty of the current environment, LVMH’s Maisons will continue to invest selectively in their strengths: accelerated innovation, product excellence and a selective approach to retail networks. Parfums Christian Dior aims to accelerate its growth by continuing to innovate, with high-impact initiatives across three categories – fragrances, makeup and skincare – and fresh new marketing campaigns, in particular for J’adore, with Rihanna as its new face. Innovation will also be key for Guerlain in the second half of the year, including the highly anticipated relaunch of its iconic Rouge G lipstick. Parfums Givenchy’s L’Interdit will see a major launch. The makeup segment will be buoyed by initiatives focusing on its foundation and lip products. Kenzo Parfums will benefit from an initiative showcasing the sustainability and creativity of its Flower La Récolte Parisienne line. Maison Francis Kurkdjian will continue to enrich its range of scents with the launch of a subtle, captivating new fragrance. Acqua di Parma will reinforce its image of timeless, elegant sophistication with limited editions, creative collaborations and exceptional pieces. Loewe Perfumes will continue to build up its international presence. Benefit will expand its range with innovations in areas including foundation.

5.     Watches and Jewelry

Highlights

The Watches and Jewelry business group proved resilient in the face of mixed trends across different markets, backed by its highly committed staff, the expert craftsmanship of the watchmaking Maisons and the bold innovation strategy of the jewelry Maisons. LVMH’s Maisons continued to focus on the selective expansion of their retail networks, promotional events and partnerships with artists and athletes in connection with their collections. They also actively developed their range of corporate social responsibility initiatives.

Tiffany & Co. stepped up initiatives to showcase its iconic Tiffany T, Lock, HardWear and Knot lines, and unveiled a new marketing campaign entitled “With Love, Since 1837”. Inspired by the celebration of love – the thread that runs through each of the Maison’s iconic collections – the campaign received a very positive response. The Tiffany Wonder exhibition opened in April in Tokyo, showcasing hundreds of the Maison’s masterpieces, some of them for the first time ever, and retracing nearly 200 years of expert craftsmanship, heritage and modernity. Céleste – the 2024 Blue Book high jewelry collection, unveiled in Beverly Hills in May – drew inspiration from the boundless imagination of the Maison’s first designer, Jean Schlumberger. The new Tiffany Titan by Pharrell Williams collection fused Pharrell Williams’ creative vision with the Maison’s tradition of jewelry-making excellence. The rollout of the new store concept continued, with nearly 30 projects in the first half of the year and nearly one-quarter of the store network now renovated. The Landmark – the Maison’s spectacular New York flagship and the inspiration behind its new store concept – celebrated the first anniversary of its reopening in April and continued to host a vibrant program of creative events.

Bulgari celebrated its 140th anniversary with a new brand campaign entitled “Eternally Reborn”. In Rome, the Baths of Diocletian were the backdrop for the unveiling of the Aeterna high jewelry collection. Bulgari pushed the boundaries of its expertise and talent to create exceptional pieces, with revenue reaching levels never before achieved by the Maison’s high jewelry lines. The 140-carat Aeterna necklace – adorned with seven flawless diamond drops cut from the same rough stone – highlighted the Maison’s singular expertise in working with diamonds and colored gemstones alike. In Seoul, the Maison launched “Bulgari Studio”, a hub for collaborative design and experimentation; its first presentation was dedicated to one of Bulgari’s most iconic collections, B.zero1. In watchmaking, a new design was launched for the Lucea line, together with new Octo and Bulgari Bulgari gold watches. The Maison celebrated the 15th anniversary of its partnership with Save the Children. A new documentary, An Emperor’s Jewel – The Making of the Bulgari Hotel Roma, offers a behind-the-scenes look at the hotel’s design and construction, shining a spotlight on Italy’s rich cultural heritage.

TAG Heuer strengthened its ties with the world of sports, and particularly Formula 1: the TAG Heuer Formula 1 x Kith watch, designed in conjunction with the fashion and lifestyle brand, revisits an icon from 1986; the special-edition TAG Heuer Oracle Red Bull Racing celebrates the Maison’s partnership with the famed Formula 1 team; and the new Monaco Split-Seconds, TAG Heuer’s first wristwatch with a split-second chronograph, is a testament to the Maison’s well-earned reputation as a cutting-edge watchmaker. TAG Heuer returned to eyewear with Thélios, unveiling its first collection at LVMH Watch Week in Miami.

Hublot launched a number of new designs and collaborations, reflecting both its technical expertise and its disruptive spirit. Arsham Droplet, designed in association with artist Daniel Arsham, is a revolutionary reinterpretation of the pocket watch that upends traditional watchmaking norms. At LVMH Watch Week, the Maison heralded in the future of timekeeping with the MP-10 (Manufacture Piece No. 10), which revisits the fundamentals of watchmaking. At the Watches & Wonders trade show, the Maison highlighted its Unico Chronograph movement with an immersive experience.

Zenith continued with its program dedicated to rare timepieces that epitomize its exceptional heritage, helping create a circular economy for the most iconic watches it has ever produced. As part of this program, Zenith unveiled its first Icons capsule dedicated to the Pilot collection, featuring three watches restored and certified by the Maison. At the Watches & Wonders trade show, three new models in its Defy collection were presented.

Chaumet unveiled the boldly designed medals for the Paris 2024 Olympic and Paralympic Games, created by its design studio. A “Chaumet en Scène” event in Venice showcased the Maison’s latest high jewelry collection. New models were added to the Joséphine Aigrette watch line, revisiting the collection’s iconic features. The Maison continued to develop its Bee My Love collection, which has been a major success with younger customers.

Fred had a good start to the year, buoyed by its “Fred: The Sunshine Jeweler” marketing campaign. The Maison unveiled a new Force 10 capsule collection in the colors of the French Open tennis tournament for the second year of its partnership and expanded the Pretty Woman collection, adding the Pretty Woman Sunlight Message necklaces.

Repossi celebrated 10 years of its iconic Serti sur Vide collection with new designs and a new promotional campaign.

