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Lanson-BCC — Earnings Release 2015
Mar 31, 2016
1470_iss_2016-03-31_bbde9321-fd52-44a3-97cc-9546eec5180e.pdf
Earnings Release
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PRESS RELEASE
MIXED RESULTS FOR 2015. THE GROUP IS MOVING FORWARD WITH ITS INVESTMENTS AND FURTHER STRENGTHENING ITS FINANCIAL STRUCTURE
Reims, Thursday March 31st, 2016 - 5:45 pm
Following a contraction for the end of 2014 and the first half of 2015, the impacts of the upturn in business at the end of 2015 on profitability have not been enough to fully offset the volume shortfalls. The Group is moving forward with its investments and further strengthening its financial structure.
Consolidated income statement
| LANSON-BCC figures | ||
|---|---|---|
| IFRS (€'000,000) | 2015 | 2014 |
| Revenues | 266.50 | 276.06 |
| Gross margin | 101.33 | 105.68 |
| % of revenues | 38.0% | 38.3% |
| EBIT | 27.08 | 33.10 |
| % of revenues | 10.2% | 12.0% |
| Financial income / expense | -6.96 | -7.58 |
| Corporate income tax | -7.87 | -9.52 |
| Effective tax rate | 39.1% | 37.3% |
| Net income | 12.25 | 16.00 |
| % of revenues | 4.6% | 5.8% |
2015 consolidated revenues came to 266.50 million euros (-3.5%). Excluding the brokerage subsidiary, whose activity is traditionally subject to fluctuations, consolidated revenues represent 261.15 million euros, compared with 268.28 million euros (-2.7%).
The gross margin developed in line with the business, coming in at 101.33 million euros (-4.1%).
EBIT represents 27.08 million euros, compared with 33.10 million euros (-18.2%). This change reflects the strong level of competition, impacting volumes in France and neighboring export markets, as well as sales prices. While sales prices are improving, they were not able to fully offset the increase in the cost price of bottles sold during the year. The change in EBIT also factors in the ongoing investments benefiting several of the Group's Houses, as well as the reorganization of distribution on several export markets.
Financial expenses primarily concern financing for the aging of Champagne stocks, coming in at -6.96 million euros, compared with -7.58 million euros, thanks to the continued reduction in the average rate for financial debt, down from 1.60% in 2014 to 1.37%.
Pre-tax earnings came to 20.12 million euros, with 7.87 million euros in income tax. The Group's effective corporate income tax rate was 39.1%.
Net income represents 12.25 million euros, compared with 16 million euros, giving a net margin rate of 4.6%.
Consolidated balance sheet
Shareholders' equity represents 253.56 million euros, up from 242.42 million euros at end-2014 (+4.6%), after factoring in the 2014 dividend paid in May 2015 (-2.5 million euros), net income for 2015 (+12.2 million euros) and the actuarial gains and losses recognized on employee benefits (+1.4 million euros).
Consolidated net financial debt totaled 498.88 million euros (63% fixed rate), versus 473.94 million euros at end-2014. Out of this debt, 417.73 million euros, compared with 380.14 million euros at end-2014, are allocated for financing the ageing of wine stocks, with a book value of 470.67 million euros, versus 451.16 million euros at end-2014.
Other financial debt represents 81.15 million euros, down from 93.8 million euros at end-2014 (-13.5%).
Gearing (1.96) is at a normal position for the Champagne industry, in line with its high levels of stocks for aging, down from a high of 5.68 at end-2006 following the acquisition of Maison Burtin and Champagne Lanson. Excluding stocks, this ratio drops from 0.39 in 2014 to 0.32: the Group is continuing to improve its financial structure.
LANSON-BCC's Board of Directors will be submitting a proposal for approval at the General Meeting on May 27th, 2016 for the dividend to be kept at 0.35 euros per share and paid out on June 2nd, 2016. By capitalizing the bulk of its earnings, the Group has doubled its consolidated equity since 2006, highlighting the commitment by shareholders to ensuring the Group's long-term success and giving it the means to develop sustainably.
Outlook
A good end to 2015, positive pricing trends and a further reduction in financial expenses have not made it possible to offset the impacts of the contraction in volumes during a large part of the year on profitability. Nevertheless, despite its mixed results for 2015, LANSON-BCC is reasserting its long-term value development strategy. In July 2015, the Champagne Hillsides and Cellars and Avenue de Champagne in Epernay were recognized as UNESCO World Heritage sites, which is important for all of Champagne, but particularly three of the Group's Houses: Boizel and De Venoge, located on Avenue de Champagne in Epernay, and Philipponnat in Mareuil sur Ay.
The Group is moving forward with major investments in its Houses, primarily with Lanson in Reims.
The sometimes unreasonably aggressive levels of competition seen on certain markets highlight the benefits of a common sense policy to not ignore any segments.
The Group's development is underpinned by the effective fit between its Houses, combined with the increasingly widely recognized quality of their wines, their efficient production facilities and their effective management. As usual, considering the importance of the last quarter of the calendar year, the LANSON-BCC Group will not be releasing any quantified targets for 2016.
Additional information
The consolidated financial statements for 2015 were approved by the Board of Directors on March 31st, 2016. The procedures to audit the consolidated accounts have been completed. The certification report will be issued once the necessary procedures have been finalized for filing the 2015 registration document.
| LANSON-BCC is a group built around seven Houses that produce Champagne wines, | Euronext Compartment B |
|---|---|
| created and led by Champagne families. The Group 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 |
ISIN: FR0004027068 Ticker: LAN |
| independence and rational synergies enables each one of its Houses to develop its performances, ensuring the LANSON-BCC Group's sustainability. |
Reuters: LAN.PA |
| Bloomberg: LAN:FP | |
| - Champagne Lanson (Reims), the prestigious international brand, which is launching its new "Clos Lanson" cuvee this year. |
Indices: CAC Mid & Small, CAC All-Tradable, CAC |
| - Champagne Chanoine Frères (Reims), wines intended primarily for the European mass retail market (Chanoine brand), reputed above all for its famous Tsarine cuvee. |
Beverages, EnterNext PEA PME 150 |
| - Champagne Boizel (Epernay), French mail-order market leader, with wines distributed in the traditional sector for international markets. |
Eligible for SME share-based |
| - Maison Burtin (Epernay), a European mass retail supplier and owner of the Besserat de Bellefon brand, distributed through traditional networks (restaurants, wine stores). |
savings schemes (implementing order of March 5th, 2014) |
| - Champagne De Venoge (Epernay), sold on selective retail markets, notably with its Louis XV grande cuvee. |
LANSON-BCC |
| - Champagne Philipponnat (Mareuil sur Aÿ), which owns the prestigious Clos des Goisses, with wines also available on selective retail markets as well as in leading restaurants. |
Nicolas Roulleaux Dugage Tel: +33 3 26 78 50 00 |
| - Champagne Alexandre Bonnet (Les Riceys), owner of a vast vineyard, with wine sold in traditional sectors. |
[email protected] [email protected] |
| www.lanson-bcc.com | CALYPTUS |
| Cyril Combe | |
| Tel: +33 1 53 65 68 68 | |
| [email protected] |