LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2016 NET MARGIN OF 4.3% DESPITE THE STERLING'S DEPRECIATION - FINANCIAL STRUCTURE FURTHER STRENGTHENED

Transparency directive : regulatory news

30/03/2017 17:45

PRESS RELEASE

2016 NET MARGIN OF 4.3% DESPITE THE STERLING'S DEPRECIATION FINANCIAL STRUCTURE
                             FURTHER STRENGTHENED

Reims, Thursday March 30th, 2017 - 5:45 pm

Following a dynamic end to 2015 and first half of 2016, the sterling's sharp
depreciation and a relatively sluggish French market affected LANSON-BCC's
performances over the second half of 2016. Despite this disappointing
environment, net income came to 11.15 million euros, enabling the Group to
further strengthen its financial structure. In 2017, LANSON-BCC is moving
forward with its investments, in line with its long-term value development
strategy.

Consolidated earnings

LANSON-BCC figures

IFRS (EUR'000,000)             2016        2015

Revenues                     259.15      266.50
Gross margin                  94.80      101.33
% of revenues                  36.6%       38.0%
EBIT                             23       27.08
% of revenues                   8.9%       10.2%
Financial income / expense    -6.60       -6.96
Corporate income tax          -5.25       -7.87
Effective tax rate             32.0%       39.1%
Net income                    11.15       12.25
% of revenues                   4.3%        4.6%

2016 consolidated revenues came to 259.15 million euros (-2.8%). Excluding the
brokerage subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent 252.23 million euros (-3.4%).

The Group's EBIT represents 23 million euros, compared with 27.08 million euros
(-15%). On the one hand, the sterling's sharp depreciation (-11.4%) affected
performances in the UK, the Group's primary export market. On the other hand,
intense competition undermined sales in France. The increase in sales prices at
constant exchange rates was not sufficient to fully offset the increase in the
cost price of bottles sold during the year. EBIT for the year also factors in
the ongoing programs for major investments in several Houses to further
strengthen their capacity for development.

Financial expenses primarily concern financing for the aging of Champagne
stocks, coming in at -6.60 million euros, compared with -6.96 million euros,
thanks to the continued reduction in the average rate for financial debt, down
from 1.37% in 2015 to 1.18%.

Pre-tax earnings came to 16.40 million euros, with -5.25 million euros in
income tax. The Group's effective corporate income tax rate was 32%.

Net income represents 11.15 million euros, compared with 12.25 million euros,
giving a net margin rate of 4.3%.

Consolidated balance sheet
Shareholders' equity represents 264.55 million euros, up from 253.56 million
euros at end-2015 (+4.3%).

Consolidated net financial debt totaled 500.70 million euros (73% fixed rate),
versus 498.88 million euros at end-2015. Out of this debt, 434.35 million
euros, compared with 417.73 million euros at end- 2015, are allocated for
financing the ageing of Champagne stocks, with a book value of 476.06 million
euros, versus 470.67 million euros at end-2015.

Other financial debt represents 66.35 million euros, down from 81.15 million
euros at end-2015 (-18.2%).

The Group's financial structure has continued to improve: gearing (1.89) is at
a normal position for the Champagne industry, in line with its high levels of
stocks for aging, down from a high of 5.68 at end-2006 following the
acquisition of Maison Burtin and Champagne Lanson. Excluding stocks, this ratio
comes out at 0.25, compared with 0.32 in 2015.

LANSON-BCC's Board of Directors will be submitting a proposal for approval at
the General Meeting on May 19th, 2017 for the dividend to be kept at 0.35 euros
per share and paid out on May 26th, 2017. By allocating nearly 90% of its
consolidated net income since 2006 to further strengthening its financial
foundations, the shareholders have set out their commitment to ensure the
Group's sustainability by giving it the means required for its long-term
development.

Outlook
The impacts of the sterling's sharp depreciation and the contraction in volumes
in France on profitability for the year were not offset by the good performance
recorded for the first half of 2016, the positive changes  in the product mix
and the further reduction in financial expenses. Confident about its future,
LANSON-BCC is reasserting its long-term value development strategy. Its Houses
are continuing with their major investments. The sometimes unreasonable
practices adopted by competitors on certain markets highlight the benefits of a
commonsense policy to not ignore any segments or regions, while successfully
avoiding any involvement in excessively aggressive promotional operations.
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 importance of the last quarter of the calendar year,
the LANSON-BCC Group will not be releasing any quantified targets for 2017.

Additional information
The consolidated financial statements for 2016 were approved by the Board of
Directors on March 30th, 2017. 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 2016 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, which launched
  its new Clos Lanson prestige cuvee in 2016.

- 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

LANSON-BCC's latest news

26/04/2024 17:45

LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2016 NET MARGIN OF 4.3% DESPITE THE STERLING'S DEPRECIATION - FINANCIAL STRUCTURE FURTHER STRENGTHENED

Transparency directive : regulatory news

LANSON-BCC's latest news

Other stories