Marie Brizard Wine & Spirits: 2019 half-year results
Paris, 19 September 2019
First-half 2019
resultsEBITDA improvement of €13.4 million
versus H1 2018
Marie Brizard Wine & Spirits (Euronext:
MBWS), today announced its consolidated results for the first half
of 2019. The interim accounts were approved by the Board of
Directors at its meeting also held today. The limited review
procedures by the auditors are ongoing.
For the first half of 2019, the Group reported
net sales of €185.8 million, down 1.7% compared with the prior
year1. EBITDA2 was a loss of €7.7 million3, a significant
€13.4 million improvement compared with a loss of
€21.1 million in the first half of 2018.
Andrew Highcock, CEO of Marie Brizard Wine &
Spirits, commented as follows: “The Group’s results for this first
half of the year are encouraging overall and confirm the relevance
of the strategic choices we have made. Profitability has improved
for our operations in France thanks to the Branded Businesses. In
Poland and the United States, the first effects of the strategic
plan’s implementation are now visible, but still insufficient.
Further efforts along the same lines are therefore required. Many
initiatives have already been launched and others are in
preparation. The disposals of Porto Pitters and Sobieski Trade
announced in July are a prime example of this. I look forward to
the future with renewed confidence in our project and I remain
committed to executing on our strategy, which is critical to our
Group’s success in the coming years.”
Condensed income statement for the six
months ended 30 June 2019
In € millions,
except EPS |
H1
2018 |
|
H1
2019 |
IFRS 16 impact |
Net sales (excluding excise tax) |
190.0 |
|
185.8 |
|
Gross profit |
48.6 |
|
54.7 |
|
Gross margin |
25.6% |
|
29.4% |
|
EBITDA |
(21.1) |
|
(7.7) |
2.4 |
Current operating income |
(27.5) |
|
(14.4) |
0.4 |
Attributable net income |
(35.6) |
|
(24.3) |
(0.1) |
Earnings per share |
(1.28) |
|
(0.65) |
- |
Net sales totalled €185.8 million in the
first half of 2019, down 1.7% compared with the prior year period.
The Group’s Branded Business generated net sales of
€92.5 million, a 4.7% increase relative to the first half of
2018, spurred by a proactive sales and marketing strategy, with an
emphasis on value over volume.Consequently, the Group’s gross
profit improved in the first half of 2019 despite lower net sales,
with gross margin reaching 29.4%. It thus rose 3.8 percentage
points from its level in the first half of 2018.
EBITDA was a loss of €7.7 million in the
first half of 2019, up €13.4 million compared with the
year-earlier period, including €2.4 million related to the
initial application of IFRS 16, the new lease accounting
standard, at 1 January 2019. The remainder of this increase
was mainly due to the improved gross profit and cost-cutting
efforts.Lastly, attributable net income in the first half of the
year was a loss of €24.3 million, representing an improvement
of €11.3 million.
H1 2019 EBITDA by cluster
|
H1 2018 |
H1 2019 |
Western
Europe, Middle East and Africa (WEMEA) |
0.5 |
3.1 |
Central and
Eastern Europe (CEE) |
(11.2) |
(6.0) |
Americas |
(1.6) |
(0.6) |
Asia
Pacific |
(0.6) |
(0.4) |
Total
Branded Business |
(12.8) |
(3.8) |
|
|
|
Holding company |
(6.7) |
(4.4) |
|
|
|
Sobieski
Trade |
(1.4) |
(0.2) |
Private
Label |
(0.1) |
0.7 |
Other
Businesses |
(1.5) |
0.5 |
TOTAL
MBWS |
(21.1) |
(7.7) |
EBITDA for the Branded Business was a loss of
€3.8 million in the first half of 2019, an increase of
€9.0 million, including €1.9 million related to the
application of IFRS 16 from 1 January 2019. The remainder
of this rise was due in particular to higher net sales and an
improvement in the gross profit for these businesses.
WEMEA: first effects of the value-oriented
strategy
Net sales for the WEMEA cluster totalled
€53.6 million in the first half of 2019, down 8.7% compared
with the year-earlier period. The cluster delivered EBITDA of
€3.1 million, up €2.6 million from the same period in
2018, including €0.5 million related to the initial
application of IFRS 16 at 1 January 2019.
In France, net sales totalled
€44.5 million, down 11.0%. This decline was mainly due to the
implementation of a value-oriented sales and marketing strategy,
characterised in particular by a reduction in promotional
activities in France.Nevertheless, this strategy resulted in an
improvement in EBITDA for France, which rose €1.8 million to
reach €2.7 million, although still below the Group’s past
performance in this country.Net sales grew 4.9% for the rest of the
WEMEA cluster. This rise in sales, together with the distribution
synergies across operations in Spain and Scandinavia made possible
through the partnership with COFEPP, resulted in a slightly
positive EBITDA of €0.4 million, an increase of
€0.7 million versus the first half of 2018.
