Champagne house Vranken-Pommery Monopole has reported a 16.7% year-on-year increase in operating income, to €14.7 million, in the first half of its financial year.
EBITDA for the period increased by 14.2%, to €22.3 million, driven by the implementation of its strategy to focus on making its brands more upmarket and internationalisation, the company added.
Consolidated sales in the first half declined 6.9% year on year, to €109.6 million.
Exports were down 8.9% in the first half, accounting for 63% of group sales.
France generated 37% of consolidated sales and its performance was stable compared with the same period last year.
Despite a decline in overall Champagne shipments in the first half of 2024, Cuvée Louise from Champagne Pommery & Greno and Cuvée Diamant from Champagne Vranken managed to hold their own, with a favourable impact on the company's margins.
Outlook
According to Vranken-Pommery Monopole, 2024 will be a year of business normalisation after two years of strong post-COVID-19 growth.
In Champagne, the company has forecast a harvest of 10,000 kg/ha, as poor weather conditions have reduced harvest potential. However, the quality will remain unaffected.
In Provence, harvesting at Château La Gordonne is underway, and a maximum AOP Côtes de Provence yield of 45 hl/ha will be reached, the company noted.
In Camargue, the harvest is drawing to a close, with yield for AOP Sable de Camargue expected to be 18% lower than in 2023.
The harvest in the Douro Valley, meanwhile, which commenced in mid-August, is expected to meet the quality and yield targets.
In August, the French farm ministry said the country's wine output is set to fall sharply this year after very humid weather helped develop diseases across French vineyards this year, and some regions were hit by hail and frosts.
