Marie Brizard Wine & Spirits: 2020 First Half Results
Paris, 30th September 2020
2020 First Half Results
Continued
restoration of the Group's profitability in a public health
context that adversely affects the Branded
Business in the first half of 2020
- EBITDA1 of
€7.0m at 30th June 2020, of which €3.3m related to one-off bulk
sales to the disinfectant markets, an improvement of €14.4m
compared with the first half of 2019-
Materialisation of the effects of the commercial policy
focused on profitable volumes in France and new distribution
partnerships in the United States and in Spain -
Group share of net profit: -€1.4m (vs. -€24.3m at 30 June
2019)
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) announces today its consolidated
results for the first half of 2020, approved by the Group's Board
of Directors held on 29th September 2020. The audit procedures have
been completed.
Andrew Highcock, CEO of Marie Brizard
Wine & Spirits, comments: " In a public health context
that heavily impacted our Branded Business, the first-half
performance reflects the relevance of the strategic choices made
and the Group's resistance, notably thanks to the opportunistic
nature of the bulk business during the pandemic. We have pursued
resolutely the execution of our strategic plan aimed at a
sustainable return to profitability, and the Group was able to
count on the mobilisation of its teams despite the adversity of the
Covid-19 crisis. The Group is reaping the first fruits of its
actions, which allows us to remain confident. Nevertheless, health
uncertainties persist in the second half of the year and force us
to remain cautious about the outlook, as the seasonality of our
business is very strong in the second half of the year, with a
fourth quarter that will be decisive for the year as a whole.”
Simplified income statement for First
Half 2020
|
In €m, except EPS |
H1 2019 restated (*) |
H1 2020
|
|
2020/19Change |
|
Net sales
(excluding excise tax) |
134.7 (2) |
135.3 |
|
0.4% |
Gross profit |
52.1 |
56.1 |
|
7.7% |
Gross margin |
38.7% |
41.5% |
|
|
EBITDA |
(7.4) |
7.0 |
|
193.9% |
Current operating
income |
(13.3) |
1.8 |
|
113.9% |
Attributable net
income |
(24.3) |
(1.4) |
|
94.3% |
Earnings per share |
(0.65) |
(0.03) |
|
95.4% |
(*) 2019 financial statements have been restated for the effects
of the application of IFRS 5
2020 FIRST HALF SALES (see note
2 page 1)
Revenue for the first half of 2020 amounted to
€135.3m, up 0.4% on a like-for-like basis compared with €134.7m in
2019, after application of IFRS 5 related to the disposal of
Sobieski Trade at the end of October 2019. This increase was
largely driven by the one-off recovery in bulk sales in Poland and
Lithuania, linked to the global pandemic.
Branded Business revenue for the first half of
2020 amounted to €80.6m, compared with €90.4m at 30th June 2019,
down 10.8%. This decline was heavily impacted in the second quarter
by the lock-down measures related to Covid-19. The Group also
continued its proactive, value-focused commercial policy, which
temporarily weighed on volumes.
As a result, the gross margin for the first half
of 2020 is up 7.7%, representing a 2.8point increase in the gross
margin rate to 41.5% in the first half of 2020 compared with 38.7%
at 30th June 2019.
EBITDA at end-June 2020 was €7.0m, an
improvement of €14.4m compared with end-June 2019. This change
reflects both the improvement in gross margin and the almost 23%
reduction in external charges, linked to the voluntary reduction in
marketing expenditure. This performance illustrates the relevance
of the major structural changes made in several markets,
particularly the effects of the new partnerships formed for the
distribution of products in France, Spain and the United States.
The contribution from bulk sales, buoyed by the pandemic context,
amounted to €3.3m over the half year.
After factoring in net financial income of
€2.2m, which includes financial income of around €6.7m related to
the additional repayment of a receivable from Clico Investment Bank
in Trinidad and Tobago, net profit attributable to the Group for
the first half of 2020 amounted to -€1.4 m, a strong recovery
compared with the first half of 2019.
