Marie Brizard Wine & Spirits: H1 2023 earnings
Charenton-le-Pont,
28 September 2023
H1 2023 earnings
Strong resilience
of earnings in the face of high
inflation and pressure on raw materials
Profit margins stabilised, mainly due to
structural cost savings initiated in 2022, amid an uncertain
consumer environment
-
EBITDA1 of €8.1 million
in H1 2023, up €0.5 million from €7.6 million in H1
2022
- Net profit
(Group share) of €5.1 million in H1 2023, up €2.6
million
Marie Brizard Wine
& Spirits (the “Company”) (Euronext:
MBWS) today announces its consolidated earnings for H1 2023 as
approved by the Group’s Board of Directors today. The audit
procedures have been carried out.
Fahd Khadraoui, Chief Executive Officer
of MBWS, said: “In the first half of 2023, the roll-out of
our proactive pricing policy helped us partially curb the impact of
high inflation on our margins, even though these were diluted on a
percentage basis. Furthermore, all the restructuring and
cost-saving projects initiated in 2022 are beginning to bear fruit,
particularly impacting the earnings of the France cluster and
holding company.
Unfortunately, the challenging macroeconomic
environment is still with us but we are holding our course and
maintaining the development strategies presented at the 29 June
2023 Annual General Meeting in order to Invest for
Sustainable Growth. The strength of our strategic
and local brands, our distribution partnerships and our industrial
service offerings put us in a solid position to achieve this
objective, which can be fulfilled primarily through the ongoing
efforts of our teams, whom I wish to congratulate on their
unwavering commitment.”
Simplified income statement - H1 2023
€m except EPS |
H1 2022 |
|
H1 2023 |
Change2023 vs 2022 |
Net revenues (excluding excise duties) |
86.4 |
|
98.8 |
+14.3% |
Gross margin |
34.4 |
|
36.2 |
+€1.8m |
Gross margin ratio |
39.9% |
|
36.6% |
-3.3 pp |
EBITDA |
7.6 |
|
8.1 |
+€0.5m |
Underlying operating profit |
5.5 |
|
5.4 |
-€0.1m |
Net profit (Group share) |
2.5 |
|
5.1 |
+€2.6m |
Earnings per share |
0.02 |
|
0.05 |
|
First half 2023 revenues
First half 2023 revenues excluding excise duties
came to €98.8 million, up 14.3% versus H1 2022 (excluding currency
impact). This improvement is mainly due to increased sales in part
of the international business coupled with strong resilience among
strategic brands in France, despite lower volumes trend.
The France cluster posted first half 2023
revenues of €42.1 million, up 5.0% versus H1 2022 despite the
continuing slowdown in the spirits market. Revenue growth reflects
the price increases applied mainly since Q2 2023 and restocking by
some distributors. William Peel, Berger and San José posted growth
in line with their respective market segments. Marie Brizard and
Sobieski were impacted by a levelling effect in the on-trade
business (customer restocking before summer 2022) and also in the
off-trade business, where promotions were postponed and some
product lines were suspended due to glass shortages.Sales improved
in the on-trade sector due to price increases, but volumes were
down.
This positive first half sales trend in the
France cluster is likely to weaken in the face of adverse market
developments and ongoing instability in raw material supply
chains.
International revenues amounted to €56.7
million, up 22.2% versus H1 2022 at constant exchange rates,
reflecting contrasting trends across regions:
- penetration of new markets by
Lithuania, Bulgaria and their export regions, generating strong
sales growth;
- strong business in Spain in both
strategic brands and subcontracting, driving strong revenue
growth;
- challenges in some long-standing
markets (Canada, Australia and the UK), particularly for the
Gautier and Marie Brizard brands due to the decline in the relevant
market segments (cognac, traditional liqueurs) and inventory
reductions by local distributors;
- slow inventory depletions among US
distributors, as well as glass shortages for some references,
leading to a decline in revenues over the first half of the
year.
