LVMH Moët Hennessy - Louis Vuitton (LVMHF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to our H1 results conference call. I'm here with Rodolphe. We are very happy to have you with us and we will start now. What we'll do is I will start with the key highlights, then Rodolphe will give you a bit more details in terms of the divisions and activities performance. Then I'll go through the key numbers and we will open for Q&A. Maybe before we start, I invite you to go to page two and read the Safe Harbor Statement. So I give you a few seconds to do that. And then I propose we start with slide three. LVMA showed good resilience in the first half of 2025, recording 40 billion in revenue, down 3% on an organic basis, with disparities by region, as I will explain later. In term of profit, the profit from recurring operations is 9 billion euros, down 15% versus the first half of 2024, although operating margin remains excellent at 22.6%, which is 150 basis points above the first half of 2019. Finally, very strong financial situation with the free cash flow increasing to 4 billion euros and gearing at 15.2. Turning to slide 4, a few qualitative comments on the key highlights of this first half. The start of the year has been disrupted by several layers of micro uncertainties, as you are well aware, as well as currency swings impacting short-term performance, albeit with a pocket of resilience. More specifically, we saw solid local demand in Europe and in the US and a tangible sequential improvement when it comes to mainland China in the second quarter. In addition, we saw a very abrupt currency swing in Q2, which eroded the purchases of American and Chinese consumers abroad, and especially in Japan, where we faced a very abnormal growth of 57% in the same period last year. In this context, we focused on the qualitative development of local clientele as we...