Marie Brizard Wine & Spirits: FY 2022 Annual Results
Paris, 13 April
2023
2022 full-year earnings
Resilience of current
operating results in 2022, driven by international
development
and restructurings
undertaken, despite a highly
inflationary context and persistent supplies availability
pressure
-
EBITDA1 of €11.8m in
2022, down 7.5% from €12.6m in 2021, when EBITDA was boosted by a
€3.1m non-recurring credit note - Excluding this one-off
item and incorporating the change in the
EBITDA1 definition,
EBITDA would have risen by + 19 %
- Net loss, Group share
of
€(0.9)m
in 2022, compared to net profit, Group share of €5.6m in
2021, that was boosted by €3.1m
non-recurring income. 2022 includes an exceptional expense for the
restructuring of the
Off-Trade sales department in France,
announced early 2022. Restating these two exceptional items, 2022
net profit Group share would would
be slightly lower than in 2021
NB: All revenue growth figures reported herein are at constant
exchange rates and consolidation scope, unless otherwise
stated.
Marie Brizard Wine &
Spirits (Euronext: MBWS) today announces its consolidated
earnings for the 2022 financial year as approved by the Group’s
Board of Directors on 12 April 2023. All audit procedures have been
carried out.
Commenting on these results,
Fahd Khadraoui, Chief Executive Officer of Marie Brizard
Wine & Spirits, said: “The Group continued to improve
its operating performance in 2022. During the year, we successfully
created value by working on multiple fronts: intensifying
international growth, continuing the value-over-volumes strategy,
and completing the restructuring programme. The biggest
contributors to value creation were international development and
the streamlining of overheads.On the other hand, the Group was
hardly hit by a tough external environment in 2022: the
unprecedented surge in raw material and energy costs and patchy
availability of supplies restricted our capacity to meet customer
demand and eroded margins. Nevertheless, we remained on track
thanks to the hard work put in by all our teams.This situation
persists in 2023, and our major challenges this year will again be
to deal with these external factors: the price list increase policy
to mitigate the effects of inflation, the availability of raw
materials and the impact on our customers’ purchasing power. All of
which leads us to take a prudent approach in the short and medium
term, while maintaining our mainstream positioning and the quality
of our products, a winning combination for our consumers in
inflationary times.”
Simplified income statement - FY
2022
(€m except EPS) |
2021 |
2022 |
|
Change 2022/2021 |
|
|
Net revenues (excluding excise duties) |
166.7 |
181.4 |
|
+14.7 |
|
Gross margin |
68.6 |
70.9 |
|
+2.3 |
|
Gross margin ratio |
41.1% |
39.1% |
|
|
|
EBITDA |
12.6 |
11.8 |
|
-0.8 |
|
EBITDA margin |
7.5% |
6.5% |
|
|
|
Recurring operating profit |
5.7 |
7.1 |
|
+1.4 |
|
Net profit/(loss) Group share |
5.6 |
(0.9) |
|
-6.5 |
|
of
which Net profit/(loss) from continuing operations, Group
share |
6.6 |
(0.9) |
|
-7.5 |
|
of
which Net profit/(loss) from discontinued operations |
(1.0) |
- |
|
+1.0 |
|
Earnings per share, Group share (EPS, €) |
0.06 |
(0.01) |
|
-0.07 |
|
Earnings per share from continuing operations, Group share (EPS,
€) |
0.06 |
(0.01) |
|
-0.07 |
|
In 2022, the Group generated sales of €181.4m,
up 7.8% on the prior year, excluding currency impacts. 2022 was
marked by a rise in revenues for both clusters, with growth has
been stronger in the international cluster.
The consolidated gross margin ratio fell 2
percentage points to 39.1% in 2022, as inflation pushed up
materials and energy prices all year, rises that were only partly
offset by raising prices in the international cluster. This ratio
also reflects the dilutive impact of the Company’s stated target of
offsetting the value of rising input costs by price increases in
absolute value. The France cluster saw EBITDA decline by €4.0m,
partly due to base effects in 2021, when MBWS France recorded the
aforementioned non-recurring €3.1m supplier discount. Also, the
fast rising costs of raw materials and energy in 2022, exacerbated
by the Russia-Ukraine war, could not be fully passed on to selling
prices. EBITDA for the international cluster rose by €0.7m
(excluding currency impact), driven by strong performances in the
Baltic States, direct International Export, Spain and Scandinavia.
EBITDA in the United States (excluding currency impact) fell and
was particularly hard hit by a highly competitive vodka market.
Brazil had a tough year in a low-growth market suffering economic
volatility.
