LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2020 first-half earnings

Transparency directive : regulatory news

10/09/2020 17:45

PRESS RELEASE

                            2020 FIRST-HALF EARNINGS

Reims, Thursday September 10, 2020 - 5:45 pm

The LANSON-BCC Group is releasing its earnings for the first half of 2020, with
net income of -2.57m, while the first half-year period accounts for only
around one third of sales, but half of costs. Despite the contraction in
volumes linked to the global lockdowns in the context of the Covid-19 pandemic,
theLANSON-BCC family Group is moving forward with its value strategywith
determination.

Key developments

In terms of volumes, for the overall Champagne sector, shipments for the first
half of 2020 are down 29.4%. The first half of 2019 came in at -3.1%. The
French market (45.4% of volumes shipped) recorded a 29.2% drop, compared with
-6% for the first half of 2019. Other European Union countries (-31.1%; 24.6%
of volumes shipped) and non-EU countries (-28.2%; 30% of volumes shipped) have
been affected in the same way by the health crisis and its major economic
consequences (source: CIVC).

In this context, sales for our Maisons have been very affected, both in France
and for export, from the hotel sector to restaurants, travel retail and events.
However, the good performance by mail-order sales (B to C) and the high level
of shipments to European mass retail operators, corresponding to a potential
anticipation of their needs, made it possible to limit the contraction in our
Group's business.
Consolidated income statement

IFRS (EURm)     H1 2020   H1 2019

Revenues         74.13     79.47
EBIT             -1.57      0.13
Financial income
and expenses     -1.81     -1.93
Net income       -2.57     -1.18

Consolidated revenues for the first half of 2020 came to EUR74.13m, compared
with EUR79.47m, down 6.7%, after contracting by 9.9% in the first half of 2019.
Excluding the brokerage subsidiary, whose activity is traditionally subject to
fluctuations, consolidated revenues totaled EUR73.45m for the first half of
2020, compared with EUR77.94m for the first half of 2019 (-5.8%). Exports
generated 50.2% of revenues at June 30, 2020, compared with 47.6% at June 30,
2019.

EBIT came to -EUR1.57m, compared with EUR0.13m for the first half of 2019. This
reflects an adverse volume effect and a globally unfavorable price-mix effect,
combined with an increase in the cost price of bottles sold during the period,
linked primarily to higher grape prices.

Financial income and expenses came to -EUR1.81m, versus -EUR1.93m, following a
6.2% improvement.

Net income represents -EUR2.57m, compared with -EUR1.18m for the first half of
2019.

Consolidated balance sheet Shareholders' equity is up to EUR281.80m, compared
with EUR277.20m at June 30, 2019.

Net financial debt came to EUR545.21m, compared with EUR547.18m at June 30,
2019. 88% of this debt is allocated for ageing a stock of wines over 4.5 years
on average, an integral part of the process for creating high-quality Champagne
wines. Although the decrease in yields for the 2020 harvest by almost 22%
(8,000kg / ha versus 10,200kg / ha in 2019) will affect the profitability of
our own vineyards, it will enable our Group to gradually adapt its stock levels
in line with future needs. Gearing represents 1.93, compared with 1.97 at June
30, 2019.

Outlook

Considering the traditional seasonality of Champagne sales and the
uncertainties linked to the health context, these results cannot be
extrapolated over the full year. Due to the lack of visibility concerning the
end of the year, our Group is not releasing any forecasts for the full year,
but it is important to note that the last quarter of the calendar year
historically accounts for nearly 50% of sales.

Additional information

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 was approved by the Board of Directors on September 10, 2020
and is available on the Group website: www.lanson-bcc.com.

2020 full-year revenues will be released on Thursday January 28, 2021 (after
close of trading).

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), producer
of the renowned Cuvée des Moines.

* 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.

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

www.lanson-bcc.com

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LANSON-BCC (EPA:ALLAN) - LANSON-BCC: 2020 first-half earnings

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