Cosmetic sales let the side down for LVMH

By Simon Pitman

- Last updated on GMT

An increase in sales of 11 per cent at LVMH over the course of 2005
was let down by relatively subdued activity at the luxury goods
maker's cosmetic and fragrance division.

The company reported that sales were up €13.90 billion, compared to €12.48 billion in 2004, representing a jump of 11 per cent, following a very strong Christmas changing period.

But whereas sales of wines and spirits - which includes leading brand Moet & Chandon - jumped 17 per cent, sales of cosmetics and fragrance products only jumped 7 per cent.

In 2004 the company's cosmetic and fragrance division reported sales of €2.12 billion, compared to sales of €2.28 billion this year.

The company said that the division's income was chiefly boosted by Dior perfumes, Miss Dior Cherie and Dior Homme, together with the lipstick KissKiss by Geurelin, on the cosmetics side.

It also reported that make-up ranges for Christian Dior were 'immensely successful', while continued success of the perfume J'Adore has moved it into the status of one of the world's leading fragrances.

BeneFit Cosmetics, Fresh and Acqua di Parma were also reported to have demonstrated strong performances during the financial year.

On a global basis the company said that all geographic regions had increased their revenues, with an acceleration of growth in the US, Asia and Europe.

According to market information provider Euromonitor L'Oreal had a 12.9 per cent share of the €15.7 billion global fine fragrances market, while P&G comes in second with a 12.2 per cent share.

The third biggest player is LVMH with an 11.2 per share of the market, while Coty has a 3.9 per cent share.