Marie Brizard Wine & Spirits: 2020 HALF-YEAR ACTIVITY
Paris, 29 July 2020
2020 Half-Year Activity
§ 2020 Half-Year
net sales1 of €135.4M
(-4.3%)
> Strong growth of Other Businesses (+23.9%),
driven by increased demand for bulk spirit in Poland
and Lituania
in the context of
Covid-19
> Resilience of Branded Business in France and
other CEE countries (Baltic States and Bulgaria).
§ A second quarter
down by -9.3% to
€73.7M
> Branded Businesses highly impacted (-24.2%)
by lockdown measures due to Covid-19, mainly
in Poland and
several countries in the WEMEA
cluster
> Sales growth in the United States following
the new partnership with Sazerac
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 2nd quarter 2020, covering the period from April 1st
to June 30, 2020 as well as 2020 Half-Year net sales.
Andrew Highcock, CEO of Marie Brizard
Wine & Spirits, comments: “ During the first half of
the year, we focused on protecting our employees and partners
whose health and safety remain a priority. As expected, the
effects of the Covid-19 pandemic worsened in the 2nd quarter for
our Branded Businesses. The unprecedented level of bulk sales
contributed strongly and mitigated some of this decline. We
are resolutely pursuing the implementation of our strategic plan
aimed at restoring the Group's profitability on a sustainable
basis. The recently announced plan to sell our activities in Poland
is fully in line with this plan, while providing them with a new
impetus. The macroeconomic impact of the persistent uncertainties
about the global health situation require us to remain cautious
about the business outlook until there is better visibility,
nevertheless we are confident about the relevance of our strategic
choices. ”
1st half 2020 – Sales by
cluster
|
en €M |
H1 2019 |
Org. growth |
Currency impact |
H1 2020 |
Org. Growth at cc |
Growth |
|
|
|
|
|
|
|
|
Branded Business |
97.2 |
-16.7 |
0.1 |
80.6 |
-17.2% |
-17.1% |
WEMEA |
53.6 |
-8.6 |
0.0 |
45.0 |
-16.0% |
-16.0% |
|
France |
44.5 |
-4.6 |
0.0 |
39.9 |
-10.3% |
-10.3% |
|
Rest of cluster |
9.1 |
-4.0 |
0.0 |
5.1 |
-43.9% |
-43.9% |
EE |
34.2 |
-11.1 |
-0.1 |
23.1 |
-32.4% |
-32.6% |
|
Poland2 |
22.2 |
-10.3 |
-0.1 |
11.8 |
-46.4% |
-46.8% |
|
Rest of cluster |
12.1 |
-0.8 |
0.0 |
11.3 |
-6.5% |
-6.5% |
Americas |
8.4 |
2.7 |
0.1 |
11.3 |
32.3% |
33.9% |
APAC |
1.0 |
0.2 |
0.0 |
1.2 |
20.5% |
20.5% |
Other Businesses 1 |
44.3 |
10.6 |
-0.1 |
54.8 |
23.9% |
23.8% |
|
TOTAL MBWS (1) |
141.5 |
-6.1 |
0.0 |
135.4 |
-4.3% |
-4.3% |
[1]Application of IFRS 5 relating to the sale of
Sobieski Trade on 15 November 2019 (for the record, revenue for the
1st half of 2019 of €49.9M) 2Revenues including sales of MBWS
Polska to Sobieski Trade and to Alco Trade (ex. ST) of €5.6M in H1
2019 following the application of IFRS 5
2nd quarter 2020 - Sales by
cluster
|
en €M |
Q2 2019 |
Org. growth |
Currency impact |
Q2 2020 |
Org. Growth at cc |
Growth |
|
|
|
|
|
|
|
|
Branded Businesses |
54.1 |
-13.1 |
0.0 |
41.0 |
-24.2% |
-24.2% |
WEMEA |
29.5 |
-6.3 |
0.0 |
23.1 |
-21.4% |
-21.4% |
|
France |
24.0 |
-2.7 |
0.0 |
21.3 |
-11.2% |
-11.2% |
|
Rest of cluster |
5.4 |
-3.6 |
0.0 |
1.8 |
-66.6% |
-66.6% |
CEE |
19.8 |
-8.2 |
-0.1 |
11.5 |
-41.6% |
-41.8% |
|
Poland2 |
14.5 |
-8.3 |
-0.1 |
6.1 |
-57.5% |
-57.9% |
|
Rest of cluster |
5.3 |
0.1 |
0.0 |
5.4 |
2.3% |
2.3% |
Americas |
4.3 |
1.3 |
0.1 |
5.6 |
29.4% |
30.7% |
APAC |
0.6 |
0.2 |
0.0 |
0.8 |
38.6% |
38.6% |
Other Businesses 1 |
27.2 |
5.5 |
0.0 |
32.7 |
20.2% |
20.1% |
|
TOTAL MBWS (1) |
81.3 |
-7.6 |
0.0 |
73.7 |
-9.3% |
-9.4% |
_______________________
[1]Application of IFRS 5 relating to the sale of
Sobieski Trade on 15 November 2019 (for the record, revenue for the
1st half of 2019 of €49.9M) 2Revenues including sales of MBWS
Polska to Sobieski Trade and to Alco Trade (ex. ST) of €5.6M in H1
2019 following the application of IFRS 5
ACTIVITY BY CLUSTER
WEMEA : a successful strategy of
concentrating on popular formats in France, but a quarter still
impacted overall by the global pandemic
and difficulties of the
aromatised wine-based beverage (BABV)
segment
Over the 2nd quarter of 2020, WEMEA cluster
revenues totalled €23,1 M, down -21,4% compared to 2019, which can
largely be attributed to lockdown measures and closures in the
HoReCa segment.
In France, net sales totaled €21.3 M (-11.2%) in
the 2nd quarter. The Spirits business showed some resilience in
face of the Covid-19. After several months affected by lockdown,
the activity in May and June recovered in terms of sales helped by
post-lockdown purchases in the Off Trade, driven by William Peel
brand. Difficulties in the BABV market persisted in the 2nd quarter
2020, strongly affecting sales of Fruits & Wine brand.
In the rest of the cluster, Q2 sales of €1.8 M
reflect a sharp decline of c. 67% compared with the second quarter
of 2019, largely attributable to the closures and shutdown of
activity in the HoReCa segment (pubs, cafés and restaurants) in
most of the cluster (Spain, Denmark and the United Kingdom having
been particularly affected by these anti-Covid-19 measures).
In the first half of 2020, WEMEA cluster’s sales
amounted € 45 M, down 16% compared with the first half of 2019.
Central and Eastern Europe (CEE): a
cluster heavily affected by the effects of the health crisis in the
2nd quarter
Sales for the 2nd quarter of 2020 for the CEE
cluster came to €11.5 M, down 41.6% compared with the same period
in 2019, with sales in Poland accounting for the bulk of this
decline.
Affected by lockdown measures, which resulted in
particular in a drop in consumption in modern trade, sales in
Poland (Branded Businesses only) totalled €6.1 M in the 2nd quarter
of 2020, showing a sharp drop of 57.5% compared with the 2nd
quarter of 2019. With a strategy favouring profitability over
volumes gains, the Group also continued to optimize its
commercial investments and maintained its rigorous management of
commercial contracts in a still difficult Vodka market.
Revenues for the rest of the cluster increased
by +2.3% to €5.4 M in Q2 2020. In Lithuania, sales of select
categories such as whisky grew in the local market despite the
impact of Covid-19 on national brands. Export sales fell sharply
during the 2nd quarter. In Bulgaria, the good performance of
spirits only partially offset the decline in wine.
Sales for the first half of 2020 for the CEE
cluster totalled €23.1 M (-32.4% compared to the first half of
2019).
Americas: a cluster that is benefitting
from the change in distribution in the United States
Second quarter 2020 revenues for the Americas
cluster reached €5.6 M, up +29.4% compared to the same quarter in
2019.
Business in the United States during the first
half of the year was sustained by the initial phrase of the
distribution partnership, which resulted in the building up of
inventories by Sazerac, an effect that should however slow down
over the second half of the year. The sales performance also
reflects the dynamics of the US market, whose strong growth in
off-trade offset the decline observed in the on-trade and export
segment, which is the consequence of Covid-19. In Brazil, on the
other hand, business continued to be strongly impacted by Covid-19
in April with a very gradual recovery in May and June. This quarter
saw the introduction of new COFEPP brands, Cutty Sark and Glen
Moray.
In the first half of 2020, sales for the
Americas cluster amounted to € 11.3 M, up 32.3% compared to the
first half of 2019.
APAC
Over the 2nd quarter of 2020, revenues for the
Asia-Pacific cluster amounted €0.8 M (+38.6%), and reached €1.2 M
over the first half of the year (+20.5%) thanks to the resilience
of off-trade activities. Projects to revitalize this cluster had to
be put on hold due to the Covid-19
crisis.
Other Businesses
Following the application of IFRS 5 relating to
Sobieski Trade, turnover from Other Businesses represents the
private label activity and bulk alcohol sales. The latter
experienced strong growth (+20.2% in the 2nd quarter and nearly 24%
over the 1st half of 2020, reaching €54.8 M), with the weakness of
the private label market in France offset by the strong increase in
bulk sales in Poland and the Baltic countries, to meet surging
demand for anti-bacterial gels due to the Covid-19 crisis.
POST CLOSING EVENTS
Signature of the agreement with United
Beverages S.A., subject to conditions precedent, for the sale of
MBSW activities in Poland
MBWS announces the signing of an agreement with
the United Beverages Group, subject to conditions precedent, in
relation to the 100 percent sale of MBWS Polska's shares and part
of Polmos Lancut's outstanding shares. The formal closing of the
agreement is anticipated to take place within the next 2 to 4
months. It is reminded that the contribution of the Poland business
is negative in the Group's results, generating in 2019 an EBITDA of
€-9.3 M and has substantially hampered the Group's return to
profitability in recent years.
The current agreement will allow MBWS and the
United Beverages Group to work closely as partners. More
specifically, the United Beverages Group will continue to produce
Sobieski vodka (a brand that will remain the property of MBWS S.A.)
for MBWS at the sites covered by this sale and a substantial number
of MBWS international brands will be imported by the United
Beverages Group, through the implementation of a new distribution
agreement.
The agreement is conditional upon receiving a
positive decision of the Polish Anti-Trust Authorities as well as
upon the refunding of some of its financial debts related to the
financing of the Polish activities.
Agreement-in-principle concerning the
modification of a contract for the bulk supply of Scotch Whisky
concluded with a supplier of MBWS, with a view to the forthcoming
availability of the balance of the Advance n°2 by COFEPP subject to
contractual formalisation and the lifting of the other conditions
precedent - Commitment to make available by COFEPP an additional
tranche of up to €5.5 M
On July 16, 2020, at the completion of
negotiations, the Group announced that it finally reached an
agreement-in-principle with its supplier on the amendment of its
contract for the bulk supply of Scotch Whisky.This
agreement-in-principle, which is still subject to the prompt
formalisation of the final contract no later than September 15,
2020, was on that same day accepted by MBWS’s Board of Directors
and by COFEPP.
In addition, under the agreement between MBWS
and COFEPP dated 16 July, reiterated on 27 July, COFEPP agreed to
make available to the Group an additional amount of up to €5.5 M
(instead of the additional advance initially provided for of €4 M)
(the "Balance 1bis"). The Balance 1bis should be
paid (i) during the first week of August, for an amount of €4 M and
(ii) during September, for an amount of €1.5 M, upon proof of the
Group's cash requirements.The securities granted to COFEPP for the
funds made available under Balance 1bis will be identical to those
provided for under the current account advance of May 25, 2020,
and, if applicable, in the event of the availability of the amount
of €1.5 M, supplemented by a pledge of the current account
receivable between MBWS and MBWS France, coupled with a pledge on
the securities of Cognac Gautier and/or on the Marie Brizard
brands. The sum of the various additional advances, including
Balance 1bis, will be deducted from the amount of Advance No.
2.
Additional repayment of the receivable
held on Clico Investment Bank
The Group announced on July 3 that MBWS Ltd, the
Group's subsidiary in Trinidad, had received on June 26, 2020, an
additional repayment of its debt held on Clico Investment Bank
located in Trinidad and Tobago, in the amount of 50.8 million
Trinidadian dollars, i.e. approximately €6.7 million. This
amount will be converted within a timeframe that takes into account
the low liquidity for this currency, which will therefore have no
immediate impact on the Group's cash position in the short term.
This receivable had been fully written down in the Group's
accounts.
Financial Calendar
- Annual General Meeting held behind closed doors on July 31,
2020 (approval of the 2019 financial statements)
- Publication of First-Half results on September 25, 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 |
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