CEE: slight improvement in profitability
Net sales for the CEE cluster totalled
€29.5 million in the first half of 2019, up 41.6%. Spurred by
the rise in net sales, the cluster’s EBITDA saw a €5.2 million
improvement (including €0.4 million related to the application
of IFRS 16 from 1 January 2019) and was thus negative at
€6.0 million.Poland reported a doubling of net sales in the
first half of 2019, driven by the gradual ramp-up of the
distribution agreements signed during the second half of 2018 as
well as its sales and marketing strategy aimed at further
diversification of the customer base. EBITDA generated by Poland
rose €4.4 million in the first half of 2019 and was thus
negative at €7.4 million. Given this persistently high
negative result, further additional efforts will be required to
achieve recovery. Net sales came to €12.1 million for the
remainder of this cluster, a decrease of 1.1%. This decline is due
to the discontinuation of sales for certain products in Lithuania
having a negative impact on the Group’s profitability. EBITDA for
these other CEE countries thus rose €0.8 million to
€1.4 million.
Americas: EBITDA improvement due to cost-cutting
measures
Net sales for the Americas cluster rose 11.1% to
€8.4 million in the first half of 2019. Reductions in
advertising costs and overheads delivered a €1.0 million
improvement in EBITDA (including €0.1 million related to the
application of IFRS 16 from 1 January 2019). However, EBITDA
for the cluster remained negative at €0.6 million.
Asia Pacific: lower cost base in line with the
slowdown in sales
Net sales for the Asia-Pacific cluster in the
first half of 2019 were down 22.1% to €1.0 million. The slight
improvement in the cluster’s EBITDA, up €0.3 million yet
remaining negative at €0.4 million, was due to the lower cost
base.
Other Businesses
Net sales for the Group’s Other Businesses
totalled €93.3 million in the first half of 2019, down 7.3%.
EBITDA generated by Other Businesses grew €2.0 million
(including €0.5 million related to the application of
IFRS 16 from 1 January 2019) to reach €0.5 million,
thanks to the reduction in the contribution of certain less
profitable businesses and efforts undertaken in Poland to
streamline operations.
Holding company
As announced previously, cost savings
effectively lowered holding company expenses in the first half of
2019, in comparison with the same period in 2018.
Balance sheet at 30 June
2019
At 30 June 2019, the Group’s share of
equity was €136.0 million, an increase of €32.6 million.
This change was mainly the combination of i) the capital increase
subscribed by COFEPP and the subsequent subscription of short-term
warrants for a total amount of €58.5 million in the first half of
2019 and ii) the negative €24.3 million attributable net
income in the first half of the year.
Net debt totalled €57.4 million at
30 June 2019, down €11.6 million year on year. This
improvement is the result of an increase in debt related to the
application of the IFRS 16 norm for €16.6 million, a decrease in
short-term debt of €18.3 million and a cash improvement of €10.0
million.
Outlook
Discussions with the Group’s banking partners
have continued, with a view to reaching an agreement on the
refinancing of the Group. As a reminder, the Group has obtained
approval from its banking partners for the extension of the
standstill on early repayment of the medium-term loan until
30 June 2020.
Notable achievements in the execution of the
Group’s strategic plan were announced during the first half of
2019. Distribution synergies have already been achieved outside
France through the Group’s partnership with COFEPP, others are
being examined and a project for the redeployment of part of the
field sales team in France is under way. In addition, two disposals
were announced in July of this year. The first of these, the
disposal of the Porto Pitters brand and its associated business,
was agreed on 31 July 2019 between Marie Brizard Wine &
Spirits and International Drinks Limited (IDL), for the acquisition
of the brand, and Quinta & Vineyard Bottlers (QVB), for
production, distribution and quality control aspects. Both of these
companies are entities of The Fladgate Partnership, a Portuguese
group. After receiving the approval of the Autorité de la
Concurrence (the French competition authority) at the end of
August, this disposal was completed on 2 September 2019.The
second disposal relates to Sobieski Trade, which operates
independently from the Group’s other businesses in Poland. This
transaction remains subject to various conditions, including the
approval of the Polish competition authority.
In line with the strategic plan, efforts to
adapt and improve the development of the Group’s businesses will
continue in the coming quarters, particularly in relation to the
redefinition of the Group’s international footprint, the
simplification of its operating model, cost-cutting measures and
collaborative projects with value creation partners.