LVMH announced the acquisition of Swiza, the owner of prestigious high-end Swiss clock manufacturer L’Epée 1839, known for crafting timepieces that are true works of art, featuring exceptional mechanisms and complications.

Outlook

The Watches and Jewelry business group will continue to pursue its target of gaining market share. In an uncertain economic and geopolitical environment, the priority is on pursuing innovation and enhancing the desirability of collections as well as continuing the quality-driven development of directly operated stores. The Group is proactively ramping up its production capacity: work is underway to extend the Bulgari manufacturing facility in Valenza and the Hublot facility in Nyon. Tiffany & Co. will continue to support its iconic collections by launching new models and stepping up its “With Love, Since 1837” campaign. In the second half of 2024, the Maison will begin celebrating the 50th anniversary of Elsa Peretti’s first creations for Tiffany & Co., including an updated product range and a fresh new marketing campaign. The Céleste high jewelry collection will be presented in Asia in the fall. Work on transforming the store network will continue, with over 40 renovations scheduled to take place by the end of the year. Bulgari will continue to celebrate its iconic Serpenti line and will launch a new Tubogas collection while expanding its Cabochon collection, launched in late 2023. TAG Heuer will continue its partnership with Red Bull Racing in Formula 1 as well as launching a new campaign for its Aquaracer line. Chaumet will launch in new markets in the second half of the year, including Thailand, and will present its first high jewelry exhibition in the Middle East in Qatar. During the summer, Hublot returns as the Official Timekeeper of the 17th edition of the UEFA Euro 2024™ soccer tournament – holding this high-profile role for the fifth time since 2008.

6.     Selective Retailing

Highlights

The Selective Retailing business group’s growth was mainly driven by remarkable momentum at Sephora; DFS experienced mixed trends between different regions.

Sephora continued its record trajectory with double-digit growth in revenue and profit, confirming the strength of its brand and the relevance and attractiveness of its unique prestige beauty model. Several regions, including Europe, the Middle East and Latin America, recorded exceptional performance. Growth was driven by high customer traffic and the expansion of the retail network. In the United States, Sephora achieved record-breaking market share thanks to the expansion of its store network and the successful partnership with Kohl’s, which has enabled it to reach new customers. Growth was strong in all product categories, and particularly strong in fragrances and haircare, with makeup and skincare still representing the largest categories in terms of revenue. Extending its lead in many countries, Sephora continued to gain market share. These achievements were the result of Sephora’s ability to deliver on its ambition to be the world’s foremost prestige beauty retailer, with an exceptional selection of brands and products, elevated in-store and online customer experience, loyal communities and passionate employees. The launch of Fenty Beauty in China reflected Sephora’s differentiation strategy in this key market. Some fifty stores were opened around the world in the first half of the year. The opening of the Manchester store in the United Kingdom was a major success, with revenue surpassing targets by a significant margin. The Maison continued to innovate, both in-store and online, to elevate the customer experience, with new advanced tools such as Skin Diagnosis, which helps beauty advisors recommend the perfect product for each customer’s unique needs. Sephora rolled out its brand-new global signature, “We Belong to Something Beautiful”, and continued to enchant its worldwide beauty community, which reached 65 million active members. In addition to launching the “Clean at Sephora” and “Planet Aware at Sephora” programs – aimed at inspiring the beauty industry to embrace more sustainable products – the Maison reaffirmed its purpose and its vision to reinforce its commitments towards communities.

DFS saw business activity remain below its 2019 pre-Covid level, with marked differences in tourist traffic between its various destinations. While international travel only partially recovered in Europe and flagship destinations Hong Kong and Macao, the Maison recorded good performances in Japan and at airports in the United States. The Causeway Bay Galleria in Hong Kong revamped its customer experience with a new look and expanded product range, including a new “Beauty Collective” area, featuring a unique selection of brands along with a multisensory experience and an array of personalized services. The Masters of Wines and Spirits exhibition, traveling for the first time outside Asia, was held in Los Angeles in May, showcasing a unique collection of more than 200 rare and exclusive wines and spirits. The new Yalong Bay Galleria project in Sanya, on the island of Hainan in China, officially kicked off. DFS plans to offer an extensive range of premium brands and an unrivaled selection of bespoke services at this location. In France, La Samaritaine confirmed its appeal with its continuously renewed selection of products and services and its distinctive, exclusive pop-up stores.

Buoyed by its loyal Parisian clientele and an influx of domestic and international customers, revenue at Le Bon Marché continued to grow, driven by the department store’s differentiation strategy, with its unique slate of events, exclusive, innovative concepts and continuously renewed selection of products and services. Business was spurred by a rich array of cultural events. In January, French artist Daniel Buren unveiled Aux Beaux Carrés: Travaux in situ, an exhibition in two acts inspired by the square panes that make up the store’s famous glass roof. In February, Le Bon Marché’s guest of honor Sarah Andelman paid tribute to bookshops from around the world in her Mise en Page exhibition. Lastly, for the Tous Fadas sur la Rive Gauche exhibition, Le Bon Marché and La Grande Épicerie de Paris charted a course for Marseille and southern France to celebrate the Provençal way of life.

Outlook

In the second half of the year, Sephora will continue to reinforce its position in key markets such as Europe, the Middle East and North America, where the partnership with Kohl’s continues to be expanded and an ambitious store renovation plan is underway. The Maison will also continue to accelerate in emerging markets like Brazil, Mexico and Turkey and also to invest in the UK market, where it will continue to reinforce its very fast-growing position. In China, the focus will be on amplifying Sephora’s differentiation and market relevance. The coming months will see new exclusive product launches and another season of the global “Sephoria” event. Sephora will continue investing in its omnichannel strategy to bring both convenience and qualitative advice to each step of the customer journey. The Maison will continue to reinforce its sense of purpose through initiatives aimed at supporting underrepresented communities and promoting diversity, equity and inclusion, such as its Accelerate program and a new exclusive partnership on World Mental Health Day. While remaining vigilant and maintaining tight control over its allocation of resources, DFS aims to continue expanding in its key locations of Hong Kong and Macao. The opening of the new Galleria on Senado Square in Macao and the renovation of its Gallerias in Hong Kong will contribute to achieving this objective. Beyond its exclusive selection and customer experience, Le Bon Marché will continue to cultivate its cultural dimension, which makes the department store a compelling destination in its own right. Act II of Daniel Buren’s Aux Beaux Carrés: Travaux in situ exhibition will be held during the Paris 2024 Olympic and Paralympic Games, providing a platform for a unique artistic voice in France’s capital city. In September, Le Bon Marché will host the Paris Paris! exhibition, showcasing a selection of local designers set in a dreamlike world. On the heels of its success in 2023, the Entre Chiens et Louves show, which blends art, theatre, dance and circus performance, will return during the second half of the year.

