VRANKEN-POMMERY MONOPOLE : 2019 FIRST-HALF RESULTS - ADJUSTED
INCOME FROM CONTINUING OPERATIONS UP 11.8%
Financial press release
2019 first-half revenue: €87
million Adjusted income from continuing
operations* up 11.8%
Reims, 12 September 2019
Vranken-Pommery Monopole’s Board of Directors
met on 12 September 2019, chaired by Paul-François Vranken and in
the presence of the statutory auditors, to approve the group’s
financial statements for the first half of 2019.
Published |
|
Adjusted* |
Consolidated data in millions of euro |
06/2019 |
06/2018 |
Change |
|
06/2019 |
06/2018 |
Change |
% |
Revenue |
87.0 |
94.8 |
-7.8 |
|
87.0 |
94.8 |
-7.8 |
-8.2% |
Revenue like-for-like (**) |
87.0 |
94.2 |
-7.2 |
|
87.0 |
94.2 |
-7.2 |
-7.6% |
Income from continuing operations |
2.9 |
5.9 |
-3.0 |
|
3.8 |
3.4 |
+0.4 |
+11.8% |
EBIT |
1.5 |
4.7 |
-3.2 |
|
2.3 |
2.2 |
+0.1 |
+4.5% |
Financial income |
-9.7 |
-9.9 |
+0.2 |
|
-9.7 |
-9.9 |
+0.2 |
2.0% |
Net income |
-6.6 |
-3.9 |
-2.7 |
|
-6.0 |
-5.8 |
(0.2) |
-3.4% |
Attributable to equity holders of the parent |
-6.6 |
-3.9 |
-2.7 |
|
-6.0 |
-5.8 |
(0.2) |
-3.4% |
(*) Excluding the impact of the renegotiation of agreements
governing the allocation of medical expenses.(**) Last Listel
contracts deconsolidated in July 2017.
Revenue
Vranken-Pommery Monopole's consolidated revenue
in the first half of 2019 came to €87 million, down 7.6%
like-for-like. Sales in France were impacted by the Egalim Act,
which profoundly changes retailing operations by regulating
promotions and strongly increases the activity's seasonal nature to
the benefit of the second half of the year, particularly for
champagnes.
The group's foreign subsidiaries are gaining
clout. Exports were up by 4.2% and represented 56.5% of
consolidated revenue in the first half of 2019.
Impact of completion of negotiations on
the payment of medical expenses
As part of its cost control policy, on 14 May
2019 the group signed the new labour agreements on the payment of
medical expenses. The completion of these negotiations led to a
revision of the assumptions used in the 2018 closing.
The impacts on the half-year financial
statements are as follows:
- In the first half of 2018, termination of the agreements and
revision of the assumptions used to calculate the provisions for
employee benefit commitments, on the basis of available best
estimates, resulted in a €2.5 million provision reversal.
- In the first half of 2019, completion of the negotiations led
to a revision of the assumptions used in the 2018 closing and
recognition of a €0.8 million provision.
The net result was a €1.7 million reduction in
the Vranken-Pommery Monopole group's commitments compared with the
end of 2017.
Analysis of adjusted
results
The group presents the following adjusted
results for the purposes of comparing the half-year financial
statements like-for-like, excluding the impact of the completion of
the negotiations described above:
- Adjusted income from continuing operations of €3.8 million, up
11.8%;
- Adjusted margin of 4.4% of revenue in the first half of 2019,
compared with 3.6% in the first half of 2018;
- Adjusted EBIT of €2.3 million, up 4.5%;
- Stable adjusted net income attributable to equity holders of
the parent, with a loss of €6 million reflecting the highly
seasonal nature of champagne sales (intensified by the Egalim law),
more than two-thirds of which are generated in the second half of
the year.
The improvement in adjusted income from
continuing operations reflects the success of the champagne
branch’s premiumisation strategy and the development of its export
sales, the strong growth in sales of rosé wines and the increase in
sales of sparkling wines.
Financial structure
During the first half of the year, the group
successfully completed its €145 million bond issue, split into
three tranches (€50 million at three years, €50 million at five
years and €45 million at seven years). This transaction enabled
Vranken-Pommery Monopole to refinance on favourable terms its bond
issue that matured in June 2019.
The average maturity of the group’s debt is
improving, increasing from 2.45 years at 1 January 2019 to 2.70
years at 30 June 2019 and 3.08 years at the end of July 2019, after
the renewal of its "ageing loans".
The group's net financial debt stood at €754
million at 30 June 2019, including an impact of €23 million related
to the application of IFRS 16. Excluding the seasonal effect at 30
June, net financial debt is generally covered by inventories which,
for the champagne activity alone, represent 3.4 years of sales.
Equity amounted to €361 million at 30 June
2019.
Outlook
Harvests
Champagne yields have been set at 10,200 kg per
hectare. While only just under way, the 2019 harvests look to be as
promising as those of 2018.
In Provence, Château la Gordonne is nearing the
end of exceptional harvests in both quantity and quality terms. The
2019 vintage produced by the remarkable Pierrefeu terroir will
stand Château la Gordonne in excellent stead for commercial growth
overseas.
In the Camargue, the heat waves and lack of
water reduced yields compared to 2018. These negative impacts were
mitigated by vineyard investments. The vintage promises to be of
high quality.
In the Douro Valley, by contrast with 2018, the
yield on the 2019 harvest is very satisfactory and the quality
equally remarkable.
Sales
In the second half of 2019, the major
international champagne brands will continue to assert themselves
in the markets. Pommery & Greno and Heidsieck & Co Monopole
will benefit from this momentum.
The development of markets will continue for the
Vranken champagnes, with particular emphasis on Cuvée
Demoiselle.
Developments in the global economy are a source
of opportunities that augur well for results in the champagne
segment. As a leader in the production of rosé wines,
Vranken-Pommery Monopole plans to significantly expand its product
listings and thereby outperform a market already seeing robust
growth.
Sales of Douro wines are particularly upbeat in
their domestic market.
Next release
Publication of 2019 full-year revenue: 28
January 2020
About Vranken-Pommery
Monopole
Vranken-Pommery Monopole manages 2,600 hectares
of land, owned outright or under lease and spread over four
vineyards in Champagne, Provence, Camargue and Douro. The group’s
wine-making activities range from production to marketing, with a
strong commitment to the promotion of terroirs, sustainable
wine-growing and environmental conservation.
Its brand portfolio includes:
- the Vranken, Pommery & Greno, Heidsieck & Co Monopole,
Charles Lafitte and Bissinger & Co champagnes;
- the Rozès and Sao Pédro port wines and the Terras do Grifo
Douro wines;
- the Domaine Royal de Jarras and Pink Flamingo Camargue wines
and the Château La Gordonne Provence wine;
- the Sparkling wines, the Louis Pommery California, Louis
Pommery England, Brut de France and Pink Flamingo sparkling
wines.
Vranken-Pommery Monopole is listed on NYSE
Euronext (Paris and Brussels).
(Codes “VRAP” (Paris), and “VRAB” (Brussels);
ISIN: FR0000062796).
Contacts
Vranken-Pommery Monopole Franck Delval, Financial
Control Director+33 (0)3 26 61 62 34, comfi@vrankenpommery.fr |
MediaLaurent Poinsot, + 33 (0)1 53 70 74 77
lpoinsot@image7.frClaire Doligez, +33 (0)1 53 70 74
25,cdoligez@image7.frCaroline Simon, +33 (0)1 53 70 74 65,
caroline.simon@image7.fr |
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