2020 First Half EBITDA by
cluster
EBITDA |
H1 2019 |
Organic Growth |
FX
Impact |
H1 2020 |
|
(in €m ) |
|
|
|
|
|
|
|
BRANDED BUSINESS |
(8.1) |
12.5 |
0.1 |
4.6 |
|
WEMEA |
|
3.1 |
2.0 |
0.0 |
5.1 |
|
CEE |
|
(5.9) |
7.4 |
0.0 |
1.6 |
|
Americas |
|
(0.6) |
3,8 |
0.1 |
3.3 |
|
Asia-Pacific |
|
(0.4) |
0.5 |
0.0 |
0.1 |
|
HOLDING |
(4.4) |
(1.1) |
0.0 |
(5.5) |
|
OTHER BUSINESSES |
0.6 |
1.8 |
0.0 |
2.4 |
|
Sobieski
Trade |
|
(0.1) |
0.1 |
0.0 |
0.0 |
|
Private
Label |
|
0.7 |
1.7 |
0.0 |
2.4 |
|
TOTAL MBWS |
(7.4) |
14.3 |
0.1 |
7.0 |
|
In the first half of 2020, EBITDA for the
Branded Business amounted to €4.6m, an improvement of €12.5m on the
first half of 2019. The commercial policies adopted as part of the
strategic plan resulted in better protection of the gross margin of
these activities.WEMEA
Despite a 16.0% decline in sales (to €45.0m),
EBITDA for the WEMEA Cluster amounted to €5.1m for the first half
of 2020 (up 63% compared with the first six months of 2019). The
selective sales policy based on profitable volumes, together with
reductions in marketing costs and overheads, drove this growth,
particularly in France, where EBITDA improved by €1.9m to €4.6m,
despite a drop in sales at Fruits & Wines, whose volumes fell
sharply in a market that remains competitive. In the rest of the
WEMEA cluster, where on-trade sales were also particularly affected
by the Covid-19 environment with the closure of bars and
restaurants, EBITDA rose to €0.5m, up €0.1m thanks in particular to
lower costs resulting from the adoption of the new distribution
model in Spain.
CEE
In the first half of 2020, sales for the CEE
cluster amounted to €23.1m (vs. €27.4m at 30 June 2019), a 15.4%
decline that reflects the effects of the containment measures that
weighed particularly heavily in Poland on sales to supermarkets.
Poland's operating performance nevertheless improved, with a return
to positive EBITDA of €0.5m in the first half of 2020, up €7.9m
compared with the first half of 2019. The strong acceleration in
sales in the bulk business from March 2020 enabled better
absorption of fixed costs. Against the backdrop of the global
health crisis and an increase in excise duties in Lithuania, EBITDA
for the rest of the Cluster declined slightly, to €1m compared with
€1.4m in the first half of 2019, partly masking efforts to
streamline the product mix and control marketing expenditure.
Americas
EBITDA for the Americas cluster improved by
€3.8m over the first half, with EBITDA of €3.3m at 30th June 2020
(vs. -€0.6m in the first half of 2019), largely driven by off-trade
performance in the United States. The start of the distribution
partnership with the Sazerac group in the United States from
January 2020 had a strong positive impact due to the build-up of
our importer's inventories, and a slowdown in this rate is
therefore expected in H2.
Asia-Pacific
The first half of 2020 sees a return to a
positive EBITDA of €0.1m for the Asia-Pacific cluster, an
improvement of €0.5m compared with 30th June 2019, thanks in
particular to a reduction in overheads following the reorganisation
of the Chinese entity.
Other Businesses
In the first half of 2020, Private Label France
saw its supermarket and hypermarket sales positively affected
during the containment period but remained well below the 2019
figure (-13%). The private label wine market in France remains
highly competitive. EBITDA is just breaking even, deteriorating by
€0.8m compared with 2019, and was heavily impacted by the
under-absorption of fixed costs and significant volume losses. The
latter were partially offset by the price of wine raw
materials.Driven by a very sharp increase in bulk sales, EBITDA for
Other Activities totalled €2.4m in the first half of 2020, up €1.8m
compared with the first half of 2019 (€0.6m).
Holding
In the first half of 2020, the Holding company's
EBITDA was -€5.5m compared with -€4.4m in the first half of 2019.
