Dom Perignon 2013 – LVMH’s H1 result helped by Champagne Sales
LVMH's Rockstar H1 result helped by Champagne Sales - Dom Pérignon 2013
LVMH have announced yet another very successful H1 report, and once again, the Champagne and Wine business outperforms. H1 saw organic revenue growth of 5% YoY which is impressive given H2 last year boasted organic growth of 33% YoY. H1 23 Earnings growth was equally impressive at 7% YoY as margins continue to improve. The strong result was driven by Europe and Japan with margin improvements due to a firm price increase policy.
Analysis
This result echoes the strong Champagne export data highlighted by the Comité de Champagne in January. We continue to see the global demand for Champagne increase and with a number of challenging harvests in 2016, 2019 and 2021, and expect demand for Champagne to outstrip supply for quite sometime.
China is currently #14 biggest importer of Champagne ahead of Denmark. The report shows China’s Champagne demand still lagging its potential however we expect this to be a massive price catalyst for the region in the mid to long term.
LVMH managed to increase margins despite inflationary pressure. This shows fine wine’s and Champagne’s inherent inflation hedging characteristics. The continued strong performance of LVMH’s Champagne division coupled with growing Champagne demand and supply constraints further strengthens Champagne’s investment case.
Investment Opportunity with Dom Pérignon 2013
We have a limited number of the latest release of LVMH’s flagship Champagne, Dom Pérignon 2013.
The performance of the back vintages has been both consistent and stellar and provides an excellent opportunity for a two-case strategy, allowing the investor to take profit on one case within five years while maintaining exposure with the second case to maximise returns.
| Dom Pérignon | Current Value | MOM | YOY | 1 Year Return | 2 Year Return | 5 Year Return |
| 2012 | £1,820 | -3.2% | -5.9% | 9.7% |  |  |
| 2010 | £1,850 | 0% | 0.9% | 10.1% | 49.2% |  |
| 2009 | £1,920 | -3.9% | -4% | 7.3% | 39.7% | 73% |
Investment Case:
- Strong Brand: Rated #6 on the Liv-Ex Power 100 and backed by the LVMH conglomerate, Dom Pérignon is the most recognised top tier Champagne in the world.
- Strong Performance: Performance of back vintages are both consistent and impressive. The last 3 vintages have averaged 44% return since release.
- Strong Demand: Global demand for Champagne is increasing as highlighted by both LVMH and the Comité de Champagne.
Dom Perignon 2013
Champagne, France
Vintage: 2013
Case Format: 6x75cl
Tax Status: IN-BOND
£918.00
