LVMH Moët Hennessy - Louis Vuitton

Good afternoon everyone and welcome to today's conference call. I'm Rodolphe Feuzin, Director of Financial Communications and with me is Cecile Cabanis, our Chief Financial Officer. Cecile will start with key highlights of the first half of 2026. I will then share details on performance by business groups, after which Cecile will comment on the financials and conclude. And then we'll be happy to take your questions. Turning now to our announcement, our release was issued a short while ago in French and English and is available on LVMH website, lvmh.com, as are the slides for today's call. The habitual safe harbor statement is included in our press release and on slide two of our presentation. Let's now move on to today's topic, our first half figures, and passing over to Cecile.

Thank you Rodolphe. Hello everyone, thank you for attending the call and I will dive right into the results starting on slide 3. LVMH delivered a very solid set of results in the first half and a sequential acceleration on organic growth in the second quarter. Group revenue rose 2% organic in H1 at €38.6 billion with Q2 up 3% organic. Operating margin reach a very high level of 22.5%, very good outcome as we remain focused and disciplined. Profit from recurring operation closed at 8.7 billion, reflecting a significant negative currency impact. Net income was in line with last year. Finally, another semester of strong free cash flow delivery reaching more than 4 billion euros. Let's turn to slide 4 with a few qualitative comments on the semester. Overall, the first half of 2026 confirms the strength and resilience of our model. Middle East conflict impacts H1 top line growth by a negative 1 point. Both Q1 and Q2 suffered from this point. So if we exclude that, organic growth is rather 4% in the Q2. Revenu Momentum accelerated sequentially in our three largest divisions fashion and leather goods, selective distribution with watch and jewelry at double digit growth in Q2. Our key geographies posted sequential acceleration. US, Japan and Asia all posted mid-single digit growth for the first half. These results were supported by amongst other product innovation and creativity which deliver tangible results in the first half, the strengths of our icons and outstanding experiences in retail. The first half also demonstrates our continued attention to operational efficiency. Rodolphe will now comment on the numbers and key highlights by business group and I will then comment further on the group financials.

