LANSON-BCC (EPA:ALLAN) - Growth in earnings over the first half of 2010

Transparency directive : regulatory news

24/09/2010 12:24

PRESS RELEASE

               GROWTH IN EARNINGS OVER THE FIRST HALF OF 2010

Reims, Thursday September 23rd, 2010 - 5:45 pm - The Lanson-BCC Group, the
world's second largest champagne wine producer, is now able to clarify, after
auditing, its estimated earnings for the first half of 2010, as published on
August 26th, with 104.3 million euros in revenues, an operating margin
representing 9% of consolidated revenues, and 1.75 million euros in
consolidated net income (Group share). Despite the significant and continuing
economic uncertainties, the outlook for the whole year is positive.

Consolidated earnings (audited data)
The first halves of 2009 and 2010 are characterized by radically different
environments: the first half of 2009 was marked by the drop in sales at the end
of 2008 resulting from the development of the economic and financial crisis;
around the world, this was followed by a major destocking trend among retailers.
On the other hand, the first half of 2010 was relatively dynamic thanks to a
certain level of restocking among customers. As a result, the champagne wine
market is up 18.2% in volume terms, compared with a 19.3% contraction for the
first six months of 2009 (source: CIVC). For Lanson-BCC, the half-year figures
are as follows:

IFRS (million euros)                   H1 2010        H1 2009          Change

Revenues                                104.34          88.40          18.0%
Income from ordinary operations           9.28           7.98          16.2%
                     % of revenues                 9%              9%  16.2%
EBIT
                                          9.37           8.87           5.6%
Financial result                         -6.60          -6.99           5.8%
Pre-tax earnings                          2.77           1.88          47.3%
                     % of revenues               2.7%            2.1%

Net income (Group share)                  1.75           1.12          56.3%
                     % of revenues               1.7%            1.3%

Revenues

Lanson-BCC has pragmatically pursued its strategy as a global Champagne player:
the Group's various Houses dovetail effectively with one another, enabling it
to not neglect any market segment, from secondary brands, less dynamic over the
period, to the more favorable segments for export sales and superior vintages
such as Champagne Lanson. Volumes sold are up 6.7%, whereas they were down 4.6%
for the first six months of 2009.

Consolidated revenues came in at 104.34 million euros for the first half of
2010, compared with 88.40 million euros at June 30th, 2009, an increase of 18%,
whereas they were down 18.3% for the first six months of 2009. Excluding the
brokerage subsidiary CGV, whose activity is traditionally subject to
fluctuations, consolidated revenues came to 94.67 million euros for the first
half of 2010, compared with 87.23 million euros, up 8.5%.

The percentage of revenues generated on export was 46% at June 30th, 2010,
compared with 35% at June 30th, 2009, primarily reflecting the upturn in the
volumes sold by the Group's Houses in the UK, which continues to represent the
number one export market.

Earnings

EBIT came to 9.37 million euros, compared with 8.87 million euros at June 30th,
2009, with an increase of 5.6% and a margin rate representing 9% of
consolidated revenues, compared with 10% for the first half of 2009. However,
excluding non-recurring elements with a positive balance of 858,000 euros at
June 30th, 2009 and a positive balance of 70,000 euros at June 30th, 2010,
EBIT would have represented 9.30 million euros at June 30th, 2010, up 16% in
relation to the 8.01 million euros recorded at June 30th, 2009. This change
reflects the effective management of costs, combined with an improvement in
the price mix.

Net financial expenses totaled 6.60 million euros, compared with 6.99 million
euros at June 30th, 2009. This change stems from the lower level of average
consolidated net debt (-7.7%) and the drop in interest rates, benefiting the
variable-rate portion (31%) of the borrowings primarily needed for financing
inventories.

Pre-tax earnings came to 2.77 million euros, compared with 1.88 million euros
at June 30th, 2009. Net income (Group share) is up from 1.12 million euros at
June 30th, 2009 to 1.75 million euros. Consolidated balance sheet:
Shareholders' equity totaled 156.54 million euros at June 30th, 2010, 2.9
million euros higher than at December 31st, 2009.

At June 30th, 2010, consolidated net debt came to 472.76 million euros,
compared with 526.18 million euros at June 30th, 2009 (-10.2%). It primarily
corresponds to financing for the ageing of Champagne wine stock, guaranteeing
quality. This stock offers real security, with a book value representing
114.4% of the dedicated financing.

Gearing has continued to improve, moving from 3.79% at the end of June 2009 to
3.02% at June 30th, 2010.

Outlook

The improvement in the Group's profitability over the first half of 2010 was
satisfactory, while it does not usually benefit from the standard seasonality
seen for Champagne wine sales. Nevertheless, its comparison with the first half
of 2009 must not be extrapolated to the full year in 2010; indeed, end-of-year
sales had been dynamic in 2009. Moreover, it is important to remember that the
last quarter accounts for almost 50% of sales. In this way, the level of
consumption at the end of 2010 will be decisive. On the whole, for 2010, a year
during which Maison Lanson is celebrating its 250th anniversary, the Lanson-BCC
Group is expected to see an upturn in both its sales and its earnings.

2010 third-quarter revenues will be released on Thursday November 4th (after
close of trading).

LANSON-BCC fully owns seven Champagne Houses

- Champagne Lanson (Reims), the prestigious international brand.

- Champagne Chanoine Frères (Reims), wines intended primarily for the
  European mass retail market (Chanoine brand), notably with the Tsarine Cuvée
  range.

- 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 cuvée.

- Champagne Philipponnat (Mareuil sur Aÿ), which owns the prestigious
  Clos des Goisses, with wines exclusively available through selective retail
  channels, primarily in leading restaurants.

- Champagne Alexandre Bonnet (Les Riceys), owner of a vast vineyard
  (wine sold in traditional sectors).

Euronext Compartment B
ISIN: FR0004027068
Ticker: LAN
Reuters: BCCP.PA
Bloomberg: LAN:FP
www.lanson-bcc.com

LANSON-BCC
Nicolas Roulleaux Dugage
Tel: +33 3 26 78 50 00
investisseurs@lanson-bcc.com

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

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