FRANCE: Downturn hangover remains for Lanson-BCC in H1
- Net profits in H1 tumble by 25.8% to EUR2.39m (US$3.2m)
- Sales in six months to the end of June come in flat at EUR93.5m
- Q1 delivers sales growth of 9.7%, Q2 falls by 7.1%
- Europe, particularly the UK, hampers half-year performance
Lanson-BCC reported its half-year numbers yesterday
A healthy performance in Q1 was offset by a tough second quarter for Lanson-BCC, with the firm's H1 profits plunging, on the back of flat sales.
The Champagne producer said late yesterday (10 September) that net profits in the six months to the end of June fell by 25.8% year-on-year. Sales in the half-year inched up by 0.5% to EUR93.5m.
While the first three months of 2013 delivered a 9.7% rise in sales, Q2 posted a fall of 7.1%.
The bottom line was hampered by a larger corporate income tax rate of 38.5% compared to 37.3% a year earlier.
In Europe, several "difficult markets" were blamed for the slow sales, with the UK being singled out for a poor performance. Australia, Japan and the US, however, offered "encouraging progress" in the period.
Lanson declined to issue a full-year forecast for 2013 "as visibility for the end of the year is still limited by the persistently difficult economic environment in European markets". The company highlighted, however, that the first half of the year accounted for 50% of fixed costs for the full-year, but brought in only one-third of annual sales.
The company, which owns seven Champagne houses, is expected to release its third-quarter sales results on 7 November.
To read the company's official statement, click here.
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