2022 net revenues by
cluster
(€m) |
2021 |
LFL change |
Currency impact |
2022 |
LFL change (excl. currency
impact) |
Change (incl. currency
impact) |
FRANCE CLUSTER |
78.6 |
+2.7 |
- |
81.3 |
+3.4% |
+3.4% |
INTERNATIONAL CLUSTER |
88.1 |
+10.4 |
+1.6 |
100.1 |
+11.7% |
+13.6% |
TOTAL MBWS |
166.7 |
+13.1 |
|
+1.6 |
181.4 |
+7.8% |
+8.8% |
2022 EBITDA by cluster
(€m) |
2021 |
LFL change |
Currency impact |
2022 |
LFL change (excl. currency
impact) |
Change (incl. currency
impact) |
FRANCE CLUSTER |
12.4 |
-4.0 |
- |
8.4 |
-32.1% |
-32.1% |
INTERNATIONAL CLUSTER |
8.6 |
+0.7 |
+0.2 |
9.5 |
+8.1% |
+10.2% |
HOLDING
COMPANY |
(8.4) |
+2.3 |
- |
(6.1) |
+27.8% |
+27.8% |
TOTAL MBWS |
12.6 |
-1.0 |
+0.2 |
11.8 |
-7.5% |
-6.1% |
FRANCE CLUSTER:
In France, despite a 4.0% decline in the fourth
quarter, revenues grew by 3.4% for 2022 as a whole versus 2021,
mainly due to the strong performance of our strategic brands and
the effect of general inflation on the trading environment. The
fourth quarter fall in revenues was caused by the restricted
availability and inflating prices of inputs. This led to problems
meeting the demand of all our customers, forcing us to adapt
pricing policies and scale back promotions. Despite these factors,
the off-trade business held up well, driven in particular by sales
of William Peel, which grew in the second half despite an
environment of shortages and logistical problems that caused supply
chain interruptions among competitors, and a spirits market which
again declined compared to the same period in 2021. Full-year
on-trade sales were much stronger in 2022 than in 2021, which had
still been impacted by Covid restrictions.
As a reminder, 2021 EBITDA was boosted by a
one-off €3.1m credit note that the Group received from a whisky
supplier under a new contract signed in January 2021. Overall, 2022
EBITDA for the France cluster fell to €8.4m from €12.4m in
2021.
INTERNATIONAL CLUSTER:
International revenues grew significantly in
2022, up 11.7% versus 2021, with disparities between regions: -
growth in Europe, particularly in the Bulgarian and Lithuanian
domestic markets despite the Russia-Ukraine conflict, and in
Spain;- a fall-off in Sobieski revenues in the United States, a
highly competitive vodka market with heavy promotional pressure; -
a solid performance by all Group strategic brands, particularly
Marie Brizard and Cognac Gautier. EBITDA for the international
cluster rose 8.1% (excluding currency impact) in 2022 to
€9.5m,mainly driven by export markets and the European
subsidiaries.
- MBWS International
Revenues for the subsidiary totalled €18.6m, up
€4m versus 2021 driven by strong performances in the French
overseas territories, South Korea (+€0.7m) and Australia (+€0.8m)
and by the Marie Brizard and Gautier brands.Western Europe export
markets saw significant growth by William Peel in Belgium and Marie
Brizard in Italy and the Middle East (Marie Brizard syrups), partly
offsetting struggling sales for Marie Brizard in the UK which
hampered revenue growth for the region.In the Americas export
market, Canada revenues rose 15.7% year-on-year. Growth was driven
mainly by Gautier and Marie Brizard, while Sobieski vodka continues
to struggle in a hotly contested market segment.Lastly, in Asia
Pacific, the positive trend of the first nine months of 2022 was
confirmed in the fourth quarter by sustained performances, notably
in Taiwan.- MBWS EspañaRevenues amounted to €21.1m, up €1.1m.This
represents a 5.6% rise in 2022 revenues versus 2021, driven mainly
by solid performances from strategic brands (most notably Marie
Brizard and William Peel) and stable trading in the subcontracting
business.- MBWS ScandinaviaScandinavia posted a
25.3% increase in 2022 full-year revenues versus 2021, bolstered by
the lifting of all Covid restrictions on the on-trade channel and
driven again by sales of Marie Brizard, Sobieski and third-party
brands.- MBWS Baltics The Baltic States posted full-year revenues
of €26.4m, up 14.1%, including a fourth quarter upturn mainly due
to brand performance driven by a proactive pricing policy, limited
recovery in Ukraine and the continued buoyancy of the bulk market
and its by-products.- MBWS BulgariaSales in Bulgaria continued to
ramp up in the fourth quarter (Q4 up 22.8%, up 19.8% for the year)
across the entire brand portfolio (spirits and wine) in both
domestic and export markets thanks to a rigorous sales policy.The
subsidiary posted revenues of €16.8m, up €2.8m.- Imperial BrandsIn
the United States, revenues were down 9.3% year-on-year. The
Sobieski brand was particularly hardly hit by an extremely
competitive and shrinking vodka market and by changes made by our
importer in some regional routes to market that are strategically
important to the brand. These changes created operational,
logistical and marketing issues that held back the brand’s
performance.The Marie Brizard and Gautier brands confirmed their
sales growth in this market in the fourth quarter, but had their
own problems with some of the changes that were affecting
Sobieski.
