Financial press release
2020 first-half revenue: €64.3 million
Stable first half net income
Reims, the 10th of
Vranken-Pommery Monopole’s Board of Directors met on the 10th of
Consolidated data in millions of euro | 06/2020 | 06/2019 | Change |
Revenue | 64,3 | 87,0 | -22,7 |
Subactivity | -1,0 | 0 | -1.0 |
Ordinary Operating Income | 1,2 | 2,9 | -1,7 |
Operating Income | -0,1 | 1,5 | -1,6 |
Financial Result | -8,8 | -9.7 | +0,9 |
Net income | -6,5 | -6,6 | +0,1 |
Attributable to equity holders of the parent | -6,4 | -6,6 | +0,2 |
Revenue
As a result of the containment measures adopted worldwide, including the closure of hotels, cafés and restaurants, the halt to events, the severe restrictions on international flights and Duty-Free sales, the group's consolidated revenues for the first half of 2020 reached €64.3 million, down 26.1%. However, it should be noted that :
- The negative impact of inter-professional sales of €4 million compared to
June 30, 2019 will be offset in the second half of the year; Vranken-Pommery Monopole has managed to limit the deterioration in its business by a strong presence of its brands in all European off-trade sales networks: wine merchants, food retailers and food shops.
Export sales accounted for 56% of consolidated revenue, primarily driven by sales of Champagnes in the
Analysis of results
The Group's first-half results were marked by the containment measures that paralyzed the global economy. In this context, which was exceptional in its scope and intensity,
- A current operating profit of €1.2 million, down €1.7 million, including €1 million of under-activity related to Covid-19. The Champagne and Other operating sector contributed 61% of recurring operating income and the
Camargue and Provence Wines operating sector 39%; - Operating profit broke even after 673 K€ of partial unemployment benefits in application of the economic support system for the Covid-19 epidemic adopted by the French government.
The good level of expenses completed the system set up by the State.
- A financial result which improved by €0.9 million thanks to the expected reduction in financial expenses.
- A net result (group share) which improved by €0.2 million to - €6.4 million.
Financial structure
Net financial debt decreased by €12 million at
Net financial debt is related to the carrying of Champagne inventories.
The Group has mobilized €15 million from its financial partners as part of the State-guaranteed loan program.
Equity amounted €366 million in the first half of 2020, up €5 million compared to the first half of 2019.
Outlook
Harvests
The exceptional climatic conditions in
In Champagne, in order to adapt inventories to the change in sales estimated to date, which are expected to decline by 25% in 2020, the Champagne Committee has limited the marketing of grapes to 8,000 kg per hectare. The yield is balanced with the expected decline in sales.
Exceptional weather conditions made it possible to harvest as early as August the 17th, a historic record for earliness.
In Provence, spring frosts will have a measured impact on the yield of Château La Gordonne.
In the
In the
Sales
After the decontainment, sales of Champagne by
Despite a drastic reduction in global On-Trade, the Group's Rosé Wines sales have so far performed well with volumes up by more than 10% compared to 2019.
This recovery in Off-Trade, replacing part of the volumes shipped in On-Trade, gives the group hope for a second half of the year that will be more active than the first.
The epidemic crisis has changed consumer behaviour, resulting in a shift from out-of-home consumption to consumption at home that continues beyond the period of confinement.
Through its presence in all distribution channels in
In an economic context that is, to say the least, disrupted, it remains difficult today to accurately determine the landing point at the end of 2020 in terms of both sales and earnings. The Group remains vigilant in adapting to changes in consumption patterns, and confident in its ability to rebound.
Next release
Publication of 2020 full-year revenue:
About
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.
(Codes “VRAP” (
Attachment
- VPM Results H1 2020
© OMX, source