FRANCE: Lanson-BCC's H1 hampered by global slowdown

• H1 net profits fall by 27.7% to EUR3.23m (US$4.2m)
• Net sales drop by 14.7% to EUR93m 
• Operating profits (EBIT) down by 13.7% to EUR11.55m
• Group "cautious" for FY prospects 

Champagne group Lanson-BCC has posted what it has described as a "positive" set of first-half results, despite reporting a significant drop in sales and profits. 

Net profits fell by 27.7% to EUR3.23 (US$4.2m) in the six months to the end of June, the French-based group said late last week. Sales declined by 14.7% compared to last year's H1, to EUR93m. 

Operating profits dropped by 13.7% to EUR11.55m in the same period. H1 volumes were down year-on-year by 6.6%, the company said, due to the "major global economic slowdown". 

The group, which owns seven Champagne houses, said that, as 2011's H1 was "particularly dynamic", comparison with its latest results were not relevant.

"The group's results for the first half of the year are positive, whereas the economic climate and the usual seasonal patterns for Champagne wine sales are not favourable," it said in a statement. 

Lanson-BCC said consumption levels at the year-end will be "decisive". But it added: "In view of the weakness of the global economy, the group is maintaining a cautious approach in terms of its prospects for the full year." 

In its last full-year results, the group saw sales creep forward. 

Share in Lanson-BCC are currently down by 0.77% today at EUR38.70. 

Earlier this month, a Pernod Ricard executive said Champagne producers must look for new markets to counter falling sales in Europe.

To view Lanson's official results announcement, click here.