Correction: Vranken-Pommery Monopole - 2020 Annual Results - Positive results despite the health crisis
29 Marzo 2021 - 7:44PM
Correction: Vranken-Pommery Monopole - 2020 Annual Results -
Positive results despite the health crisis
Financial press release
Positive results despite the health
crisis
Reims, 29 March 2020
Vranken-Pommery Monopole’s Board of Directors
met on 29 March 2021, chaired by Paul-François Vranken and in the
presence of the statutory auditors, to approve the group’s
financial statements for 2020 financial year.
Consolidated data in millions of euro |
31/12/2020 |
31/12/2019 |
ChangeIn value |
Revenue |
244,0 |
274,6 |
-30,6 |
Ordinary Operating Income |
18,6 |
24,3 |
-5,7 |
Operating Income |
18,0 |
20,3 |
-2.3 |
Financial Result |
-17.3 |
-19,3 |
+2,0 |
Net income |
0,3 |
0,1 |
+0,2 |
Attributable to equity holders of the parent |
0,2 |
0,1 |
+0,1 |
The process of auditing and issuing the audit report for the
certification of the consolidated accounts is being finalised.
The Vranken-Pommery Monopole group demonstrated
its ability to absorb economic shocks in the course of the year
2020. This resilience is based on its recognised brands, the
quality of its products, the flexibility of its organisation and
its presence in all distribution channels, particularly in home
consumption networks.
The end consumer has remained attached to the
group's products and has adapted its consumption patterns to the
constraints of the Covid-19 pandemic, in particular the
restrictions on mobility and conviviality.
Revenue
Consolidated revenues for 2020 are down 11.1% to
244 million euros, with exports up 60%.
In the Champagne business, in a market that is
down around 18% in volume (source: CIVC), Vranken-Pommery Monopole
is gaining market share with a limited 11.9% decline. The group
even managed to increase its sales in the countries in the
north-eastern crown of Europe and in Australia.
The growth of Provence and Camargue Rosé Wines
was confirmed at +11.7%. The group is establishing itself as a
leader in organic winegrowing, thus responding to growing consumer
demand.
Port and Douro Wines suffered from the lack of
tourist activity in Portugal, partially offset by export sales.
Analysis of results
The strategic measures announced and implemented
over the last three years have made it possible to cushion the
impact of the health crisis. This adaptation of the cost structure
to market changes has proved its relevance in this unprecedented
context and is reflected in :
- Current Operating Profit of €18.6m, down €5.7m. The Group
reduced its personnel costs by €7.5m, of which €2.1m related to
government support measures in the context of the pandemic.
- Operating Profit of €18m, down by €2.3m, with a stable margin
compared to sales at 7.7%.
- Financial result improved by €2m to €17.3m, as a result of the
work carried out over the last 3 years to reduce financial debt and
improve financing conditions. The average rate of financial debt
will be 2.40% in 2020 compared to 2.54% in 2019
- A net profit of €0.3m despite the deteriorated context.
Financial structure
Data in €M |
|
|
|
|
|
|
ASSETS |
31/12/20 |
31/12/19 |
|
LIABILITIES |
31/12/20 |
31/12/19 |
Non-curent assets |
508,5 |
511,8 |
|
Equity attributable to the Group |
368,2 |
369,3 |
Inventories and work in progress |
673,2 |
685,8 |
|
Minority interests |
4,3 |
4,3 |
Trade and other current assets |
97,6 |
96,6 |
|
Non-current liabilities |
690,6 |
708,1 |
Cash and cash equivalents |
17,5 |
6,5 |
|
Current liabilities |
233,7 |
213,0 |
TOTAL |
1 296,8 |
1 294,7 |
|
TOTAL |
1 296,8 |
1 294,7 |
Shareholders' equity remains stable at €372.5m
and represents almost 29% of the balance sheet total.
The Group's net financial debt at 31/12/2020 was
€683.6m compared with €712.1m in 2019, a reduction of €28.5m. This
reduction corresponds to the group's net cash generation,
thanks to the control of its operating requirements.
Restated for the application of IFRS 16 in the amount of €25m in
2020, net financial debt stands at €658.6m, fully covered by the
€673.2m of inventories.
During the 2020 financial year, Vranken-Pommery
Monopole has implemented all the means at its disposal to ensure
the continuity of its operations and preserve its liquidity. In
this respect, the group has subscribed to €24 million in State
Guaranteed Loans.
The group has no bond maturity in 2021.
Outlook
Vranken-Pommery Monopole returned to growth in
the first quarter of 2021, with an increase of over 15% in its
Champagne sales volumes.At the end of March, sales volumes for
Sables de Camargue had doubled thanks to new listings in European
supermarkets and the upturn in business in the United States, while
volumes for Provence remained dynamic, with a significant
increase.
Aware of the attractiveness of its brands and
confident in the quality of its production, Vranken-Pommery
Monopole is approaching the 2021 financial year with confidence and
determination, but remains cautious in its outlook, due to the
persistence of the pandemic.
The deployment of the vaccination campaigns is
indeed the essential prerequisite for the restoration of "normal"
life, which will in particular enable the re-launch of events, the
reopening of the hotel and catering and travel retail sectors
throughout the world.
In this context, the group is aiming for
turnover growth of around 5% in 2021
In addition, Vranken-Pommery Monopole reaffirms
its strong commitment to responsible and sustainable viticulture.
After the conversion of its vineyards in the Camargue and Provence
to organic farming, the group is continuing with the conversion of
its vineyards in Champagne and Portugal
Dividend
In a context that remains uncertain, the group
maintains strict financial discipline and gives priority to
preserving its liquidity. At the Annual General Meeting scheduled
for 3 June 2021, Vranken-Pommery Monopole will therefore propose
not to distribute a dividend for the 2020 financial year.
Next release
Publication of the group's Universal
Registration Document (URD) on 15 April 2021 after the stock
exchange.
About Vranken-Pommery
Monopole
Vranken-Pommery Monopole manages 2,600 hectares
of land, owned outright or under lease and spread over four
vineyards in Champagne, Provence, Camargue and Douro. The group’s
wine-making activities range from production to marketing, with a
strong commitment to the promotion of terroirs, sustainable
wine-growing and environmental conservation.Its brand portfolio
includes:
- Champagne : Vranken, Pommery & Greno, Heidsieck & Co
Monopole, Charles Lafitte and Bissinger & Co;
- Ports and Douro Wines : Rozès and Sao Pédro port wines and the
Terras do Grifo Douro wines;
- Camargue : Domaine Royal de Jarras and Pink Flamingo Camargue
wines
- Provence : Château La Gordonne Provence and Chapelle Gordonne
wines;
- Sparkling wines : Louis Pommery California, Louis Pommery
England, Brut de France and Pink Flamingo sparkling wines.
Vranken-Pommery Monopole is listed on NYSE
Euronext (Paris and Brussels).(Codes “VRAP” (Paris), and “VRAB”
(Brussels); ISIN: FR0000062796).
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