7.     Comments on the consolidated balance sheet

LVMH’s consolidated balance sheet totaled 144.4 billion euros as of end-June 2024, up 0.8 billion euros from December 31, 2023.

Intangible assets totaled 47.3 billion euros, down 2.3 billion euros from year-end 2023. The negative 3.1 billion euro impact of the revaluation of purchase commitments for minority interests and the negative 0.1 billion euro impact of investments, net of amortization charges and disposals, were partly offset by the positive 0.5 billion euro impact of exchange rate fluctuations and by the positive 0.3 billion euro impact of changes in the scope of consolidation. The impact of exchange rate fluctuations mainly arose from changes in the US-dollar-to-euro exchange rate over the period.

Property, plant and equipment were up 1.2 billion euros and totaled 28.5 billion euros as of the period-end. This increase resulted from (i) 1.0 billion euros in investments, net of depreciation charges and disposals (the comments on the cash flow statement provide further information on investments); (ii) an additional 0.1 billion euro increase due to changes in the scope of consolidation during the half-year period; and (iii) 0.1 billion euros in exchange rate fluctuations during the period.

Right-of-use assets totaled 16.1 billion euros, up 0.4 billion euros from December 31, 2023. The effect of new leases entered into and of updating lease liabilities during the terms of leases was 0.3 billion euros higher than depreciation for the half-year period. Exchange rate fluctuations between January 1 and June 30, 2024 had a 0.1 billion euro impact. Store leases accounted for 78% of right-of-use assets.

Other non-current assets came to 7.7 billion euros as of June 30, 2024. This 0.3 billion euro increase resulted in particular from the 0.1 billion euro increase in deferred tax assets and the 0.2 billion euro impact of additional stakes acquired in non-current available for sale financial assets and investments in joint ventures and associates.

Inventories were up 1.3 billion euros, in connection with the change in business activity during the half-year period, partially offset by the 0.3 billion euro impact of provisions for impairment, net of reversals. See also the “Comments on the consolidated cash flow statement” section.

Other current assets increased by 0.5 billion euros, amounting to 13.5 billion euros, mainly due to the increase in the market value of current available for sale financial assets. Trade accounts receivable decreased by 0.3 billion euros and tax receivables increased by 0.3 billion euros.

Lease liabilities recognized in accordance with IFRS 16 were up 0.5 billion euros relative to December 31, 2023. This change resulted in particular from a 0.4 billion euro increase arising from net new leases and a 0.2 billion euro increase arising from exchange rate fluctuations.

Other non-current liabilities totaled 19.7 billion euros, down 3.1 billion euros from 22.8 billion euros as of year-end 2023. This change included the 3.1 billion euro impact of the decrease in the liability in respect of purchase commitments for minority interests’ shares, which amounted to 8.8 billion euros, following changes in the metrics used to measure these commitments. It also included the 0.2 billion euro increase in deferred tax liabilities, offset by the 0.2 billion euro decrease in non-current provisions and other liabilities.

Lastly, other current liabilities decreased by 1.8 billion euros to 17.9 billion euros. This change mainly resulted from the decrease in operating payables, related to the seasonal nature of the Group’s businesses.

Net financial debt and equity

Total equity amounted to 66.5 billion euros as of end-June 2024, up 3.8 billion euros from year-end 2023. Net profit for the first half of the year, after the distribution of dividends, contributed 3.4 billion euros to this increase. Exchange rate fluctuations, particularly in relation to the US dollar, had a positive 0.5 billion euro impact.

As of end-June 2024, net financial debt came to 12.2 billion euros and was equal to 18.3% of total equity, compared to 17.1% as of year-end 2023, up 1.2 points.

Gross borrowings after derivatives totaled 23.2 billion euros as of end-June 2024, up 1.2 billion euros compared with year-end 2023. This increase arose from two opposing effects. The first was the repayment of 2.5 billion euros in two bonds maturing in the first half of 2024 (1.3 billion euro bond issued in 2020 and 1.2 billion euro bond issued in 2017), partially offset by the issue of two bond tranches in June 2024 (0.9 billion euro tranche maturing in 2030 and 0.7 billion euro tranche maturing in 2034). The second was the increase in short-term negotiable debt securities (euro- and US dollar-denominated commercial paper [NEU CP and USCP]) outstanding, which amounted to 1.8 billion euros over the period. Cash, cash equivalents, and current available for sale financial assets totaled 11.1 billion euros as of June 30, 2024, remaining relatively stable with respect to their 11.3 billion euro level as of year-end 2023. Net financial debt thus increased by 1.4 billion euros during the half-year period.

As of June 30, 2024, in addition to 11.1 billion euros in cash, cash equivalents and current available for sale financial assets, the Group had access to undrawn confirmed credit lines totaling 10.9 billion euros. The latter amount exceeded the outstanding portion of its short-term negotiable debt securities (NEU CP and USCP) programs, which came to 9.1 billion euros as of end-June 2024.

8.     Comments on the consolidated cash flow statement

(a)  “Operating free cash flow” is defined in the consolidated cash flow statement. In addition to net cash from operating activities, it includes operating investments and repayment of lease liabilities, both of which the Group considers as components of its operating activities.

