LANSON-BCC (EPA:ALLAN) - RESILIENT EARNINGS

Transparency directive : regulatory news

26/03/2013 17:45

PRESS  RELEASE

                                 RESILIENT EARNINGS

Reims, Monday March 26th, 2013 - 5:45 pm. LANSON-BCC demonstrated the resilience
of its earnings in 2012, with its operating margin rate kept at 15% of revenues.
The margin rate before corporate tax came to 10.4%, versus 10.7% in 2011. Net
income totaled 17.6 million euros, compared with 20.8 million euros in 2011.

Consolidated earnings
Champagne shipments in 2012 represented 308.8 million bottles (-4.4%), with this
contraction expected due to the difficult economic environment and the month of
December being less dynamic than hoped for (source: CIVC).
Despite a particularly unfavorable context in Europe, which accounts for the
majority of the LANSON-BCC Group's shipments today, the Group has firmly
maintained its strategy: further strengthening the complementary positionings
of its Houses and confirming the value policy applied for several years now.

IFRS (EUR'000,000)            2012            2011           Change

Revenues                     274.68          310.15           -11.4%
Gross margin                 110.18          116.05            -5.0%
% of revenues                 40.1%           37.4%
EBIT                          41.13           46.41           -11.4%
% of revenues                  15%             15%
Financial expenses           -12.49          -13.29             + 6%
Corporate income tax         -11.04          -12.35           +10.6%
Effective tax rate            38.5%           37.3%
Net income                    17.60           20.77           -15.3%
% of revenues                  6.4%            6.7%

In 2012, consolidated revenues totaled 274.68 million euros, compared with
310.15 million euros in 2011 (-11.4%). Excluding the brokerage subsidiary CGV,
whose activity is traditionally subject to fluctuations, the Group's
consolidated revenues came to 269.33 million euros, down -6.3% in relation to
2011 (287.45 million euros).
The change in the gross margin rate factors in the positive change in the
product mix. The Group recorded 41.13 million euros in EBIT, compared with 46.41
million euros, down 11.4%, in line with the trend for revenues. However, the
operating margin rate remained stable at 15%. This result reflects the effective
management of costs and the EUR-GBP exchange rate.
Financial expenses primarily concern financing for the aging of stocks, coming
in at -12.49 million euros, compared with -13.29 million euros.

Pre-tax earnings came to 28.64 million euros, compared with 33.13 million euros
(-13.6%).
The Group's effective corporate income tax rate has continued to rise, up to
38.5% from 37.3% in 2011 and 34.4% in 2010.
Net income (Group share) came to 17.60 million euros, compared with 20.77
million euros (-15.3%), giving a net margin for the Group of 6.4%, versus 6.7%
in 2011.

Financial structure
Shareholders' equity represented a total of 197.46 million euros, compared with
193.26 million euros at December 31st, 2011 (+2.2%). This change is relatively
limited as a result of the two operations carried out to buy back 8.4% of the
capital in 2011 and 2012 for 21.3 million euros.
Consolidated net financial debt totaled 499.43 million euros, compared with
472.32 million euros at the end of 2011. Out of this debt, 386.22 million euros,
compared with 363.16 million euros at end-2011, are allocated for financing the
ageing of wine stock, with a book value of 422.61 million euros, versus 435.30
million euros at end-2011. 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 2.45%.
With part of the equity capital neutralized corresponding to the shares
currently held as treasury stock (4.8% of the capital), gearing stands at 2.53,
down from 5.68 at the end of 2006 following the acquisition of Maison BURTIN and
Champagne LANSON.

2012 dividend and awarding of new shares
LANSON-BCC's Board of Directors will be submitting a proposal for approval at
the Combined General Meeting on May 24th, 2013 for the dividend to be kept at
0.35 euros per share, with a payout ratio representing 11.1% of consolidated net
income. The modest level of this payout is intended to further strengthen the
Group's financial structure.
To thank the shareholders for their loyalty, they will be freely awarded one new
bonus share for every 10 existing shares held in June 2013, based on a capital
increase through an incorporation of reserves.

Outlook
LANSON-BCC is reasserting its long-term value development strategy.
The figures for 2012 once again highlight the benefits of its ongoing and
rational policy to not neglect any profitable market segments. Champagne Lanson,
an outstanding House with a strong international presence, is expected to
continue developing its international footprint; Champagne Tsarine is building
on its  success each year; Champagne Philipponnat brings to the world of fine
dining the best that Champagne has to offer; and Champagne Boizel is the market
leader for direct sales in France.
The Group's development is underpinned by the effective fit between its Houses,
combined with the increasingly widely recognized quality of their wines, the
efficiency of their production tools and their responsible management.
The LANSON-BCC Group's Houses have made a slightly better start to 2013 than
2012, but, at this stage in the year, visibility is still limited: while the
whole world is not sluggish, Europe faces an economic and financial situation
that is still very complicated. In view of so many uncertainties, the LANSON-BCC
Group, in line with its cautious policy, is therefore not publishing any target
figures for 2013.

Additional information
The consolidated financial statements for 2012 were approved by the Board of
Directors on March 26th, with the audit procedures on the consolidated accounts
completed. The statutory auditors' certification report will be published when
the 2012 reference document is filed.

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@lansonbcc.com
actionnaires@lansonbcc.com

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

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