Lvhm Analysis

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LVMH Discussion Materials
November 2012

TABLE OF CONTENTS

01 02 03 04

Company Snapshot – LVMH Industry Analysis Internal Analysis Business Strategy

Slide 2

LVMH
• Merger of Louis Vuitton and Moët Hennessy • French holding company for luxury goods • Owns more than 60 companies • Revenue 24 billion EUR • Net income 3 billion EUR • Over 3000 stores • More than 100 thousand employees Slide 3

Current Strategy
• To represent the most refined qualities Western "Art de Vivre“ around the world • Five priorities  Be creative and innovate  Aim for product excellence  Bolster the image of their brands with passionate determination  Act as entrepreneurs  Strive to be best in all they do Tangible assets Cultural assets System assets

Strategic assets
Relational assets

• Strategic assets • Through diversification and responsiveness to change they have valued creaticty and built strong relationships with customers

Structural assets
Knowledge assets

Slide 4

LVMH Peer Analysis Revenue:
LVMH- past three years more than 15% growth PPR – mostly decreasing

Profit:
LVMH- stable growth around 13% PPR- doubled in last 5 years

Slide 5

LVMH Financial Overview
Key Financials Sales per Segment

EUR Million Total Revenue Growth % Gross Profit Margin % EBITDA Margin % EBIT Margin % Net Income Margin % Total Assets Growth %

2008 17,193 4.3% 11,181 65.0% 4,239 25% 3,611 21% 2,026 12% 31,483 11%

2009 17,053 (0.8%) 10,889 63.9% 4,053 24% 3,352 20% 1,755 10% 32,106 2%

2010 20,320 19.2% 13,136 64.6% 5,106 25% 4,321 21% 3,032 15% 37,164 16%

2011 2012 LTM 23,659 16.4% 15,567 65.8% 6,147 26% 5,263 22% 3,065 13% 47,069 27% 26,333 22.4% 17,154 65.1% 6,650 25% 5,673 22% 3,436 13% 49,143 4%

2012 E 27,977 18.2% 7,016 25% 5,956 21% 3,638 13% -

2013E

2014E

EUR Million Revenues Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing Other and Holding Companies Corporate and Other Total Revenues

2006

2007

2008

2009

2010

2011

30,266 32,573 8.2% 7,700 25% 6,587 22% 3,994 13% 7.6% 8,423 26% 7,222 22% 4,445 14%

2,994 5,222 2,519 737 3,877 165 (208) 15,306

3,226 5,628 2,731 833 4,164 143 (244) 16,481

3,126 6,010 2,868 879 4,376 228 (294) 17,193

2,740 6,302 2,741 764 4,533 278 (305) 17,053

3,261 7,581 3,076 985 5,378 409 (370) 20,320

3,524 8,712 3,195 1,949 6,436 314 (471) 23,659

Stock Chart

Operating Profit BT per Segment

200.00 150.00 100.00 50.00 0.00

EUR Million

2006

2007

2008

2009

2010

2011

70.00b 50.00b

Operating Profit Before Tax Wines and Spirits Fashion and Leather Goods Perfumes and Cosmetics Watches and Jewelry Selective Retailing 962.0 1,058.0 1,060.0 1,633.0 1,829.0 1,927.0 222.0 80.0 387.0 12.0 256.0 141.0 426.0 (141.0) (14.0) 290.0 118.0 388.0 (136.0) (19.0) 760.0 1,986.0 291.0 63.0 388.0 (135.0) (1.0) 3,352.0 930.0 1,101.0 2,555.0 3,075.0 332.0 128.0 536.0 (141.0) (19.0) 348.0 265.0 716.0 (204.0) (38.0) Slide 6

30.00b
10.00b

LVMH Moet Hennessy Louis Vuitton (ENXTPA:MC) - Daily Target Price (CIQ) LVMH Moet Hennessy Louis Vuitton (ENXTPA:MC) - Market Capitalization Source: Annual Report, Bloomberg

Other and Holding Companies (124.0) Corporate and Other Total Operating Profit BT

3,172.0 3,555.0 3,628.0

4,321.0 5,263.0

LVMH Stores and Sales by Geography
621 Stores Asia 883 Stores Europe

621 Stores United States

390 Stores France

360 Stores Japan 165 Stores Other Markets

10.0%

12.1%

Sales (2007–2012)
27.2% 20.3%

8.3%

22.1%

Slide 7

TABLE OF CONTENTS

01 02 03 04

Company Snapshot – UC4 Industry Analysis Internal Analysis Business Strategy

Slide 8

External Analysis
Macro-Environment • Political and Legal
Tariff Policies Legislations

• Economic
Economic turbulance

• Demographics
Demographic segmentation Consumer purchasing power New markets

• Socio-Cultural
Customer education...
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