- DubarBrazil had a mixed year, with a review of
pricing policy across the whole portfolio at the start of the year
which, however, successfully limited the decline. Revenues were
down in the fourth quarter 2022 with a 16.7% drop in performance
for the year, mainly due to delays in availability for certain
strategic products.
HOLDING COMPANY:
EBITDA amounted to a €6.0m loss in 2022 compared
to a €8.4m loss in 2021, reflecting the results of the 2021
restructuring and the ongoing drive to cut overheads.
Balance sheet at 31 December
2022
Shareholders’ equity, Group share, was €194.6m,
compared to a restated2 €193.3m at 31 December 2021. Net cash
amounted to €40.9m at 31 December 2022 compared to €48.2m the
previous year.
These changes reflect the resumption of capital
investment, the costs of restructuring the Off-trade sales
department in France, scheduled payments under the CCSF plan
(deferral of tax and social security payments agreed in April 2021)
as well as the increase in the level of safety stocks (mainly for
input categories subject to regular availability disruptions) and
upward variations in their unit values (inflation).
Outlook
For the past four years, the Group has
maintained its strategic direction and the principle of
prioritising operations that help improve the profitability of the
Group’s businesses and significantly increase EBITDA.
To achieve this growth in profitability, the
Group is endeavouring to create the conditions for profitable
development of its brand portfolio and key markets (subsidiaries
and/or sales networks, direct export).
Also, in all Group markets and subsidiaries,
negotiations and marketing with customers systematically prioritise
value over volumes, wherever possible.
The Group now plans to accelerate the roll-out
of its growth initiatives and projects in its France and
International clusters, both organically and through mergers and
acquisitions, so as to expand its trading base and improve
financial performance.
2022 operating earnings confirm the Group’s
capacity to maintain the positive trends of the last two years
(stripping out non-recurring items), in a fast-changing local and
global economic environment: pandemic, followed by bottlenecks in
raw materials supplies and logistics, the Russia-Ukraine war
threatening a further squeeze on product availability and the cost
of inputs and energy, and some declining markets such as
under-12-year blended Scotch whisky in France, vodkas in the USA,
etc.
These factors could potentially disrupt global
business and have already led to a dilution in margins rates.
Visibility remains low in some countries more heavily exposed to
this changing scenario, such as the concentrated and increasingly
mature French market where volumes are in sharp decline. For these
reasons the Group is, for now, remaining highly prudent in its
short and medium-term outlook.
Financial calendar:
- Q1 2023 revenues: 27 April 2023
- General Meeting: 29 June 2023
- H1 2023 revenues: 27 July 2023
Investors and
shareholders relations contact
MBWS GroupEmilie
Drexlerrelations.actionnaires@mbws.comTél : +33 1 43 91 62
21 |
Press contactImage
Sept Claire Doligez - Laurence Maurycdoligez@image7.fr –
lmaury@image7.frTél : +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 and Cognac Gautier. 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
FY
2022 Consolidated Financial
Statements
Income statement
(€000) |
2022 |
2021 |
2022/2021 change |
|
|
|
|
|
|
Revenues |
227,121 |
214,395 |
|
+12,726 |
+6% |
Excise
duties |
(45,770) |
(47,711) |
|
+1,941 |
+4% |
Net
revenues excluding excise duties |
181,351 |
166,684 |
|
+14,667 |
+9% |
Cost of goods
sold |
(110,420) |
(98,124) |
|
-12,296 |
-13% |
