Marie Brizard Wine & Spirits: Net sales for the third quarter
and first nine months of 2019
Paris, 7 November 2019
Net sales for the third quarter and first
nine months of 2019
Sales for the
first nine months of 2019: €284.7 million (down
1.5%)1 Resilience of Branded Business, with
organic growth of 1.9%
Sales for the
third quarter of 2019: €98.9 million (down 0.6%)
Mixed quarterly results by business and region, in line
with expectations and our announcement on
15 October
Continued
rollout of strategic plan Sale of Sobieski Trade
expected to close soon, following recent approval by the Polish
competition authority
Marie Brizard Wine &
Spirits (Euronext: MBWS) today announced its unaudited net
sales for the third quarter of 2019.
RESULTS BY CLUSTER
Q3 2019
|
en
€M |
Q3 2018 |
Org. growth |
Currency impact |
Q3 2019 |
Org. Growth at cc |
Growth |
|
|
|
|
|
|
|
|
Branded Business |
49.5 |
-1.1 |
-0.2 |
48.2 |
-2.1% |
-2.6% |
WEMEA |
27.7 |
-1.2 |
0.0 |
26.5 |
-4.4% |
-4.4% |
|
France |
22.6 |
-0.5 |
0.0 |
22.1 |
-2.1% |
-2.1% |
|
Rest of cluster |
5.1 |
-0.7 |
0.0 |
4.4 |
-14.6% |
-14.6% |
CEE |
16.8 |
-0.4 |
-0.1 |
16.3 |
-2.3% |
-2.6% |
|
Poland |
9.7 |
-0.3 |
-0.1 |
9.4 |
-2.7% |
-3.2% |
|
Other CEE |
7.0 |
-0.1 |
0.0 |
6.9 |
-1.7% |
-1.7% |
Americas |
4.4 |
0.3 |
-0.2 |
4.5 |
5.9% |
2.1% |
APAC |
0.6 |
0.3 |
0.0 |
0.9 |
48.4% |
48.4% |
Other Businesses |
50.1 |
0.5 |
0.1 |
50.6 |
1.0% |
1.1% |
|
Sobieski Trade |
27.4 |
0.7 |
0.1 |
28.2 |
2.5% |
2.8% |
|
Private Labels |
22.7 |
-0.2 |
0.0 |
22.4 |
-0.9% |
-0.9% |
|
TOTAL MBWS |
99.6 |
-0.6 |
-0.2 |
98.9 |
-0.6% |
-0.7% |
9M 2019
|
in €M |
9M 2018 |
Org. growth |
Currency impact |
9M 2019 |
Org. Growth at cc |
Growth |
|
|
|
|
|
|
|
|
Branded Business |
137.8 |
2.6 |
0.3 |
140.7 |
1.9% |
2.1% |
WEMEA |
86.4 |
-6.3 |
0.0 |
80.1 |
-7.3% |
-7.3% |
|
France |
72.6 |
-6.0 |
0.0 |
66.6 |
-8.3% |
-8.3% |
|
Rest of cluster |
13.9 |
-0.3 |
0.0 |
13.5 |
-2.4% |
-2.4% |
CEE |
37.9 |
8.3 |
-0.3 |
45.8 |
21.9% |
21.0% |
|
Poland |
18.6 |
8.5 |
-0.3 |
26.8 |
45.9% |
44.1% |
|
Other CEE |
19.2 |
-0.3 |
0.0 |
19.0 |
-1.4% |
-1.4% |
Americas |
11.6 |
0.7 |
0.6 |
12.9 |
5.8% |
11.0% |
APAC |
1.9 |
0.0 |
0.0 |
1.9 |
-0.2% |
-0.2% |
Other Businesses |
151.8 |
-6.8 |
-1.0 |
144.0 |
-4.5% |
-5.1% |
|
Sobieski Trade |
81.2 |
-2.2 |
-1.0 |
78.1 |
-2.7% |
-3.9% |
|
Private Labels |
70.6 |
-4.7 |
0.0 |
65.9 |
-6.6% |
-6.6% |
|
TOTAL MBWS |
289.6 |
-4.2 |
-0,7 |
284.7 |
-1.5% |
-1.7% |
Western Europe, Middle East and Africa
(WEMEA): net sales reflecting the Group’s value-oriented
marketing strategy and the downturn for the aromatised
wine-based beverage (BABV) segment
In the first nine months of 2019, net sales for
the WEMEA region totalled €80.1 million, down 7.3% compared
with the same period in 2018, with third quarter net sales of
€26.5 million (down 4.4%).
Net sales for France, still a highly competitive
and promotion-driven market, came to €22.1 million in the
third quarter of 2019, a modest decline of 2.1% from the
year-earlier period. This near stability in net sales reflects the
success of the Group’s sales and marketing strategy focused on
value as the key priority, which continues to involve limited use
of promotional activities, an approach expected to be maintained
until the end of the year. The relevance of this strategy was
supported in the third quarter by a slight recovery of the
company’s market share in the Scotch Whisky category. Despite the
pronounced downturn in the BABV market, Fruits and Wine maintained
its market share in the quarter. Results delivered in France for
the first nine months of the year, with net sales down 8.3%, are
thus consistent with the expected impact of having implemented the
Group’s strategy of focusing on profitability.
