Laurent-Perrier announces 5.3% increase in turnover, 10.6% rise in operating result in first-half 2018-2019
Tours-sur-Marne, November 23, 2018
Financial Press Release
Laurent-Perrier announces 5.3% increase in turnover,
10.6% rise in operating result in first-half 2018-2019
The financial statements for the first half of 2018-2019, ended on September 30, 2018, were signed off at the Supervisory Board meeting held on November 20, 2018, chaired by Mr Maurice de Kervénoaël.
Main audited consolidated financial data
|€ million at September 30, 2018|| H1 |
| H1 |
|Change on Y-1|| Change on Y-1 |
at constant exchange rates
| Change on Y-1 |
|Operating margin, %||17.9%||18.8%||+0.9 pt||+1.2 pt||+0.8 pt|
|Group net income||7.9||10.5||+33.1%||NC||NC|
|Earnings per share||€1.33||€1.77||+€0.44||NC||NC|
|Cash-flow from operations*||-21.8 M€||-23.2 M€||-1.4 M€||NC||NC|
* Cash generated by operations minus net investment
** Constant exchange rates and like-for-like structure
Commenting on the half-yearly results, Management Board Chairman Mr Stéphane Dalyac said: "In a market environment slightly down by volume, Laurent-Perrier has seen an increase in turnover, largely thanks to a positive price/mix effect that has enabled it to invest more in brand awareness while improving operating profitability. The Group will continue to pursue its long-term growth strategy, underpinned, as ever, by its core values: the acknowledged quality of its champagnes, the strength of its brands, a robust balance sheet, and the professionalism of its workforce."
Against the backdrop of a champagne market down 1.9% by volume in the 12 months to end-September 2018, Laurent-Perrier Group turnover came out at 99.7 million euros at current exchange rates. At constant exchange rates, turnover reached 100.0 million euros, and in organic terms (constant exchange rates and like-for-like structure), it rose by 5.5%, to 100.0 million euros, compared with last time.
The Group's organic performance is largely down to a very favourable price/mix effect of +5.9%.
In line with the Group's value strategy the Laurent-Perrier brand continued to strengthen, with a further improvement in the contribution to sales from premium cuvées and a steadily growing export component in turnover.
The first-half operating result came out at 18.7 million euros, up 10.6% at current exchange rates. At constant exchange rates, it reached 19.1 million euros, and in organic terms it gained 10.2%, at 18.6 million euros.
The operating margin came out at 18.8% in published data and at 18.6% in organic terms, a 0.8 percentage point improvement on the previous year.
The financial result improved by 1.2 million euros. It is no longer affected by the unwinding of swaps recorded in the previous financial year.
Group net income rose to 10.5 million euros, up 2.6 million euros on last time. This amounts to 10.5% of turnover at current exchange rates, compared with 8.3% last time.
Cash flow from operations, which is traditionally negative in the first half due to the seasonal nature of sales, deteriorated slightly, by 1.4 million euros compared with the previous year, largely due to the phasing of the multi-year investment programme. Absent this impact, the indicator saw a 5.7% improvement.
Like-for-like, net debt was slightly up, but still only stands at 74% of shareholders' equity, as against 76% last year.
The value of inventories, having risen by 3.5%, stands at 196% of net debt, compared with 194% last time.
Outlook for 2018/2019
First-half performance cannot be extrapolated to the second half due to the highly seasonal nature of our business. In an economic and monetary environment, where uncertainties continue to call for great caution, especially in connection with Brexit, Laurent-Perrier will maintain its focus on its value strategy as these half-yearly results demonstrate its relevance. The Group aims to continue consolidating its growth and profitability plan, mainly concentrating on its premium cuvées and on international markets.
Laurent-Perrier is one of the few family-owned champagne houses listed on the French stock exchange dedicated exclusively to champagne and focused on the premium segment. Laurent-Perrier offers a broad range of products renowned for their quality, and sold under the Laurent-Perrier, Salon, Delamotte, and Champagne de Castellane brands.
| ISIN: FR 0006864484 |
Bloomberg: LPE FP
| Laurent-Perrier belongs to compartment B of Euronext Paris. It is part of the EnterNext© PEA-PME 150 and Euronext® FAMILY BUSINESS indexes |
| Patrice KIRSCH |
Telephone: +33 3 26 58 91 22
| Didier MONCEAUX |
Telephone : +33 3 26 58 91 22
Breakdown of Turnover
|Group|| H1 2018/2019 |
April 1 - September 30
|Turnover (€ million)||99.7|
|Change / Y-1, %||+5.3%|
|Volume Effect||- 0.3%|
|Currency Effect||- 0.3%|