Luxury goods group Moët Hennessy Louis Vuitton said has seen profit surge on the back of cost reductions and solid growth from key brands Moët & Chandon champagne and Tag Heuer watches.

LVMH said net income rose to 556m euros in 2002 from 10m euros last year, after its profit was almost wiped out in 2001 due to a drop in sales after the September 11 terrorist attacks.

“LVMH will continue in 2003 to focus on internal growth, on the development of its major brands and on exercising a very selective investment policy,” the company said.