LANSON-BCC (EPA:ALLAN) - LANSON-BCC: NET INCOME GROWTH DESPITE THE DIFFICULTIES ON THE UK AND FRENCH MARKETS FINANCIAL STRUCTURE FURTHER STRENGTHENED

Transparency directive : regulatory news

29/03/2018 17:45

PRESS RELEASE

    NET INCOME GROWTH DESPITE THE DIFFICULTIES ON THE UK AND FRENCH MARKETS
                   FINANCIAL STRUCTURE FURTHER STRENGTHENED

Reims, Thursday March 29, 2018 - 5:45 pm

Consolidated earnings

IFRS (EURm)
                             2017     2016
Revenues
261.59   259.15
Gross margin                 93.66    94.80
% of revenues                 35.8%    36.6%
EBIT                         20.39       23
% of revenues                 7.8%     8.9%
Financial income / expense   -3.95    -6.60
Corporate income tax         -4.78    -5.25
Net income                   11.65    11.15
% of revenues                  4.5%     4.3%

2017 consolidated revenues came to 261.59 million euros (+0.9%). Excluding the
brokerage subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent 256.36 million euros (+1.6%).

The Group's EBIT represents 20.39 million euros, compared with 23 million euros
(-11%). On the one hand, the sterling's continued depreciation (-6.5%) in 2017
once again affected performances in the UK, the Group's primary export market.
On the other hand, strong competitive pressure undermined sales in France. The
positive price-mix effects in France and for export were not able to fully
offset these changes and 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 potential for
development.

Financial expenses primarily concern financing for the aging of Champagne
stocks and represent -3.95 million euros, compared with -6.60 million euros,
thanks to the continued reduction in the average rate for financial debt, down
to less than 1%.

Pre-tax earnings came to 16.43 million euros (+0.2%), with -4.78 million euros
in income tax. The Group's effective corporate income tax rate was 29.1%.

Net income is up to 11.65 million euros (+4.5%), giving a net margin rate of
4.5%.

Consolidated balance sheet
Shareholders' equity represents 273 million euros, up from 264.55 million euros
at end-2016.

Consolidated net financial debt totaled 505.55 million euros (73% fixed rate),
versus 500.70 million euros at end-2016. Out of this debt, 437.38 million
euros, compared with 434.13 million euros at end- 2016, are allocated for
financing the ageing of Champagne stocks, with a book value of 507.22 million
euros, versus 473.53 million euros at end-2016.
Other financial debt represents 68.17 million euros, compared with 66.58
million euros at end-2016, and concerns investments for the various Houses.

The Group has continued to strengthen its financial structure: its gearing of
1.85 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
drops to 0.25.

In line with its commitments to normalize its dividend after clearing its
acquisition-related debts, LANSON- BCC's Board of Directors will be submitting
a proposal for approval at the General Meeting on June 1, 2018 for a dividend
of 0.50 euros per share, to be paid out on June 8, 2018. For reference, since
2006, the majority of earnings have been capitalized in order to give the Group
the resources needed to drive its development.

Outlook
Confident about its future, LANSON-BCC is reasserting its long-term value
development strategy. The significant investments made in the Group's Houses
are making it possible to promote their image and further strengthen their
positioning in the high-end and luxury sector.
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.

Additional information
The consolidated financial statements for 2017 were approved by the Board of
Directors on March 29, 2018. 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 2017 registration document.

Considering the importance of the last quarter of the calendar year, the
LANSON-BCC Group will not be releasing any quantified targets for 2018. It has
also decided to no longer report quarterly revenues from 2018.

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, prestigious House founded 1760, Reims, with 80% distributed
on international markets.
- Champagne Chanoine Frères, House founded 1730, Reims, wines intended
primarily for the European mass retail market (Chanoine brand), reputed above
all for its famous Tsarine cuvee.
- Champagne Boizel, House founded 1834, Epernay, French mail-order market
leader (BtoC), distributed in the traditional sector for international
markets.
- Maison Burtin, Epernay, European mass retail supplier and owner of the
Besserat de Bellefon brand, which is distributed through traditional networks
(restaurants,  wine stores).
- Champagne De Venoge, House founded 1837, Epernay, sold on selective retail
markets, notably with its Louis XV grande cuvee.
- Champagne Philipponnat, House founded 1910, Mareuil sur Aÿ, which owns the
renowned Clos des Goisses, with wines also available on selective retail
markets as well as in the world's 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 All Shares, CAC Beverages, CAC Consumer Goods, 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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