Cash from operations before changes in working capital totaled 13,794 million euros for the half-year period, down 715 million euros from 14,509 million euros a year earlier, mainly due to the decrease in operating profit.

After tax and interest paid on net financial debt and lease liabilities, and after the change in working capital, net cash from operating activities amounted to 7,284 million euros, compared with 6,750 million euros in the first half of 2023.

Interest paid on net financial debt amounted to a net cash outflow of 189 million euros, compared to 328 million euros a year earlier; this change arose in particular from the contractual terms governing the payment of interest and issues of short-term negotiable debt securities (NEU CP and USCP) in the first half of 2023.

Tax paid on operating activities came to 2,580 million euros, 235 million euros lower than the 2,815 million euros paid in the first half of 2023, in connection with the change in business activity and profit.

The change in working capital as of end-June 2024 resulted in a cash requirement of 3,511 million euros, 961 million euros lower than in the first half of 2023. The change in working capital in 2024 mainly arose from the increase in inventories (1,583 million euros), while the decrease in trade accounts payable generated a requirement of 876 million euros. The usual seasonal effects of other receivables and payables generated an additional financing requirement of 1,278 million euros. These effects were partly offset by the decrease in trade accounts receivable (226 million euros). All the business groups contributed to these cash requirements, in particular Fashion and Leather Goods. These changes arose from business activity during the half-year period as well as expected future business activity, particularly for Wines and Spirits, which requires the Group to build inventories, and from measures taken to secure access to certain critical supplies.

Operating investments net of disposals resulted in an outflow of 2,728 million euros in the first half of 2024, down 837 million euros compared to the outflow of 3,564 million euros in the first half of 2023, which had included sizeable acquisitions of buildings in Paris and London. Purchases of property, plant and equipment mainly included investments by the Group’s brands – notably Louis Vuitton, Christian Dior, Tiffany and Sephora – in their retail networks. They also included investments by the champagne houses, Hennessy and Louis Vuitton in their production equipment, as well as investments relating to the Group’s hotel activities. In addition, a building was acquired in Tokyo, mainly in order to operate stores in it.

Repayment of lease liabilities totaled 1,426 million euros in the first half of 2024, up 38 million euros with respect to the 1,389 million euros recorded as of end-June 2023.

In the first half of 2024, “Operating free cash flow” ⁽¹⁾ amounted to a net inflow of 3,130 million euros, up relative to end-June 2023, mainly due to the change in the level of operating investments and the change in working capital.

During the half-year period, financial investments accounted for an outflow of 436 million euros, including an outflow of 400 million euros for a number of purchases of consolidated investments.

Equity-related transactions generated an outflow of 4,323 million euros. A portion of this amount, 3,747 million euros, arose from dividends paid during the half-year period by LVMH SE, excluding the amount attributable to treasury shares, as well as tax related to dividends paid between Group companies for 121 million euros and 347 million euros paid to minority interests in consolidated subsidiaries.

The cash requirement generated after all transactions relating to operating activities, investing activities and equity-related transactions thus totaled 1,629 million euros. Financing activities relating to loans and borrowings, as well as current available for sale financial assets, generated a net inflow of 804 million euros in the half-year period, mainly due to bond issues net of repayments during the period. After the negative 18 million euro impact of exchange rate fluctuations on cash balances, the period-end cash balance was down 807 million euros compared to year-end 2023. It totaled 6,713 million euros as of June 30, 2024.

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As table totals are based on unrounded figures, there may be discrepancies between these totals and the sum of their rounded component figures.

Consolidated income statement

Consolidated statement of comprehensive gains and losses

Consolidated balance sheet

Consolidated statement of changes in equity

Consolidated cash flow statement

Alternative performance measure

The following table presents the reconciliation between “Net cash from operating activities” and “Operating free cash flow” for the periods presented:

(a)  Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all lease payments as components of its “Operating free cash flow”, whether the lease payments made are fixed or variable. In addition, for its own operational management purposes, the Group treats operating investments as components of its “Operating free cash flow”.

Notes to the condensed half-year consolidated financial statements

1. Accounting policies

2. Changes in ownership interests in consolidated entities

3. Brands, trade names and other intangible assets

4. Goodwill

5. Impairment testing of intangible assets with indefinite useful lives

6. Property, plant and equipment

7. Leases

8. Investments in joint ventures and associates

9. Non-current available for sale financial assets

10. Other non-current assets

11. Inventories and work in progress

12. Trade accounts receivable

13. Other current assets

14. Current available for sale financial assets

15. Cash and change in cash

16. Equity

17. Bonus share and similar plans

18. Minority interests

19. Borrowings

20. Provisions and other non-current liabilities

21. Purchase commitments for minority interests’ shares

22. Trade accounts payable and other current liabilities

23. Financial instruments and market risk management

24. Segment information

25. Other operating income and expenses

26. Net financial income/(expense)

27. Income taxes

28. Earnings per share

29. Provisions for pensions, contribution to medical costs and other employee benefit commitments

30. Off-balance sheet commitments

31. Exceptional events and litigation

32. Related-party transactions

33. Subsequent events

1.     Accounting policies

1.1.       General framework and environment

The consolidated financial statements for the first half of 2024 were established in accordance with the international accounting standards and interpretations (IAS/IFRS) adopted by the European Union and applicable on June 30, 2024. These standards and interpretations have been applied consistently to the periods presented. The consolidated financial statements for the first half of 2024 were approved by the Board of Directors on July 23, 2024. The consolidated financial statements presented are “condensed”, which means that they only include notes that are significant or facilitate understanding of changes in the Group’s business activity and financial position during the period.

The interim financial statements are prepared according to the same rules and methods as those used to prepare the annual financial statements, with the exception of the determination of the income tax rate, calculated based on a forecast for the fiscal year. In addition, the comparability of the interim and annual financial statements may be affected by the seasonal nature of the Group’s business activities, which generally see a higher volume of business in the second half of the year than in the first half (see Note 24, “Segment information”).

