2019 First-half earnings

Press release date: 
12/09/2019 - 5:45pm
Reims, Thursday September 12, 2019 - 5:45 pm
 
 
The LANSON-BCC Group is releasing its audited earnings for the first half of 2019, with net income of -€1.18m, while the first half-year period accounts for only around one third of sales, but half of costs. The positive effects of the improvement in the price-product mix did not offset, over the period, the negative impact of the contraction in volumes linked to the general economic environment in France. As a family-owned pure player for Champagne, LANSON-BCC is moving forward with its long-term value development strategy with determination.
 

Highlights
 
In terms of volumes, for the overall Champagne sector, the first half of 2019 (-3.1%) was less favorable than the same period in 2018 (-0.9%). The contraction in the French market (45.4% of volumes shipped) accelerated to -6.0% from -3.3% for the first half of 2018. The other European countries are picking up (+3.8%), including the UK, following the downturn seen in the last few years. Countries outside the European Union are down -4.2%, with 29.4% of the volumes shipped. Source: CIVC
 
 
In this context, the LANSON-BCC Group has focused in priority on strengthening the price positioning of its Maisons. Volumes for the first half of 2019 were primarily affected by the drop in consumption in France in a sluggish economic environment marked by the social movements, the electoral climate and the delicate rollout of the French “EGALIM” Law for the mass retail sector. On export markets, the Group’s Maisons have achieved encouraging performances, with positive price-mix effects.
 
 
Consolidated income statement
 
 
IFRS (€m)
H1 2019
H1 2018
Revenues
79.47
88.20
EBIT
0.13
1.90
Financial income and expenses 
-1.93
-1.88
Net income
-1.18
0.17

Consolidated revenues for the first half of 2019 came to €79.47m, versus €88.20m, down -9.9%, compared with +3.7% growth for the first half of 2018. Excluding the brokerage subsidiary, whose activity is traditionally subject to fluctuations, consolidated revenues represent €77.94m for the first half of 2019, compared with €86.98m (-10.4%).
 
 
Exports generated 47.6of revenues at June 30, 2019, compared with 44% at June 30, 2018. This performance reflects the lower level of business for the Group’s Maisons in France, combined with sales growth for several European destinations and the UK in particular, where the Group has significant longstanding market shares.
 
 
EBIT came to 13m, compared with €1.90m for the first half of 2018. 
 
 
Financial income and expenses came to -€1.93m, compared with -€1.88m. 
 
Net income totaled -€1.18m, compared with €0.17m at June 30, 2018.
 
 
Consolidated balance sheet
 
 
Shareholders’ equity represents €277.15m, compared with €271.08m at June 30, 2018.
 
 
Net financial debt came to 547.18m, compared with €525.59m at June 30, 2018. In addition to the interest acquired in the vineyard real estate company La Croix d’Ardillères in November 2018 for €8m, 90% of this debt concerns the aging of a stock of wine for over 3.5 years on average, which is an essential part of the Champagne wine production process. Gearing represents 1.97, compared with 1.94 at June 30, 2018.
 
 
Outlook
 
 
Due to the seasonality of Champagne sales, which has increased in 2019, these results cannot be extrapolated over the full year. As visibility for the end of the year is still limited, the Group is not releasing any forecasts for the full year, but it is important to note that the last quarter of the calendar year represents nearly 50% of sales.
 
 
Additional information
 
 
The consolidated half-year financial statements have been subject to a “limited” review by the statutory auditors (Grant Thornton and KPMG). The half-year financial report, approved by the Board of Directors on September 12, 2019, is available on the Group website: www.lanson-bcc.com.
 
 
2019 full-year revenues will be released on Thursday January 30, 2020 (after close of trading).
Attached document: 

Champagne Lanson  Champagne Tsarine    Champagne Besserat de Bellefon  Champagne Boizel   Champagne De Venoge   Champagne Philipponnat  Maison Alexandre Bonnet