LANSON-BCC (EPA:ALLAN) - LANSON-BCC: FIRST HALF OF 2017: POSITIVE RESULTS

Transparency directive : regulatory news

07/09/2017 17:45

PRESS RELEASE

                     FIRST HALF OF 2017: POSITIVE RESULTS

Reims, Thursday September 7, 2017 - 5:45 pm

The LANSON-BCC Group is releasing its audited earnings for the first half of
2017, with a profit of 0.59 million euros, while the first half-year period
accounts for around one third of sales but half of costs. This result makes it
possible to confirm the Group's sound financial foundations.

Highlights
In terms of volumes, for the overall Champagne sector, the first half of 2017
(+3.3%) was more robust than the same period in 2016 (+1.1%). However, the
contraction in the French market (48% of volumes shipped) accelerated to -2.7%
from -2.1% for the first half of 2016. Other European Union countries have seen
a slight increase (+0.8%), contrasting with the trend for other countries
outside of Europe (+17.8%, 28% of shipped volumes). Source: CIVC.

In this context, the LANSON-BCC Group's volumes for the first half of 2017
contracted on the French market, facing not only sluggish trends, but also a
very aggressive competitive environment.

Consolidated income statement

IFRS (EUR'000,000)       H1 2017  H1 2016
Revenues                  85.07     91.80
EBIT                       2.62      6.14
Financial income /
expense                   -1.78     -3.40
Net income                 0.59      1.72

Consolidated revenues for the first half of 2017 totaled 85.07 million euros,
compared with 91.80 million euros, down -7.3% compared with a +7% increase for
the first half of 2016. Excluding the brokerage subsidiary, whose activity is
traditionally subject to fluctuations, consolidated revenues represent 83.12
million euros for the first half of 2017, compared with 88.70 million euros
(-6.3%). Exports generated 46.2% of revenues, compared with 41.8% at June 30,
2016. This change reflects the lower level of sales on the French and UK
markets and the positive growth seen for several European destinations
(Germany, Belgium, Italy, etc.) as well as the United States, Japan and Asia in
general.

EBIT came to 2.62 million euros, compared with 6.14 million euros in the first
half of 2016, which benefited from very dynamic sales. The operating margin
ratio represents 3.1%, versus 6.7% at June 30, 2016. On the one hand, France
recorded a negative volume effect. On the other hand, the sterling's sharp
depreciation in the first half of 2017 compared with the first half of 2016
(-9.5%) restricted performances in the UK, the Group's primary export market.
The positive price-mix effects seen in France and for export were not able to
offset these changes and the increase in the cost price of bottles sold during
the period.

Financial income and expenses came to -1.78 million euros, compared with -3.40
million euros.

Net income totaled 0.59 million euros, compared with 1.72 million euros at June
30, 2016.

Consolidated balance sheet

Shareholders' equity represents 262.88 million euros, compared with 250.69
million euros at June 30, 2016.

Consolidated net debt totaled 521.81 million euros, compared with 497.02
million euros at June 30, 2016. This trend will pave the way for a steady
increase in sales of superior quality wines over the coming years. 90% of debt
is allocated for ageing a stock of wines over three years on average, an
integral part of the process for creating Champagne wines. Gearing represents
1.98, identical to the level from June 30, 2016.

Outlook

Due to the seasonality of Champagne sales, these positive results cannot be
extrapolated over the full year for 2017. As visibility for the end of the year
is still limited despite initial signs of an upturn in consumption in France,
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 7, 2017 and is available on the Group website:
www.lanson-bcc.com.

2017 third-quarter revenues will be released on Tuesday November 7, 2017 (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, 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 5,
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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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: FIRST HALF OF 2017: POSITIVE RESULTS

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