Financial calendarMarie Brizard
Wine & Spirits will report its net sales for Q3 2019 on
7 November 2019.
Marie Brizard Wine & Spirits (MBWS) produces
and sells a range of wine and spirits across four geographies:
Western Europe, the Middle East and Africa; Central and Eastern
Europe; the Americas; and Asia Pacific. MBWS has distinguished
itself for its know-how, the range of its brands, all with
long-standing traditions, and its history of innovation. From the
establishment of Maison Marie Brizard in the French city of
Bordeaux 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,
flavourful and experiential brands. The company has a broad
portfolio of leading brands in their respective market segments,
most notably William Peel blended Scotch whisky, Sobieski vodka,
Krupnik vodka, Fruits and Wine flavoured wine, Marie Brizard
liqueurs and Gautier cognac. 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.
ContactImage SeptSimon Zaks -
Claire Doligez szaks@image7.fr ,cdoligez@image7.frPhone: +33 (0)1
53 70 74 70 |
ANNEXES
- Interim consolidated financial statements –
30 June 2019
Consolidated income statement
(in thousands of euros) |
30/06/20196 months |
30/06/2018*6 months |
Net sales |
281,690 |
266,624 |
Excise tax |
(95,845) |
(76,616) |
NET SALES, EXCLUDING EXCISE TAX |
185,844 |
190,008 |
Cost of goods sold |
(131,193) |
(141,403) |
External expenses |
(25,755) |
(30,724) |
Personnel costs |
(34,403) |
(35,497) |
Taxes and levies |
(2,852) |
(3,203) |
Depreciation and amortisation |
(7,098) |
(4,494) |
Other operating income |
5,442 |
5,283 |
Other operating expense |
(4,339) |
(7,457) |
CURRENT OPERATING INCOME |
(14,354) |
(27,488) |
Non-current operating income |
770 |
275 |
Non-current operating expense |
(8,006) |
(5,445) |
OPERATING INCOME |
(21,590) |
(32,658) |
Income from cash and cash equivalents |
18 |
24 |
Gross cost of debt |
(2,861) |
(3,252) |
NET COST OF DEBT |
(2,843) |
(3,228) |
Other financial income |
3,874 |
3,873 |
Other financial expense |
(3,404) |
(5,275) |
NET FINANCIAL EXPENSE |
(2,373) |
(4,630) |
PROFIT/(LOSS) BEFORE TAX |
(23,963) |
(37,288) |
Income tax |
(363) |
1,583 |
NET PROFIT FROM CONTINUING OPERATIONS |
(24,327) |
(35,705) |
Profit/(loss) from discontinued operations, net of tax |
|
|
NET PROFIT/(LOSS) |
(24,327) |
(35,705) |
Group share |
(24,343) |
(35,598) |
of which net profit/(loss) from continuing operations |
(24,343) |
(35,598) |
of which net profit/(loss) from discontinued operations |
|
|
Non-controlling interests |
16 |
(106) |
of which net profit/(loss) from continuing operations |
16 |
(106) |
of which net profit/(loss) from discontinued operations |
|
|
Net earnings per share from continuing operations, Group share (in
euros) |
(0.65) |
(1.28) |
Diluted net earnings per share from continuing operations, Group
share (in euros) |
(0.64) |
(1.28) |
Net earnings per share, Group share (in euros) |
(0.65) |
(1.28) |
Diluted net earnings per share, Group share (in euros) |
(0.64) |
(1.28) |
Weighted average number of shares outstanding |
37,366,868 |
27,813,971 |
Diluted weighted average number of shares outstanding |
37,835,336 |
27,831,633 |
Consolidated balance sheetAssets
(in thousands of euros) |
30/06/2019 |
31/12/2018* |
Non-current assets |
|
|
Goodwill |
15,040 |
15,036 |
Intangible assets |
89,772 |
88,622 |
Property, plant and equipment |
84,274 |
69,451 |
Financial assets |
2,020 |
2,298 |
Non-current derivatives |
|
58 |
Deferred tax assets |
4,505 |
4,315 |
Total non-current assets |
195,611 |
179,780 |
Current assets |
|
|
Inventories and work in progress |
69,982 |
64,558 |
Trade receivables |
48,341 |
61,905 |
Tax receivables |
1,731 |
1,987 |
Other current assets |
31,532 |
29,782 |
Current derivatives |
42 |
94 |
Cash and cash equivalents |
31,794 |
21,832 |
Total current assets |
183,422 |
180,158 |
Assets held for sale |
5 |
138 |
TOTAL ASSETS |
379,038 |
360,076 |
Equity and liabilities
(in thousands of euros) |
30/06/2019 |
31/12/2018* |
Equity |
|
|
Share capital |
89,384 |
56,677 |
Additional paid-in capital |
66,705 |
175,712 |
Consolidated and other reserves |
23,714 |
(48,636) |
Translation reserves |
(20,633) |
(20,102) |
Consolidated net profit/(loss) |
(24,343) |
(61,905) |
Equity (Group share) |
