LVMH (MC) Q4 2024 earnings summary

Executive summary

• Revenue reached €84.7 billion in 2024, with 1% organic growth despite a challenging global environment and analyst expectations of a decline.

• Profit from recurring operations was €19.6 billion, down 14% year-over-year, mainly due to adverse exchange rate effects, normalization in key segments, and increased costs.

• Net profit attributable to the Group fell 17% year-over-year to €12.6 billion, following a record year in 2023.

• Operating margin remained strong at 23.1%, significantly above pre-Covid levels.

• 2025 has started well, with several brands reporting double-digit growth in January and management expressing confidence for continued growth.

Financial highlights

• Revenue reached €84.7 billion, with 1% organic growth and negligible impact from scope and forex.

• Operating free cash flow increased 29% to €10.5 billion; net financial debt decreased to €9.2 billion.

• Dividend payout proposed at €13 per share, maintaining stability year-over-year.

• Gross margin fell by 180 basis points, affected by lack of price increases, negative forex, and one-off provisions.

• Exchange rate fluctuations had a substantial negative impact, reducing profit from recurring operations by €1.1 billion.

Outlook and guidance

• Management is confident for 2025, aiming to reinforce global leadership through innovation, investment, and selective distribution.

• Gradual recovery expected in China over two years, while the U.S. market shows optimism and growth.

• Ongoing commitment to environmental protection and corporate social responsibility.

• No major divestments planned; continued focus on brand development and balanced geographic presence.

• Continued vigilance amid economic and geopolitical uncertainties.