UK sales up at Lanson, but profits slide

Lanson UK saw turnover rise 5% to £36.4m during 2015, according to accounts filed at Companies House, but profits slid on the back of increased distribution and administration costs.

The UK arm of the Champagne House saw gross profit up 16.42% to £14.28m in the year ending 31 December, but operating profit fell nearly 38% to £1.1m from £1.8m in 2014, while the final profit for the year was recorded at £850k, a 40% slide on last year’s £1.415m figure.

A statement from company secretary N Roulleaux Dugage noted that the UK Champagne market continued to be driven by the major retail clients and greater emphasis was being give to generic sparkling product, including the “consistent growth” of cheaper alternatives such as Prosecco.

“This continues to drive pressure on the margins within the UK market,” he stated.

However the company said the focus of its brand building strategy remained “an essential part” of its core strategic vision in order to focus and it would continue to focus on its competitive advantage.”