Ivry-sur-Seine, 27
July 2017
MBWS Q2 2017 Net
sales grew +4.8%
-
Implementation of BiG's growth
component, with sales improvement across most clusters and
brands
-
Pillar brand net sales grew
+1.0%, driven by new routes-to-market
-
+12.5% increase in Other
Businesses
-
H1 2017 net sales growth:
+3.9%
Marie Brizard Wine and Spirits
(Euronext: MBWS), today announced its consolidated non-audited net
sales for the Q2 2017 and H1 2017 reporting periods. MBWS
reported Q2 2017 consolidated net sales of €125.9m, +4.8% versus
the previous year, and H1 2017 consolidated net sales of €212.5m,
representing +3.9% growth versus H1 2016.*
Jean-Noël Reynaud, CEO of MBWS,
commented: "Net sales in Q2 2017 resumed an encouraging
growth trajectory as compared to Q1 2017 revenue,
underscoring the improving execution of the distribution agreements
signed at year-end 2016 in Poland, the United States and
China. This sequential improvement is evident across almost
all our clusters and pillar brands.
"Our net sales have thus resumed
their growth in Poland, have increased slightly in the United
States, and are growing very strongly in the Asia Pacific cluster,
albeit from a low base," continued Mr. Reynaud. "The
inventory adjustment that followed the announcement of our
route-to-market reconfiguration, with the consequent negative
impact on our results in the previous two quarters, is
diminishing. This combination of factors leads us to a
promising outlook in line with our BiG growth strategy, which is
largely based on revamped and expanded distribution.
"The net sales growth and
market share gains generated by most of our pillar brands in Q2
2017 also add evidence to the potential of our mainstream business
model. I am pleased to report that the re-launch of Marie
Brizard is showing positive results, and that the brand contributed
to net sales growth in Q2 2017. Additionally, Cognac Gautier
is growing very dynamically across several markets. MBWS'
teams continue to drive these trends via commercial excellence and
market-specific marketing activities, which should translate to
wins in the marketplace," concluded Mr. Reynaud.
* All percentage
growth rates in this document are expressed in organic terms and
exclude foreign currency impact, unless stated otherwise.
Q2 2017 Net Sales
by Cluster
|
Q2 2016 Restated |
Organic Growth |
Currency impact |
Q2 2017 |
Organic growth (excl. Currency impact) |
Organic growth (incl. Currency impact) |
WEMEA |
40.0 |
-1.1 |
0.0 |
39.0 |
-2.7% |
-2.7% |
France |
33.1 |
-1.0 |
0.0 |
32.1 |
-2.9% |
-2.9% |
Rest of WEMEA |
6.9 |
-0.1 |
0.0 |
6.8 |
-1.8% |
-1.8% |
CEE |
24.0 |
1.0 |
0.5 |
25.5 |
4.3% |
6.5% |
Poland |
16.6 |
0.0 |
0.5 |
17.2 |
0.3% |
3.4% |
Rest of CEE |
7.4 |
1.0 |
0.0 |
8.3 |
13.4% |
13.4% |
Americas |
7.3 |
-0.4 |
0,3 |
7.2 |
-5.8% |
-1.1% |
Asia
Pacific |
0,6 |
0.4 |
0.0 |
1.0 |
62.7% |
62.7% |
Sub-Total Branded Business |
71.9 |
-0.1 |
0.9 |
72.7 |
-0.1% |
1.1% |
Other
Businesses: |
|
|
|
|
|
|
Sobieski Trade |
23.8 |
3.6 |
0.9 |
28.3 |
15.3% |
19.1% |
Private Label |
22.7 |
2.2 |
0.0 |
24.9 |
9.5% |
9.5% |
Sub-Total Other Businesses |
46.5 |
5.8 |
0.9 |
53.2 |
12.5% |
14.4% |
TOTAL MBWS |
118.4 |
5.7 |
1.8 |
125.9 |
4.8% |
6.3% |
* Q2 2016 net
sales restated to reflect the cancellation of the Mateus and
Ferreira contracts in WEMEA, /the reclassification of Pulco in
Spain to Private Label activity, and the sale of the Augustowianka
water brand in Poland (Sobieski Trade).
Branded business net sales in Q2
2017 totalled €72.7m, virtually flat compared to Q2 2016.
Including the foreign exchange effect, branded business sales
increased by +1.1%. Net sales of pillar brands increased by
+1.0% during the quarter; including the impact of foreign currency,
pillar brand net sales grew +2.2%.
Other Businesses generated net
sales of €53.2m in Q2 2017, growing by 12.5% versus the previous
year, attributable to Sobieski Trade (+15.3%) with Private Label
activities (+9.5%) also contributing significantly to growth.