1.2.       Changes in the accounting framework applicable to LVMH

The application of standards, amendments and interpretations that took effect on January 1, 2024 did not have a material impact on the Group’s financial statements.

2.     Changes in ownership interests in consolidated entities

Partnership with Accor to develop Orient Express

In June 2024, LVMH and Accor entered into a strategic partnership to accelerate the development of Orient Express, in particular through the operation of trains, hotels and sailing ships.

Other

In January 2024, LVMH acquired a majority stake in Nuti Ivo SpA, an Italian company founded in 1955, specializing in leather-working.

In June 2024, LVMH acquired the entire share capital of Swiza, the owner of high-end Swiss clock manufacturer L’Epée 1839.

In June 2024, LVMH acquired an additional 10% stake in Maison Francis Kurkdjian.

Equity investments newly consolidated in 2024 did not have a significant impact on revenue or profit from recurring operations for the period.

3.     Brands, trade names and other intangible assets

The carrying amounts of brands, trade names and other intangible assets changed as follows during the period:

Translation adjustments mainly related to brands and trade names recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and June 30, 2024.

4.     Goodwill

Changes in net goodwill during the periods presented break down as follows:

See Note 21 for goodwill arising on purchase commitments for minority interests’ shares.

Changes in the scope of consolidation mainly resulted from the acquisition of Nuti Ivo and Swiza, the investment in Orient Express, and various acquisitions carried out in prior periods but that had not yet been consolidated. See Note 2.

Translation adjustments mainly related to goodwill recognized in US dollars, based on fluctuations in the US dollar-to-euro exchange rate between January 1 and June 30, 2024.

5.     Impairment testing of intangible assets with indefinite useful lives

Brands, trade names and other intangible assets with indefinite useful lives as well as the goodwill arising on acquisition were subject to annual impairment testing as of December 31, 2023. The assumptions used as the basis for impairment testing as of December 31, 2023 were not called into question by the events of the half-year period. No significant impairment expenses were recognized in the first half of 2024, as no events likely to lead to significant impairment took place during the period.

6.     Property, plant and equipment

(a)  Almost all of the carrying amount of “Vineyard land and producing vineyards” corresponds to vineyard land.

Changes in property, plant and equipment during the period broke down as follows:

“Other property, plant and equipment” includes in particular the works of art owned by the Group.

In the first half of 2024, purchases of property, plant and equipment mainly included investments by the Group’s Maisons – notably Louis Vuitton, Christian Dior, Tiffany and Sephora – in their retail networks. They also included investments by the champagne houses, Hennessy and Louis Vuitton in their production equipment, as well as investments relating to the Group’s hotel activities. In addition, buildings were acquired in Tokyo and Paris by the Group’s holding companies and Maisons, mainly in order to operate stores in them.

Translation adjustments on property, plant and equipment mainly related to fixed assets recognized in US dollars, pounds sterling and Japanese yen, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and June 30, 2024.

7.     Leases

7.1.       Right-of-use assets

Right-of-use assets break down as follows, by type of underlying asset:

The carrying amounts of right-of-use assets changed as follows during the period:

“New leases entered into” involved store leases, in particular for Louis Vuitton, Christian Dior Couture, Tiffany and Sephora. They also included leases of office space, mainly for Louis Vuitton and Christian Dior Couture. Changes in assumptions mainly resulted from adjustments to estimated lease terms. These two types of changes led to corresponding increases in right-of-use assets and lease liabilities.

Translation adjustments mainly related to leases recognized in US dollars, Japanese yen and Hong Kong dollars, based on fluctuations in the exchange rates of these currencies with respect to the euro between January 1 and June 30, 2024.

7.2.       Lease liabilities

Lease liabilities break down as follows:

The change in lease liabilities during the period breaks down as follows:

7.3.       Breakdown of lease expense

The lease expense for the period breaks down as follows:

In certain countries, leases for stores entail the payment of both minimum amounts and variable amounts, especially for stores with lease payments indexed to revenue. As required by IFRS 16, only the minimum fixed lease payments are capitalized. “Other lease expenses” mainly relate to variable lease payments.

For leases not required to be capitalized, there is little difference between the expense recognized and the payments made.

8.     Investments in joint ventures and associates

Changes in the scope of consolidation mainly resulted from the Group’s additional investment – previously presented within “Non-current available for sale financial assets” (see Note 9) – in a company that is a joint shareholder of a commercial property complex, as well as the strategic partnership entered into with Accor to develop Orient Express.

Impairment of goodwill and brands recognized by joint ventures and associates is presented within “Other operating income and expenses” in the consolidated income statement (see Note 25).

9.     Non-current available for sale financial assets

(a)  Recognized within “Net financial income/(expense)”.

Changes in the scope of consolidation in the first half of 2024 related to the initial consolidation of various acquisitions carried out prior to December 31, 2023 but that had not yet been consolidated as of that date, as well as the consolidation using the equity method of an investment that was previously classified as a non-current available for sale financial asset (see Note 8).

10.     Other non-current assets

(a)  See Note 23.

11.     Inventories and work in progress

The change in net inventories for the periods presented breaks down as follows:

(a)  See Note 1.27 to the 2023 consolidated financial statements.

The impact of marking harvests to market on Wines and Spirits’ cost of sales and value of inventory is as follows:

See Notes 1.10 and 1.18 to the 2023 consolidated financial statements on the method of marking harvests to market.

12.     Trade accounts receivable

The change in trade accounts receivable for the periods presented breaks down as follows:

The trade accounts receivable balance is comprised essentially of receivables from wholesalers or agents, who are limited in number and with whom the Group maintains long-term relationships.

13.     Other current assets

(a)  See Note 14.

(b)  See Note 23.

14.     Current available for sale financial assets

The net value of current available for sale financial assets changed as follows during the periods presented:

(a)  Recognized within “Net financial income/(expense)” (see Note 26).

15.     Cash and change in cash

15.1.       Cash and cash equivalents

The reconciliation between cash and cash equivalents as shown in the balance sheet and net cash and cash equivalents appearing in the cash flow statement is as follows:

15.2.       Change in working capital

The change in working capital breaks down as follows for the periods presented:

(a)  Increase/(Decrease) in cash and cash equivalents.