First half 2023 earnings
Against a backdrop of widespread high inflation,
the gross margin ratio was 36.6% in H1 2023 compared to 39.9% in H1
2022. The 3.3 percentage point decrease reflects the impact of the
continuous surge in raw material and energy prices since Q2 2022,
which affected the entire first half of 2023 despite the price
increases applied.
First half 2023 EBITDA amounted to €8.1 million,
up €0.5 million from H1 2022 (excluding currency impact).
The France cluster posted EBITDA of €6.0 million
in H1 2023, up from €5.0 million in H1 2022. This improvement
reflects the impact of the structural cost-saving programme
initiated in 2022, in particular following the restructuring of the
off-trade Sales Department in France, as well as the cluster’s
strong resilience in the face of high inflation.
Meanwhile, the International cluster posted
EBITDA of €4.1 million, down from €5.6 million in H1 2022. This
decline is mainly attributable to MBWS International (export
business excluding subsidiaries) and Imperial Brands, which were
hard hit by an extremely competitive vodka market and a hotly
contested cognac segment since the beginning of the year. This
decline was only partly offset by strong performances in Spain and
Bulgaria.
Group EBITDA also benefited from the continued
reduction in holding company internal costs, which improved by €1.1
million.
H1 2023 EBITDA by cluster
€m |
H1 2022 |
LFL change |
Currency impact |
H1 2023 |
LFL change(excl. currency impact) |
Reported growth (incl. currency impact) |
France |
5.0 |
0.9 |
- |
6.0 |
+18.6% |
+18.6% |
International |
5.6 |
(1.5) |
0.0 |
4.1 |
-27.1% |
-27.0% |
Holding company |
(3.0) |
1.1 |
- |
(1.9) |
+35.8% |
+35.8% |
TOTAL MBWS GROUP |
7.6 |
0.5 |
0.0 |
8.1 |
+6.5% |
+6.7% |
Net profit (Group share) amounted to €5.1
million in H1 2023, up €2.6 million compared to H1 2022, when
results were impacted by a provision for non-recurring expenses
related to the restructuring of the off-trade Sales Department in
France.
Balance sheet at 30 June 2023
Shareholders’ equity (Group share) amounted to
€199.6 million at 30 June 2023, up from €194.6 million at 31
December 2022, while gross debt remained stable at €6.4 million in
the first half of 2023, as did positive Group cash balances of
€44.9 million at 30 June 2023.
The €4.6 million increase in inventories and
work-in-progress to €56.5 million at 30 June 2023 reflects both the
growing impact of high inflation and the Group’s strategy of
building maximum back-up stocks in order to better cope with supply
disruptions, operational considerations permitting.
Outlook
After a year 2022 marked by overall resilience
among Group brands and business lines in the face of inflation and
availability restrictions, the effects of supply disruptions
combined with declining volumes from Q4 2022 onwards also impacted
the first half of 2023, particularly in France.
The price increases applied in 2022 and 2023 to
absorb the ongoing surge in input costs (mainly energy, liquid and
dry raw materials, particularly glass), do not allow us to maintain
our sales margins percentage at this stage.
The Group therefore continues to closely monitor
elasticity in consumer demand in the face of price increases and is
determined to maintain its ability to adapt, despite these
challenges.
For some countries that are more sensitive to
these factors, such as France, where our strategic brand markets
are concentrated, mature and declining, visibility over the rest of
the year is limited.
Despite this instability that has persisted for
nearly three years, the Group will continue to do its best to
maintain annual earnings growth through the combined effects of
restructuring, structural cost savings and gradual improvement in
profit margins through rigorous commercial and operational
management, while remaining cautious regarding the short to
medium-term business outlook.