Western Europe, Middle East and
Africa: On-going growth of pillar brands
Net sales in the Western Europe,
Middle East and Africa (WEMEA) region totaled €39.0m in Q2 2017, a
decrease of -2.7% versus the previous year.
|
|
|
|
|
|
|
|
|
|
|
Change in Volumes vs. 2016 |
|
Market Share |
|
|
|
Market |
MBWS |
|
MBWS |
Change |
|
|
|
|
|
|
|
|
France |
|
|
|
|
|
|
|
William
Peel |
|
|
-1.5% |
+0.2% |
|
24.6% |
+0.4 pt |
Sobieski |
|
|
+2.1% |
+7.9% |
|
15.7% |
+0.8pt |
Fruits
and Wine |
|
|
-4.1% |
-2.2% |
|
30.2% |
+0.5 pt |
Source : Nielsen YTD P06 201 ;
IRI P6 2017 for Fruits and Wine |
|
Net sales in France totaled €32.1
million, a decrease of -2.9% versus Q2 2016. In France, the
spirits pillar brands displayed on-going dynamism in Q2 2017 in a
spirits market that decreased -0.5% in volume. William Peel
continued to capture market share, further consolidating its
leadership of the scotch whisky market with share growth of +0.4
points, driven by commercial excellence and the successful launch
of its latest innovation, Spicy Shot. Sobieski also expanded
its share of the market, generating +0.8 additional market share
points YTD to reach a 15.7% share of the market. In the
flavored wine category, Fruits and Wine continued to strengthen its
leadership position, growing its market share by +0.5 pts YTD to
30.2%. The sales growth of MBWS brands was also due in part
to their expanding presence in the on-trade segment.
The growth in the spirits business
was offset by sales declines in the lower-profit branded wine
category, as the budget for promotional activities in this business
line was allocated to more profitable brands.
The rest of WEMEA reported a sales
decrease of -1.8% in Q2 2017 to €6.8m, attributable primarily to
the readjustment of MBWS' business in Spain, partially compensated
by growth in the rest of the cluster. In particular, the
development of Marie Brizard in the UK contributed to cluster
growth.
Central and Eastern Europe: Back
to growth
Net sales in the Central and
Eastern Europe cluster (CEE) reached €25.5m in Q2 2017, increasing
4.3% versus the previous year. Including the foreign exchange
impact, net sales increased 6.5%. Very strong volume sale
increases of Marie Brizard, William Peel, and Cognac Gautier
contributed to cluster growth.
|
|
|
|
|
|
|
|
|
|
|
Change in Volumes vs. 2016 |
|
Market Share |
|
|
|
|
Market |
MBWS |
|
MBWS |
Chge |
|
|
|
|
|
|
|
|
POLAND |
|
|
|
|
|
|
|
Krupnik
Clear |
|
|
-0.9% |
-5.1% |
|
15.1% |
-0.7 pts |
Krupnik
Flavored
Krupnik Total Brand |
|
|
+7.0%
+0.9% |
+21.3%
-3.1% |
|
5.0%
12.6%
|
+0.6 pts
-0.5 pts |
Source : Nielsen YTD P05 2017 |
|
In Poland, Q2 2017 net sales of
€17.2m increased slightly, by +0.3% compared to Q2 2016.
Including the foreign exchange impact, net sales increased by
+3.4%. MBWS Poland's sequential sales growth in Q2 2017
points to the beginning of a recovery after a market inventory
adjustment strongly impacted sales in Q1 2017.
The performance in Poland is
attributable primarily to more than 20% volume growth of flavored
Krupnik -- growing at more than twice the growth rate of the
overall flavored vodka segment in the second quarter (Nielsen, P05
2017) - and stemming mostly from distribution gains. In H1
2017, flavored Krupnik totalled 9.7% of volume sales of the overall
brand, up from 6.9% in H1 2016, a key indicator of the success of
our growth strategy.
The growth of flavored Krupnik was
offset by in volume sales of Clear Krupnik, at -5.1% year-to-date
per Nielsen, a consequence of ongoing pricing pressure in the vodka
market in Poland. MBWS continues to invest to defend Krupnik
market share, while at the same time limiting margin erosion, with
a consequent short-term negative impact to top-line growth and
market share in the Clear segment.
Dynamic sales growth of William
Peel continued into the third year after the brand's launch in
Poland, with a volume increase of 52% (YTD vs year-ago, Nielsen P05
2017), significantly outgrowing the category. Strong sales
growth of Marie Brizard and Cognac Gautier also contributed
positively to the quarter's sales results in Poland.
