LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2019 FULL-YEAR EARNINGS

Transparency directive : regulatory news

18/03/2020 17:45

PRESS RELEASE

                            2019 FULL-YEAR EARNINGS

Reims, Wednesday March 18, 2020 - 5:45 pm

LANSON-BCC's results for 2019 were affected by the significant contraction in
volumes sold in France, particularly in the mass retail sector, which was not
able to be offset by the positive effects of the improvement in the
price-product mix and the reduction in financial expenses. Nevertheless, net
income totaled EUR10.1m, enabling the Group to consolidate its sound
financial structure.
As a family-owned pure player for Champagne, LANSON-BCC is moving forward with
its long-term value development strategy with determination.

Highlights
Global Champagne shipments came to 297.6 million bottles (-1.6%). The French
market, once again affected by the social protest movements, continued to
contract, down -4.0% (-4.2% in 2018). It represents 47.6% of the volumes
shipped by the Champagne industry. The other European Union countries achieved
+0.9% growth to represent 25.7% of the volumes sold, while non-EU countries
are up +0.7% to 26.7% of the volumes sold. The total value of Champagne
shipments reached EUR5.1bn, up +3.4% (source: CIVC).

In this contrasting environment, the LANSON-BCC Group's Houses, faced with the
need to pass on the continued increases in grape prices, focused their sales
policy on value rather than volumes. In France, the Houses with most exposure
to the mass retail sector - particularly Maison Burtin and to a lesser extent
Maison Chanoine Frères - despite the market share gains observed in
point-of-sale reports, recorded a drop in their sales. However, the Group's
Houses with the strongest focus on exports and serving traditional customer
segments improved their performances.

Consolidated income statement

IFRS (EURm)                       2019              2018              Change

Revenues                         250.29            277.50              -9.8%
Gross margin                      92.92             98.38
EBIT                              17.63             21.88             -19.5%
% of revenues                      7.0%              7.9%
Financial income and expenses     -3.53             -3.70              +4.6%
Corporate income tax              -4.17             -5.60
Net income                        10.11             12.69             -20.3%
% of revenues                      4.0%              4.6%

2019 consolidated revenues totaled EUR250.29m (-9.8%). Excluding the brokerage
subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent EUR246.16m (-9.5%).

EBIT came to EUR17.63m, compared with EUR21.88m (-19.5%). This change
primarily reflects the significant contraction in volumes for the mass retail
sector, as well as the continued increase in grape prices (+22.6% over 10
years). It masks the progress made by several Houses, both in France -
excluding mass retail - and on Export markets, and the globally positive
price-mix effects.

Financial expenses primarily concern financing for the aging of Champagne
stocks. They show a further improvement to represent -EUR3.53m, compared
with -EUR3.70m, thanks to the moderation of the average cost of financial debt
at significantly less than 1%.

Pre-tax earnings came to EUR14.10m, down -22.5%.
Corporate income tax represents -EUR4.17m (-25.5%), with an effective
corporate income tax rate of 29.6% for the Group.

Net income totaled EUR10.11m (-20.3%), with a net margin rate of 4.0%.

Consolidated balance sheet
Shareholders' equity represents EUR287.9m, compared with EUR283.9m at end-2018,
notably reflecting the impact of provisions resulting from the revaluation of
employee-related commitments for EUR3.2m (health insurance and retirement
benefits).

Consolidated net financial debt came to EUR544.4m - including EUR6m
for the application of IFRS 16 (Leases) - compared with EUR521.7m at end-2018.
86% of this total or EUR470m, versus EUR447.3m at end-2018, concerns financing
for the aging of a stock of wine for nearly four years on average, which is an
essential part of the Champagne wine production process; its book value is
EUR540.3m, versus EUR526.8m at end-2018.
Other financial debt represents EUR74.4m (equivalent to end-2018) and concerns
the investments in our Houses and vineyards.

The Group's financial structure remains sound: gearing, at 1.87, 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 Maison Burtin and Champagne Lanson.

Proposed dividend
Taking into account the contraction in earnings in 2019, LANSON-BCC's
Board of Directors will be submitting a dividend of EUR0.25 per share (18% of
net income) for approval at the general meeting on April 30, 2020, scheduled
for payment on May 11, 2020. 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 reaffirming its long-term value development strategy, with its
ambition to further strengthen its positioning in the world of high-end wines.
In a disrupted economic environment, the Group is focusing on the increasingly
renowned quality of its Houses and their capacity for innovation to drive its
progress, primarily on export markets. Alongside this, the Group will continue
to strengthen its financial structure. The new governance structures put in
place during the year, for Lanson, Chanoine Frères and Boizel, will deliver
benefits in the short and medium term.
With regard to Covid-19, the Group's priority is the health of its teams and
it has therefore rolled out a business continuity plan since March 16, with
the Houses shutting down all or part of their cellar-based work, while
activities in the vines are virtually normal. While it is impossible at this
stage to estimate this epidemic's material impact on the Group's activities,
LANSON-BCC would like to remind readers that nearly 50% of billing
traditionally takes place in the last quarter of the calendar year.

Additional information
The consolidated financial statements for 2019 were approved by the Board of
Directors on March 18, 2020. 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 2019 Universal
Registration Document with the AMF (previously 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, holder of a Royal
  Warrant since the time of Queen Victoria, 80% of Champagne distributed on
  international markets.

- Champagne Chanoine Frères, House founded 1730, Reims, Champagne sold
  primarily for the European mass retail market, reputed above all for its
  Tsarine cuvee.

- Champagne Boizel, House founded 1834, Epernay, Champagne distributed
  through mail order in France (BtoC) and in the traditional sector for
  international markets.

- Champagne De Venoge, House founded 1837, Epernay, Champagne sold on
  selective retail markets, notably with its Cordon Bleu and Princes ranges
  and its Louis XV grande cuvee.

- Champagne Besserat de Bellefon, House founded 1843, Epernay, Champagne
  distributed through traditional networks (restaurants, wine stores),
  producer of the renowned Cuvée des Moines.

- Champagne Philipponnat, House founded 1910, Mareuil sur Aÿ, owner of
  Clos des Goisses,  Champagne sold exclusively on selective retail markets
  and 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, also producer of Rosé des Riceys.

www.lanson-bcc.com

Euronext Growth
ISIN: FR0004027068
Ticker: ALLAN
Reuters: ALLAN.PA
Bloomberg: ALLAN:FP
Indices: EN Growth Allshare, 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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07/03/2024 17:45

LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2019 FULL-YEAR EARNINGS

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