FRANCE: Laurent-Perrier rues bad harvest as H1 profits slide
By Andy Morton | 5 December 2012
- Six-month net profits down by 27.1% to EUR6.9m (US$9m)
- H1 sales rise by 3.9% to EUR95.5m
- Operating profits fall by 22.1% to EUR15.5m
- Share of export sales in turnover up by three percentage points
 |
Laurent-Perrier has seen its exports take on more importance |
Laurent-Perrier has posted a sharp fall in H1 net profits as a poor harvest and a rise in brand investment cut into margins.
Net profits in the six months to the end of September fell by 27.1% to EUR6.9m (US$9m), the Champagne house said. Sales increased by 3.9% to EUR95.5m over the same period while operating profits dropped by 22.1% to EUR15.5m.
The company said the performance was set against a difficult trading environment, in which global Champagne shipments fell by 2.5% between April and September and group growth slowed in the second quarter. Laurent-Perrier's 2012 harvest was also down by about one third, while the company upped investment in communication and brand image by 34% as it celebrated its 200th anniversary, it said.
In first-quarter results, net sales grew by 11%, boosted by sustained growth in premium Champagne.
Looking ahead, the firm said that, although the economic situation called for “extreme prudence”, it “should continue to benefit from more upbeat global export demand”.
To read the company's official statement, click here.
Expert analysis
Global market review of Champagne – forecasts to 2016
Some of the issues and challenges addressed in the previous edition of just-drinks' Champagne report continue to influence a category struggling to grow. Recovery from economic downturn and tumbling sales was evidenced in 2010 and part way through 2011, only to be replaced with a further slow down at the end of that year and continuing into 2012. This has been more prevalent in the western European countries. Elsewhere there has been better sales performance, noteably in the US and Japan, significantly in Australia and not forgetting the burgeoning economies of Asia and Greater China. However, even these new markets can only go part way to offset the situation in the more mature markets, to such an extent that total Champagne shipments are expected to rise only slightly during 2012. According to the report, pronounced growth is unlikely until 2015.|
Sectors: Company results, Wine
Companies: Perrier
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FRANCE: Laurent-Perrier rues bad harvest as H1 profits slide
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