LANSON-BCC (EPA:ALLAN) - LANSON-BCC: Earnings resilient in 2014

Transparency directive : regulatory news

26/03/2015 17:45

PRESS RELEASE

                            EARNINGS RESILIENT IN 2014

                     FINANCIAL STRUCTURE FURTHER STRENGTHENED

Reims, Thursday March 26th, 2015 - 5:45 pm

Following a dynamic end to 2013 and first half of 2014, the impacts on
profitability due to a more challenging environment over the second half of the
year were largely offset by the significant reduction in financial expenses.
This enabled LANSON-BCC to record 16 million euros in net income for 2014.
Alongside this, the Group has continued to further strengthen its financial
structure.

Consolidated income statement

                     LANSON-BCC figures

IFRS (EUR'000,000)                   2014      2013    Change
Revenues                           276.06    286.76    - 3.7%
Gross margin                       105.68    110.47
% of revenues                       38.3%     38.5%
EBIT                                33.10     39.33   - 15.8%
% of revenues                       12.0%     13.7%
Financial income / expense          -7.58    -11.54   + 34.3%
Corporate income tax                -9.52    -10.79
Effective tax rate                  37.3%     38.8%
Net income                          16.00     17.00    - 5.9%
% of revenues                        5.8%      5.9%

In 2014, consolidated revenues totaled 276.06 million euros, compared with
286.76 million euros in 2013. Excluding the brokerage subsidiary, whose activity
is traditionally subject to fluctuations, consolidated revenues came to 268.28
euros, compared with 280.55 million euros for 2013.

The Group's gross margin developed in line with the business, coming in at
105.68 million euros.

The Group's EBIT came to 33.10 million euros, compared with 39.33 million euros,
reflecting strong competition in terms of volumes and pricing, particularly in
France and neighboring European countries, as well as ongoing commercial
investments in several of the Group's Houses.

The operating margin represented 12%, compared with 13.7% for 2013.

Financial expenses primarily concern financing for the aging of Champagne
stocks, coming in at -7.58 million euros, compared with -11.54 million euros.
This positive change reflects the reduction in the average rate for consolidated
debt, down to 1.60%.

Pre-tax earnings came to 25.52 million euros (-8.2%).

The Group recorded an effective corporate income tax rate of 37.3%.

Net income came to 16 million euros, compared with 17 million euros, with the
net margin rate stable at 5.8%.

Priority focus maintained to strengthen the financial structure

Shareholders' equity represented a total of 242.4 million euros, up from 224
million euros at the end of 2013 (+8.2%), with this change reflecting the
following factors: the payment of the 2013 dividend in May 2014 (-2.3 million
euros), the recognition of 2014 net income (+16 million euros), the recognition
of the "fair value" of the vineyards (+6.8 million euros), and the actuarial
gains and losses relating to employee benefits (-2.3 million euros).

Consolidated net financial debt totaled 473.94 million euros (60% fixed-rate),
compared with 478.45 million euros. Out of this debt, 380.14 million euros,
compared with 367.26 million euros at end-2013, are allocated for financing the
aging of Champagne stocks, with a book value of 451.16 million euros, versus
434.83 million euros at end-2013.

Gearing has continued to improve, dropping from 5.68 at the end of 2006
following the acquisition of Maison Burtin and Champagne Lanson to 1.95. The
objective to move back down to less than 2, a normal position for the Champagne
industry due to its high levels of stocks, has been achieved.

LANSON-BCC's Board of Directors will be submitting a proposal for approval at
the General Meeting on May 22nd, 2015 for the dividend to be kept at 0.35 euros
per share and paid on May 28th, 2015, with a payout ratio representing 15.5% of
consolidated net income. The Group has capitalized 90% of consolidated net
income on average since 2006, enabling it to significantly strengthen its
financial structure.

Outlook

Despite the current sluggish consumption trends in France, LANSON-BCC is
reasserting its long-term value development strategy and continuing to make
major investments. The strong level of competition on all its markets highlights
the benefits of an ongoing policy, moving in the right direction, to not ignore
any segment. The Group's development is underpinned by the effective fit between
its Houses, combined with the increasingly widely recognized quality of their
wines, their efficient production facilities and their effective management.

As usual, considering the fact that the last quarter of the calendar year
accounts for nearly 50% of business for the full year, LANSON-BCC, in line with
its cautious policy, is not publishing any target figures for 2015. To further
strengthen the Group's development over the medium term, investments are
continuing to move forward in the Group's Houses, particularly Champagne De
Venoge in Epernay and Champagne Lanson in Reims.

Additional information

The consolidated financial statements for 2014 were approved by the Board of
Directors on March 26th. The procedures to audit the consolidated accounts have
been completed. The certification report will be issued once the necessary
procedures have been finalized for filing the 2014 registration document.

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

- 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, with wine
  sold in traditional sectors.

www.lanson-bcc.com

Euronext Compartment B

ISIN: FR0004027068
Ticker: LAN

Reuters: LAN.PA

Bloomberg: LAN:FP

Indices: CAC Mid & Small,
CAC All-Tradable, CAC Beverages,
EnterNext PEA-PME 150

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

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