Reims, Oct. 24 - Vranken-Pommery Monopole, a leading champagne group, today released its revenue figures for the first nine months of 2007.
IFRS - in millions of euros 2007 2006 % change
Revenue at September 30 142.8 142.5 + 0.2%
First-quarter revenue 42.1 41.0 + 2.7%
Second-quarter revenue 45.3 46.3 - 2.2%
Third-quarter revenue 55.4 55.2 + 0.4%
BUSINESS ANALYSIS
Demand was sustained for each of the major Vranken-Pommery Monopole brands. Revenue for the first nine months was generally stable following two years of exceptionally strong growth. This reflects the fact that, having achieved critical mass, the Group is now pursuing its strategy of creating value through selective growth.
Note as well that due to the highly seasonal nature of the business, the first nine months account for only 50% of full-year sales.
Analysis by product
Champagne revenue accounted for more than 90% of the total.
In terms of value, champagne revenue rose by around 1% to €129.2 million, from €128.1 million in the first nine months of 2006. The increase was led by the ongoing deployment of the product mix improvement strategy. Revenue generated by international champagne brands rose by a sharp 6.3% for the period as the Group reduced sales of national brands in line with its strategy.
In terms of volume, the total number of bottles sold declined substantially compared to the prior-year period. This shortfall will be absorbed in October.
Analysis by region
A breakdown of sales by region for the period is not significant, given the even more seasonal nature of export markets, where most sales are generated late in the year. Nevertheless, sales volumes were up considerably in Germany, Italy and Japan.
BUSINESS ENVIRONMENT
In an environment shaped by scarcity, Vranken-Pommery Monopole has sizeable, high-quality inventory and secure sourcing contracts that are enabling the Group to successfully pursue its medium-term development and value-creation strategy. In addition, the euro’s gains against the US dollar and the Japanese yen have had only a limited impact since less than 10% of revenue is denominated in currencies other than the euro.
OUTLOOK
The Group is pursuing its strategic focus on improving the product mix. As a result, and given its current order book and the prospects of strong late-year international demand for champagne, the Group is confirming its objective of approximately 6% full-year revenue growth at constant exchange rates.
Vranken-Pommery Monopole will announce its 2007 full-year revenue on January 23, 2008.
ABOUT VRANKEN-POMMERY MONOPOLE
Vranken-Pommery Monopole is one of the world's leading champagne groups. Its balanced portfolio of brands spans the entire market, with Cuvée Louise, Pop and Pommery, Vranken Demoiselle and Diamant, Charles Lafitte and Heidsieck & Co Monopole champagnes. It is also present in premium port wines, with Rozès and São Pedro, and is positioned as a prime distributor of rosé wines, with “Vins des Sables” (Domaine de Listel) and “Vins de Provence” (Domaine de Chapelle Gordonne and Domaine de Billette), which it markets worldwide. Vranken-Pommery Monopole had 2006 revenue of €268 million.
Including the distribution of Listel products, business volume, net of marketing agreements, amounted to more than €330 million.