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Laurent-Perrier : Half-year results 2020-2021

LAURENT-PERRIER
·6-min read


Tours-sur-Marne, November 27, 2020

Laurent-Perrier

Financial release

Results of the first half of the 2020-2021 financial year

Laurent-Perrier announces a consolidated turnover of €71.2 million
and an increase in its operating margin rate.

The financial statements for the first half of the 2020-2021 financial year, ended September 30, 2020, were examined by the Supervisory Board, which met on November 24, 2020 under the chairmanship of Mr. Maurice de Kervénoaël.

Key consolidated financial data audited:

In millions of Euros
At September 30, 2020

1st half
2019-2020
(April 1, 2019 –
September 30, 2019)

1st half
2020-2021
(April 1, 2020 –
September 30, 2020)

Change
vs N-1

Change
vs N-1
excluding currency effect (*)

Champagne sales

99.1

71.0

-28.4%

-28.2%

Group turnover

99.2

71.2

-28.2%

-28.0%

Operating Income

19.8

14.6

-26.6%

-23.1%

Operating margin % (**)

20.0%

20.5%

+0.5 pt

+1.4 pts

Net income - Group share

11.0

7.6

-30.9%

NC

Earnings per share (in Euros)

1.85

1.28

-0.57

NC

Operating cash flow (***)

-21.9 M€

-34.5 M€

-12.6 M€

NC

* At N-1 exchange rates
** Margin calculated on champagne sales only
*** Cash flow from operating activities - net investments

1



Commenting on the half-year results, Mr. Stéphane Dalyac, Chairman of the Executive Board, said:

"In the context of a first half of the 2020-2021 financial year that was severely affected by the COVID-19 health crisis, the Laurent-Perrier Group was able to adapt to this unprecedented situation, as shown by the published results, thus confirming the resilience of its model based on its value policy. Indeed, despite a sharp decrease in volumes sold as a result of the containment measures adopted worldwide, this performance is based on a still positive price/mix effect, an increase in operating margin rate and tight control of operating cash flow. Faced with many uncertainties regarding the development of the health crisis and the business outlook for the UK (Brexit) and US markets, which call for a great deal of caution, the Laurent-Perrier Group reaffirms its determination to stay the course of its strategy, continuing to rely on the quality of its champagnes, the quality of its teams, the strength of its brands and the control of its distribution."

Changes in turnover:

In a global champagne market down -28.4% in volume shipped compared to 2019 over the period from April 1, 2020 to September 30, 2020, the turnover of the Laurent-Perrier Group, relating to champagne sales, stands at €71.0 million, i.e. a change of -28.4% in value at current exchange rates.
Despite a sharp -35.7% drop in champagne sales volumes, as a result of the health measures adopted around the world, including the closure of hotel and restaurant activities and the very severe restrictions on global air traffic, the Laurent-Perrier Group has delivered a +7.5% price/mix effect, driven by the strength of its brands and the quality of its high-end champagnes.

Changes in income:

Operating income, at current exchange rates, reached €14.6 million, down -26.6% compared to 2019. In this exceptional context, the Laurent-Perrier Group was able to adapt its cost structure, contributing to a +0.5 point increase in its operating margin rate to 20.5% on a reported basis.
The Group's share of net income, for its part, amounted to €7.6 million at current exchange rates and thus represents 10.7% of the Group's consolidated turnover.

Changes in operating cash flow and financial structure:

Operating cash flow for the period, which is traditionally negative in the first half due to the seasonal nature of the business, held up well despite the exceptional drop in activity and thus stood at -€34.5 million at September 30, 2020. The limited decrease in cash flow from operations, management of working capital requirements and control of capital expenditure limit the erosion of operating cash flow to - €12.6 million compared with September 30, 2019.
The elements of the consolidated balance sheet at September 30, 2020, reinforce the solidity of the financial structure of the Laurent-Perrier Group. Shareholders' equity (Group share) amounted to €435.1 million and net debt was €324.0 million. Gearing thus stands at 0.74 compared to 0.75 at September 30, 2019.

2



Outlook

Faced with numerous uncertainties regarding the development of the health crisis and the business outlook for the British (Brexit) and US markets, the Laurent-Perrier Group is maintaining its vigilance by adapting to this exceptional context which calls for a great deal of caution.

The Laurent-Perrier Group is thus continuing to steer and implement its 2020-2024 business plan, which confirms the following points in particular:

  • The Group has a solid financial structure. Financing and liquidity are ensured.

  • Business continuity is not called into question.

  • Impairment tests confirm the value of the assets.

In this context, the Laurent-Perrier Group remains focused on its value strategy, which is based on four pillars:

  • A single business: The creation and sale of high-end champagnes

  • A high-quality supply based on a policy of partnerships

  • A portfolio of complementary brands

  • Well-controlled global distribution.

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
CFO
Laurent-Perrier Group
Telephone: +33 3 26 58 91 22

The consolidated financial statements for the first half of the 2020-2021 financial year were subject to a "limited" review by the statutory auditors (KPMG and PwC). All the corresponding financial data is available in the 2020-2021 half-year financial report which will soon be published on the Laurent-Perrier Group's financial website:

www.finance-groupelp.com

3



Notes

Analysis of champagne sales

1st half 2020-2021
(April 1, 2020 - September 30, 2020)

Champagne turnover (M€)

71.0

Change / N-1 in %

-28.4%

o/w

Volume effect

-35.7%

Price / Mix effect

+7.5%

Currency effect

-0.2%

Elements of the consolidated balance sheet

Group - in € million

At September 30, 2019

At September 30, 2020

Equity - Group share

423.2

435.1

Net debt

318.7

324.0

Inventories

615.8

612.0

Financial agenda

Annual results 2020-2021 : May 28, 2021 (to be confirmed)

4

Attachment