External
expenses |
(27,599) |
(26,713) |
|
-886 |
-3% |
Personnel
expense |
(27,134) |
(31,177) |
|
+4,043 |
+13% |
Taxes and
levies |
(2,483) |
(1,688) |
|
-833 |
-49% |
Depreciation
and amortisation charges |
(6,075) |
(6,616) |
|
+541 |
+8% |
Other
operating income |
4,166 |
7,155 |
|
-2,993 |
-42% |
Other
operating expenses |
(4,735) |
(3,829) |
|
-906 |
-24% |
Recurring operating profit |
7,071 |
5,692 |
|
+1,337 |
+23% |
Non-recurring
operating income |
2,267 |
5,226 |
|
-2,959 |
-57% |
Non-recurring
operating expenses |
(7,456) |
(5,334) |
|
-2,122 |
-40% |
Operating profit |
1,882 |
5,584 |
|
-3,744 |
-67% |
Income from
cash and cash equivalents |
113 |
120 |
|
-7 |
-6% |
Gross cost of
debt |
(198) |
(454) |
|
+256 |
+56% |
Net
cost of debt |
(85) |
(334) |
|
+249 |
+75% |
Other
financial income |
1,064 |
730 |
|
+334 |
+46% |
Other
financial expenses |
(1,181) |
(146) |
|
-1,035 |
-709% |
Net financial income/(expense) |
(202) |
250 |
|
-452 |
-181% |
Profit before tax |
1,680 |
5,834 |
|
-4,196 |
-72% |
Income
tax |
(2,605) |
751 |
|
-2,012 |
-268% |
Net profit/(loss) from continuing operations |
(925) |
6,585 |
|
-6,208 |
-94% |
Net profit/(loss) from discontinued
operations |
- |
(1,017) |
|
+1,017 |
|
|
|
|
|
|
|
NET PROFIT/(LOSS) |
(925) |
5,568 |
|
-5,191 |
-93% |
Group
share |
(945) |
5,564 |
|
-5,207 |
-94% |
of which Net
profit/(loss) from continuing operations |
(945) |
6,581 |
|
-6,224 |
(1) |
of which Net profit/(loss) from discontinued operations |
0 |
(1,017) |
|
+1,017 |
1 |
Non-controlling interests |
20 |
4 |
|
+16 |
4 |
of which Net
profit/(loss) from continuing operations |
20 |
4 |
|
+16 |
4 |
of which Net
profit/(loss) from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share from continuing operations, Group share (€) |
(0.008) |
0.06 |
|
|
|
Diluted
earnings per share from continuing operations, Group share (€) |
(0.008) |
0.06 |
|
|
|
Earnings per share, Group share (€) |
(0.008) |
0.05 |
|
|
|
Diluted earnings per share, Group share (€) |
(0.008) |
0.05 |
|
|
|
Weighted average number of shares outstanding |
111,856,837 |
105,889,482 |
|
|
|
Diluted weighted average number of shares outstanding |
111,856,837 |
105,889,482 |
|
|
|
Balance sheet
Assets |
|
|
|
|
|
(€000) |
31.12.2022 |
31.12.2021 restated |
|
2022/2021 change |
Non-current assets |
|
|
|
|
|
Goodwill |
14,704 |
14,704 |
|
|
|
Intangible assets |
77,847 |
79,361 |
|
-1,514 |
-2% |
Property, plant and equipment |
26,932 |
27,181 |
|
-249 |
-1% |
Financial assets |
1,146 |
4,001 |
|
-2,855 |
-71% |
Deferred tax assets |
3,781 |
4,366 |
|
-585 |
-13% |
Total non-current assets |
124,410 |
129,613 |
|
-5,203 |
-4% |
Current assets |
|
|
|
|
|
Inventory and work-in-progress |
51,934 |
35,094 |
|
+16,840 |
+48% |
Trade receivables |
43,523 |
35,891 |
|
+7,632 |
+21% |
Tax receivables |
734 |
4,125 |
|
-3,391 |
-82% |
Other current assets |
10,468 |
9,714 |
|
+754 |
+8% |
Current derivatives |
114 |
281 |
|
-167 |
-59% |
Cash and cash equivalents |
47,495 |
54,169 |
|
-6,674 |
-12% |
Assets held for sale |
|
3,058 |
|
-3,058 |
-100% |
Total current assets |
154,268 |
142,332 |
|
+11,936 |
+8% |
TOTAL ASSETS |
278,678 |
271,945 |
|
+6,733 |
+2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity & Liabilities |
|
|
|
|
|
(€000) |
31.12.2022 |
31.12.2021 restated |
|
2022/2021 change |
Shareholders’ equity |
|
|
|
|
|
Share capital |
156,786 |
156,729 |
|
+57 |
+0% |
Additional paid-in capital |
72,815 |
72,751 |
|
+64 |
+0% |
Consolidated and other reserves |
(25,529) |
(31,957) |
|
+6,428 |
-20% |
Translation reserves |
(8,520) |
(9,807) |
|
+1,287 |
-13% |
Consolidated net profit |
(945) |
5,564 |
|
(6,509) |
-117% |
Shareholders’ equity (Group share) |
