Champagne producer Laurent-Perrier recorded a 6.5% increase in net profit to 25.2 million euros (27.4 million francs) in its staggered 2020/2021 financial year, despite the fall 19.5% of its turnover.
The revenues of the family group, which were affected by the Covid-19 pandemic, amounted to 195.2 million euros, against 242.4 million in fiscal year 2019/2020, according to a press release released on Friday.
“The group has been able to adapt to this unprecedented situation (…) thus confirming the resilience of its model based on its value policy”, underlined Stéphane Dalyac, chairman of the management board, quoted in the press release.
Dedicated exclusively to champagne, the group owns the Laurent-Perrier, Salon, Delamotte and Champagne de Castellane brands.
For the current financial year 2021/2022, “the group will resume its long-term investments, in particular in support of its brands, and therefore expects a probable drop in its operating profit”, warns the company based in Tours- sur-Marne. It also notes that “the health situation remains uncertain and evolving”.
Closure of hotels and restaurants
In 2020/2021, the 25.4% drop in the volumes of champagne sold by the group, following the sanitary measures decided on around the world and in particular the closure of hotel and restaurant activities, “was limited in terms of business by a price / mix effect of + 5.8%, driven by the strength of the brands and the quality of the company’s top-of-the-range champagnes ”, she said.
Operating profit remained stable at 41.3 million euros (+ 0.2%). And the group managed to increase the operating margin on champagne sales by 4.6 points to 22.4%, in particular by adjusting its costs (marketing expenses and overhead costs).
Operating cash flow fell by 10.7 million euros over this period to stand at 3.6 million euros at March 31.