LUXURY goods group LVMH today said bubbling champagne orders helped its wine and spirits division to report 20% sales growth.

The Moet Hennessey Louis Vuitton group - whose drink brands include Dom Perignon and Veuve Clicquot Ponsardin - said after a year of recession-inspired destocking among its customers, its champagne business had bounced back in the first three months of the year.

LVMH said its wine and spirits division grew sales to 635 million euros (£562 million) in the period as Hennessy cognac was given a boost from demand in Asia during the Chinese New Year period.

The group posted a 13% rise in total sales compared with last year on a like-for-like basis and at constant exchange rates. Total revenues increased to 4.5 billion euros (£3.9 billion).

It said it expected to utilise a portfolio of some of the world’s most recognised high-end brands to further enhance its position in the global luxury industry this year.

But it did sound a note of caution on the pace of the upturn.

"Taking into account the uncertainty of the strength of the economic recovery, LVMH will continue to concentrate all of its efforts on the development of its formidable brands while maintaining strict cost management and selective investments," it said.

All of its businesses registered double digit growth in the period.

In the fashion and leather division - which boasts names including Louis Vuitton, Fendi and Donna Karan - comparable growth was 10%, while revenues increased to 1.7 billion euros (£1.5 billion).

The firm said Louis Vuitton had delivered "exceptional performance", with double digit comparable sales growth building on an already strong performance in the first quarter of 2009.

LVMH said perfumes and cosmetics - including the brands Christian Dior, Guerlain and Kenzo - were helped by good performances for scents like Fahrenheit and Miss Dior Cherie.

Revenues were 736 million euros (£651 million) in the quarter, with comparable sales growth of 12%.

In the watches and jewellery arm, organic growth was up 34% as the business benefited from the end of the distributor destocking seen last year.

TAG Heuer saw success with its new Calibre 1887 line, while Chaumet celebrated its 230th anniversary with a new jewellery collection called Josephine.

Selective retailing - which includes cosmetic and skin care retail chain Sephora - saw revenues rise to 1.2 billion euros (£1 billion).

The division benefited from the rebound in international travel, while Sephora is now set to open its 1000th store worldwide in the second quarter.

Dennis Weber, of Evolution Securities, said the first quarter sales figures were "very strong".

"While these figures have been helped by easy comparatives and re-stocking activity, the performance looks very impressive and of high quality, with final consumer demand picking up and Europe and the US also rebounding strongly, in addition to the continued good growth in Asia, excluding Japan," he said.