Financial calendar
- H1
2023 financial report available: 29 September 2023
- Publication of revenues for the
first nine months of 2023: 26 October 2023
Investors
and shareholders relations contact MBWS
GroupEmilie Drexlerrelations.actionnaires@mbws.comPhone:
+33 1 43 91 62 40 |
Press contactImage
Sept Claire Doligez - Laurence Maurycdoligez@image7.fr –
lmaury@image7.frPhone : +33 1 53 70 74 70 |
About Marie Brizard
Wine & Spirits Marie Brizard Wine &
Spirits is a Group of wines and spirits based in Europe and the
United States. Marie Brizard Wine & Spirits stands out for its
expertise, a combination of brands with a long tradition and a
resolutely innovative spirit. Since the birth of the Maison Marie
Brizard in 1755, the Marie Brizard Wine & Spirits Group has
developed its brands in a spirit of modernity while respecting its
origins. Marie Brizard Wine & Spirits' commitment is to offer
its customers brands of confidence, daring and full of flavours and
experiences. The Group now has a rich portfolio of leading brands
in their market segments, including William Peel, Sobieski, Marie
Brizard, Cognac Gautier and San José. Marie Brizard Wine &
Spirits is listed on Compartment B of Euronext Paris (FR0000060873
- MBWS) and is part of the EnterNext PEA-PME 150 index.
APPENDIX
H1
2023 Consolidated Financial
Statements
Income statement
(€000) |
H1 2023 |
H1 2022 |
|
|
|
Revenues |
116,955 |
105,995 |
Excise duties |
(18,192) |
(19,574) |
Net revenues excluding excise duties |
98,763 |
86,421 |
Cost of goods sold |
(62,578) |
(51,978) |
External
expenses |
(13,617) |
(11,872) |
Personnel
expense |
(13,894) |
(14,013) |
Taxes and
levies |
(835) |
(953) |
Depreciation
and amortisation charges |
(2,936) |
(3,072) |
Other
operating income |
1,834 |
1,887 |
Other
operating expenses |
(1,387) |
(899) |
Underlying operating profit |
5,350 |
5,521 |
Non-recurring
operating income |
1,440 |
2,055 |
Non-recurring operating expenses |
(1,489) |
(5,152) |
Operating profit |
5,300 |
2,424 |
Income from cash and cash equivalents |
59 |
29 |
Gross cost of
debt |
(124) |
(96) |
Net
cost of debt |
(65) |
(67) |
Other
financial income |
115 |
956 |
Other
financial expenses |
(123) |
(593) |
Net financial income/(expense) |
(74) |
296 |
Profit before tax |
5,226 |
2,720 |
Income tax |
(120) |
(196) |
Net profit from continuing operations |
5,106 |
2,524 |
Net profit/(loss) from discontinued
operations |
- |
- |
|
|
|
NET PROFIT |
5,106 |
2,524 |
Group
share |
5,102 |
2,511 |
of which Net
profit from continuing operations |
5,102 |
2,511 |
of which Net profit/(loss) from discontinued operations |
|
|
Non-controlling interests |
4 |
13 |
of which Net
profit from continuing operations |
4 |
13 |
of which Net
profit/(loss) from discontinued operations |
|
|
|
|
|
Earnings per
share from continuing operations, Group share (€) |
€0.05 |
€0.02 |
Diluted
earnings per share from continuing operations, Group share (€) |
€0.05 |
€0.02 |
Earnings per share, Group share (€) |
€0.05 |
€0.02 |
Diluted earnings per share, Group share (€) |
€0.05 |
€0.02 |
Weighted average number of shares outstanding |
111,856,360 |
111,825,601 |
Diluted weighted average number of shares outstanding |
111,856,360 |
111,825,601 |
Balance sheet
Assets |
|
|
|
(€000) |
30/06/2023 |
31/12/2022 |
|
Non-current assets |
|
|
|
Goodwill |
14,704 |
14,704 |
|
Intangible assets |
77,174 |
77,847 |
|
Property, plant and equipment |
26,665 |
26,932 |
|
Financial assets |
1,007 |
1,146 |
|
