LANSON-BCC (EPA:ALLAN) - LANSON-BCC: GROWTH IN EARNINGS FOR 2018 - FINANCIAL STRUCTURE FURTHER STRENGTHENED

Transparency directive : regulatory news

20/03/2019 17:45

PRESS RELEASE

      GROWTH IN EARNINGS FOR 2018 FINANCIAL STRUCTURE FURTHER STRENGTHENED

Reims, Wednesday March 20, 2019 - 5:45 pm

LANSON-BCC is reporting 8.9% growth in net income for 2018, up to EUR12.69m.
Despite an unfavorable environment in France and the UK - the Group's two
longstanding core markets - 2018 was an encouraging year overall: several
Houses recorded growth in France and for Export, the price-mix effects were
positive on the whole and financial expenses were further reduced. This enabled
the Group to strengthen its financial structure again. As a family-owned pure
player for Champagne, the Group is moving forward with its long-term value
development strategy with determination.

Highlights

Global Champagne shipments came to 301.9 million bottles (-1.8%). The French
market (48.7% of the volumes shipped) recorded a further contraction to -4.2%
(-2.5% in 2017). Development was limited for the other European Union countries
(-0.9%), linked primarily to the downturn on the UK market (-3.6% after -19%
over 2016 and 2017). Countries outside the European Union continued to make
progress (+2.1% with 26.1% of the volumes sold). The total value of Champagne
shipments is proving resilient, up +0.3% to EUR4.9bn (source: CIVC).

Against this backdrop of significant instability, the LANSON-BCC Group's Houses
naturally show contrasting trends. While Lanson recorded a drop in its
business, primarily in the UK, Philipponnat, with its renowned Clos des Goisses
cuvee, De Venoge, with the successful launch of its Princes cuvee, and
Chanoine, with its Tsarine cuvee, improved their performances significantly,
while the other Houses - Boizel, Burtin and Alexandre Bonnet - were stable.

Consolidated income statement

IFRS (EURm)            2018     2017     Change

Revenues             277.50   261.59     +6.1%
Gross margin          98.38    93.66
EBIT                  21.88    20.39     +7.3%
% of revenues          7.9%     7.8%
Financial income
and expenses          -3.70    -3.95     +6.3%
Corporate income tax  -5.60    -4.78
Net income            12.69    11.65     +8.9%
% of revenues          4.6%     4.5%

2018 consolidated revenues came to EUR277.50m (+6.1%). Excluding the brokerage
subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent EUR271.94m (+6.1%).

The Group's EBIT reflects the impact of a further decline on the UK market.
However, the progress made by several Houses, both in France and for Export,
and the globally positive price-mix effects made it possible to offset the UK
market's continued downturn and, at least partially, the increase in the cost
price of bottles sold during the period.
EBIT came to EUR21.88m, compared with EUR20.39m, up +7.3%.

Financial expenses primarily concern financing for the aging of Champagne
stocks. They show a further slight improvement to -EUR3.70m, versus -EUR3.95m,
thanks to the moderation of the average cost of financial debt at less than 1%.

Pre-tax earnings are up +10.7% to EUR18.18m.

Corporate income tax represents -EUR5.60m, up +17.1%, with an effective
corporate income tax rate of 30.8%.

Net income is up +8.9% to EUR12.69m, with a net margin rate of 4.6%.

Consolidated balance sheet
Shareholders' equity represents EUR283.9m, compared with EUR273m at end-2017.

Consolidated net financial debt totaled EUR521.7m (80% fixed rate), versus
EUR505.55m at end-2017. 86% of this debt, representing EUR447.3m, compared with
EUR437.38m at end-2017, concerns financing for the aging of a stock of wine
over 3.5 years on average, which is an essential part of the Champagne wine
production process; its book value was EUR526.8m, versus EUR507.22m at
end-2017. In view of this outstanding debt, a reasonable level of sales growth
is expected for the coming years.
Other financial debt, with EUR74.4m versus EUR68.17m at end-2017, concerns the
investments in our Houses, including EUR12.2m for purchasing vineyards.

The Group has continued to strengthen its financial structure: gearing, at
1.84, is at a normal level for Champagne due to the significant levels of stock
for aging. It has continued to fall from a high of 5.68 at end-2006 following
the acquisition of Burtin and Champagne Lanson. Excluding stocks, this ratio
drops to 0.26.
LANSON-BCC's Board of Directors will be submitting a proposal for the General
Meeting on May 3, 2019 to approve a stable dividend of EUR0.50 per share, to be
paid out on May 10, 2019 (28% of net income). As has been the case since 2006,
the Group has capitalized the bulk of its earnings in order to give it the
resources needed to drive its development.

Outlook
LANSON-BCC is reasserting its long-term value development strategy. The
significant investments made in the Group's Houses, first to upgrade their
industrial and wine-production tools, then more recently to open them up to the
public, aim to further strengthen their positioning in the high-end and luxury
sector. At the start of 2019, the arrival of new managers to head up Lanson,
Chanoine and Boizel illustrates the new ambitions for their growth.

As always, since the last quarter of the calendar year accounts for nearly 50%
of its total sales, the LANSON- BCC Group will not be publishing forecasts for
2019.

Additional information
The consolidated financial statements for 2018 were approved by the Board of
Directors on March 20, 2019. The audit procedures on the consolidated accounts
have been completed. The certification report will be issued once the necessary
procedures have been finalized for filing the 2018 registration document.

LANSON-BCC is a group built around eight Houses that produce Champagne wines,
created and led by Champagne families. It 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 Tsarine cuvee.
* Champagne Boizel, House founded 1834, Epernay, French mail-order specialist
  (BtoC), distributed in the traditional sector for international markets.
* Champagne De Venoge, House founded 1837, Epernay, sold on selective retail
  markets, notably with its Princes range and its Louis XV grande cuvee.
* Champagne Besserat de Bellefon, House founded 1843, Epernay, distributed
  through traditional networks (restaurants, wine stores), notably with the
  Cuvée des Moines.
* Champagne Philipponnat, House founded 1910, Mareuil sur Aÿ, which owns the
  renowned Clos des Goisses, with wines available exclusively on selective
  retail markets as well as in the world's leading restaurants.
* Maison Burtin, Epernay, private-label supplier for the European mass retail
  market and also producer of Champagne Alfred Rothschild.
* 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 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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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: GROWTH IN EARNINGS FOR 2018 - FINANCIAL STRUCTURE FURTHER STRENGTHENED

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