Laurent-Perrier: Financial release 2019-2020
Tours-sur-Marne, July 3, 2020
Laurent-Perrier
Financial release
Laurent-Perrier announces + 2.6% increase in net income
for the 2019-2020 financial year
The financial statements for the year ended March 31, 2020, were examined by the Supervisory Board, which met on June 30, 2020 under the chairmanship of Mr. Maurice de Kervénoaël.
Key audited consolidated financial data
| In millions of Euros At March 31, 2020 | 2018-2019 | 2019-2020 | Variation vs N-1 | Variation vs N-1 excluding currency effect (*) |
| Champagne sales | 234.1 | 231.3 | -1.2% | -1.7% |
| Group turnover | 249.6 | 242.4 | -2.9% | -3.4% |
| Operating income | 41.3 | 41.2 | -0.3% | -2.0% |
| Operating margin % (**) | 17.6% | 17.8% | +0.2 pt | +0.0 pt |
| Net income | 23.2 | 23.8 | +2.6% | NC |
| Earnings per share (in Euros) | 3.89 | 3.99 | +0.10 | NC |
| Operational cash flow (***) | -2.2 M€ | 14.3 M€ | +16.5 M€ | NC |
* At N-1 exchange rates
** Margin calculated on champagne sales only
* Cash flow from operating activities - net investments
Commenting on the half-year results, Mr. Stéphane Dalyac, Chairman of the Executive Board, stated: "Against the backdrop of a year-end marked by the COVID-19 health crisis, a declining Champagne market and ongoing uncertainties linked notably to the French and UK markets (Brexit), the Laurent-Perrier Group has delivered a solid performance, with an increase in its profitability and an improvement in its operating cash flow. This performance was driven in particular by a continued positive price/mix effect and by continued investment in brand awareness. Faced with an unprecedented situation that calls for a great deal of caution, the Laurent-Perrier Group reaffirms its desire to stay on course with its growth strategy, always relying on the quality of its champagnes, the strength of its brands and the control of its distribution. "
Evolution of the turnover
In a global champagne market that fell by -3.4% in volume over the twelve months of the financial year, Laurent-Perrier Group's turnover, relating to sales of champagne, stood at €231.3 million, i.e. a variation of -1.2% at current exchange rates. Excluding the currency effect, it is €230.1 million.
This performance was achieved thanks in particular to stable volumes for the Laurent-Perrier brand and a solid price/mix effect of +4.5%.
Similarly, and in line with the Group's value strategy, the Laurent-Perrier brand remained on track, with a slight increase in the share of international sales, as well as an increase in the contribution of high-end vintages to sales.
Evolution of the result
Operating profit at current exchange rates was €41.2 million, stable compared to the previous year. Excluding the currency effect, it amounted to €40.5 million, a decrease of -2.0%.
The operating margin increased by +0.2 point, as reported, to 17.8%. At constant exchange rates, it stood at 17.6% and remained stable compared to the 2018-2019 financial year.
Financial income improved by 7.0% over the year, mainly due to a 5.2% decrease in the cost of net financial debt.
The tax rate was 31.4%, down -0.9 points compared to the previous year.
Net profit amounted to €23.8 million at current exchange rates, up by + 2.6%. It represents 10.3% of champagne sales, compared to 9.9% at March 31, 2019.
Operating cash flow for the year was €14.3 million. It shows a significant increase of +€16.5 million, linked in particular to the improvement in cash flow generated by the activity and a decrease in investments following the completion of work on the Group's production site.
Outlook 2020/2021
Faced with this unprecedented situation, the Laurent-Perrier Group has carried out modelling work on the short, medium and long-term impacts of the COVID-19 health crisis on its activity and on its main performance indicators.
This work confirms the following points on the horizon of its 2020‑2024 business plan:
- The Group continued to strengthen its financial structure by gaining the authorisation for additional financing from its banks to cover its cash requirements. On this basis, financing and liquidity are ensured.
- Business continuity is not called into question.
- Impairment tests confirm the value of the assets.
In this context, which calls for a great deal of caution, the Laurent-Perrier Group remains focused on its value strategy, which is based on four pillars:
- A single vision: The creation and sale of top-of-the-range champagnes;
- A high-quality supply based on a policy of partnerships;
- A portfolio of complementary brands;
- Well-controlled global distribution.
The Group is therefore confident in its ability to overcome this crisis and to pursue its value policy over the medium and long term.
Laurent-Perrier is one of the few family groups of champagne houses listed on the French stock exchange dedicated exclusively to champagne and focused on the premium segment. It offers a broad range of products renowned for their quality, around the Laurent-Perrier, Salon, Delamotte and Champagne de Castellane brands.
ISIN code: FR 0006864484
Bloomberg: LPE:FP
Reuters: LPER.PA
Laurent-Perrier belongs to compartment B of Euronext. Main index CAC All Shares
It is included in the composition of the EnterNext© indices PEA-PME 150 and
Euronext® FAMILY BUSINESS.
| Olivier DUMAS Laurent-Perrier Group Telephone: 22 | Patrice KIRSCH Laurent-Perrier Group Telephone: 22 |
All the financial data relating to the consolidated and audited financial statements for the financial year 2019-2020 will soon be published on the Laurent-Perrier Group's financial website:
Appendices
Analysis of champagne sales
| Group | 2019-2020 April 1 - March 31 |
| Turnover (M€) | 231.3 |
| Variation / N-1 in % | -1.2% |
| o/w | |
| Volume effect | - 6.2% |
| Price / Mix effect | +4.5% |
| Currency effect | + 0.5% |
Balance sheet elements
| Group - in € million | 2018-2019 | 2019-2020 |
| Equity | 422.9 | 440.0 |
| Net debt | 285.8 | 284.0 |
| Inventories | 537.2 | 552.2 |
| Operational cash flow | -2.2 | 14.3 |
Financial agenda
General meeting September 24, 2020
Half-year results 2020-2021 End of November 2020 (to be confirmed)
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