Profits going up again for the big houses

Luxury goods giant LVMH reported a 1% rise in net profit this week as the company continues to show strong growth despite economic uncertainty in Europe. The groups net profit topped €3 billion, as sales jumped 16% last year, driven mainly by strong spending in Asia. The groups Chief Executive, Bernard Arnaud said growth was much the same as the previous year and he is expecting next year to grow yet again.

Remy Martin are also expecting a big jump in profits 18%) as indeed are those of Pernod Ricard, owners of the Martell brand. The big four Cognac houses are anticipating further growth as a result of continued strong sales in the Asian markets. It is expected that sales volumes will greatly increase in 2012.