The LANSON-BCC Group is releasing its audited earnings for the first half of
2019, with net income of -EUR1.18m, while the first half-year period accounts
for only around one third of sales, but half of costs. The positive effects of
the improvement in the price-product mix did not offset, over the period, the
negative impact of the contraction in volumes linked to the general economic
environment in France. As a family-owned pure player for Champagne, LANSON-BCC
is moving forward with its long-term value development strategy with
In terms of volumes, for the overall Champagne sector, the first half of 2019
(-3.1%) was less favorable than the same period in 2018 (-0.9%). The
contraction in the French market (45.4% of volumes shipped) accelerated to
-6.0% from -3.3% for the first half of 2018. The other European countries are
picking up (+3.8%), including the UK, following the downturn seen in the last
few years. Countries outside the European Union are down -4.2%, with 29.4% of
the volumes shipped. Source: CIVC
In this context, the LANSON-BCC Group has focused in priority on strengthening
the price positioning of its Maisons. Volumes for the first half of 2019 were
primarily affected by the drop in consumption in France in a sluggish economic
environment marked by the social movements, the electoral climate and the
delicate rollout of the French "EGALIM" Law for the mass retail sector. On
export markets, the Group's Maisons have achieved encouraging performances,
with positive price-mix effects.
Consolidated income statement
IFRS (EURm) H1 2019 H1 2018
Revenues 79.47 88.20
EBIT 0.13 1.90
Financial income and expenses -1.93 -1.88
Net income -1.18 0.17
Consolidated revenues for the first half of 2019 came to EUR79.47m, versus
EUR88.20m, down -9.9%, compared with +3.7% growth for the first half of 2018.
Excluding the brokerage subsidiary, whose activity is traditionally subject to
fluctuations, consolidated revenues represent EUR77.94m for the first half of
2019, compared with EUR86.98m (-10.4%).
Exports generated 47.6% of revenues at June 30, 2019, compared with 44% at June
30, 2018. This performance reflects the lower level of business for the Group's
Maisons in France, combined with sales growth for several European destinations
and the UK in particular, where the Group has significant longstanding market
EBIT came to EUR0.13m, compared with EUR1.90m for the first half of 2018. The
globally positive price- mix effects did not make it possible to offset the
drop in volumes in France or the increase in the cost price of bottles sold
during the period.
Financial income and expenses came to -EUR1.93m, compared with -EUR1.88m.
Net income totaled -EUR1.18m, compared with EUR0.17m at June 30, 2018.
Consolidated balance sheet
Shareholders' equity represents EUR277.15m, compared with EUR271.08m at June
Net financial debt came to EUR547.18m, compared with EUR525.59m at June 30,
2018. In addition to the interest acquired in the vineyard real estate company
La Croix d'Ardillères in November 2018 for EUR8m, 90% of this debt concerns
the aging of a stock of wine for over 3.5 years on average, which is an
essential part of the Champagne wine production process. Gearing represents
1.97, compared with
1.94 at June 30, 2018.
Due to the seasonality of Champagne sales, which has increased in 2019, these
results cannot be extrapolated over the full year. 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 last quarter of the calendar
year represents nearly 50% of sales.
The consolidated half-year financial statements have been subject to a
"limited" review by the statutory auditors (Grant Thornton and KPMG). The
half-year financial report, approved by the Board of Directors on September 12,
2019, is available on the Group website: www.lanson-bcc.com.
2019 full-year revenues will be released on Thursday January 30, 2020 (after
close of trading).
LANSON-BCC is a group built around eight Maisons that produce 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 blend of ancestral know-how and leading-edge
technical capabilities, creative independence and rational synergies enables
each one of its Maisons to develop its performances, ensuring the LANSON-BCC
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* Champagne Lanson, prestigious Maison founded 1760, Reims, with 80%
distributed on international markets.
* Champagne Chanoine Frères, Maison founded 1730, Reims, wines intended
primarily for the European mass retail market (Chanoine brand), reputed above
all for its Tsarine cuvee.
* Champagne Boizel, Maison founded 1834, Epernay, French mail-order specialist
(BtoC), distributed in the traditional sector for international markets.
* Champagne De Venoge, Maison founded 1837, Epernay, sold on selective retail
markets, notably with its Princes range and its Louis XV grande cuvee.
* Champagne Besserat de Bellefon, Maison founded 1843, Epernay, distributed
through traditional networks (restaurants, wine stores).
* Champagne Philipponnat, Maison founded 1910, Mareuil sur Aÿ, which owns the
renowned Clos des Goisses, with wines exclusively available 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.
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