Financial press release
Revenue for the first half of 2018: €94.8m Recurring business up 6.3% Priority to margins
Reims, 16 July 2018
Strong growth in brands +6.3%
| Total revenue in €m | 30/06/2018 | 30/06/2017 | Change | % |
| Champagnes | 76.4 | 73.3 | +3.1 | +4.2% |
| Provence and Camargue wines | 6.0 | 5.0 | +1.0 | +20.8% |
| Other (Portos, sparkling wines, other) | 10.0 | 8.7 | +1.3 | +14.9% |
| Group brand sales | 92.5 | 87.0 | +5.5 | +6.3% |
| Listel (*) | 0.9 | 5.3 | -4.4 | NS |
| Inter-industry (semi-finished products) and generic sales (**) | 1.4 | 9.1 | -7.7 | NS |
| Revenue | 94.8 | 101.4 | -6.6 | -6,5% (***) |
| (*) Listel left the scope of consolidation in July 2017 - residual sales in H1 2018 | ||||
| (**) Inter-industry sales are carried forward to the second half (***) Non significant evolution due to the sale of 50% participation in Listel SAS | ||||
Vranken-Pommery Monopole is continuing to strengthen its export positions in order to continue growing its international business. For the first time, the weight of the subsidiaries, established in capitals strategic for sales of champagne and wine, made it possible to reverse the trend in group sales, with the international segment now in the lead. In the first half of 2018, export sales of champagne exceeded domestic sales to reach 51.2%. International growth buttressed the leading position of Vranken-Pommery Monopole, which was acquired in France by its leading champagne brands. For the nine subsidiaries, this redistribution of sales paves the way for strong growth both for champagne and for the Provence and Camargue Domaines and Châteaux.
1 - Brand sales In the first half of 2018, the group's recurring business was very robust, generating an increase in revenue of more than 6.3%. All of the group's activities recorded growth. In the Champagne segment, the development of the Vranken and Pommery & Greno premium brands is continuing both in France and abroad. The group's innovation policy contributes to value creation by marketing attractive new vintages. This momentum is driven widely by creations such as Vranken's "Brut Nature" and Pommery's "Royal Blue Sky - on ice" and Blanc de Blancs. The American "Louis Pommery" sparkling wine, launched in the second half of 2017, is continuing to expand successfully in all the US States. From September, the wines developed in Camargue (Brut and Rosé) under the label "Brut de France" will be rolled out in all European countries. In Provence and Camargue, the commercial referencing by leading European and American clients, which was obtained in 2018 for the Provence Château La Gordonne and the Camargue "Pink Flamingo", helped to increase sales volumes at end-June 2018, firmly establishing the positioning of the Domaines and Châteaux in these key markets. In the Douro Valley, the repositioning on the premium qualities of Porto Rozes was successfully completed and Douro Wines are continuing to establish themselves in all sales channels. 2 - Listel The Listel brand left the group's scope of consolidation in July 2017. Vranken-Pommery Monopole recorded the last, modest sales of Listel in the first half of 2018. 3. Inter-industry sales In the Champagne segment, low-margin inter-industry sales were carried forward to the second half. This non-recurring business is set to decrease in the coming years. It is only intended to secure stocks at a level ensuring the smooth development of the brands over the long term. This development started during the first half of 2018 for Champagne Pommery & Greno in major export markets, as well as for the Camargue Pink Flamingo and the Provence Château La Gordonne. The group, which owns and manages more than 2,500 ha of vineyards, has all the supplies necessary to steer the sales of its Maisons, Domaines and Châteaux towards significant business development. While caution is always in order, the group is pleased to note, so far, signs of a good harvest in all the vineyards, including in Camargue where significant volume losses had been recorded in the last two years.
Next release
Publication of the 2018 interim financial report: 10 September 2018
About Vranken-Pommery Monopole :
Vranken-Pommery Monopole is the second largest Champagne group.
With sites in Champagne, Provence, Camargue and Douro, it is Europe's leading wine grower.
Its brand portfolio includes:
- the Champagne brands Vranken, Pommery & Greno, Heidsieck & Co Monopole, Charles Lafitte, et Bissinger & Co
- the Rozes et Sao Pedro ports, and Terras do Grifo Douro wines ;
- the Camargue Domaine Royal de Jarras, and Provence Chateau La Gordonne ;
- the Sparkling Wines : Louis Pommery California, Louis Pommery England, and Brut de France.
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, Head of Financial Controls +33 3 26 61 62 34, comfi@vrankenpommery.fr | Press Claire Doligez, +33 1 53 70 74 25, cdoligez@image7.fr Caroline Simon, +33 1 53 70 74 65, caroline.simon@image7.fr |
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