Laurent-Perrier's Paradox: Growth in a Market Losing Its Fizz

TOURS-SUR-MARNE, France – November 28, 2025 – In a global luxury market grappling with a post-boom hangover, Champagne house Laurent-Perrier has delivered a masterclass in strategic resilience. The family-controlled group today announced first-half financial results that paint a picture of calculated success: revenue is up, sales volumes are growing faster than the market, yet net profits have taken a slight dip. This apparent paradox is no accident; it is the deliberate outcome of a long-term value strategy that is setting the brand apart in an increasingly cautious economic climate.

For the six months ending September 30, 2025, the group reported a modest 1.5% rise in consolidated revenue to €134 million. More impressively, its champagne sales volumes grew by 2.6% during a period when the overall champagne market contracted by 1.5%. This feat of outpacing the market is a testament to the enduring power of its premium brands, but it came at a cost. Net profit fell by 8.7% to €23.1 million, a decline the company attributes to continued, long-term investment in its brand portfolio and commercial development.

Crafting Success Against the Current

At the heart of Laurent-Perrier's performance is a disciplined adherence to its "value-driven strategy." While some competitors chase volume, the house has focused on reinforcing the premium status of its portfolio, which includes the flagship Laurent-Perrier brand alongside the prestigious Salon, Delamotte, and Champagne de Castellane labels. This strategy yielded a positive price-mix effect of +1.6% in the first half, demonstrating that consumers are willing to pay a premium for perceived quality and heritage, even as discretionary spending tightens.

The company's ability to grow volumes while the broader market shrinks is a significant indicator of market share gains. This success is not happening in a vacuum. The global champagne sector is navigating a period of normalization after the record-breaking sales of the post-pandemic era. According to industry data, while export markets like the United States and the United Kingdom remain relatively robust, domestic demand in France has softened, and producers are carefully managing supply. The Comité Champagne, the industry's governing body, has already moved to reduce harvest yields for 2025 to prevent oversupply and protect the appellation's value.

Against this backdrop, Laurent-Perrier’s growth underscores the effectiveness of its controlled global distribution and its focus on the high-end segment, which has proven more insulated from economic shocks than the mass market. As Stéphane Dalyac, Chairman of the Management Board, noted in the release, "The strength of the Group’s brands and the quality of its Champagnes continued to support its value-driven strategy."

The Price of Premiumisation

The 8.7% decline in net profit, while a headline concern, reveals a deeper strategic choice. The company has consciously decided to reinvest in its future, absorbing higher costs associated with brand support and commercial development to fortify its market position for the long haul. This resulted in an operating margin of 27.5%—a figure that, while down 2.6 points from the prior year's exceptional high, remains robust and, crucially, is "above that recorded in the years prior to the Covid period," according to Dalyac.

This performance stands in stark contrast to some of its larger, diversified rivals. LVMH, the luxury titan, recently reported a more significant 15% drop in profit from recurring operations for its first half, with its Wines & Spirits division facing a particularly challenging environment. LVMH's operating margin for the period stood at 22.6%, making Laurent-Perrier's 27.5% margin appear particularly strong and indicative of a more focused, and perhaps more nimble, operational model.

Furthermore, Laurent-Perrier demonstrated impressive financial housekeeping. Operating cash flow saw a dramatic improvement, moving from a deficit of €39.2 million in the prior year to just -€4.7 million. This signals strong management of working capital, even as the company increased its inventories of aging champagne—a vital long-term asset for any premium producer. With a low gearing ratio of 0.37, the company's financial structure remains exceptionally solid, giving it the stability to weather market fluctuations and continue its investment plan with confidence.

A Cautious Toast to the Future

Despite its resilient performance, Laurent-Perrier is not immune to the headwinds buffeting the global economy. The company's leadership struck a tone of "considerable caution" for the coming months, explicitly warning that the first-half results cannot be extrapolated for the full year. This prudence is well-founded. The luxury sector is facing a confluence of challenges, from persistent inflation and high interest rates in Western markets to a notable economic slowdown and shifting consumer sentiment in China.

Across the industry, analysts have noted a growing "price fatigue" among consumers who have seen luxury goods prices climb steadily for years. This is coupled with a broader trend, especially among younger and affluent demographics, toward spending on experiences like travel and fine dining over physical goods. For champagne, this presents both a threat and an opportunity. While it competes for a share of the consumer's wallet, its inherent association with celebration and high-end experiences positions it well to capture this shifting demand, provided the branding and value proposition remain compelling.

Laurent-Perrier's path forward relies on the four pillars of its long-standing strategy: an exclusive focus on high-end champagne, a commitment to quality supply, a portfolio of strong brands, and meticulously controlled worldwide distribution. In a market where many are tempted to discount or pivot, the company is doubling down on the very principles that allowed it to navigate the current turbulence. Its ability to grow while others falter suggests that in the world of luxury, a steady hand and a clear, long-term vision may be the most valuable assets of all.