Thank you Cecile and we'll start with wines and spirits on slide 7. The wines and spirits business group recorded 2.6 billion euros in revenue in the first half, up 5% on an organic basis and flat on a reported basis after a negative 4% currency impact. Broken down, champagne and wines generated 1.4 billion euros, up 7% organic and up 2% reported after a negative 5% currency impact. And cognac and spirits delivered 1.2 billion euros, up 3% organic and down 1% reported after taking into account a negative 4% currency impact. Profit from recurring operations for the division rose 11% year-on-year to 582 million euros and operating margin rose 210 bps to 22.4. Moving to slide 8, wines and spirits improved markedly in the first half of the year. The 5% organic growth achieved in H1 was predominantly driven by volume growth, reflecting improving demand for our products. In Champagne, volume, price and mix all contributed to growth, and all maisons accelerated in the first half of the year, with strong momentum in Europe and Japan. Mix improvement was driven by the outperformance of Prestige Cuvée. For Rosé Wines, volume growth came from Chateau d'Esclan in the US and Minuti in Europe, and for Chandon, growth came from the US and Asia. In Cognac, Hennessy volumes also returned to growth in H1. US demand remained soft and depletions are still negative, but this was more than offset by improving demand elsewhere, notably VSOP in China. The launch of a new ready-to-serve format in the US, Hennessy Very Special Cocktails, had limited impact on volumes at this early stage, but highlights our commitment to innovation. Finally, Spirits also performed well, driven by Belvedere and Glenn Morangi. Going forward, we expect the division to grow at constant currencies in 2026, albeit not as much as in H1 and we expect full year EBIT margin to be closer to 2025 levels due to cost phasing and to the delayed adverse impact of currencies in this division due to profit in stocks notably. Turning now to fashion and leather goods. On slide 10, revenue reached 18.1 billion euros for the first half, down 1% organic and down 5% reported after taking into account the negative 4% currency impact. Q2 growth amounted to plus one organic. Profit from recurring operations came to 6.2 billion euros down 7% year-on-year and operating margin contracted 60 bps to 34.1 although in both cases the decline is more than entirely attributable to currencies. Turning to slide 11, two broad comments on the division. Firstly, virtually all brands accelerated sequentially in Q2, including Louis Vuitton and Christian Dior. Secondly, local demand outperformed in both Q1 and Q2, but offshore demand, which was negative in Q1, turned flattish in the second quarter. A few words on the largest brands. Louis Vuitton celebrated the 130th anniversary of the monogrammed canvas with success, consistent with its ambition to communicate on some of its most distinctive attributes, know-how, history, and travel. And Christian Dior accelerated sequentially, driven by continued excitement around the unveiling of Jonathan Anderson's new creative vision, with good response to bags and to ready-to-wear. L'European 9 Rimowa continued to enjoy above average growth while Céline and Fendi improved sequentially compared to the second half of 25 and to Q1 26. Moving on to perfumes and cosmetics, on slide 13 revenue reached 3.9 billion euros flat on an organic basis and down 4% on a reported basis after a negative 4% currency impact. Profit from recurring operations declined 2% year-on-year to 417 million euros whilst operating margin improved 20 bps to 10.6%. Now to slide 14, which details product innovation across our maisons. The perfumes and cosmetics business group continued to see good performance from its historic maisons, in particular Parfum Christian Dior and Guerlain. By category, fragrances outperformed, although again Dior and Guerlain enjoyed good momentum in both makeup and skincare. And looking at key markets, whilst travel retail remained a headwind, Asia and Japan enjoyed a good momentum. Finally, our Maisons remained focused on maintaining their selective distribution strategy with tangible and measurable benefits on brand desirability. Next turning to watches and jewellery on slide 16 where revenue for the first half of 26 rose to 5.2 billion euros up 9% organic and up 3% reported after taking into account a negative 6% currency impact. Profit from recurring operations rose to 831 million euros in the first half of 26, up 9% year-on-year, and the operating margin rose to 15.9%, up 90 bps year-on-year. I'm now on slide 17. Jewelry recorded an excellent performance in the first half of the year, including double-digit growth in the second quarter and positive growth across all key regions driven by the US, Asia, and Japan. Tiffany continues to progress in its elevation strategy with iconic lines, new store and high jewelry all are performing materially. Focus remains on developing our iconic lines and hardware and not in particular enjoy exceptional growth despite very tough comps. And meanwhile Tiffany is also progressing with the ongoing renovation of its retail network with approximately 40% of the network now renovated. Bourguery also continued to enjoy strong momentum, notably in retail, with strong growth across jewellery, high jewellery and watches. And again, growth was broad-based across all key regions and driven by the continued success of Bourguery's icons Serpenti, Diva and B01. Our watchmaison also unveiled several exciting innovations in the first six months of the year. Now moving on to our last business group, selective retailing on slide 19. You can see revenue came to 8.4 billion euros in H1, up 5% organic and down 2% reported after taking into account a negative 5% currency impact and a negative 3% perimeter impact due to the disposals at DFS. Profit from recurring operations came to 893 million euros, up 2% year-on-year, resulting in a slightly improved operating margin of 10.6%. And turning to slide 20, a few words on Sephora, which enjoyed good performance across key markets, including the US, Europe, Middle East, and China, and all categories recorded positive growth, with makeup and hair care outperforming. Sephora also continued to invest in its retail network and to expand into new markets with Belgium and Croatia open in the first half of the year amongst others. Le Bon Marché continued to see good growth in the first half and finally we have continued to progress with the sale of DFS assets which led to a negative one percentage point perimeter impact at group level in Q2. This concludes the business group presentation and I'll now pass back to Cecile for financial results.