(Boursier.com) — In a tense economic and geopolitical context, the Group Vranken-Pommery Monopoly achieved a consolidated turnover up 20.2% to 112.2 ME, thus confirming consumer appeal for champagnes, premium and top-of-the-range wines both in France and abroad. ‘International (representing 64% of sales).
The increase in first-half results was, however, negatively impacted by the efforts made on advertising campaigns and other costs, for the launch of the Multi-Vintage cuvée from Château La Gordonne for 0.5 ME (vertical blending of several vintages which guarantees the constant and qualitative taste of Château La Gordonne).
In addition, in the first half of 2021, the Group transferred staff from Vranken-Pommery Vignobles to VPHV, created in 2021 and consolidated by the equity method at 49%. In 2021, this transfer led to a reversal of the provision linked to pension commitments of €1.2 million.
Excluding the impact of this transfer and on a like-for-like basis, current operating profit for 2022 is up 6%, at €5.9 million, compared to €5.6 million in 2021, and operating profit is up 20.7%, reaching 6.5 ME, compared to 5.4 ME in 2021. Net income improved by 41.4% to -1.7 ME, on a like-for-like basis.
On a like-for-like basis, shareholders’ equity amounted to 378.6 ME, up 7.4 ME. At the same time, and in accordance with its commitments, the Group is continuing to reduce its debt and shows a further reduction in its net financial debt from 13.3 ME to 702.7 ME (683.4 ME excluding IFRS 16).
On June 19, 2022, Vranken-Pommery Monopole redeemed the 3-year bond issue of 50 ME issued in 2019 and offering a coupon of 3%. In July, the Euro PP of 25 ME over 6 years, issued in 2016 and offering a coupon of 3.40%, was also redeemed.
Prospects displayed
In Champagne, quantity and quality are at the rendezvous of the harvest and the yield in the appellation fixed at 12,000 kg/ha will be achieved. In addition, interprofessional decisions were taken in order to be able to reconstitute the qualitative reserves after the 2020 and 2021 financial years marked by poor harvests.
In Provence, the harvests of Château La Gordonne are excellent with an agronomic yield covering the maximum yield in AOP Côtes de Provence of 55 hl/ha.
In the Camargue, after a very short year of 53 hl/ha in 2021, the yield of the 2022 harvest is 65 hl/ha, the first stage of an increase which should lead to normative yields of 70 hl/ha in the future.
In the Douro Valley, the harvest has just started.
For 2022, the Group maintains its revenue growth forecast of +5%. Among the latest brokers’ opinions, Oddo BHF adjusted the target from 20 to 19 euros while remaining ‘underperforming’. This Friday, the title fell 0.5% to 17.45 euros on the Paris stock exchange.