LANSON-BCC (EPA:ALLAN) - LANSON-BCC: SIGNIFICANT UPTURN IN 2021 FIRST-HALF EARNINGS

Transparency directive : regulatory news

09/09/2021 17:45

PRESS RELEASE

                SIGNIFICANT UPTURN IN 2021 FIRST-HALF EARNINGS

Reims, Thursday September 9, 2021 - 5:45pm

Key developments

The LANSON-BCC Group is publishing its accounts for the first half of 2021,
with a net profit of EUR4.71m, a significant improvement versus 2020, which was
deeply affected by the shock of the pandemic. This satisfactory first-half
result was recorded thanks to strong growth in higher-value sales both in
France and for exports. As a family-owned pure player for Champagne, LANSON-BCC
is continuing to focus on its long-term value development strategy.

Against the backdrop of a global economic recovery, Champagne recorded an
excellent first half of 2021, confirming the strong level of attachment to its
wines among consumers worldwide. In terms of volumes, the industry's shipments
over this period climbed 47.9%, compared with a contraction of -29.4% for the
first half of 2020 due to the health crisis. The French market (40.4% of
volumes shipped) bounced back with +32.2% growth, compared with -29.2% for H1
2020. In terms of exports, shipments to European Union countries (+56.8%; 18.4%
of volumes shipped) and to third countries(1) (+62.7%; 41.3% of volumes
shipped) improved significantly, beating their previous record from 2018.
Source: CIVC

On these markets which are picking up, the Group's Maisons, benefiting from
their new governance, achieved strong sales growth both in France and for
exports. Our Maisons with the strongest Mass Retail sector exposure have
recorded good levels of shipments from the start of the year, illustrating the
robust level of actual consumption in 2020, while the Maisons with the
strongest focus on exports and serving traditional client segments have
improved their performance levels as the health measures have been gradually
lifted and consumption venues have reopened.

Consolidated income statement

IFRS (EURm)                             H1 2021   H1 2020  Change (%)
Revenues                                  99.11     74.13     33.7
EBIT                                       8.57     -1.44*     ns
Financial income and expenses*            -2.04     -1.94*    -5.1
Net income                                 4.71     -2.57      ns

* Following restatement of foreign exchange gains (EUR0.13m) recognized in
EBIT since December 31, 2020 (IFRS 15).

(1) Following Brexit, the Champagne industry's shipment statistics have been
adjusted, with the United Kingdom included in the "Third Country" region.

Consolidated revenues for the first half of 2021 came to EUR99.11m, up 33.7%
from 2020 and 24.7% versus the first half of 2019. Excluding the brokerage
subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent EUR97.30m, up 32.5% compared with the first
half of 2020.
Exports generated 57.9% of revenues at June 30, 2021, compared with 50.2% at
June 30, 2020. This change reflects better performances for several European
destinations (Belgium, Germany, Italy, Switzerland, etc.) and in the UK, where
Maison Lanson has historically had strong market shares, as well as in the
United States and Russia.
EBIT came to EUR8.57m, compared with -EUR1.44m for the first half of 2020. This
change is linked to the growth in volumes, as well as positive price effects,
which are essential to absorb the increase in the cost price of wines sold
during the period.
Financial income and expenses came to -EUR2.04m, compared with -EUR1.94m. The
cost of financing for the aging of Champagne stock totaled EUR1.81m, compared
with EUR1.88m for the first half of 2020. The change in financial income and
expenses is therefore linked to foreign exchange effects, which are now
recognized in EBIT in accordance with the new IFRS 15 standard.
Following an effective corporate income tax rate of 31.5%, net income totaled
EUR4.71m, compared with -EUR2.57m for the first half of 2020.

Consolidated balance sheet

Shareholders' equity is up to EUR291.69m, compared with EUR281.80m at June 30,
2020.

Consolidated net financial debt totaled EUR519.18m, compared with EUR545.21m at
June 30, 2020.

EUR430.6m concerns the aging of a stock of wines for four years on average,
with a slight drop following a reduced harvest in 2020.

Other financial debt represents EUR89m (vs. EUR105m at end-2020). It includes
EUR35m of government- backed bank loans, which have since been repaid. EUR54m
concern investments in the Maisons and vineyards, compared with EUR62m at
end-2020.

The Group's financial structure has continued to improve, with gearing down to
1.78 from 1.93 at June 30, 2020.

Outlook

Considering the traditional seasonality of Champagne sales, these results
cannot be extrapolated over the full year. LANSON-BCC would like to highlight
that usually around one third of sales are recorded during the first half of
the year, which is subject to half of fixed costs for the whole year. However,
this proportion may not be verified this year due to the partly exceptional
nature of the upturn in shipments over the first half of the year, as well as
the continued uncertainty surrounding global economic and health aspects. As
there is no visibility for the end of the year, LANSON-BCC is not releasing any
forecasts for the full year.

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 was approved by the Board of Directors on September 9, 2021
and is available on the Group website: www.lanson-bcc.com.

2021 full-year revenues will be released on Thursday January 27, 2022 (after
close of trading).

LANSON-BCC is a group built around eight Maisons producing Champagne wines,
created and led by Champagne families. It unites together outstanding Maisons,
renowned for their unique wines and benefiting from the effective fit between
their customer segments. The combination of ancestral know-how and modern
technical capabilities, creative independence and rational synergies enables
each one of its Maisons to develop its performances, ensuring the LANSON-BCC
Group's sustainability.

* Champagne Lanson, prestigious Maison founded 1760, Reims, holder of a Royal
Warrant since the time of Queen Victoria, 80% of Champagne sold on
international markets.
* Champagne Chanoine Frères, Maison founded 1730, Reims, Champagne sold
primarily for the European mass retail market, reputed above all for its highly
sought- after Tsarine cuvee.
* Champagne Boizel, Maison founded 1834, Epernay, Champagne distributed through
mail order in France (BtoC) and in traditional sectors for international
markets.
* Champagne De Venoge, Maison founded 1837, Epernay, Champagne sold on
selective retail markets, notably with its Cordon Bleu and Princes ranges and
its Louis XV grande cuvee.
* Champagne Besserat de Bellefon, Maison founded 1843, Epernay, producer of the
Cuvée des Moines, Champagne distributed through traditional networks
(restaurants, wine stores).
* Champagne Philipponnat, Maison founded 1910, Mareuil sur Aÿ, owner of Clos
des Goisses, Champagne sold on selective retail markets and in the world's
leading restaurants.
* Maison Burtin, Maison founded 1930, Epernay, private-label supplier for the
European mass retail market and also producer of Champagne Alfred Rothschild.
* Champagne Alexandre Bonnet, Les Riceys, Domaine founded 1970, owner of a vast
vineyard, with wine sold in traditional sectors, also producer of Rosé des
Riceys.

www.lanson-bcc.com

Euronext Growth
ISIN: FR0004027068
Ticker: ALLAN
Reuters: ALLAN.PA
Bloomberg: ALLAN:FP
Indices: EN Growth Allshare, EnterNext PEA-PME 150

Eligible for SME
share-based savings schemes (implementing order of March 5, 2014)

LANSON-BCC
Nicolas Roulleaux Dugage
Tel: +33 (0) 3 26 78 50 00
investisseurs@lansonbcc.com
actionnaires@lansonbcc.com

CALYPTUS
Cyril Combe
Tel: +33 (0)1 53 65 68 68
cyril.combe@calyptus.net

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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: SIGNIFICANT UPTURN IN 2021 FIRST-HALF EARNINGS

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