15.3.       Operating investments

Operating investments comprise the following elements for the periods presented:

(a)  Increase/(Decrease) in cash and cash equivalents.

15.4.       Interim and final dividends paid and other equity-related transactions

Interim and final dividends paid comprise the following elements for the periods presented:

(a)  Tax paid related to interim and final dividends paid exclusively related to intra-Group dividends; see Note 27.

Other equity-related transactions comprise the following elements for the periods presented:

16.     Equity

16.1.       Equity

16.2.       Share capital and share premium account

As of June 30, 2024, the share capital consisted of 500,141,700 fully paid-up shares (502,048,400 as of December 31, 2023 and June 30, 2023), with a par value of 0.30 euros per share, including 233,807,936 shares with double voting rights (233,120,916 as of December 31, 2023 and 231,534,552 as of June 30, 2023). Double voting rights are attached to registered shares held for more than three years.

Changes in the share capital and share premium account, in value and in terms of number of shares, break down as follows:

Retirement of LVMH shares had an impact of 1,585 million euros in the first half of 2024, including 1,054 million euros charged to “Other reserves”.

16.3.       LVMH shares

The portfolio of LVMH shares is allocated as follows:

(a)  See Note 17 regarding bonus share and similar plans.

The market value of LVMH shares held under the liquidity contract as of June 30, 2024 amounted to 21 million euros.

The portfolio movements of LVMH shares during the period were as follows:

16.4.       Dividends paid by the parent company, LVMH SE

(a)  Excluding the impact of tax regulations applicable to the recipient.

The final dividend for fiscal year 2023 was distributed on April 25, 2024, in accordance with the resolutions of the Shareholders’ Meeting of April 18, 2024. At its meeting on July 23, 2024, the Board of Directors approved the payment, on December 4, 2024, of an interim dividend of 5.50 euros per share in respect of fiscal year 2024.

16.5.       Cumulative translation adjustment

The change in “Cumulative translation adjustment” recognized within “Equity, Group share”, net of hedging effects of net assets denominated in foreign currency, breaks down as follows by currency:

17.     Bonus share and similar plans

17.1.       Bonus share plans

The number of provisional allocations of shares awarded changed as follows during the periods presented:

Three bonus share plans were set up during the period. The main characteristics of these plans are as follows:

Vested share allocations were settled in existing shares held.

17.2.       Expense for the period

18.     Minority interests

The change in minority interests’ share in gains and losses recognized in equity breaks down as follows:

Minority interests are composed primarily of Diageo’s 34% stake in Moët Hennessy SAS and Moët Hennessy International SAS (“Moët Hennessy”) and the 39% stake held by Mari-Cha Group Ltd in DFS. Since the 34% stake held by Diageo in Moët Hennessy is subject to a purchase commitment, it is reclassified at the period-end within “Purchase commitments for minority interests’ shares” under “Other non-current liabilities” and is therefore excluded from the total amount of minority interests at the period-end. See Note 1.13 to the 2023 consolidated financial statements and Note 21 below.

Dividends paid to Diageo in the first half of fiscal year 2024 amounted to 241 million euros in respect of fiscal year 2023. Net profit attributable to Diageo for the first half of 2024 was 167 million euros, and its share in accumulated minority interests (before recognition of the purchase commitment granted to Diageo) came to 4,203 million euros as of June 30, 2024.

No dividends were paid to Mari-Cha Group Ltd during the first half of 2024. Net profit attributable to Mari-Cha Group Ltd for the first half of 2024 was a loss of 42 million euros, and its share in accumulated minority interests as of June 30, 2024 came to 1,166 million euros.

19.     Borrowings

19.1.       Net financial debt

(a)  Euro- and US dollar-denominated commercial paper (NEU CP and USCP).

(b)  See Note 14.

(c)   See Note 15.1.

Net financial debt does not include purchase commitments for minority interests’ shares (see Note 21) or lease liabilities (see Note 7).

The change in gross borrowings after derivatives during the period breaks down as follows:

(a)  Including 3,587 million euros in respect of proceeds from borrowings, 2,783 million euros in respect of repayment of borrowings and 183 million euros due to an increase in bank overdrafts.

During the first half of 2024, LVMH repaid the 1,250 million euro bond issued in February 2020, as well as the 1,200 million euro bond issued in May 2017. The hedging swaps associated with the latter bond matured on redemption.

In addition, under its EMTN program, in June 2024 LVMH carried out a bond issue in two tranches: an 850 million euro tranche maturing in February 2030, with a coupon of 3.375%; and a 650 million euro tranche maturing in October 2034, with a coupon of 3.50%.

19.2.       Breakdown of gross borrowings by payment date and type of interest rate

See Note 23.3 regarding the market value of interest rate risk derivatives.

19.3.       Breakdown of gross borrowings by currency after derivatives

The purpose of foreign currency borrowings is to finance the development of the Group’s activities outside the eurozone, as well as the Group’s assets denominated in foreign currency.

(a)  The amounts presented above include the impact of swaps to convert Group-level financing into subsidiaries’ functional currencies, whether these subsidiaries are borrowers or lenders in the currency concerned.

19.4.       Undrawn confirmed credit lines and covenants

During the half-year period, LVMH SE renegotiated all of its syndicated credit facilities into a single 10 billion euro facility, securing favorable market conditions. As such, as of June 30, 2024, undrawn confirmed credit lines, including bilateral credit facilities, came to 10.9 billion euros; this amount exceeded the outstanding portion of the short-term negotiable debt securities programs (NEU CP and USCP), which together totaled 9.1 billion euros.

In connection with certain credit lines, the Group may undertake to maintain certain financial ratios. As of June 30, 2024, no significant credit lines were concerned by these provisions.

20.     Provisions and other non-current liabilities

Non-current provisions and other liabilities comprise the following:

(a)  See Note 23.

