LANSON-BCC (EPA:ALLAN) - LANSON-BCC: Improvement in earnings over 2011

Transparency directive : regulatory news

26/03/2012 17:45

PRESS RELEASE

                      IMPROVEMENT IN EARNINGS OVER 2011

Reims, Monda y March 26th, 2012 - 5:45 pm. LANSON-BCC recorded an improvement in
its profitability over 2011, with EBIT climbing 7.4% to 46.41 million euros. The
operating margin represented 15% of revenues, while consolidated net income
totaled 20.77 million euros, an increase of 8.3%.

Consolidated earnings
Following a clear upturn in volumes in 2010 (+8.9%), a still dynamic first half
of 2011 (+5.2%) and a second half of 2011 affected by further events linked to
the financial crisis (-1.2%), Champagne shipments came to 322.97 million bottles
(+1.1%) for 2011 (source: CIVC). In this contrasting environment, LANSON-BCC
moved forward with its commercial development, strengthening the positionings of
the various Houses, in line with the value strategy applied for several years
now.

IFRS (million euros)               2011           2010         Change
Revenues                          310.15         305.15        +1.6%
EBIT                               46.41          43.20        +7.4%
% of revenues                      15%            14.2%
Net financial expenses            -13.29         -13.96        +4.8%
Net income                         20.77          19.19        +8.3%
% of revenues                       6.7%           6.3%

In 2011, consolidated revenues totaled 310.15 million euros, compared with
305.15 million euros in 2010 (+1.6%). Excluding the brokerage subsidiary CGV,
whose activity is traditionally subject to fluctuations, the Group's
consolidated revenues are up from 284.84 million euros in 2010 to 287.45 million
euros (+0.9%).

The Group recorded 46.41 million euros in EBIT, compared with 43.20 million
euros (+7.4%), representing an operating margin of 15%, versus 14.2% in 2010.
Excluding CGV, the Group's EBIT comes out at 45.54 million euros, compared with
42.36 million euros in 2010, giving a restated operating margin of 15.8%, versus
14.9% in 2010. This positive trend reflects the price-mix effect (+6%).

Financial expenses primarily concern financing for the aging of stocks, coming
in at -13.29 million euros, compared with -13.96 million euros.

Pre-tax earnings came to 33.13 million euros, compared with 29.24 million euros
in 2010 (+ 13.3%).

Net income (Group share) is up +8.3% from 19.19 million euros to 20.77 million
euros, giving a net margin for the Group of 6.7%, compared with 6.3% in 2010
(excluding CGV, the Group's net margin represents 7%, versus 6.5% in 2010). In
2011, the Group had an effective corporate income tax rate of 36.1%, compared
with 34.43% in 2010.

Financial structure further strengthened
Shareholders' equity represented a total of 193.26 million euros, up from 174.13
million euros at the end of 2010 (+ 11%). Consolidated net debt came to 472.32
million euros, compared with 468.20 million euros at end-2010.
The book value of inventories represents 435.30 million euros, compared with
411.94 million euros at the end of 2010.
LANSON-BCC would like to remind you that the Group has an ongoing policy to not
include financial expenses in the book value of inventories.
Consolidated debt has an average rate of 2.9%.
Gearing has continued to improve, moving from 5.68 at the end of 2006 with the
acquisition of Maison Burtin and Champagne Lanson to 2.44 at the end of 2011.

2011 dividend
LANSON-BCC's Board of Directors will be submitting a proposal for approval at
the Combined General Meeting on May 24th, 2012 for the dividend to be kept at
0.35 euros per share, with a payout ratio representing 9.9% of consolidated net
income. This payout, once again deliberately limited, will make it possible to
further strengthen the Group's financial foundations.

Outlook
LANSON-BCC is reasserting its long-term value development strategy. Thanks to
its complementary Houses with strong identities, the Group is able to operate
effectively across all the Champagne wine market segments.
Faced with a complex global environment, and the upcoming French elections,
LANSONBCC is reasonably cautious about 2012.

Additional information
The consolidated financial statements for 2011 were approved by the Board of
Directors on March 23rd. The audit procedures on the consolidated accounts have
been completed. The certification report will be issued once the necessary
procedures have been finalized for filing the 2011 registration document.

LANSON-BCC fully owns seven Champagne Houses

- Champagne Lanson (Reims), the prestigious international brand.
- Champagne Chanoine Frères (Reims), wines intended primarily for the European
  mass retail market (Chanoine brand), notably with the Tsarine Cuvée range.
- Champagne Boizel (Epernay), French mail-order market leader, with wines
  distributed in the traditional sector for international markets.
- Maison Burtin (Epernay), a European mass retail supplier and owner of the
  Besserat de Bellefon brand, distributed through traditional networks
  (restaurants, wine stores).
- Champagne De Venoge (Epernay), sold on selective retail markets, notably with
  its Louis XV grande cuvée.
- Champagne Philipponnat (Mareuil sur Aÿ), which owns the prestigious Clos des
  Goisses, with wines also available on selective retail markets as well as in
  leading restaurants.
- Champagne Alexandre Bonnet (Les Riceys), owner of a vast vineyard (wine sold
  in traditional sectors).

Euronext Compartment B
ISIN: FR0004027068
Ticker: LAN
Reuters: LAN.PA
Bloomberg: LAN:FP
www.lanson-bcc.com

LANSON-BCC
Nicolas Roulleaux Dugage
Tel: +33 3 26 78 50 00
investisseurs@lanson-bcc.com

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

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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: Improvement in earnings over 2011

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