FRANCE: Lanson buy weighs on Boizel profits
Boizel Chanoine Champagne said today (24 October) that first-half profits halved on the back of its acquisition of Lanson International in March.
Boizel saw net profit fall to EUR710,000 (US$890,600) from EUR1.6m a year earlier, despite seeing revenues almost triple during the first half of the year to EUR109.7m.
A one-off sale of 10% of Lanson stocks for around EUR45m gave a boost to turnover, the company added.
Boizel paid EUR123m to buy Lanson, a deal that increased the company's debt to EUR410m. The company said it would aim to reduce debt to EUR360m by the end of the year.
The company confirmed its target of annual revenues of EUR275m by the end of the year.
Boizel is looking to focus more on driving sales of high-end Champagne labels Lanson and Besserat de Bellefon to boost profits as it integrates the Lanson portfolio into the company.
The outlook in Champagne is upbeat, with sales on the increase in France and export markets, and the prospect of continued growth. However, writes Richard Woodard, challenges remain for Champagne ship...
Champagne has already seen significant merger and acquisition activity in the past year or so, but there could be further deals in the pipeline, writes Nuria Sadurni of Euromonitor International....
First-time contributions from Champagne houses Lanson and Burtin have boosted a leap in annual profits at Boizel Chanoine Champagne....
Boizel Chanoine Champagne, the world's number two Champagne producer, said today (13 February) that its sales last year tripled on the back of acquisitions....
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