In the rest of the CEE cluster, Q2
2017 sales increased by 13.4% to €8.3m, fueled by ongoing dynamism
in Lithuania and Bulgaria, both driven by strong growth of William
Peel, pillar and local vodka brands, Marie Brizard and Cognac
Gautier.
Americas: US moving to growth
Net sales in the Americas cluster
decreased by -5.8% to €7.2m during Q2 2017. Including the impact of
foreign currency, net sales in the cluster decreased -1.1%.
This performance masks single-digit growth in the US, which was
offset by a double-digit decrease in Brazil due to ongoing
macroeconomic challenges in that market.
The reconfigured route-to-market
began to show positive results in the US, where Sobieski shipments
were up compared to year-ago and versus Q1 2017, while on-hand
inventory levels decreased. Moreover, Sobieski out-performed
the imported vodka segment by some measures: according to NABCA
(the National Alcohol Beverage Control Association, which monitors
the alcoholic beverages markets in the "controlled" states),
Sobieski volume sales increased by 2.5% in Q2 2016, compared to
-0.5% for imported vodkas during the period.
Growth in the US was also fueled
by the growth of Cognac Gautier and Marie Brizard.
Asia-Pacific: Strong increase
Net sales for Q2 2017 in the
Asia-Pacific region increased 62.7% versus the previous year,
reaching €1.0m. Growth was driven primarily by execution of
the COFCO agreement, and the ramp up of William Peel
distribution. Volume sales growth in the cluster was also
generated by sales of Marie Brizard in Australia, and Fruits and
Wine in Japan.
Q2 2017 Pillar Brand Performance:
Beginning of a growth dynamic across the portfolio
|
Q2
2017 |
|
Volume
Growth |
Net Sales
Growth |
William
Peel |
2.4% |
-0.6% |
Sobieski |
4.3% |
1.6% |
Krupnik |
-6.4% |
-3.1% |
Cognac
Gautier |
114.6% |
108.1% |
Marie
Brizard |
7.7% |
10.2% |
Fruits
and Wine |
2.2% |
-2.9% |
Total Pillar Brands |
-0.2% |
1.0% |
Other
Brands |
-2.2% |
-3.1% |
Total Branded Business |
|
-0.1% |
Net sales of MBWS pillar brands
grew by +1.0% in Q2 2016 excluding the impact of foreign currency,
and +2.2% including the foreign exchange impact. All pillar
brands generated volume growth in Q2 2017 (with the exception of
Krupnik), with notable increases posted by Cognac Gautier and Marie
Brizard. The volume decrease in Krupnik was due to a volume decline
in the Clear presentations of the brand, with flavored Krupnik
volumes growing more than twice the rate of the market. The
relatively favorable price/mix evolution for Krupnik reflects the
dynamism of flavored Krupnik and its impact on limiting the sales
decrease of the overall brand.
Other/local brands reported a net
sales decrease of -3.1% during the period. Branded wines in
France accounted for a significant part of the erosion of Other
brands sales.
Other Businesses: Strong top-line
growth of tactical businesses
Other Businesses posted a top-line
increase of 12.5% in Q2 2017 to €53.2m. The momentum at
Sobieski Trade evident in Q1 2017 continued into Q2, leading to
growth of +15.3% during the quarter for net sales of €28.3m.
However, strong competition in the sector hampered margins during
the quarter.
Overall Private Label activities
returned to growth, posting an increase of +9.5% during the quarter
for net sales of €24.9m.
H1 2017 Net Sales
increased +3.9%
H1 2017 Net Sales
by Cluster
|
H1 2016 Restated |
Organic Growth |
Currency impact |
H1 2017 |
Organic growth (excl. Currency impact) |
Organic growth (incl. Currency impact) |
WEMEA |
67.7 |
-1.3 |
0.0 |
66.4 |
-1.9% |
-1.9% |
France |
56.3 |
-0.9 |
0.0 |
55.4 |
-1.7% |
-1.7% |
Rest of WEMEA |
11.4 |
-0.4 |
0.0 |
11.0 |
-3.2% |
-3.2% |
CEE |
41.2 |
1.2 |
0.6 |
43.0 |
2.8% |
4.4% |
Poland |
27.6 |
-0.8 |
0.6 |
27.5 |
-2.8% |
-0.5% |
Rest of CEE |
13.5 |
1.9 |
0.0 |
15.5 |
14.3% |
14.3% |
Americas |
12.1 |
-1.5 |
0.6 |
11.2 |
-12.1% |
-7.4% |
Asia
Pacific |
1.2 |
0.4 |
0.0 |
1.6 |
34.5% |
34.5% |
Sub-Total Branded Business |
122.2 |
-1.2 |
1.2 |
122.2 |
-1.0% |
0.0% |
Other
Businesses: |
|
|
|
|
|
|
Sobieski Trade |
41.1 |
6.9 |
1.1 |
49.2 |
16.9% |
19.6% |
Private Label |
39.0 |
2.1 |
0.0 |
41.1 |
5.4% |
5.4% |
Sub-Total Other Businesses |
80.1 |
9.1 |
1.1 |
90.3 |
11.3% |
12.7% |
TOTAL MBWS |
202.3 |
7.9 |
2.3 |
212.5 |
3.9% |
5.0% |
* H1 2016 net
sales restated to reflect the cancellation of the Mateus and
Ferreira contracts in WEMEA, the reclassification of Pulco in Spain
to Private Label activity ,the sale of the Augustowianka water
brand in Poland (Sobieski Trade), and the cancellation of the
Kerrygold contract in the US.
