Could Poor Drinks Performance See LVMH Put Unit On The Block?

French luxury goods group LVMH has reported a 14% decline in like-for-like sales at its wine and spirits division during 2009. Revenues came in at EUR2.74bn, compared to EUR3.12bn the previous year, with the fall attributed to a slump in demand for Champagne and a smaller fall in demand for Cognac. The drop in revenues led to a 28% decline in profits at the division, which came in at EUR760mn compared to EUR1.06bn the previous year. LVMH has reported a significant improvement in the division's performance in the fourth quarter of the year and has suggested this upturn has continued

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