2024 full-year earnings
Reims, Tuesday March 4, 2025 - 5:45pm
The LANSON-BCC Group, a Champagne pure player, recorded a 21.7% contraction in its income from ordinary operations in 2024 to €46.0m, reflecting the decrease in volumes, in line with the market, despite a continued improvement in the price-product mix. After €16.1m of finance costs (+60%), net income represents €23.8m. This 35.2% contraction is linked to the combination of three factors: the increase in cost prices, particularly for grapes, the lower volumes shipped, and the significant increase in financing costs for the aging of stocks. Despite a challenging economic environment, the LANSON-BCC Group is resolutely moving forward with its value creation strategy. The Group’s results for the year enabled it to further strengthen its financial structure.
Key developments: the global Champagne wine market in 2024
Champagne recorded a contraction in the volumes shipped, down 9.2% to 271.4 million bottles shipped, with over €5.9bn of sales. France (43.6% of volumes) and exports (56.4% of volumes) contracted by 7.2% and 10.8% respectively (source: CIVC).
Our Maisons
In this context, the LANSON-BCC Group recorded lower volumes, in line with the market, with consolidated revenues down 6.0% to €255.4m. In France (47.4% of volumes), revenues show a slight increase of 0.7%. For exports (52.6% of volumes), revenues are down 11.8%, reflecting a decrease in the volumes shipped - particularly to the United Kingdom - linked to residual surplus inventory and flat consumption.
Consolidated income statement
IFRS (€m) | 2024 | 2023 | Change (%) |
Revenues | 255.4 | 271.7 | -6.0% |
Gross margin | 124.8 | 139.5 |
|
Income from ordinary operations | 46.0 | 58.8 | -21.7% |
% of revenues | 18.0% | 21.6% | -3.6 pts |
Non-current items | 2.6 | 0.1 |
|
EBIT | 48.6 | 58.9 | -17.6% |
Finance costs | -16.1 | -10.1 | +60.0% |
Corporate income tax | -8.6 | -12.7 |
|
Net income | 23.8 | 36.7 | -35.2% |
% of revenues | 9.3% | 13.5% | -4.2 pts |
Net earnings per share (€) | 3.53 | 5.44 | -€1.91 |
Consolidated revenues for 2024 came to €255.4m (-6.0%). The contraction in volumes was partially offset by the change in the price-product mix, with +3.0% growth. France generated 49.5% of revenues in 2024, with 50.5% for exports.
EBITDA(income from ordinary operations before depreciation and provisions, net of reversals) is down -18.4% from €67.1m to €54.7m. The contraction is linked primarily to the deterioration in volumes and the increase in grape prices, partially offset by the good level of average sales prices and the improvement in the product mixes.
Income from ordinary operationstotaled €46.0m, compared with €58.8m in 2023, with a decrease of -21.7%. The ratio of income from ordinary operations to revenues is down -3.6 pts from the previous year to 18.0%.
EBITreached €48.6m, compared with €58.9m in 2023, contracting by -17.6%. This figure includes a reversal of non-current provisions for €2.5m, linked to the agreement concerning the financing of the mutual health insurance program for retired Champagne Lanson staff.
Financial expensesprimarily concern interest linked to the aging of wines in cellars. They represented -€16.1m, compared with -€10.1m in 2023, up +60.0%, reflecting the gradual increase in interest rates, which is becoming more marked as our aging-related credit facilities reach their deadlines for renewal.
Pre-tax earnings came to €32.4m, compared with €48.8m in 2023.
After a corporate income tax rate of 26.4% in 2024, compared with 26.0% in 2023, net income totaled €23.8m, compared with €36.7m in 2023. The net margin rate in 2024 was 9.3%, compared with 13.5% in 2023.
Consolidated balance sheet
Shareholders’ equity (Group share)was further strengthened to reach €375.1m, compared with €354.3m at end-2023, notably taking into account the impact of the allocation of 80% of 2023 net income to reserves.
Consolidatednet financial debt totaled €518.0m, compared with €501.6m at the end of 2023. €468.5m correspond to credit facilities for aging the stock of Champagne wines, representing a volume of nearly 4.7 years of sales, with a book value of €565.9m, virtually stable compared with end-2023 (€565.8m). Other financial debt represents €49.5m (versus €67.4m at end-2023) and concerns the investments in the Group’s Maisons and vineyards.
The Group has continued to improve its financial structure: gearing at 1.36, versus 1.39 in 2023, is at a correct level for Champagne due to the significant levels of stock for aging.
Proposed dividend
Taking into account the year’s results, LANSON-BCC’s Board of Directors will be submitting a dividend of €0.90 per share for approval at the General Meeting on April 25, 2025, scheduled for payment on May 5, 2025. This payout represents 25% of full-year net income for 2024. Historically, the bulk of earnings have been capitalized in order to improve gearing and give each of the Group’s Maisons the means to drive its development.
Outlook
A family-owned pure player for Champagne, LANSON-BCC is continuing to focus on its long-term value development strategy. The Group’s ambition to further strengthen its positioning in the world of high-end wines is still, more than ever, firmly anchored at the heart of its plans. This strategy is vital considering the impacts of grape price inflation on the cost of sales and the sharp rise in stock financing costs, which is expected to peak in 2025 before dropping back down in 2026. In line with its cautious policy and the strong seasonality of sales, the Group is not releasing any forecasts for the new financial year.
Additional information
The consolidated financial statements for 2024 were approved by the Board of Directors on March 4, 2025. The audit procedures on the consolidated accounts have been completed. The certification report will be issued once the necessary procedures have been finalized for filing the 2024 Universal Registration Document with the AMF.
Our CSR report will be published shortly on the Group website: www.lanson-bcc.com.