194,607 |
193,280 |
|
+1,327 |
+1% |
Non-controlling interests |
333 |
332 |
|
+1 |
+0% |
Total shareholders’ equity |
194,940 |
193,612 |
|
+1,328 |
+1% |
Non-current liabilities |
|
|
|
|
|
Employee benefits |
1,769 |
2,214 |
|
-445 |
-20% |
Non-current provisions |
2,540 |
4,116 |
|
-1,576 |
-38% |
Long-term borrowings – due in > 1 year |
2,218 |
2,546 |
|
-328 |
-13% |
Other non-current liabilities |
1,518 |
1,735 |
|
-217 |
-13% |
Deferred tax liabilities |
139 |
199 |
|
-60 |
-30% |
Total non-current liabilities |
8,184 |
10,810 |
|
-2,626 |
-24% |
Current liabilities |
|
|
|
|
|
Current provisions |
5,417 |
2,546 |
|
+2,871 |
+113% |
Long-term borrowings – due in < 1 year |
641 |
888 |
|
-247 |
-28% |
Short-term borrowings |
3,702 |
2,542 |
|
+1,160 |
+46% |
Trade and other payables |
36,694 |
31,113 |
|
+5,581 |
+18% |
Tax liabilities |
1,932 |
135 |
|
+1,797 |
+1,331% |
Other current liabilities |
26,899 |
29,942 |
|
-3,043 |
-10% |
Current derivatives |
269 |
198 |
|
+71 |
+36% |
Liabilities held for sale |
|
159 |
|
-159 |
|
Total current liabilities |
75,554 |
67,523 |
|
+8,031 |
+12% |
TOTAL EQUITY AND LIABILITIES |
278,678 |
271,945 |
|
+6,733 |
+2% |
Cash flow statement
(€000) |
2022 |
2021 |
Total
consolidated net profit |
(925) |
5,568 |
Depreciation
and provisions |
6,562 |
1,927 |
Gains/(losses)
on disposals and dilution |
49 |
579 |
Operating cash flow after net cost of debt and
tax |
5,686 |
8,074 |
Income tax
charge/(income) |
2,605 |
(751) |
Net cost of
debt |
89 |
315 |
Operating cash flow before net cost of debt and
tax |
8,380 |
7,638 |
Change in
working capital 1 (inventories, trade receivables/payables) |
(18,280) |
(13,111) |
Change in
working capital 2 (other items) |
(3,366) |
5,693 |
Tax paid |
3,183 |
(9,341) |
Cash flow from operating activities |
(10,083) |
(9,121) |
Purchase of
PP&E and intangible assets |
(3,202) |
(3,276) |
Increase in
loans and advances granted |
0 |
(45) |
Decrease in
loans and advances granted |
1,632 |
1,841 |
Disposal of
PP&E and intangible assets |
2,872 |
283 |
Impact of
change in consolidation scope |
0 |
1,859 |
Cash flow from investment activities |
1,302 |
662 |
Capital
increase |
22 |
16,710 |
New
borrowings |
16 |
7,209 |
Borrowings
repaid |
(970) |
(1,485) |
Net interest
paid |
(75) |
(315) |
Net change in
short-term debt |
1,283 |
(2,752) |
Cash flow from financing activities |
276 |
19,367 |
Impact of
exchange rate fluctuations |
1,831 |
1,186 |
Change in cash and cash equivalents |
(6,674) |
12,094 |
Opening cash
and cash equivalents |
54,169 |
42,075 |
Closing cash
and cash equivalents |
47,495 |
54,169 |
Change in cash and cash equivalents |
(6,674) |
12,094 |
1 EBITDA = EBIT + depreciation, amortisation & provisions
excl. current assets. From 1st January 2022, provisions on current
assets are included in the definition of EBITDA which restated
would have reached €13.0m in 2021.2 In preparing its 2022 financial
statements, the Company conducted an in-depth review of its
deferred tax liabilities. It was found that their value in previous
years had been overstated by €19.7m. Almost all of this related to
deferred taxes on the value of trademarks. Therefore, as required
by IAS 8, the Company retrospectively restated all material
differences in the comparative information published for 2021. As
these adjustments derived from years prior to 2021, the technical
correction was made in the opening statements for the 2021
financial year and led to a €19.7m increase in shareholders’
equity. This has no impact on cash or earnings for the period.
- PR_MBWS 2022 Annual Results vdef
Marie Brizard Wine And S... (LSE:0DQP)
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