LVMH, the world’s largest luxury group and owner of iconic spirits brands such as Hennessy Cognac, has reported a challenging year for its wines and spirits division in 2025.
Organic revenue for the segment declined by 5%, with total sales falling to €5.358 billion from €5.862 billion in 2024. Even more striking was the 25% drop in recurring operating profit, underlining the intensity of the pressures facing this part of the group’s portfolio.
While the year showed mixed quarterly performance, the overall trend remained negative. During the third quarter of 2025, wines and spirits revenues reached €1.33 billion, marking a modest 1% year-on-year increase. However, this brief uptick was overshadowed by a sharp 9% decline in the fourth quarter, which ultimately dragged down the full-year result.
At the center of the downturn lies Hennessy Cognac, LVMH’s flagship spirits brand and historically one of its strongest profit drivers. The group identified weaker domestic demand for cognac as the primary factor behind the revenue decline. This slowdown is closely linked to ongoing trade tensions and customs tariffs in two crucial markets: China and the United States.
Although China’s Ministry of Commerce concluded its anti-dumping investigation into European Union brandy imports in June last year—bringing temporary relief to cognac producers including Hennessy—the broader trade environment remains unstable. Persistent geopolitical frictions and tariff-related uncertainties in both China and the US have continued to dampen consumer demand and disrupt sales momentum.
Despite these challenges in spirits, not all categories within the division underperformed. LVMH’s Champagne houses managed to maintain a strong position, accounting for 22% of global Champagne shipments. In addition, the group’s Provençal rosé wines outperformed the global rosé category, demonstrating resilience and continued international appeal.
On a group level, LVMH reported total revenue of €80.8 billion in 2025, representing an organic decline of 1%. Encouragingly, the fourth quarter showed signs of stabilization, with revenues edging up by 1%. Chairman and CEO Bernard Arnault emphasized that these results reflect LVMH’s ability to adapt in a complex geopolitical and economic landscape, supported by disciplined cost management and a long-term commitment to environmental and social responsibility.
Source: Vinetur