Q4 2018 and FY 2018 Net Sales
Paris, 11th February 2019
Q4 2018 and FY 2018 Net
Sales
Top-line decrease in France and the
Americas partially offset by growth in Poland
Marie Brizard Wine & Spirits (Euronext:
MBWS) today announced its non-audited net sales for Q4 2018,
covering the reporting period from 1st October to 31st December
2018, and full-year 2018.
Q4 2018 Net sales
The Group’s consolidated non-audited Q4 2018 net
sales totaled €99.5m[1], a -6.2%[2] decrease compared to Q4
2017. The Branded Business accounted for 58.3% of total net
sales, marking a sequential improvement in consolidated revenue mix
versus the Branded Business accounting for 49.7% of net sales in Q3
2018.
Q4 2018 net
sales, by cluster
|
In €m IFRS 15 |
Q4 2017 restated1 |
Organic Growth |
Forex impact |
Q4 2018 |
Organic Growth (excl.foreign exchange impact) |
Reported growth (incl.foreign exchange impact) |
|
|
|
|
|
|
|
|
Branded Business |
63.8 |
-6.1 |
0.3 |
58.0 |
-9.6% |
-9.1% |
WEMEA |
35.3 |
-3.5 |
0.1 |
31.9 |
-10.0% |
-9.6% |
|
France |
28.4 |
-4.1 |
0.0 |
24.3 |
-14.6% |
-14.6% |
|
Rest of
cluster |
6.9 |
0.6 |
0.1 |
7.6 |
8.5% |
10.7% |
CEE |
16.6 |
2.5 |
0.3 |
19.4 |
15.1% |
17.2% |
|
Poland |
8.5 |
1.5 |
0.3 |
10.3 |
17.1% |
21.0% |
|
Rest of
cluster |
8.0 |
1.1 |
0.0 |
9.1 |
13.1% |
13.1% |
Americas |
10.1 |
-4.5 |
-0.2 |
5.4 |
-44.3% |
-45.9% |
Asia Pacific |
1.8 |
-0.6 |
0.0 |
1.2 |
-34.0% |
-34.1% |
Other Businesses |
40.9 |
-0.3 |
0.9 |
41.5 |
-0.8% |
1.3% |
|
Sobieski
Trade |
24.7 |
0.7 |
0.9 |
26.3 |
2.8% |
6.3% |
|
Private Label |
16.2 |
-1.0 |
0.0 |
15.2 |
-6.3% |
-6.3% |
|
TOTAL MBWS |
104.7 |
-6.4 |
1.2 |
99.5 |
-6.2% |
-5.0% |
Western Europe, Middle East and
Africa (WEMEA): Sales declined in France, partially offset by
growth in the rest of the cluster
In France, Q4 2018 net sales totaled €24.3m, a
-14.6% decrease compared to the previous year. Revenue was
affected by the decline in sales evident across the overall spirits
sector in France since the first half of 2018, and further
exacerbated by the social movements in November and December, which
have affected most consumer goods categories. In Q4 2018, the
value of the spirits market decreased by -3.0%[3], with MBWS’ main
categories continuing to underperform the overall sector. The
value of the vodka sector declined -6.1%3, Scotch whisky decreased
-3.4%3, and flavored wines decreased -6.5%[4]. The
Group’s net sales underperformance during the quarter is due
primarily to a decrease in volumes, attributable to a lower level
of promotions carried out by MBWS, in contrast to intense
promotional activity by competitors, particularly in the scotch
whisky and vodka categories. The sparse availability of 2017
vintage rosé also had a negative impact on MBWS’ Q4 net sales.
In the rest of the WEMEA cluster, net sales grew to €7.6m, a
+8.5% increase compared to last year. This result was driven
by solid sales growth in Spain, reflecting the positive impact of a
double-digit price increase, which has been well-accepted by the
market.
Central and Eastern Europe (CEE): Double-digit
top-line growth in Poland, and a return to growth in the rest of
the cluster
In Poland, Q4 2018 net sales grew +17.1% versus
Q4 2017, to €10.3m, providing evidence of the progressive recovery
from the proactive destocking in H1 2018. Sales growth in
Poland was driven by a net sales increase in the modern trade, and
by the gradually accelerating execution of distribution agreements
signed in the second half of 2018.
In Lancut, final testing is being carried out
and most of the required authorizations were recently
obtained. Operations at the new distillery are
scheduled to begin in the coming weeks.
In the rest of the CEE cluster, Q4 2018 net
sales reached €9.1m, an increase of +13.1%, marking a return to
growth. Sales growth in Lithuania reflects the full impact of
pricing increases taken earlier in the year, and the
restrictive
but consistent regulatory environment regarding the sale of alcohol
since the second half of 2017. Sales activity in Bulgaria
also generated solid growth.
Americas: Sales decrease due to
ongoing destocking and pricing pressure
In the Americas cluster, net sales totaled
€5.4m. As anticipated and previously mentioned, in the United
States top-line decreased sharply with continued destocking of
Sobieski in some regional markets into Q4 2018. Consequently,
net sales in the cluster were down -44.3% as compared to Q4 2017
(with a challenging comparable base of +10.8%). Additionally,
pricing pressure accelerated in the US vodka market over the
holiday season, with overall pricing in the category moving
downward, and a consequent negative impact on Sobieski’s net
sales.
A top-line decrease in Brazil, due primarily to a challenging
comparable base, also contributed to the overall sales decline in
the Americas cluster during this reporting period.
