LVMH Moet Hennessy Management Discusses Q4 2013 Results - Earnings Call Transcript

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LVMH Moet Hennessy Louis Vuitton SA (OTCPK:LVMHF) Q4 2013 Earnings Call January 30, 2014 12:00 PM ET


Jean-Jacques Guiony – CFO

Christophe Navarre – CEO


Luca Solca – Exane BNP Paribas

Antoine Belge – HSBC

John Guy – Berenberg

Mario Ortelli – Sanford C. Bernstein

William Hutchings – Goldman Sachs

Unidentified Company Representative

Well good evening. Thank you for joining us once again for this Annual Meeting presenting our results with the LVMH management team. So for the results you will have received the press release. I’m sure it was circulated earlier. The results for the year are good because we have achieved an excellent performance in terms of revenue, we’re nearing €30 billion profit from recurring operations which is the indicator followed by analyst for the first time is above €6 billion, net profit is also up and it’s important to note that the performance in terms of cash generation is good because gearing remains below 20% in spite of the acquisition this year, Loro Piana.

Well might you say generally growth is faster, I’m expecting that question? So why has growth being of only an 8% which is pretty good and the results likely less. Three reasons. First reason, the global economic climate and this will come as a surprise to know, one, a number of high growth countries have slowed a little on the one hand. Furthermore China has taken a number of measures that were implemented during the course of the year such that the consumption of luxury or rather high end products has been slowed slightly in some areas that was not the case, a bit more in Wines & Spirits, you will see in that a number of Wines & Spirits companies have presented their results and we’ve seen that Cognac sales have been hit with Mr. Neva, we’re fortunate in being very responsive.

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