Reims, Friday September 8, 2023 - 5:45pm
The LANSON-BCC Group is publishing its accounts for the first half of 2023, with a net profit of €11.57m, up +14.7% compared with the first half of 2022. This earnings growth, supported by the improvement in the price-product mix and value creation, makes it possible to confirm the Group's sound financial foundations.
A family-owned pure player for Champagne, LANSON-BCC is continuing to move forward with its value development strategy despite the uncertainties linked to the geopolitical and economic environment.
Global Champagne wine market
During the first half of 2023, the Champagne industry shipped 125.8 million bottles, with volumes down
-4.7% versus an exceptionally high basis for comparison from the first half of 2022 (132.0 million bottles shipped), which was boosted by the return to consumption following the health crisis. The French market (38.2% of volumes shipped) contracted by -6.3%, while export markets (61.8% of volumes shipped) are also down, with a drop of -3.7% (source: CIVC).
Our Maisons
In this context, the Lanson-BCC Group recorded a higher contraction in its volumes than the industry overall, taking into account the surplus inventory built up in the United Kingdom, United States and Australia. Consolidated revenues came to €109.07m, down -5.2%, but the premiumization policy launched in 2019 is continuing to move forward with determination and driving an improvement in results, which is essential to offset the increase in both grape prices and financial costs.
Consolidated income statement
IFRS (€m) | H1 2023 | H1 2022 | Change (%) |
Revenues | 109.07 | 115.02 | -5.2% |
Income from ordinary operations | 19.25 | 13.06 | +47.4% |
Finance costs | -3.88 | -1.83 | +112.0% |
Net income | 11.57 | 10.09 | +14.7% |
Consolidated revenues for the first half of 2023 totaled €109.07m, down -5.2% from the first half of 2022. Excluding the brokerage subsidiary, whose activity is traditionally subject to fluctuations, consolidated revenues represent €107.22m, down -4.4% compared with the previous year.
Exportsgenerated 60.7% of revenues at June 30, 2023, compared with 62.9% at June 30, 2022. This change is linked to the lower level of shipments to the United Kingdom, United States and Australia, which had restocked on a massive scale during the first half of 2022.
EBITDA (income from ordinary operations before depreciation and provisions - net of reversals) is up +40.1% from €16.69m to €23.38m, linked mainly to the growth in average sales prices and the improvement in the product mixes.
After net depreciation and provisions of €4.13m (+€0.5m), income from ordinary operations totaled €19.25m, compared with €13.06m for the first half of 2022.
EBIT came to €19.32m, compared with €15.08m for the first half of 2022, which included €1.6m of non-recurring income linked to the favorable outcome reached following a dispute with the French tax authorities.
Finance costsprimarily concern interest relating to the aging of Champagne wine stocks. They represented -€3.88m, compared with -€1.83m for the first half of 2022, reflecting the increase in interest rates, which is becoming more marked as our aging-related credit facilities reach their deadlines for renewal.
Following an effective corporate income tax rate of 25.1%, net income totaled €11.57m, compared with €10.09m for the first half of 2022 (effective rate of 24.3% at June 30, 2022).
Consolidated balance sheet
Group shareholders’ equityis up to €329.75m, compared with €307.40m at June 30, 2022.
Consolidated net financial debttotaled €494.13m, compared with €484.65m at June 30, 2022. €422.5m correspond to credit facilities for aging the stock of Champagne wines, representing a volume of 3.6 years of sales, with a book value of €503.44m, compared with €473.50m at June 30, 2022. Other financial debt represents €71.6m (versus €63.0m at June 30, 2022) and concerns the investments in the Group’s Maisons and vineyards.
The Group’s financial structure has therefore continued to improve, withgearing down to1.48 from 1.55 at June 30, 2022.
Outlook
Considering the traditional seasonality of Champagne sales and the economic uncertainties, the results for the first half of 2023 cannot be extrapolated over the full year. LANSON-BCC would like to highlight that usually around one third of sales are recorded during the first half of the year, which is subject to half of fixed costs for the whole year. Due to this lack of visibility for the end of the year, LANSON-BCC is not releasing any forecasts for the full year. The outstanding 2023 harvest that is underway, further strengthening positions following the 2022 harvest, is expected to help drive an upturn in volumes over the medium term.
A family-owned pure player for Champagne, LANSON-BCC is continuing to focus on its value development strategy. The Group’s ambition to further strengthen its positioning in the world of high-end wines is still, more than ever, firmly anchored at the heart of its plans.
Additional information
The half-year financial report, approved by the Board of Directors on September 8, 2023, is available on the Group website: www.lanson-bcc.com.
2023 full-year revenueswill be released on Thursday January 25, 2024 (after close of trading).