Asia Pacific
Net sales in the Asia Pacific cluster totaled
€1.2m in Q4 2018, a decrease of -34.0% versus last year off of a
low base, and in-line with Q3 2018 net sales. In Asia, the
distribution agreements in place have not enabled the Group to meet
its objectives. The new strategic plan will put forth a new
approach to the route-to-market in this cluster.
Other Businesses
Net sales for Other Businesses in Q4 2018
totaled €41.5m, a decrease of -0.8%. The dynamics
evident in the third quarter of 2018 continued, with net sales at
Sobieski Trade growing +2.8%, while a decrease in private label
wine led to an overall -6.3% sales decrease in the Private
Label business.
Events after year-end
2018
Principal Option of the agreement
between MBWS and COFEPP approved by a large majority of
shareholders; French Financial Markets Authority (AMF)
authorization granted
The Principal Option of the agreement between
MBWS and COFEPP, presented at the AGM on 31 January 2019, was
approved by 89% of voting shareholders (with COFEPP excluded from
the vote).
This option is based on the agreement of 21
December 2018 between MBWS and COFEPP (as modified by an addendum
on 30 January 2019) for a Reserved Capital Increase (RCI) and
subsequent free stock warrant program for all shareholders.
The capital increase should provide a minimum of €45m in new money
to MBWS.
As set out under the terms of the agreement
between Marie Brizard Wine & Spirits and COFEPP, a €25m bridge
loan was granted by COFEPP to MBWS on 4 February 2019. This
loan will be repaid to COFEPP by an offsetting receivable within
the framework of the COFEPP Reserved Capital Increase that is
expected to take place at the end of February.
This operation is subject to COFEPP obtaining an
exemption by the French Financial Markets Authority (AMF).
The required exemption was granted on 5 February 2019. The
operation is also subject to prior authorization of the anti-trust
authorities in Poland. This authorization was obtained
today. The operation is additionally subject to the
authorization from the French anti-trust authorities under
conditions considered acceptable by COFEPP; this decision is
expected to be received by the end of the February
2019.
Marie Brizard Wine &
Spirits produces and sells a range of wine and spirits
across four geographic clusters: Western Europe, Middle East &
Africa, Central and Eastern Europe, the Americas, and Asia-Pacific.
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 1755, to
the launch of Fruits and Wine in 2010, MBWS 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 has a broad portfolio of leading
brands in their respective market segments, most notably William
Peel scotch whisky, Sobieski vodka, Krupnik vodka, Fruits and Wine
flavored wine, Marie Brizard liqueurs and Cognac Gautier. MBWS 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.
Investor Contact Raquel
Lizarraga raquel.lizarraga@mbws.com Tél :
+33 1 43 91 50 |
Press Contact Simon Zaks, Image
Sept szaks@image7.fr Tél : +33 1 53 70 74 63
|
ANNEX
Full Year 2018 net sales, by
cluster (IFRS 15)
|
In €m IFRS 15 |
FY 2017 restated |
Organic Growth |
Forex impact |
FY 2018 |
Organic Growth (excl.foreign exchange impact) |
Reported Growth (incl.foreign exchange impact) |
|
|
|
|
|
|
|
|
Branded Business |
230.7 |
-34.2 |
-0.7 |
195.8 |
-14.8% |
-15.1% |
WEMEA |
131.7 |
-13.5 |
0.1 |
118.4 |
-10.3% |
-10.2% |
|
France |
108.9 |
-12.1 |
0.0 |
96.9 |
-11.1% |
-11.1% |
|
Rest of
cluster |
22.8 |
-1.5 |
0.1 |
21.5 |
-6.4% |
-5.8% |
CEE |
69.0 |
-12.1 |
0.4 |
57.3 |
-17.5% |
-16.9% |
|
Poland |
39.8 |
-11.2 |
0.4 |
29.0 |
-28.2% |
-27.2% |
|
Rest of
cluster |
29.2 |
-0.9 |
0.0 |
28.3 |
-3.0% |
-3.0% |
Americas |
25.6 |
-7.3 |
-1.2 |
17.0 |
-28.6% |
-33.5% |
Asia Pacific |
4.4 |
-1.3 |
0.0 |
3.1 |
-29.2% |
-29.4% |
Other Businesses |
184.1 |
8.0 |
1.2 |
193.3 |
4.4% |
5.0% |
|
Sobieski
Trade |
100.2 |
6.1 |
1.2 |
107.5 |
6.1% |
7.3% |
|
Private Label |
83.9 |
1.9 |
0.0 |
85.8 |
2.3% |
2.3% |
|
TOTAL MBWS |
414.7 |
-26.2 |
0.5 |
389.0 |
-6.3% |
-6.2% |
[1] The IFRS 15 Accounting Standard regarding
“Revenue from contracts with customers” has been in effect since
1st January 2018. Marie Brizard Wine & Spirits has
thus published its 2017 and 2018 quarterly and full-year net sales
according to this accounting standard.
[2] All growth rates mentioned in this press
release are calculated at constant exchange rates on a
like-for-like basis, unless otherwise stated. The figures
provided at a constant exchange rate are calculated by applying the
exchange rate from the year-ago period to the net sales figure of
the current reporting period.
[3] Source: Nielsen, P11 – P13, in value
[4] Source: IRI, P11 – P13, in value
- MBWS PR Net Sales Q4 2018 VF - ENG
Marie Brizard Wine And S... (EU:MBWS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Marie Brizard Wine And S... (EU:MBWS)
Historical Stock Chart
From Aug 2023 to Aug 2024