Vranken-Pommery Monopole - 2020 First-Half Results - €64.3 Million
Stable First Half Net Income
Financial press release
2020 first-half revenue: €64.3
million Stable first half net income
Reims, the 10th of September 2020
Vranken-Pommery Monopole’s Board of Directors
met on the 10th of September 2020, chaired by Paul-François Vranken
and in the presence of the statutory auditors, to approve the
group’s financial statements for the first half of 2020.
Consolidated data in millions of euro
Ordinary Operating Income
Attributable to equity holders of the parent
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
- 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
Export sales accounted for 56% of consolidated revenue,
primarily driven by sales of Champagnes in the European Union and
sales of Rosé Wines to large food customers.
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, Vranken-Pommery
Monopole relied on its responsiveness and the agility of its
organization to adapt to this unprecedented situation, as the
results below attest :
- 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
- 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.
good level of expenses completed the system set up by the
- 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 -
Net financial debt decreased by €12 million at June 30, 2020
thanks to the debt reduction measures undertaken. Net financial
debt at June 30, 2020 was €742 million, of which €26 million was
due to the application of IFRS 16.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.
The exceptional climatic conditions in Europe in 2020 favored
early harvests of extreme quality.
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 Camargue, harvesting began on August the 4th. To counter
the recurring rainfall deficit, investments made in water supply
have helped the harvest level in 2020 to be 14% higher than in
In the Douro Valley, the Port Wine Institute, taking measures
similar to those in Champagne, has imposed a marketing requirement
for the 2020 harvest that is 15% lower than in 2019.
After the decontainment, sales of Champagne by Vranken-Pommery
Monopole, the leader in European Off-Trade, improved significantly
in France and in other countries.
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
Through its presence in all distribution
channels in France and abroad, the recognized quality of its
products, and the breadth of its range, Vranken-Pommery Monopole
responds perfectly to this need for customer proximity.
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
Publication of 2020 full-year revenue: 28
January 2020 after the stock market close
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:
- 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
- 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
Vranken-Pommery Monopole is listed on NYSE
Euronext (Paris and Brussels).
(Codes “VRAP” (Paris), and “VRAB” (Brussels);
Grafico Azioni Vranken Pommery Monopole (EU:VRAP)
Da Ott 2020 a Nov 2020
Grafico Azioni Vranken Pommery Monopole (EU:VRAP)
Da Nov 2019 a Nov 2020