Provisions concern the following types of contingencies and losses:

Provisions changed as follows during the period:

(a)  Including the impact of translation adjustment and change in revaluation reserves. See Note 29 regarding “Provisions for pensions, medical costs and similar commitments”.

Provisions for contingencies and losses correspond to the estimate of the impact on assets and liabilities of risks, disputes (see Note 31), or actual or probable litigation arising from the Group’s activities; such activities are carried out worldwide, within what is often an imprecise regulatory framework that is different for each country, changes over time and applies to areas ranging from product composition and packaging to relations with the Group’s partners (distributors, suppliers, shareholders in subsidiaries, etc.).

Non-current liabilities related to uncertain tax positions include an estimate of the risks, disputes, and actual or probable litigation related to the income tax computation. The Group’s entities in France and abroad may be subject to tax inspections and, in certain cases, to rectification claims from local administrations. A liability is recognized for these rectification claims, together with any uncertain tax positions that have been identified but not yet officially notified, the amount of which is regularly reviewed in accordance with the criteria of the application of IFRIC 23 Uncertainty over Income Tax Treatments.

21.     Purchase commitments for minority interests’ shares

As of June 30, 2024, purchase commitments for minority interests’ shares mainly included the put option granted by LVMH to Diageo for its 34% share in Moët Hennessy for 80% of the fair value of Moët Hennessy at the exercise date of the option. This option may be exercised at any time subject to a six-month notice period. The fair value of this commitment was calculated by applying the share price multiples of comparable firms to Moët Hennessy’s consolidated operating results.

Moët Hennessy SAS and Moët Hennessy International SAS (“Moët Hennessy”) hold the LVMH group’s investments in the Wines and Spirits businesses, with the exception of the equity investments in Château d’Yquem, Château Cheval Blanc, Clos des Lambrays and Colgin Cellars, and excluding certain champagne vineyards.

Purchase commitments for minority interests’ shares also include commitments relating to minority shareholders in Loro Piana (15%), and distribution subsidiaries in various countries, mainly in the Middle East.

22.     Trade accounts payable and other current liabilities

22.1.       Trade accounts payable

The change in trade accounts payable for the periods presented breaks down as follows:

22.2.       Current provisions and other liabilities

(a)  See Note 20.

(b)  See Note 23.

(c)   See Note 1.27 to the 2023 consolidated financial statements.

23.     Financial instruments and market risk management

23.1.       Organization of foreign exchange, interest rate and equity market risk management

Financial instruments are mainly used by the Group to hedge risks arising from Group activity and protect its assets.

The management of foreign exchange and interest rate risk, in addition to transactions involving shares and financial instruments, is centralized.

The Group has implemented a stringent policy and rigorous management guidelines to manage, measure and monitor these market risks.

These activities are organized based on a segregation of duties between risk measurement (middle office), hedging (front office), administration (back office) and financial control.

The backbone of this organization is an integrated information system that allows transactions to be checked quickly.

The Group’s hedging strategy is presented to the Performance Audit Committee. Hedging decisions are made according to an established process that includes regular presentations to the Group’s Executive Committee and detailed documentation.

Counterparties are selected based on their rating and in accordance with the Group’s risk diversification strategy.

23.2.       Summary of derivatives

Derivatives are recorded in the balance sheet for the amounts and in the captions detailed as follows:

Derivatives used to manage “Other risks” mainly concern futures and/or options contracts to hedge the price of certain precious metals, in particular gold, platinum and silver.

23.3.       Derivatives used to manage interest rate risk

The aim of the Group’s debt management policy is to adapt the debt maturity profile to the characteristics of the assets held and its repayment capacity, to curb borrowing costs and to protect net profit from the impact of significant changes in interest rates.

For these purposes, the Group uses interest rate swaps and options.

Derivatives used to manage interest rate risk outstanding as of June 30, 2024 break down as follows:

(a)  Gain/(Loss).

(b)  See Note 1.10 to the 2023 consolidated financial statements regarding the methodology used for market value measurement.

23.4.       Derivatives used to manage foreign exchange risk

A significant portion of Group companies’ sales to customers and to their own distribution subsidiaries as well as certain purchases are denominated in currencies other than their functional currency; the majority of these foreign currency-denominated cash flows are intra-Group cash flows. Hedging instruments are used to reduce the foreign exchange risks arising from the fluctuations of currencies against the exporting and importing companies’ functional currencies, and are allocated to either trade receivables or payables (fair value hedges) for the fiscal year, or to transactions anticipated for future fiscal years (hedges of future cash flows).

Future foreign currency-denominated cash flows are broken down as part of the budget preparation process and are hedged progressively over a period not exceeding one year unless a longer period is justified by probable commitments. As such, and according to market trends, identified foreign exchange risks are hedged using forward contracts or options.

In addition, the Group is exposed to foreign exchange risk with respect to the Group’s net assets, as it owns assets denominated in currencies other than the euro. This foreign exchange risk may be hedged either partially or in full through foreign currency borrowings or by hedging the net worth of subsidiaries outside the eurozone, using appropriate financial instruments with the aim of limiting the impact of foreign currency fluctuations against the euro on consolidated equity.

Derivatives used to manage foreign exchange risk outstanding as of June 30, 2024 break down as follows:

(a)  Sale/(Purchase).

(b)  See Note 1.10 to the 2023 consolidated financial statements regarding the methodology used for market value measurement.

(c)   Gain/(Loss).

24.     Segment information

The Group’s brands and trade names are organized into six business groups. Four business groups – Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, and Watches and Jewelry – comprise brands dealing with the same category of products that use similar production and distribution processes. Information on Louis Vuitton, Bulgari and Tiffany is presented according to the brand’s main business, namely the Fashion and Leather Goods business group for Louis Vuitton and the Watches and Jewelry business group for Bulgari and Tiffany. The Selective Retailing business group comprises the Group’s own-label retailing activities. The “Other and holding companies” business group comprises brands and businesses that are not associated with any of the above-mentioned business groups, particularly the media division, the Dutch luxury yacht maker Royal Van Lent, hotel operations and holding or real estate companies.