134,827 |
101,746 |
Non-controlling interests |
1,141 |
1,601 |
Total equity |
135,969 |
103,347 |
Non-current liabilities |
|
|
Employee benefits |
6,018 |
5,776 |
Non-current provisions |
480 |
705 |
Long-term borrowings – due in more than 1 year |
23,115 |
11,812 |
Other non-current liabilities |
1,733 |
1,889 |
Non-current derivatives |
|
201 |
Deferred tax liabilities |
19,777 |
19,652 |
Total non-current liabilities |
51,124 |
40,036 |
Current liabilities |
|
|
Current provisions |
7,800 |
4,053 |
Long-term borrowings – due in less than 1 year |
52,017 |
48,897 |
Short-term loans |
14,043 |
30,115 |
Trade and other payables |
64,728 |
67,888 |
Tax liabilities |
406 |
811 |
Other current liabilities |
52,617 |
64,348 |
Current derivatives |
334 |
580 |
Total current liabilities |
191,946 |
216,692 |
Liabilities held for sale |
|
|
TOTAL EQUITY AND LIABILITIES |
379,038 |
360,076 |
Consolidated cash flow statement
(in thousands of euros) |
30/06/2019 |
30/06/2018* |
Total consolidated net profit/(loss) |
(24,327) |
(35,705) |
Less net profit/(loss) from discontinued operations |
|
|
Net profit/(loss) from continuing operations |
(24,327) |
(35,705) |
Depreciation, amortisation and provisions |
10,145 |
1,658 |
Fair value gains/(losses) on financial assets |
273 |
664 |
Impact of financial discounting |
|
|
Difference between the fair value and the cash flows of the FRN
debt |
|
|
Difference between the fair value of treasury shares and the cash
obtained on transfer |
|
|
Gains/(losses) on disposals and dilution |
(456) |
(268) |
Impact of discontinued operations |
|
|
Operating cash flow before net cost of borrowings and
tax |
(14,364) |
(33,650) |
Income tax charge/(credit) |
363 |
(1,583) |
Net cost of borrowings |
2,844 |
3,228 |
Operating cash flow after net cost of borrowings and
tax |
(11,157) |
(32,006) |
Change in working capital 1 (inventories, trade
receivables/payables) |
3,511 |
16,679 |
Change in working capital 2 (other items) |
(15,317) |
(34,949) |
Taxes paid |
(177) |
1,237 |
Net cash from/(used in) operating activities |
(23,140) |
(49,039) |
Purchase of non-controlling interests Purchase of PP&E and
intangible assets |
(105)(5,023) |
(13,598) |
Acquisition of financial assets Increase in loans and advances
granted |
(4) |
(13) |
Decrease in loans and advances granted |
239 |
15,594 |
Disposal of PP&E and intangible assets |
1,076 |
2,961 |
Disposal of financial assets |
|
|
Dividends received |
|
|
Impact of change in consolidation scope |
2 |
|
Net cash from/(used in) investment activities |
(3,815) |
4,944 |
Capital increase |
58,487 |
53 |
Purchase of treasury shares |
(5) |
52 |
Sale of treasury shares |
|
|
Loans received |
76 |
|
Loans repaid |
(2,872) |
(533) |
Net interest paid |
(2,623) |
(3,178) |
Net change in short-term debt |
(16,216) |
30,523 |
Net cash from/(used in) financing activities |
36,846 |
26,917 |
Impact of fluctuations in exchange rates |
71 |
(332) |
Cash flows from discontinued operations and proceeds from the sale
of operations |
|
|
Change in cash and cash equivalents |
9,962 |
(17,510) |
Opening cash and cash equivalents |
21,832 |
59,731 |
Closing cash and cash equivalents |
31,794 |
42,221 |
CHANGE IN CASH AND CASH EQUIVALENTS |
9,962 |
(17,510) |
* Data published in respect of the 2018
financial year have not been restated to reflect the impact related
to the change in accounting policy due to the implementation of
IFRS 16, the new lease accounting standard, owing to the
choice of the limited retrospective approach for the application of
this standard (see Note 1.2 “Change in accounting policy” to the
interim condensed consolidated financial statements, included in
the 2019 interim financial report).
1 All percentage growth rates in this document
are expressed in organic terms and exclude any foreign currency
impact, unless stated otherwise.
2 EBITDA = EBIT − provisions for current assets
− amortisation − retirement benefit obligations.
3 The Group EBITDA data and comparisons at June 30, 2019
mentioned in this press release include an IFRS 16 impact of €2.4
million
Marie Brizard Wine And S... (EU:MBWS)
Historical Stock Chart
From May 2024 to Jun 2024
Marie Brizard Wine And S... (EU:MBWS)
Historical Stock Chart
From Jun 2023 to Jun 2024