LANSON-BCC (EPA:ALLAN) - Lanson-BCC: 2015 FIRST-HALF EARNINGS

Transparency directive : regulatory news

10/09/2015 17:45

PRESS RELEASE

                            2015 FIRST-HALF EARNINGS

Reims, Thursday September 10th, 2015, - 5:45 pm

The LANSON-BCC Group is releasing its audited earnings for the first half of
2015, with -1.32 million euros in net income. This result must be put into
perspective because the first half-year period accounts for around one third of
sales but half of costs. The positive effects of the improvement in the
price-product mix and the continued reduction in financial expenses have not
offset the negative impact of the contraction in volumes.

Highlights
In terms of volumes, for the Champagne industry as a whole, the first halves of
2015 (-1%) and 2014 (+1.4%) show negative contrasts. The French market, with 52%
of the volumes shipped, is flat, while other countries both within and outside
of the European Union are down (-2.1%). (Source: CIVC)

In a highly competitive environment, the LANSON-BCC Group's volumes contracted
during the first half of 2015 in France, as well as other countries, both within
and outside of the European Union. The priority has been to safeguard the price
positioning of the Group's Houses, rather than maintaining volumes. Despite the
current sluggish market trends, the LANSON-BCC Group is resolutely moving
forward with its productive and commercial investment program.

IFRS (EUR'000,000)               H1 2015     H1 2014      H1 2014
                                            restated*    reported

Revenues                         85.83        94.33        94.33

EBIT                              2.08         7.21         8.22

Financial income / expense       -3.36        -3.81        -3.81

Net income                       -1.32         1.85         2.51

* As required by IFRS (IFRIC 21), the consolidated financial statements for the
first half of 2014 have been restated in order to take into account the
elimination of the prorata approach for recognizing taxes.

Consolidated revenues for the first half of 2015 came to 85.83 million euros,
compared with 94.33 million euros (-9%). Excluding the brokerage subsidiary,
whose activity is traditionally subject to fluctuations, consolidated revenues
represent 84.29 million euros for the first half of 2015, compared with 92.55
million euros (-8.9%).

Exports generated 43.2% of revenues, compared with 44.4% at June 30th, 2014.
This change reflects the lower level of sales on several European markets,
particularly the UK, where Champagne Lanson has historically had strong market
shares, as well as outside of Europe. On export markets and in France, sales
have been deferred faced with sometimes high levels of stock in certain
distribution channels. Encouraging performances have been achieved on quality
destinations such as Italy and Japan.

EBIT came to 2.08 million euros, compared with 7.21 million euros at June 30th,
2014. The operating margin ratio represents 2.4%, compared with 7.6% for the
first half of 2014. This change primarily factors in the contraction in volumes
and the increase in the cost price of bottles sold. However, the price mix
effect has continued to show positive trends for France and export markets.

Financial income and expenses have continued to improve: -3.36 million euros,
versus -3.81 million euros at June 30th, 2014 (+13%). The average rate for
consolidated debt came to 1.43%, versus 1.60% at December 31st, 2014. This
positive change reflects the fact that the most expensive credit facilities have
matured, including the end of repayments for the debt to acquire Maison Burtin
and Champagne Lanson, set up in March 2006.

Net income totaled -1.32 million euros, compared with 1.85 million euros at June
30th, 2014.

Consolidated balance sheet

Shareholders' equity represented 240.13 million euros at June 30th, 2015,
compared with 222.69 million euros at June 30th, 2014.

Consolidated net debt came to 491.83 million euros at June 30th, 2015, compared
with 484.17 million euros at June 30th, 2014. This change takes into account the
contraction in sales during the first half of 2015, as well as ongoing
investments in the Group's Houses, particularly Champagne De Venoge in Epernay
and Champagne Lanson in Reims. 83% of this debt is allocated for ageing a
quality stock of wines for over three years, an integral part of the process for
creating Champagne wines. Gearing has improved further to 2.05, versus 2.17 at
June 30th, 2014.

Outlook

As the first half of the year accounts for 50% of fixed costs, but generates
barely one third of sales, these results cannot be extrapolated over the full
year for 2015. Since 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 was approved by the Board
of Directors on September 10th, 2015 and is available on the Group website:
www.lanson-bcc.com.

2015 third-quarter revenues will be released on Thursday November 5th, 2015
(after close of trading).

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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