French luxury goods group LVMH Moët Hennessy Louis Vuitton today forecast higher 2003 operating profit due to continued solid growth in its key brands after reporting in-line full-year 2002 net profit.
Operating profit at the Paris-based group rose 29 per cent. LVMH, which makes a range of luxury goods from Moët & Chandon and Dom Perignon champagnes to Tag Heuer watches, said 2002 net profit rose to €556 million from €10 million a year earlier.
The company said it expected an improvement in profitability in 2003 as operating profit rose to €2 billion from €1.56 billion in 2001.
The company said cost cutting and the lower debt had contributed to the improvement in 2002 net income.
LVMH said its core fashion and leather division had an "excellent performance in a difficult market" reporting a 1.8 per cent rise in operating profit to €1.3 billion.