24.1.       Information by business group

First half 2024

Fiscal year 2023

First half 2023

(a)  Eliminations correspond to sales between business groups; these generally consist of sales to Selective Retailing from other business groups. Selling prices between the different business groups correspond to the prices applied in the normal course of business for sales transactions to wholesalers or retailers outside the Group.

(b)  Intangible assets and goodwill correspond to the carrying amounts shown in Notes 3 and 4.

(c)   Assets not allocated include available for sale financial assets, other financial assets, and current and deferred tax assets.

(d)  Liabilities not allocated include financial debt, current and deferred tax liabilities, and liabilities related to purchase commitments for minority interests’ shares.

(e)  Increase/(Decrease) in cash and cash equivalents.

24.2.       Information by geographic region

Revenue by geographic region of delivery breaks down as follows:

Operating investments by geographic region are as follows:

No geographic breakdown of segment assets is provided since a significant portion of these assets consists of brands and goodwill, which must be analyzed on the basis of the revenue generated by these assets in each region, and not in relation to the region of their legal ownership.

24.3.       Quarterly information

Quarterly revenue by business group breaks down as follows:

25.     Other operating income and expenses

26.     Net financial income/(expense)

Income from cash, cash equivalents and current available for sale financial assets comprises the following items:

(a)  Including 3 million euros related to dividends received as of June 30, 2024 (60 million euros as of December 31, 2023 and 3 million euros as of June 30, 2023).

The fair value adjustment of borrowings and interest rate hedges is attributable to the following items:

The cost of foreign exchange derivatives breaks down as follows:

27.     Income taxes

The effective tax rate is as follows:

The effective tax rate used as of June 30 is the forecast effective tax rate for the fiscal year.

The Group’s effective tax rate was 27.0% for the first half of 2024, compared with 26.0% in the first half of 2023.

The international tax reform drawn up by the OECD, known as Pillar Two, aimed in particular at establishing a minimum tax rate of 15%, takes effect in France starting in fiscal year 2024. The financial consequences mainly concern countries in the Middle East, and are not significant.

28.     Earnings per share

No events occurred between June 30, 2024 and the date at which the financial statements were approved for publication that would have significantly affected the number of shares outstanding or the potential number of shares.

29.     Provisions for pensions, contribution to medical costs and other employee benefit commitments

In the event of a material change over the half-year period in the assumptions used to calculate provisions for pensions and other benefit commitments, or in the event of a material change in the market value of the main plan assets, provisions for pensions and other benefit commitments are updated.

As of June 30, 2024, this revaluation resulted in a 36 million euro decrease in the provision, for a net impact, after tax, of 26 million euros, recorded within “Gains and losses recognized in equity”.

No other significant events concerning provisions for pensions and other benefit commitments occurred during the period.

30.     Off-balance sheet commitments

The Group’s off-balance sheet commitments totaled 8.1 billion euros as of December 31, 2023. During the first half of 2024, they increased by 0.2 billion euros. This relative stability resulted primarily from (i) the decrease in the number of leases that are not legally binding due to the Group acquiring effective control over many locations that had been covered by such leases during the half-year period; (ii) the decrease in commitments to purchase grapes and eaux-de-vie; and (iii) the significant increase in multi-annual commitments to purchase services, particularly in the field of communications and marketing.

31.     Exceptional events and litigation

To the best of the Company’s knowledge, there are no pending or impending administrative, judicial or arbitration procedures that are likely to have, or have had over the twelve-month period under review, any significant impact on the Group’s financial position or profitability.

32.     Related-party transactions

No significant related-party transactions occurred during the period.

33.     Subsequent events

No significant subsequent events occurred between June 30, 2024 and July 23, 2024, the date at which the financial statements were approved for publication by the Board of Directors.

Statutory Auditors’ report on the half-year financial information

To the shareholders of LVMH Moët Hennessy Louis Vuitton SE,

In compliance with the assignment entrusted to us by your Shareholders’ Meeting and in accordance with the requirements of Article L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:

●   the limited review of the accompanying condensed half-year consolidated financial statements of LVMH Moët Hennessy Louis Vuitton SE, for the period from January 1 to June 30, 2024;

●   the verification of the information presented in the half-year Management Report.

These condensed half-year consolidated financial statements were prepared under your Board of Directors’ responsibility. Our role is to express a conclusion on these financial statements based on our limited review.

1.     Conclusion on the financial statements

We conducted our limited review in accordance with professional standards applicable in France.

A limited review of interim financial information consists primarily of making inquiries of persons responsible for financial and accounting matters, and applying analytical review procedures. A limited review is substantially lesser in scope than an audit conducted in accordance with the professional standards applicable in France and consequently does not enable us to obtain assurance that the financial statements, taken as a whole, are free from material misstatements, as we may not become aware of all significant matters that might be identified in an audit.

Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying condensed half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, one of the IFRSs as adopted by the European Union applicable to interim financial information.

2.     Specific verification

We have also verified the information presented in the half-year Management Report on the condensed half-year consolidated financial statements subject to our limited review.

We have no matters to report as to its fair presentation and consistency with the condensed half-year consolidated financial statements.

Paris-La Défense, July 23, 2024

The Statutory Auditors

French original signed by

This is a free translation into English of the Statutory Auditors’ report on the half-year financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information provided in the Group’s half-year Management Report.

This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

STATEMENT BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT

We declare that the condensed consolidated financial statements for the six-month period, to the best of our knowledge, have been prepared in accordance with applicable accounting standards and provide a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company and of all consolidated companies, and that the interim Management Report presented on page 5 gives a true and fair view of the significant events that occurred during the first six months of the fiscal year and their impact on the financial statements, and the main related party transactions, as well as a description of the main risks and uncertainties for the remaining six months of the fiscal year.

Paris, July 23, 2024

Under delegation from the Chairman and Chief Executive Officer

Jean-Jacques GUIONY

Chief Financial Officer, Member of the Executive Committee