MBWS reported H1 2017 consolidated
net sales of €212.5m, +3.9% versus H1 2016, and +5.0% including the
impact of foreign currency. The Branded Business posted
€122.2m in net sales, decreasing by -1.0% versus H1 2016.
Including the impact of foreign currency, net sales growth of the
Branded Business was flat for the period.
Branded Business sales growth in
H1 2017 was driven by CEE cluster net sales growth of +2.8%, with a
local currency decline of -2.8% in Poland offset by growth in
Lithuania and Bulgaria that led to +14.3% net sales growth for the
rest of the CEE cluster. The Asia Pacific cluster also
contributed to net sales growth in the first half of the year, with
a net sales increase of +34.5%.
The positive performance of the
CEE and Asia Pacific clusters in H1 2017 was offset by a -12.1% net
sales decrease in the Americas, resulting from the adjustment of
stock levels in Q1 2017. WEMEA also eroded overall sales
growth, with a net sales decrease of -1.9% in the first half of the
year.
Other Businesses posted net sales
growth of 11.3%, driven by the positive performance of Sobieski
Trade.
H1 2017 Performance of Pillar
Brands
|
H1
2017 |
|
Volume
Growth |
Net Sales
Growth |
William
Peel |
5.0% |
2.4% |
Sobieski |
-3.0% |
-2.7% |
Krupnik |
-15.0% |
-3.6% |
Cognac
Gautier |
60.8% |
70.4% |
Marie
Brizard |
6.3% |
8.4% |
Fruits
and Wine |
-2.0% |
-5.8% |
Total Pillar Brands |
-4.8% |
0.6% |
Other
Brands |
-6.4% |
-5.3% |
Total Branded Business |
|
-1.0% |
MBWS pillar brands generated
pillar brand net sales growth of 0.6% in H1 2017, driven by the
positive performances of William Peel, Marie Brizard and Cognac
Gautier, and partially offset by sales contractions in Krupnik,
Sobieski and Fruits and Wine. Favorable mix between Clear and
flavored Krupnik limited the net sales decrease to -3.6%.
The decline in Other Brands was
attributable most significantly to a decrease in the Branded Wine
business.
MBWS will report its H1 2017
financial results on 20th September
2017.
About Marie
Brizard Wine & Spirits (MBWS)
Marie Brizard Wine & Spirits produces and sells a range of wine
and spirits primarily in Europe and the United States. MBWS
has distinguished itself for its know-how, the range of its brands,
and a long tradition and history of innovation. From the
inception of Maison Marie Brizard in Bordeaux, France in the year
1755, to the launch of Fruits and Wine in 2010, Marie Brizard Wine
& Spirits has successfully developed and adapted its brands to
make them contemporary while respecting their origins. MBWS
is committed to providing value by offering its customers bold,
trustworthy, flavorful and experiential brands. The company
currently has a broad portfolio of leading brands in their
respective market segments, most notably William Peel scotch
whisky, Sobieski vodka, Fruits & Wine flavored wine and Marie
Brizard liqueurs. Marie Brizard Wine & Spirits is listed
on the regulated market of Euronext Paris, Compartment B (ISIN code
FR0000060873, ticker MBWS) and is included in the EnterNext©
PEA-PME 150 index, among others.
Press:
Stéphane Pedrazzi
stephane.pedrazzi@mbws.com
Tel: +33 1 76 28 40 71
Investors:
Raquel Lizarraga
raquel.lizarraga@mbws.com
Tel: +33 1 43 91 50 18
Simon Zaks, Image
Sept
szaks@image7.fr
Tel: +33 1 53 70 74 63
CA H1 ANG
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: Marie Brizard Wine & Spirits via
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