(BFM Bourse) – Thanks to rising prices, Laurent Perrier’s half-year accounts are doing well despite a drop in volumes. The Champagne house does not venture to provide the slightest outlook for the entire year, given an uncertain economic and geopolitical environment.
The latest champagne house to date to publish its half-yearly accounts, Laurent Perrier has had to deal with a declining champagne market. Like spirits groups like Rémy Cointreau, the Tours-sur-Marne company is faced with a decline in consumption for its vintages after two prosperous years.
Over the period from April 1, 2023 to September 30, 2023, corresponding to the first half of Laurent-Perrier, the Champagne house explains its evolution in a champagne market which recorded a decrease in its volumes shipped by -11.8% over one year.
Thus, the largest family champagne house marketed fewer bottles in the first half of 2023-2024 ending in September. Over the period from April 1, 2023 to September 30, 2023, Laurent Perrier reports a drop in volumes of 12.8% compared to the 2021-2022 financial year, which was then “exceptional”.
“This drop reflects a return to normal in consumption after the sharp increase observed in the post-Covid period,” notes Laurent-Perrier.
However, the group only saw a minimal drop in its overall turnover (-0.6%) over the period, coming to 158.4 million euros. Remember that Laurent-Perrier is one of the rare family groups of champagne houses listed on the stock exchange, which is dedicated exclusively to champagne and focused on the high-end. It has a large portfolio of products renowned for their quality, around the Laurent-Perrier, Salon, Delamotte and Champagne de Castellane brands.
Fewer bottles but sold more expensively
And this high-end positioning allowed the company to sell its bottles almost 10% more expensive than last year, thus offsetting a major part of the decline in volumes.
During this first half of 2023-2024, Laurent Perrier also indicates that it has continued its long-term investments, particularly in support of its brands and in terms of commercial development. “This investment in sales enhancement contributes to the strength of the brands and the price/mix effect” adds the company.
Between April and September, operating profit increased by 8.1% to stand at 57.4 million euros. The price increases thus contributed to a clear improvement in Laurent Perrier’s operating margin. Calculated solely on champagne sales, it increased by 4.1 points to reach 37.4% at current exchange rates. The group’s net profit increased by 4.7% to 38.6 million euros at current exchange rates and thus represents 24.5% of the group’s consolidated turnover.
As usual, Laurent-Perrier wants to remain cautious for the future. The Champagne house recalls that the results published for the first half “cannot be extrapolated” to its entire 2023-2024 fiscal year.
The company cites “a geopolitical context and strong inflationary tensions” which force the company to be “very cautious about the outlook for the coming months”, but nevertheless indicates that it is continuing “with vigilance and confidence” the execution of its plan. business 2021-2025.
In a Parisian market numbed by the absence of many American operators, Laurent Perrier shares rose 1.6% to 122 euros around 12:55 p.m.
Sabrina Sadgui – ©2023 BFM Bourse
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