Laurent-Perrier

Financial release 2019-2020 - Seite 2

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: