Marie Brizard Wine & Spirits: Quarterly information at March
31st, 2020
Paris, 29 April 2020
- 2020 First quarter Sales1: 61.7 M€, +
2.5% A contrasted start to the year driven by good
bulk sales activity
- Publication of 2019 annual results postponed to May 29,
2020 at the latest
- Postponement of the General Meeting to 31 July
2020
Note: all net sales growth figures mentioned in
this press release are expressed at constant structure and exchange
rates, unless stated otherwise
Marie Brizard Wine &
Spirits (Euronext: MBWS) today announced its unaudited net
sales for the first quarter of 2020.
Andrew Highcock, CEO of Marie Brizard
Wine & Spirits, comments: " In a context characterized
by the expansion of the Covid-19 pandemic, we are committed to
making every effort to protect our employees and partners whose
health and safety is a priority. The impact of this health crisis
on activity from mid-March onwards is visible for our Brand
activities and should continue at least in the second quarter. In a
difficult global context that is rapidly changing, we remain
cautious about the outlook until visibility improves. We are
confident in the relevance of our strategic choices aimed at
restoring the sustainable profitability of our business and we are
committed to pursuing their implementation with determination.”
RESULTS BY CLUSTER - Q1
2019
|
en
€M |
Q1 2019 |
Org. growth |
Currency impact |
Q1 2020 |
Org. Growth at cc |
Growth |
|
|
|
|
|
|
|
|
Branded Business |
43.2 |
-3.6 |
0.1 |
39.6 |
-8.5% |
-8.3% |
WEMEA |
24.1 |
-2.3 |
0.0 |
21.9 |
-9.3% |
-9.3% |
|
France |
20.4 |
-1.9 |
0.0 |
18.6 |
-9.2% |
-9.2% |
|
Rest of cluster |
3.7 |
-0.4 |
0.0 |
3.3 |
-10.3% |
-10.3% |
CEE |
14.4 |
-2.8 |
0.0 |
11.6 |
-19.7% |
-19.9% |
|
Poland2 |
7.7 |
-1.9 |
0.0 |
5.7 |
-25.4% |
-25.7% |
|
Other CEE |
6.8 |
-0.9 |
0.0 |
5.9 |
-13.4% |
-13.4% |
Americas |
4.1 |
1.5 |
0.1 |
5.7 |
35.2% |
37.2% |
APAC |
0.5 |
0.0 |
0.0 |
0.4 |
-1.8% |
-1.8% |
Other Businesses 1 |
17.0 |
5.1 |
0.0 |
22.1 |
29.9% |
29.8% |
|
Private Labels |
17.0 |
5.1 |
0.0 |
22.1 |
29.9% |
29.8% |
|
TOTAL MBWS |
60.2 |
1.4 |
0.0 |
61.7 |
2.4% |
2.5% |
RESULTS BY CLUSTER - Q1
2019
WEMEA: an activity impacted by the first
effects of the global pandemic, the commercial strategy focused on
profitability in France and persistent difficulties in the
aromatised wine-based beverage (BABV)
segment
Over the first quarter of 2020, WEMEA cluster
revenues reached €21.9 million, down -9.3% compared to 2019. It
mainly reflects the change in sales in France, at €18.6 million,
the contraction (-9.2%) being due to the downward trend in the
spirits and BABV markets. In addition to these effects, there is
also the significant impact of containment measures, including a
reduction in promotional activity, as part of the fight against
coronavirus. The Group focused on its main brands, William Peel and
Sobieski, aligning with the priorities of its customers.
The Fruits & Wine brand suffered from the
continued downturn in the BABV market in the first quarter of 2020,
with the confinement also accentuating this downward trend from
mid-March onwards. It was also impacted by the effects of the
commercial policy adopted since the beginning of 2019.
Revenues for the rest of the cluster reached
€3.3 million, down -10.3%, largely due to the change in
distribution mode adopted during the second quarter of 2019 in
Spain and the initial effects of the Covid-19 crisis. Overall, the
impact of the pandemic on the level of sales in all Western
European countries was felt fairly quickly in March, particularly
in the UK market and more markedly in Scandinavia, with Denmark
being one of the first countries in Europe to implement strict
containment measures.
Central and Eastern Europe (CEE): a cluster marked above
all by the increase in tax rates in Q1
First-quarter revenues for the CEE cluster came
to €11.6 million, down 19.7% compared with the first quarter of
2019, which was boosted by good momentum in Poland.
In Poland, volumes were down at the beginning of
the year, as a result of particularly strong demand at the end of
2019 from distributors wishing to build up stocks in anticipation
of the 10% increase in excise duty on spirits on 1 January 2020.
This mechanical effect was added to the impact of the Covid-19
crisis, which was felt from March onwards. Sales in Poland, solely
consisting of the Brands activity, amounted to €5.7 million in the
first quarter of 2020, down 25.4% compared to the same period in
2019. Furthermore, the Group maintained rigorous management of
commercial contracts in a Vodka market that remains difficult. All
these factors also impacted sales to Sobieski Trade, which was sold
in November 2019 and has now been restated as a "discontinued
operation" in accordance with IFRS 5.
The rest of the cluster recorded revenues of
€5.9 million in Q1 2020 (-13.4%). Sales in Lithuania were impacted
by a 10.5% increase in excise duties from March 1, 2020, as
legislative changes reduced the possibility of building up
precautionary stocks upfront. In Bulgaria, the first quarter was
affected by a decline in sales to both the domestic and export
markets, partly attributable to Covid-19.
Americas: A cluster with strong growth,
driven by the new distribution partnership in the United
States.
Net sales for the Americas region in the first
quarter of 2020 reached €5.7 million, up +35.2% compared to
the first three months of 2019.
The beginning of the year was boosted in the
United States by the effects of the new distribution partnership
with Sazerac. The sales trend is also in line with the US market,
which benefited from strong growth in off-trade during the early
containment period. In Brazil, while business was buoyant until the
end of February, March was impacted by the Covid-19 arrival,
resulting in delays in orders from wholesale customers.
Asia Pacific
In the first quarter of 2020, revenues for the
Asia-Pacific cluster amounted to €0.4 million, down 1.8% compared
with the first three months of 2019. The shipments over the quarter
of orders delayed in Q4 2019 masked the impact of Covid-19 on these
markets.
Other Businesses
As a result of the application of the IFRS 5
standard relating to Sobieski Trade, the turnover of Other
Activities corresponds to the Private Label activity (MDD). It
increased by nearly 30% over the first quarter of 2020, to €22.1
million, reflecting bulk sales in Poland and Lithuania. Since the
beginning of the crisis, the Group has in fact received new
purchase orders for its bulk distillate and rectified alcohol for
the production of disinfectants and has chosen to participate, to
the extent possible, in the collective support effort by donating
part of the production to people in need.
POST CLOSURE EVENTS: NEW FINANCIAL
CALENDAR - UPDATE ON THE AGREEMENT CONCLUDED ON 20 DECEMBER 2019
BETWEEN MBWS AND COFEPP - NEW DEADLINE FOR THE AGM
New financial calendar
Given the context of the Covid-19 pandemic, the
publication date of Marie Brizard Wine & Spirits' 2019 annual
results has been postponed to May 29, 2020 at the latest. The Group
will also make available its universal registration document,
including its annual financial report, by the end of May at the
latest.
Update on the agreement concluded on 20 December 2019
between MBWS and COFEPP
In accordance with the agreement signed on
December 20, 2019, to which MBWS France adhered, COFEPP has
concluded with MBWS and MBWS France a first current account advance
of €15 million, of which (i) €7.6 million was made
available to MBWS France on January 20, 2020 in order to strengthen
its cash position until mid-March 2020 (see press release dated
January 17, 2020) and (ii) €7.428 million made
available to MBWS on 5 February 2020 to finance the acquisition by
a French subsidiary of MBWS of 68% of the capital of the Lithuanian
company Vilnius Degtine from MBWS Polska, enabling the latter to
meet its cash requirements at short notice.
As a reminder, the agreement signed with COFEPP
on December 20, 2019 also provide for a second current account
advance of €17 million (remunerated at the annual capitalized rate
of EURIBOR 3 months with a floor at zero + 425 bps), which was to
be made available to MBWS during the first quarter of 2020 (the
"Advance No. 2"), subject in particular to (i) the
agreement in principle of the public creditors on a moratorium on
part of the Group's tax and social security debts, (ii) the
amendment of a Scotch Whisky bulk supply contract concluded with an
MBWS supplier and (iii) the stability of the estimated cash
requirements for 2020.
The conditions precedent of Advance No.2 have
not yet been lifted and remain uncertain. Discussions are in
progress between the Company and COFEPP on possible interim funding
for the Group in the near future.
New deadline for the AGM
Taking note of the delay in the disclosure of
its FY2019 financial statements, the uncertainties regarding the
timing of the availability of the Advance No. 2 and, more
generally, the impact of the Covid-19 pandemic on the annual
general meetings approving the financial statements, the Group has
decided, pursuant to the terms of Order No. 2020-318 of 25 March
2020, to postpone its annual general meeting, initially scheduled
for 25 June 2020, to 31 July 2020. The Group also wishes to
facilitate dialogue with its shareholders by favouring a physical
meeting, if possible, rather than a meeting behind closed
doors.
COVID-19 MANAGEMENT
The group is closely monitoring the evolution of
the Covid-19 pandemic, with the absolute priority of ensuring the
health and safety of its employees and partners, and the continuity
of its business.
Very strict precautionary and hygiene measures
have been put in place at its sites, in line with WHO
recommendations and those of government authorities in the
countries where the Group operates. For example, MBWS has
restricted access to its sites exclusively to employees performing
functions critical to business continuity, and whose assignments
cannot be carried out by teleworking.
The Group continuously monitors the situation in
order to adapt these measures to the evolution of the pandemic. To
date, none of the Group's major sites in France have been
affected.
However, the restrictions imposed to prevent the
spread of the Covid-19 virus have had an impact on the Group's
business since mid-March, affecting sales of our branded products.
With the extension of the containment measures, these marked
effects are expected to continue at least in the second
quarter.
Given the context, the Group has undertaken
initiatives to limit the effects of the pandemic by taking measures
to control its cost base and adopting a strict policy of cash
preservation and control, and assessment of its potential
additional needs.
The Group remains fully committed to its
medium-term transformation plan to reduce costs and return to
sustainable profitability.
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 |
1Application of IFRS 5 relating to the sale of Sobieski Trade on
15 November 2019 (for the record, revenue for the 1st quarter of
2019 of €23.8M)
2Revenues including sales of MBWS Polska to Sobieski Trade of
€2.4M in Q1 2019 and to Alco Trade (ex. ST) of €0.2M in Q1 2020
following the application of IFRS 5
- MBWS_PR_2020Q1sales_EN_FV
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