Net sales for the rest of the cluster totalled
€4.4 million in the third quarter of 2019. This performance
reflects the new distribution model in Spain, stable business in
the United Kingdom and the impact of a higher pricing policy in the
Middle East, in line with the Group’s profitability improvement
strategy.
Central and Eastern Europe (CEE): weaker third quarter
across the entire region
The CEE region reported net sales of
€45.8 million for the first nine months of 2019, up 21.9%,
including net sales of €16.3 million in the third quarter,
down 2.3% compared with the year-earlier period.
The decline recorded in the quarter was due in
part to a challenging base for comparison in Poland, where robust
sales in the third quarter of 2018 followed a lacklustre first
half. Business levels are also still affected by the impact of
stricter promotional policies, necessary for future profitability.
Lastly, as announced on 15 October, conditions in the vodka market
remain challenging, with considerable competitive pressure. Net
sales in Poland thus rose 45.9% to €26.8 million in the first
nine months of 2019, but declined by 2.7% in the third quarter.
Net sales for the rest of the cluster in the
third quarter were down 1.7% to €6.9 million, a small dip due
to exports from Bulgaria and the continuing portfolio
reorganisation in Lithuania which prioritises more profitable
products and the launch of promising new products.
Americas: good third quarter performance
fuelled by growth in Brazil and mixed results for brands in the
United States
Net sales for the Americas region in the first
nine months of 2019 were up 5.8% compared with the same period in
2018, to €12.9 million.
Net sales for the cluster rose 5.9% to
€4.5 million in the third quarter of 2019. In the United
States, shipments to wholesalers grew in the third quarter, due to
the mechanical effect of healthier inventory levels than those of
the previous year. In terms of product sales ex-wholesalers,
Sobieski continued to decline, hit by persistent and strong price
pressures in the vodka market affecting all players, with the
exception of a leading domestic player capturing all of the
category growth. On the other hand, Marie Brizard regained market
share, driven in particular by the company’s business in the
control states.
Brazil consolidated its previous performance
with a further increase in net sales during the third quarter. The
Group is reaping the benefits of its sales and marketing strategy,
focused on developing the Group’s local brands in priority states,
and is continuing its expansion by acquiring new customers.
Asia Pacific
The Asia-Pacific cluster recorded good business
levels in the third quarter, with the continuing exception of
China. Net sales were higher, up 48.4% to €0.9 million, off a
low base. They totalled €1.9 million in the first nine months
of 2019, stable compared with the year-earlier period.
Other Businesses
Net sales for the Group’s Other Businesses were
€50.6 million in the third quarter of 2019, up 1.0%, bringing the
figure for the first nine months of 2019 to €144.0 million, a
decline of 4.5%. Marie Brizard Wine & Spirits’ proposed
sale of Sobieski Trade received approval from the Polish
competition authority on 20 September 2019, which should allow
the transaction to be finalised soon. The information relating to
this disposal and the Group’s Polish subsidiaries, as published on
15 October 2019, remains unchanged.
Favourable weather conditions in the summer
helped to nearly stabilize sales for Private Label (MDD) in the
third quarter, but they were down 6.6% to €65.9 million in the
first nine months of 2019, reflecting the continued difficult
market environment overall for the supermarket and hypermarket
chains in France.
OUTLOOK
As announced on 15 October, Marie Brizard Wine
& Spirits expects that its full-year 2019 EBITDA will be a loss
amounting to between €20 million and €25 million.
Financial calendarMarie Brizard Wine &
Spirits will report its net sales for the fourth quarter of 2019
and for the fiscal year 2019 on 13 February 2020.
About Marie Brizard Wine & Spirits Marie
Brizard Wine & Spirits is a wine and spirits group based in
Europe and the United States. Marie Brizard Wine & Spirits
stands out for its know-how, a combination of brands with a long
tradition and a spirit resolutely turned towards innovation. From
the birth of the Maison Marie Brizard in 1755 to the launch the
Fruits and Wine in 2010, the Marie Brizard Wine & Spirits Group
has been able to develop its brands in a modern way while
respecting their origins. Marie Brizard Wine & Spirits'
commitment is to offer its customers trustworthy, bold and full of
flavors and experiences. The Group now has a rich portfolio of
leading brands in their market segments, including William Peel,
Sobieski, Krupnik, Fruits and Wine, Marie Brizard and Cognac
Gautier.
Marie Brizard Wine & Spirits is listed on
Euronext Paris Compartment B (FR0000060873 - MBWS) and is part of
the EnterNext© PEA-PME 150 index
ContactImage Sept Claire
Doligezcdoligez@image7.frPhone: +33 (0)1 53 70 74 70 |
1 All net sales growth figures mentioned in this
press release are expressed at constant structure and exchange
rates, unless stated otherwise.
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