LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2014 FIRST-HALF EARNINGS

Transparency directive : regulatory news

09/09/2014 17:49

PRESS RELEASE

                            2014 FIRST-HALF EARNINGS

Reims, Tuesday September 9th, 2014 - 5:45 pm.

The LANSON-BCC Group is releasing its audited earnings for the first half of
2014, with 2.51 million euros in net income, an increase of nearly 5%. A good
result for a first half-year period which accounts for only around one third of
sales for the year, but half of fixed costs, achieved thanks to the performance
on export and the reduction in financial expenses, despite a difficult French
market.

Highlights

In terms of volumes, for the Champagne industry as a whole, the first halves of
2013 (-3.1%) and 2014 (+1.4%) show positive contrasts. The French market, with
52% of the volumes shipped, is still negative (-3.1%), but the other European
Union countries, with 24% of the volumes shipped, are performing better
(+8.3%), while other countries outside the EU (+5.5%) have continued to grow
and now represent 24% of the volumes shipped (source CIVC).

In this context, the LANSON-BCC Group's sales for the first half of 2014
contracted in France (-5% in value), while sales to other EU and non-EU
countries increased (+11% in value).

Consolidated income statement

IFRS (EUR'000,000)                 H1 2014      H1 2013       Change

Revenues                             94.33        93.46       + 0.9%
EBIT                                  8.22        10.02      - 18.8%
Financial income / expense           -3.81        -5.77      + 34.1%
Net income                            2.51         2.39       + 4.9%

The delay recorded during the first quarter (-5.7%) was offset by the progress
made in the second quarter (+7.4%). Consolidated revenues for the first half of
2014 climbed to 94.33 million euros, compared with 93.46 million euros (+0.9%).
Excluding the brokerage subsidiary CGV, whose activity is traditionally subject
to fluctuations, consolidated revenues totaled 92.55 million euros for the
first half of 2014, compared with 91.39 million euros, up 1.3%.

Exports generated 44.4% of revenues, compared with 41.3% at June 30th, 2013.
This change reflects the improved performances seen on several European
markets, particularly the UK, where Champagne Lanson has historically had
strong market shares, as well as Switzerland, Scandinavia, Germany and outside
of Europe in Australia, Russia and Asia.

EBIT came to 8.22 million euros, compared with 10.02 million euros at June
30th, 2013 (-18%). The operating margin rate represents 8.7% of sales, versus
10.7% for the first half of 2013. This change factors in positive
"price/mix/volume" effects for export, although these were insufficient to
offset the adverse effects and high promotional costs seen in France, as well
as the increase in the cost price of bottles sold.

Net financial expenses totaled 3.81 million euros, compared with 5.77 million
euros at June 30th, 2013 (-34%), with the average rate for consolidated debt
coming out at 1.64%, versus 2.34% at December 31st, 2013. This positive change
reflects the fact that the most expensive credit facilities set up in 2006 for
Champagne Lanson's acquisition matured at the end of 2013.

Pre-tax earnings (before corporate income tax) came to 4.41 million euros,
compared with 4.25 million euros at June 30th, 2013 (+3.8%).

Net income came to 2.51 million euros, compared with 2.39 million euros at June
30th, 2013, up +4.9%.

Consolidated balance sheet

Shareholders' equity represented 223.4 million euros at June 30th, 2014,
compared with 197.7 million euros at June 30th, 2013, 224 million euros at
December, 31st 2013.

Consolidated net debt dropped to 484.17 million euros at June 30th, 2014,
compared with 498.17 million euros at June 30th, 2013 (-2.8%) and 478.45 million
euros at December 31st, 2013. This change takes into account the smaller harvest
available in 2013 (-4.5%) and the dynamic sales trends recorded during the first
half of 2014. 80% of this debt is allocated to the ageing of wine stocks, for
three years on average, an integral part of the process for creating Champagne
wines. Gearing has improved further to 2.17, versus 2.52 at June 30th, 2013.

Outlook

The Group's results for the first half of the year are still clearly positive,
whereas the global economic climate and the usual seasonal patterns for
Champagne wine sales are not favorable, with the first half of the year
accounting for 50% of fixed costs, but only generating around one third of
sales. In this way, these results cannot be extrapolated over the full year for
2014. As visibility for the end of the year is still limited, the Group is not
releasing any forecasts for the full year.

Additional information

The consolidated half-year accounts have been subject to a "limited" review by
the statutory auditors (Grant Thornton and KPMG), in accordance with the
regulations in force. The half-year financial report approved by the Board of
Directors on September 9th, 2014 is available on the Group website:
www.lanson-bcc.com.

2014 third-quarter revenues will be released on Thursday November 6th, 2014
(after close of trading).

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), reputed above all for its famous Tsarine
  cuvee.

- 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 cuvee.

- 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).

www.lanson-bcc.com

Euronext Compartment B
ISIN: FR0004027068
Ticker: LAN
Reuters: LAN.PA
Bloomberg: LAN:FP
Indexes: CAC Mid & Small,
CAC All-Tradable, CAC Beverages

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

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

LANSON-BCC's latest news

26/04/2024 17:45

LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2014 FIRST-HALF EARNINGS

Transparency directive : regulatory news

LANSON-BCC's latest news

Other stories