Profitable year for luxury goods giant

French luxury goods giant LVMH enjoyed a banner year in 2011 with net profits above €3 billion despite the uncertain global economy.

"2011 was another great vintage for LVMH," said group chief executive Bernard Arnault.

The LVMH name owns, among others, the brands of Louis Vuitton, Givenchy, Hennessy, Moet & Chandon and Dom Perignon champagnes and Sephora perfume stores.

Net profits hit €3.06 billion ($4.8 billion), a rise of 1 per cent from 2010, but the result was up 34 per cent if a one-off financial gain from LVMH's shares in Hermes in 2010 was excluded.

Profit from recurring operations was up 22 per cent to €5.26 billion, the first time the figure passed the €5 billion threshold, the group said.

Revenues were up 16 per cent to €23.6 billion led by fashion and leather goods revenues of €8.7 billion, up 15 per cent.

Asia was the group's top market, accounting for 35 per cent of revenues, followed by Europe with 33 per cent and the United States with 22 per cent.

Arnault said the group was confident of a good year in 2012.

"Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2012," he said.

"LVMH enters 2012 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods."

The group would propose a dividend of €2.60 per share, a 24 per cent increase, at its annual shareholders meeting on April 5.

Before the results were announced, LVMH stocks were down 0.32 per cent to €126.4 on the Paris stock exchange.

- AAP