LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2018 First-half earnings

Transparency directive : regulatory news

13/09/2018 17:45

PRESS RELEASE

                         2018 FIRST-HALF EARNINGS

Reims, Thursday September 13, 2018 - 5:45 pm

The LANSON-BCC Group is releasing its audited earnings for the first half of
2018, with a profit of EUR0.17m, while the first half-year period accounts for
only around one third of sales, but half of costs.

Highlights
In terms of volumes, for the overall Champagne sector, the first half of 2018
(-0.9%) was less favorable than the same period in 2017 (+3.3%). The
contraction in the French market (47% of volumes shipped) accelerated to -3.3%
from -2.7% for the first half of 2017. The other European Union countries show
a limited change (-0.9%), linked primarily to the contraction on the UK market
(-4.2% after -11% for the full year in 2017). Countries outside the European
Union have continued to make progress (+3.3% with 29.6% of volumes shipped -
source: CIVC).

In this environment, the LANSON-BCC Group's volumes for the first half of 2018
show contrasting trends: Philipponnat, De Venoge, Besserat de Bellefon and
Chanoine - thanks to its Tsarine cuvee - have delivered further improvements in
their performance levels. However, Lanson has recorded a lower level of
business in the UK, its longstanding core market.

Consolidated income statement

IFRS (EURm)                          H1 2018    H1 2017

Revenues                               88.20      85.07
EBIT                                    1.90       2.62
Financial income and expenses          -1.88      -1.78
Net income                              0.17       0.59

Consolidated revenues for the first half of 2018 totaled EUR88.20m, up +3.7%,
compared with a -7.3% drop for the first half of 2017. Excluding the brokerage
subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent EUR86.98m for the first half of 2018, compared
with EUR83.12m (+4.6%).

Exports generated 44% of revenues at June 30, 2018, compared with 46% at June
30, 2017. This performance factors in the improved level of business for the
Group's Houses in France on the one hand, and on the other hand, the drop in
sales in the UK, against a backdrop of price inflation due to the sterling's
continued depreciation.

EBIT came to EUR1.90m, compared with EUR2.62m for the first half of 2017. The
higher volumes recorded in France and the positive price effects for several
export destinations were not able to offset the continued slowdown in the UK,
as well as the increase in the cost price of bottles sold during the period.

Financial income and expenses came to -EUR1.88m, compared with -EUR1.78m.

Net income totaled EUR0.17m, compared with EUR0.59m at June 30, 2017.

Consolidated balance sheet

Shareholders' equity is up to EUR271.08m, compared with EUR262.88m at June 30,
2017.

Consolidated net debt represents EUR525.59m, compared with EUR521.81m at June
30, 2017. 90% of debt is allocated for ageing a stock of wines over 3.5 years
on average, an integral part of the process for creating Champagne wines. This
debt will pave the way for a steady increase in sales of superior quality wines
over the coming years. Gearing represents 1.94, compared with 1.98 at June 30,
2017.

Outlook

Due to the seasonality of Champagne sales, these positive results cannot be
extrapolated over the full year for 2018. As visibility for the end of the year
is still limited, the Group is not releasing any forecasts for the full year,
but it is important to note that the second half of the year generally
represents nearly double the first six months.

Additional information

The consolidated half-year financial statements have been subject to a
"limited" review by the statutory auditors (Grant Thornton and KPMG), in line
with the regulations in force. The half-year financial report was approved by
the Board of Directors on September 13, 2018 and is available on the Group
website: www.lanson-bcc.com.

2018 full-year revenues will be released on Thursday January 31, 2019 (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, 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 (0)3 26 78 50 00
investisseurs@lansonbcc.com
actionnaires@lansonbcc.com

CALYPTUS
Cyril Combe
Tel: +33 (0)1 53 65 68 68
cyril.combe@calyptus.net

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