Deferred tax assets |
4,009 |
3,781 |
|
Total non-current assets |
124,558 |
124,410 |
|
Current assets |
|
|
|
Inventory and work-in-progress |
56,519 |
51,934 |
|
Trade receivables |
39,181 |
43,523 |
|
Tax receivables |
1,023 |
734 |
|
Other current assets |
10,222 |
10,468 |
|
Current derivatives |
281 |
114 |
|
Cash and cash equivalents |
44,892 |
47,495 |
|
Total current assets |
152,118 |
154,268 |
|
TOTAL ASSETS |
275,676 |
278,678 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity & Liabilities |
|
|
|
(€000) |
30/06/2023 |
31/12/2022 |
|
Shareholders’ equity |
|
|
|
Share capital |
156,786 |
156,786 |
|
Additional paid-in capital |
72,815 |
72,815 |
|
Consolidated and other reserves |
(26,477) |
(25,529) |
|
Translation reserves |
(8,586) |
(8,520) |
|
Consolidated net profit/(loss) |
5,102 |
(945) |
|
Shareholders’ equity (Group share) |
199,640 |
194,607 |
|
Non-controlling interests |
79 |
333 |
|
Total shareholders’ equity |
199,719 |
194,940 |
|
Non-current liabilities |
|
|
|
Employee benefits |
1,747 |
1,769 |
|
Non-current provisions |
2,582 |
2,540 |
|
Long-term borrowings – due in > 1 year |
2,079 |
2,218 |
|
Other non-current liabilities |
1,568 |
1,518 |
|
Deferred tax liabilities |
179 |
139 |
|
Total non-current liabilities |
8,155 |
8,184 |
|
Current liabilities |
|
|
|
Current provisions |
4,513 |
5,417 |
|
Long-term borrowings – due in < 1 year |
602 |
641 |
|
Short-term borrowings |
3,698 |
3,702 |
|
Trade and other payables |
38,344 |
36,694 |
|
Tax liabilities |
230 |
1,932 |
|
Other current liabilities |
20,403 |
26,899 |
|
Current derivatives |
13 |
269 |
|
Total current liabilities |
67,803 |
75,554 |
|
TOTAL EQUITY AND LIABILITIES |
275,676 |
278,678 |
|
Cash flow statement
(€000) |
H1 2023 |
H1 2022 |
Total
consolidated net profit |
5,106 |
2,524 |
Depreciation
and provisions |
1,580 |
4,930 |
Gains/(losses)
on disposals and dilution |
18 |
(51) |
Operating cash flow after net cost of debt and
tax |
6,704 |
7,403 |
Income tax
charge/(income) |
120 |
196 |
Net cost of
debt |
63 |
67 |
Operating cash flow before net cost of debt and
tax |
6,887 |
7,666 |
Change in
working capital 1 (inventories, trade receivables/payables) |
607 |
(10,473) |
Change in
working capital 2 (other items) |
(5,270) |
(7,497) |
Tax
paid/received |
(2,317) |
3,716 |
Cash flow from operating activities |
(93) |
(6,588) |
Purchase of
PP&E and intangible assets |
(1,858) |
(1,412) |
Decrease in
loans and advances granted |
116 |
2,733 |
Disposal of
PP&E and intangible assets |
- |
2,872 |
Impact of
change in consolidation scope |
(116) |
- |
Cash flow from investment activities |
(1,858) |
4,193 |
Capital
increase |
- |
19 |
New
borrowings |
37 |
159 |
Borrowings
repaid |
(360) |
(791) |
Net interest
paid |
(11) |
(67) |
Net change in
short-term debt |
(55) |
525 |
Cash flow from financing activities |
(389) |
(155) |
Impact of
exchange rate fluctuations |
(263) |
1,778 |
Change in cash and cash equivalents |
(2,603) |
(772) |
Opening cash
and cash equivalents |
47,496 |
54,169 |
Closing cash
and cash equivalents |
44,893 |
53,397 |
Change in cash and cash equivalents |
(2,603) |
(772) |
1 EBITDA = EBIT + depreciation &
amortisation + provisions excl. current assets.
NB: All revenue growth figures reported herein
are at constant exchange rates and consolidation scope, unless
otherwise stated. Financial data individually rounded up or
down.
- PR 2023 Half Year Results VF
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