1 st Half Results 25 November 2016

Transcription

1 1 st Half Results 25 November 2016

2 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: Value policy to continue 2

3 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: value policy to continue 3

4 Unfavourable external factors Amarketdownby1.9%over12months,down2.6%overthe calendar year to end-october, and down 9.3% in October (CIVC estimate) Brexit( / impact) Distribution of Suntory whiskies in France halted Competition intensifying towards year-end, especially in France on the segments for champagnes under 30 4

5 On a rolling 12-month basis, the market is down 1.9% (estimate) 12 months cumulative to end-october (Estimated source CIVC) in millions of bottles % Y00 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 oct-15 oct-16 ANNEE CALENDAR CIVILES CUMUL month cumulative MOIS FIN OCT YEARS end-oct 5

6 The brand portfolio makes the Laurent-Perrier Group more resilient in a difficult volume market -1.9% -1.2% -2.6% -2.4% -0.1% -1.4% 12 month cumulative 10 month cumulative month -6.9% -9.3% -10.6% Market Marché Houses Maisons Laurent-Perrier Groupe Laurent-Perrier Group CIVC Estimate / Period to end-october

7 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: Value policy to continue 7

8 Main consolidated data [6 months cumulative to end-september 2016] ( million) 1st half st half Change Turnover % Operating result % as % of turnover 20.2% 19.6% -0.6Pt Group net income % as % of turnover 11.1% 10.6% -0.6Pt Net cash flow (*) (*) Cash flow from operations minus net investment minus dividends 8

9 Main consolidated data on an organic basis (excluding currency & thirdparty activity) ( million) 1st half st half organic Change organic Turnover % Operating result % as % of turnover 20.2% 20.9% +0.7Pt 9

10 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: Value policy to continue 10

11 Price/mix effect offsets drop in volumes [Changes in Group turnover vs previous year] -2.3 M +2.1 M -1.2 M M -0.2 M 100,2 99,3 99,3-2.3% +2.1% -1.2% -2.3 M -2.3% 97,9-3.7 M 97.9 M Chiffre H1 Turnover d'affaires S Volume Effet volume effect Price/mix Effet prix effect & mix Third-party Effet Activité effect tiers Currency Effet change effect Chiffre H1 Turnover d'affaires S % 11

12 The brand portfolio makes the Laurent-Perrier Group more resilient in a difficult volume market -1.9% -1.2% -2.6% -2.4% -0.1% -1.4% 12 month cumulative 10 month cumulative month -6.9% -9.3% -10.6% Marché Market Maisons Houses Laurent-Perrier Groupe Laurent-Perrier Group CIVC Estimate / Period to end-october

13 In this difficult market environment, the Group has maintained its value policy [6 months cumulative to end-september 2016 vs previous year] Volume Prices (*) Laurent-Perrier Group -2.3% -2.1% Part de Laurent-Perrier -2,8Pts (*) Hors impact (*)Constant de change exchange rates 13

14 Premium cuvées account for close to 41% of Laurent-Perrier brand turnover 38,4% 38,3% 39,0% 37,5% 39,9% 40,7% 35,1% 33,6% sept-09 sept-10 sept-11 sept-12 sept-13 sept-14 sept-15 sept-16 14

15 Operating margin on organic basis improved by 0.7m of a point to 20.9% 20.5 M Operating Margin 20.2% H1 ROP OPM S M -0.4 M Operating margin - organic 20.9% +0.7 M +0.9 M -0.3 M -1.8 M +1.1% -1.8% +4.2% -1.3% -8.6% Gross Marge Margin brute Margin/harvest Marge/récolte Overheads Frais Third Divers party & Currency Change & Brand généraux devt. Non activity récurrents & others -6.3 % -1.3 M 19.2 M Operating margin 19.6% ROP H1 OPM S

16 General and administrative expenses (overheads) down 2.3% at constant exchange rates 20.8 M -0.1 M -0.4 M -0.3 M -0.7 M 20.1 M -0.6% -1.7% -1.3% Frais H1 gnx S1 Overheads Frais Non récurrents Change Frais H1 gnx S1 Overheads Non-recurring Currency généraux Overheads % 16

17 Brand development spend down 0.7m at constant exchange rates in 1 st half, while advertising spend continues 8.7 M +0.3 M M -0.2 M -0.3 M +3.4% -9.5% -2.4% -3.3% -1.0 M Brand Brand Development H1 DDM S1 Communication Media Evenementiel Events Autres Change Development DDM S1 H1 Others Currency M % 17