This €1.1m decline reflects the impact of a negative foreign
exchange result of €0.9m, mainly in GBP and PLN, compared with a
positive figure of €0.3m at 30th June 2019. In the framework of its
banking agreements, the Holding company was unable to benefit from
the implementation of new currency hedges. In addition, the
favourable impact of the change of headquarters in June 2020 will
materialise in the second half of the year. Balance
sheet at 30th June 2019
Shareholders' equity (Group share) was €92.1m at
30th June 2020 compared with €93.5m at 31th December 2019,
resulting from the recognition of net profit for the first half of
the year.
Net financial debt stood at €52.8m at 30 June
2020. It consists mainly of the €45m senior loan drawn down, bought
back by COFEPP from the bank lenders under the tripartite agreement
signed on 17th January 2020. MBWS benefited from advances
granted by COFEPP of €21m in the first half of 2020.
OUTLOOK
During the first half of 2020, which was marked
by an unprecedented global health crisis, the Group resolutely
pursued its strategic roadmap, while working to adapt its fixed
costs and overheads in line with the expected impact of Covid-19 on
business. The very buoyant bulk business in the second quarter,
voluntary commercial policies and strategic choices of distribution
partnerships in certain key countries enabled MBWS to show a
certain resilience to this difficult context. Nevertheless, the
disruptions related to Covid-19 will continue into the second half
of the year and, given the uncertainty as to the duration of this
crisis, the Group does not yet have sufficient visibility on the
outlook for the year.
POST CLOSURE EVENTS
Signing of an agreement subject to
conditions precedent with United Beverages S.A. for the sale of the
Group's activities in Poland
In two press releases dated 16th and 29th July
2020, MBWS announced the signing of an agreement under conditions
precedent with United Beverages S.A. for the acquisition of all the
shares of MBWS Polska and part of the shares of Polmos Lancut in
Poland.
The conditions precedent provided for in this
agreement have not yet been lifted to date.
Implementation of an additional advance
in August 2020
As announced in press releases dated 16th and
29th July, COFEPP has agreed to provide the Group with an
additional advance of up to €5.5m (in place of the €4m advance
initially planned). An initial payment of €4m was thus made on 10
August, with an additional payment of €1.5m to be made by COFEPP
upon proof of the Group's cash flow
requirements.
Agreement in principle on the amendment
of a Scotch Whisky bulk supply contract with an MBWS
supplier
MBWS reached a multi-year agreement in principle
on 16 July 2020, following negotiations with one of its whisky
suppliers, to amend a contract for the sourcing and bulk supply of
Scotch Whisky. The final contractual formalisation of this
agreement (which is a condition precedent to the availability of
the balance of Advance No.2, amounting to approximately €7m as of
today, without taking into account the additional payment of €1.5m
referred to above in which case the balance of Advance n°2 will be
5.5M€) remains under negotiation to date.
Agreement in principle with CIRI for the constitution of
a tax and social security liability
An agreement in principle by the public
creditors on a moratorium on part of the Group's tax and social
security debts was validated by the CIRI in September, for a
maximum amount of €7.5m, a moratorium that will be put in place
over the coming months.
As a reminder, this condition, which was lifted,
was one of the three conditions precedent to the availability of
the balance of Advance No. 2, alongside with (i) the amendment of a
bulk Scotch Whisky supply contract entered into with an MBWS
supplier and (ii) the stability of estimated cash requirements for
2020.
The Group's annual and consolidated financial
statements at 30th June 2020 were prepared on a going concern
basis, taking into account the situation known at the date the
financial statements were closed, and in particular (i) the latest
post-closing events as described above, (ii) the latest estimates
of cash requirements carried out in the context of the evolving
health crisis linked to Covid-19 and (iii) based on the assumption
that the condition precedent relating to the amendment of a
contract for the bulk supply of Scotch Whisky will be lifted in the
coming months, allowing the payment of the balance of Advance No. 2
in the amount of €7m (without taking into account the additional
payment of €1.5m referred to above in which case the balance of
Advance n°2 will be 5.5M€) and thus the recapitalisation of the
Group.
If the assumptions described above were not to
materialise, the Group might not be able to realise its assets and
settle its debts in the normal course of business, and the
valuation and classification of assets and liabilities could be
significantly impacted.
Financial calendar
- Availability of the 2020 first half financial
report: 30 September 2020- Publication of sales at end-September
2020: 28 October 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 |
APPENDIX
FIRST HALF 2020 Consolidated Financial
Statements
INCOME STATEMENT
(in €000) |
30.06.2020 |
30.06.2019 Restated (1) |
NET
SALES |
195,795 |
203,376 |
Excices tax |
(60,523) |
(95,696) |
NET SALES
EXCl TAX |
135,271 |
134,679 |
Cost of goods
sold |
(83,303) |
(85,381) |
External
charges |
(18,627) |
(24,089) |
Salary
expenses |
(24,488) |
(30,745) |
Taxes and
Duties |
(2,504) |
(2,644) |
Depreciation and
Amortization |
(7,096) |
(6,237) |
Other operating
income |
5,236 |
5,030 |
Other operating
expenses |
(2,739) |
(3,871) |
RéCURRING
OPERATING PROFIT |
1,750 |
(13,258) |
Extraordinary
income |
2 647 |
3,109 |
Extraordinary
expenses |
(6,002) |
(10,437) |
OPERATING
PROFIT |
(1,604) |
(20,586) |
Interest
income |
65 |
18 |
Interest
expenses |
(2,561) |
(2,753) |
net COST
OF DEBT |
(2,496) |
(2,735) |
Other interest
income |
6,757 |
2,105 |
Other interest
expenses |
(2,023) |
(1,426) |
NET
INTEREST EXPENSES |
2,239 |
(2,056) |
PRE-TAX
INCOME |
634 |
(22,643) |
Income
tax/credit |
(2,006) |
(355) |
INCOME
FROM ONGOING OPERATIONS |
(1,370) |
(22,998) |
INCOME
FROM DISCONTINUED OPERATIONS (1) |
|
(1,329) |
NET
INCOME |
(1,370) |
(24,327) |
Attributable net
income |
(1,392) |
(24,343) |
Of which net
income from ongoing operations |
(1,392) |
(23,014) |
O which net
income from discontinued operations(1) |
|
(1,329) |
Non-controlling
interests |
22 |
16 |
Of which net
income from ongoing operations |
22 |
16 |
O which net
income from discontinued operations |
|
|
Attributable Net
income per share (in €) |
-0.03€ |
-0.65 € |
Attributable net
income from ongoing operations per share fully diluted (in €) |
-0.03 € |
-0.65 € |
Net income per
share (in €) |
-0.03 € |
-0.65 € |
Net income per
share diluted (in €) |
-0.03€ |
-0.65 € |
Weighted average
number of outstanding shares |
44,568,731 |
37,366,868 |
Weighted average
diluted number of outstanding shares |
44,568,731 |
37,835,336 |
|
|
|
(1) The financial statements (income statement) at 30th June,
2019 have been restated for the effects of the application of IFRS
5 - Discontinued operations. BALANCE SHEET
Assets
(in €000) |
30.06.2020 |
31.12.2019 |
Long term
assets |
|
|
Goodwill |
15,024 |
15,039 |
Intangible
assets |
86,726 |
88,031 |
Property, plant and
equipment |
51,926 |
56,180 |
Financial
assets |
2,003 |
2,387 |
Long-term derivative
instruments |
|
|
Deferred taxes |
1,259 |
1,328 |
Total
long-term assets |
156,938 |
162,965 |
Current
assets |
|
|
Inventory |
59,532 |
53,991 |
Trade
receivables |
29,347 |
46,669 |
Tax receivables |
1,812 |
1,735 |
Other short-term
assets |
31,831 |
32,686 |
Short-term
derivative instruments |
|
157 |
Cash and cash
equivalents |
38,468 |
26,193 |
Total
current assets |
160,988 |
161,431 |
Assets held for
disposal |
|
|
TOTAL
ASSETS |
317,926 |
324,396 |
Liabilities
(in €000) |
31.12.2019 |
31.12.2018 |
Total
Shareholders’ equity |
92,379 |
93,737 |
Total
long-term liabilities |
|
|
Employee
benefits |
5,773 |
5,533 |
Long-term
provisions |
4,180 |
3,238 |
Long-term loans |
70,066 |
9,689 |
Other long-term
liabilities |
1,963 |
1,855 |
Long-term derivative
instruments |
|
|
Deferred tax
liabilities |
16,903 |
16,424 |
Total
long-term liabilities |
98,884 |
36,739 |
Current
liabilities |
|
|
Short-term
provisions |
7,754 |
10,178 |
Short-term portion
of long-term debt |
13,106 |
50,933 |
Short-term debt |
8,131 |
12,292 |
Supplier and other
payables |
49,874 |
63,719 |
Tax liabilities |
1,886 |
481 |
Other short-term
liabilities |
45,912 |
56,315 |
Short-term
derivative instruments |
1 |
2 |
Total
current liabilities |
126,664 |
193,920 |
Liabilities held for
disposal |
|
|
TOTAL
LIABILITIES |
317,926 |
324,396 |
CONSOLIDATED CASH FLOW STATEMENT
(in €000) |
30.06.2020 |
30.06.2019 |
Total
consolidated net profit |
(1,370) |
(24,327) |
Eliminations
: |
|
|
Amortization and
provisions |
(8,199) |
10,145 |
Revaluation gains
/ losses (fair value) |
|
273 |
Gains/losses on
disposals and dilution |
5,844 |
(456) |
Operating
cash flow after net cost of debt and tax |
(3,724) |
(14,364) |
Income tax charge
(credit) |
2,002 |
363 |
Net cost of
debt |
2,351 |
2,844 |
Operating
cash flow before net cost of debt and tax |
629 |
(11,157) |
Change in working
capital 1 (inventories, trade receivables and payables) |
(4,073) |
3,511 |
Change in working
capital 2 (other items) |
(1,552) |
(15,317) |
Tax paid |
(87) |
(177) |
Cash flow
from operating activities |
(5,082) |
(23,140) |
Acquisition of
minority interests |
(3,179) |
(105) |
Purchase of
property, plant and equipement and intangible assets |
|
(5,023) |
Purchase of
financial assets |
|
(4) |
Increase in loans
and advances granted |
|
|
Decrease in loans
and advances granted |
7,072 |
239 |
Disposal of
property, plant and equipement and intangible assets |
510 |
1,076 |
Impact of change
in consolidation scope |
23 |
2 |
Cash flow
from investing activities |
4,427 |
(3,815) |
Capital
increase |
4 |
58,487 |
Share
buybacks |
|
(5) |
New loans |
67,271 |
76 |
Loans
repayment |
(47,725) |
(2,872) |
Net interest
paid |
(1,455) |
(2,623) |
Net change in
short-term debt |
(4,734) |
(16,216) |
Cash Flow
from financing activities |
13,360 |
36,846 |
Impact from
changes in foreign exchange rates |
(430) |
71 |
Change in
cash and cash equivalents |
12,275 |
9,962 |
Opening cash
position |
26,193 |
21,832 |
Closing cash
position |
38,468 |
31,794 |
Change in
cash and cash equivalents |
12,275 |
9,962 |
1 EBITDA = EBIT – provisions for current assets – depreciations
– pensions liabilities.
2 Following the operations of consolidation of
the interim financial statements at 30th June 2020, the restatement
related to IFRS5 (Assets sold: removal from the consolidation scope
of the Sobieski Trade company sold in November 2019) has been
adjusted. As a result, compared with the data published in the 2020
half-year revenue press release dated 29th July 2020, restated
revenue for the first half of 2019 was €134.7m, €6.8m lower than
the amount presented in the 29 July publication. As a result,
like-for-like revenue for the first half of 2020 is up 0.4%
compared with the -4.3% decline reported on 29 July, and the
Branded Business is down 10.8% compared with the -17.2% reported on
29th July. These items had no impact on revenue or on the
presentation of the consolidated financial statements at 30th June
2020.
- MBWS_PR_2020FIRSTHALFRESULTS
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