LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2020 FULL-YEAR EARNINGS

Transparency directive : regulatory news

18/03/2021 17:45

PRESS RELEASE

                            2020 FULL-YEAR EARNINGS

Reims, Thursday March 18, 2021 - 5:45pm

LANSON-BCC's results for 2020 were affected by an unprecedented crisis.
Globally, the encouraging performances by several Maisons were offset by the
marked drop in volumes sold and the customer mix, combined with the increase in
grape prices. Nevertheless, net income for this challenging year remained
positive, highlighting the Group?s ability to rapidly adapt to ensure its
resilience.

Key developments: the Market
Global Champagne shipments came to 244.1 million bottles (-17.9%). The French
market continued with its contraction that began 10 years ago, coming in at
-19.9%. It represents 46.4% of the volumes shipped by the Champagne industry.
The other European Union countries are down 13.3% to 27.2% of the volumes sold,
while non-EU countries contracted 18.8% and represented 26.5% of the volumes
sold. The total value of shipments came to EUR4.2bn, down 16.7% (source: CIVC).

Our Maisons
On markets that have been so deeply affected, the Group's Maisons with the
strongest focus on exports and serving traditional customer segments -
Philipponnat, De Venoge, Besserat de Bellefon - recorded a significant
contraction in their sales. Maison Lanson further strengthened its market
shares in the UK, the leading export market for Champagne wines, as well as for
mass export. Maison Boizel recorded positive performances with its "B to C"
customers. Our two Maisons with the strongest mass retail presence - Chanoine
Frères and Maison Burtin - saw a drop in revenues due to the major challenge
of passing on the excessive grape price rises from the last few years.

Consolidated income statement

IFRS (EURm)                      2020     2019    Change

Revenues                       223.12   250.29    -10.9%
Gross margin                    79.07    92.92
EBIT                            13.42    17.63    -23.9%
% of revenues                    6.0%     7.0%
Financial income and expenses   -3.83    -3.53     -8.5%
Corporate income tax            -3.19    -4.17
Net income                       6.39    10.11    -36.8%
% of revenues                    2.9%     4.0%

Consolidated revenues for 2020 came to EUR223.12m (-10.9%). Excluding the
brokerage subsidiary, whose activity is traditionally subject to fluctuations,
consolidated revenues represent EUR219.74m (-10.7%).

EBIT represents EUR13.42m, compared with EUR17.63m (-23.9%). This change
primarily reflects the drop in volumes across most of our markets and the
excessive increase in grape prices over the last 10 years. The reduction of all
our staff costs and external costs by almost 15% did not fully offset the lower
level of business and higher costs.

Financial expenses primarily concern financing for the aging of Champagne
stocks. They totaled -EUR3.83m, compared with -EUR3.53m, thanks to the
effective management of bank debt and the moderation of its average cost.

Pre-tax earnings came to EUR9.58m (-32.1%).

Corporate income tax represents EUR3.19m (-23.6%), with an effective corporate
income tax rate of 33.3% for the Group.

Net income totaled EUR6.39m (-36.8%), with a net margin rate of 2.9%.

Consolidated balance sheet
Shareholders' equity represents EUR289.1m, compared with EUR287.9m at end-2019,
notably reflecting the impact of provisions resulting from the revaluation of
employee-related commitments for EUR1.9m (health insurance and retirement
benefits).

Consolidated net financial debt totaled EUR533m, compared with EUR544.4m at the
end of 2019. EUR439.7m correspond to credit facilities for the aging of a stock
of Champagne wines over nearly four years on average, with a book value of
EUR523.1m, compared with EUR540.3m at end-2019.

Other financial debt totaled EUR105m (vs. EUR74.4m at end-2019), including a
EUR43m French government-backed loan plan (EUR8m government-backed loan with
BPI + EUR35m government-backed loan with banking partners). EUR62m concern
investments in our Maisons and vineyards, compared with EUR74.4m at end-2019.

The Group's financial structure remains sound: gearing, at 1.82, is at a normal
level for Champagne due to the significant levels of stock for aging.

Proposed dividend
As no dividends were paid out in 2020, and taking into account its confidence
in the future, LANSON-BCC's Board of Directors will be submitting a proposal
for a dividend of EUR0.20 per share (22% of net income) for approval at the
General Meeting on April 29, 2021, for payment on May 4, 2021. As has been the
case since 2006, the bulk of earnings, i.e. 78%, are capitalized in order to
give the Group the means to drive its development, while continuing to improve
its gearing.

Outlook
As a family-owned pure player for Champagne, LANSON-BCC is continuing to move
forward with its long-term value development strategy, despite the slowdown due
to the shock of the pandemic, and with the renewal of its governance. The
Group's ambition to further strengthen its positioning in the world of high-
end wines is, more than ever, firmly anchored at the heart of its plans.
Despite the persistent health and economic crisis, consumers around the world
are still strongly attached to Champagne Wines. The Group's confidence is based
on the quality of its wines, the constant progress with the image of its
Maisons, and the robust performance by its teams.

Additional information
The consolidated financial statements for 2020 were approved by the Board of
Directors on March 18, 2021. 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 2020 Universal Registration
Document with the AMF.
A video presenting the 2020 earnings (in French only) is available on the Group
website: www.lanson-bcc.com.

LANSON-BCC is a group built around eight Maisons producing Champagne wines,
created and led by Champagne families. It unites together outstanding Maisons,
renowned for their unique wines and benefiting from the effective fit between
their customer segments. The combination of ancestral know-how and modern
technical capabilities, creative independence and rational synergies enables
each one of its Maisons to develop its performances, ensuring the LANSON-BCC
Group's sustainability.

* Champagne Lanson, prestigious Maison founded 1760, Reims, holder of a Royal
  Warrant since the time of Queen Victoria, 80% of Champagne sold on
  international markets.
* Champagne Chanoine Frères, Maison founded 1730, Reims, Champagne sold
  primarily for the European mass retail market, reputed above all for its
  attractive Tsarine cuvee.
* Champagne Boizel, Maison founded 1834, Epernay, Champagne distributed through
  mail order in France (BtoC) and in traditional sectors for international
  markets.
* Champagne De Venoge, Maison 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, Maison founded 1843, Epernay, Champagne
  distributed through traditional networks (restaurants, wine stores).
* Champagne Philipponnat, Maison founded 1910, Mareuil sur Aÿ, owner of Clos
  des Goisses, Champagne sold 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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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2020 FULL-YEAR EARNINGS

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