18 Half-year income statement [6 months cumulative to end-september 2016] ( million) 1st half st half Change Turnover % Gross margin % as % of turnover 51.0% 50.3% -0.7Pts Brand development & advertising % Commercial & Admin expenses % Other expenses & income % Operating result ,3% as % of turnover 20.2% 19.6% -0.6Pts Financial result % Tax % Group net income % as % of turnover 11.1% 10.6% -0.6Pts 18

19 19 Analysis of the financial structure

20 Cash flow, which is traditionally negative in the first half, was impacted both by exchange rates and higher investment (*) ,1 M NET Cash-Flow CASH-FLOW net S1 H CAF Investissements INVESTMENTS WCR BFR DIVIDENDS Dividendes NET Cash-Flow CASH-FLOW net S1 H (*) including exchange rate effects -1,8 M 20

21 Continued financial strength Immobilisations Fixed assets Dettes Trade payables commerciales Stocks Inventories Dettes Debt financières Créances Trade commerciales receivables sept-15 mars-16 sept-16 Fonds Shareholder s propres equity sept-15 mars-16 sept-16 ASSETS LIABILITIES 21

22 Further improvement in financial ratios 140% 148% 160% 165% 178% 185% 187% 189% 171% 142% 116% 102% 95% 85% 80% 73% 85% 81% mars-10 mars-11 mars-12 mars-13 mars-14 mars-15 mars-16 sept-15 sept-16 Inventories/Debt (%) mars-10 mars-11 mars-12 mars-13 mars-14 mars-15 mars-16 sept-15 Debt/Equity (%) sept-16 22

23 Debt down by 2.9 million relative to September march-10 march-11 march-12 march-13 march-14 march-15 march-16 Sept-15 Sept-16 23

24 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: Value policy to continue 24

25 2016 Grape Harvest Harvest spread out in excellent weather conditions (10/09 to 30/09) Very rapid ripening, especially for the pinots noirs & meuniers, slightly more complicated for the chardonnays Very healthy harvest for all three varietals Drop in agronomic yield / Total Champagne ~8,500kg/hectare, down 25% on 2015 Despite serious weather conditions during the year, a very positive outcome 25

26 Useable yield in line with market levels Agronomic yield = 8,500kg/ha (-25% vs 2015) Useable AOC yield = 10,800kg/ha (9,700kg + 1,100kg release of individual set-aside) 26

27 27 Multi-year investment programme at Tours-sur-Marne continuing

28 28

29 Update on multi-year investment programme timeline at Tours-sur- Marne [Calendar years] 2 nd half st half nd half st half nd half st half nd half st half Centralisation of blending processes Cellars Winery Makeover of Reception and Visitor facilities Renovation of working environment Reception Visitors Offices 29

30 Overview Highlights Key figures Analyses 2016 grape harvest& investment programme Outlook: Value policy to continue 30

31 31

32 Advertising campaign continuing The campaign relies on associating the Laurent-Perrier brand with prestige establishments demonstrating the importance of the on-trade in our quest to raise the profile of the Laurent-Perrier brand and House. 32

33 Extension to new markets 2015 Market No. Media waves Country Mbt Proportion France % 1 2 UK 34 11% 1 2 USA (NY) 6 2% - 1 Italy 6 2% - 1 Total %

34 34 Extension to new markets United States and Italy

35 Cuvée Rosé Chosen by those who know how to choose F17 programme VIDEOS Influencers DIGITAL Influencers MEDIA Influencers LPCR CHOSEN BY THOSE WHO KNOW HOW TO CHOOSE Restaurants LUNCHEONS Influencers HOTELS Brand Ambassadors Key Influencers AWARDS TROPHIES 35

36 36

37 Launch of La Cuvée: a step-change in the quality of brut A NEW WINE A NEW PACKAGING A NEW BARCODE 37

38 38 Boosting brand visibility / deriving enhanced value from our cuvées

39 39 SALES MEETING 20th OCTOBER

40 40 Our Value policy is a long-term commitment

41 CONCLUSION Great caution as regards the second half A falling market Continuing the Value policy: Increased media investment Focused on premium wines Deliberate commercial choices Continued growth outside France Continue to adapt the organisation to future challenges 41

42 1 st Half Results 25 November 2016