Marie Brizard Wine & Spirits: 2023 full-year earnings
Charenton-le-Pont, 17 April
2024
2023 full-year earnings
Growth in
EBITDA1 and underlying
operational profit in 2023 despite the slowdown in the spirits
market, particularly in France.
Full-year positive effect of earlier
restructuring done.
-
EBITDA1 of €13.3m in
2023, up 12.8% versus 11,8 M€ in 2022
- Net profit (Group share) of
€8.7m in 2023 compared with a net loss of €0.9m in
2022
NB: All revenue variation figures reported
herein are at constant exchange rates and consolidation scope,
unless otherwise stated.
Marie Brizard Wine &
Spirits (Euronext: MBWS) today announces its consolidated
earnings for the 2023 financial year as approved by the Group’s
Board of Directors on 16 April 2024. All audit procedures have been
carried out.
Commenting on these results,
Fahd Khadraoui, Chief Executive Officer of Marie Brizard
Wine & Spirits, said: “Our Group faced many challenges
in 2023 and I am proud of the work accomplished by our teams in
this demanding environment.In a year marked by dramatic inflation,
starting in 2022, and persistent market downturns, we were able to
implement price increases designed to cover the rise in input
costs, while preserving the market share of our Strategic
International and Flagship Local brands.We have also succeeded in
developing our Agencies Brands distribution and Industrial Services
offerings, allowing us to better absorb the structural costs of our
subsidiaries.In the first year of our medium-term development plan,
“Investing for a Sustainable Growth”, we have
focused our investments on improving the productivity and
sustainability of our industrial equipment and the visibility of
our brands.Lastly, the benefits of the major restructuring
initiatives launched in 2022 were felt over the full year basis in
2023, making a major contribution to improving Group
profitability.As markets are normalising in 2024 after the episode
of inflation, we must redouble our efforts to protect our market
share and positioning, as well as our margins, building on our
fundamental commitment to offering our consumers high-quality
products at the best prices.”
Simplified income statement - FY
2023
|
(€m except EPS) |
2022 |
2023 |
|
|
Change 2023/2022 |
|
|
|
Net revenues (excluding excise duties) |
181.4 |
194.2 |
|
|
+12.8 |
|
|
Gross margin |
70.9 |
70.7 |
|
|
-0.2 |
|
|
Gross margin ratio |
39.1% |
36.4% |
|
|
|
|
|
EBITDA |
11.8 |
13.3 |
|
|
+1.5 |
|
|
EBITDA margin |
6.5% |
6.9% |
|
|
|
|
|
Underlying operating profit |
7.1 |
8.1 |
|
|
+1.0 |
|
|
Net profit (Group share) |
(0.9) |
8.7 |
|
|
+9.6 |
|
| of
which Net profit/(loss) from continuing operations, Group
share |
(0.9) |
8.7 |
|
|
+9.6 |
|
| of
which Net profit/(loss) from discontinued operations |
- |
- |
|
|
- |
|
|
Earnings per share, Group share (EPS, €) |
-0.01 |
0.08 |
|
|
+0.09 |
|
|
Earnings per share from continuing operations, Group share (EPS,
€) |
-0.01 |
0.08 |
|
|
+0.09 |
|
In 2023, the Group generated sales of €194.2m,
up 7.2% on the prior year, excluding currency impact. 2023 was
marked by a rise in revenues for both clusters, particularly the
International cluster.
Gross margin was virtually stable at €70.7m, and
the gross margin ratio was 36.4% in 2023, compared with 39.1% in
2022. This 2.7 percentage point decline reflects the continuing
surges in material and energy prices, partly offset by price
increases and the dilutive effect of revenue growth.
2023 EBITDA amounted to €13.3m, up from €11.8m
the previous year, with an EBITDA margin of 6.9% of revenues, an
improvement of 40 basis points on 2022 (6.5%).
The France cluster saw EBITDA increase by €1.1m.
The year 2022 was severely impacted by the sudden sharp rise in raw
material and energy costs, starting in the second quarter and
mainly affecting the second half of the year. The improvement in
EBITDA in 2023 is the result of price increases designed to cover
rising input costs, the full-year effect of the restructuring of
the Off-Trade sales department initiated in 2022 and disciplined
management.
Despite the price increases, International
cluster EBITDA fell by €1.6m, mainly due to difficulties in the US
market and in certain export markets, overshadowing the
improvements observed in Spain, Lithuania, Bulgaria and
Brazil.2023 net revenues by cluster
|
(€m) |
2022 |
LFL change |
Currency impact |
2023 |
LFL change (excl. currency
impact) |
Change(incl. currency
impact) |
|
FRANCE CLUSTER |
81.3 |
2.1 |
- |
83.3 |
2.5% |
2.5% |
|
INTERNATIONAL CLUSTER |
100.1 |
11.0 |
(0.2) |
110.9 |
11.0% |
10.8% |
|
TOTAL MBWS |
181.4 |
13.1 |
|
(0.2) |
194.2 |
7.2% |
7.1% |
2023 EBITDA by cluster
|
(€m) |
2022 |
LFL change |
Currency impact |
2023 |
LFL change (excl. currency
impact) |
Change(incl. currency
impact) |
|
FRANCE CLUSTER |
8.4 |
1.1 |
- |
9.5 |
13.6% |
13.6% |
|
INTERNATIONAL CLUSTER |
9.5 |
(1.6) |
0.0 |
7.8 |
-17.4% |
-17.9% |
| HOLDING
COMPANY |
(6.1) |
2.0 |
- |
(4.0) |
33.6% |
33.6% |
|
TOTAL MBWS |
11.8 |
1.5 |
0.0 |
13.3 |
12.8% |
12.5% |
FRANCE CLUSTER:
In France, revenues rose 2.5% versus 2022 amid a
market slowdown. On-trade sales improved, despite a slight dip in
the fourth quarter due to lower consumer demand.
EBITDA for the cluster rose 13.6% to €9.5m in
2023.
INTERNATIONAL CLUSTER:
International revenues rose 11.0% versus 2022,
with disparities between regions:
- growth in Spain, Lithuania,
Bulgaria and Brazil thanks to a strong performance from industrial
services and the brands;
- a downturn in export sales across
all regions, the United States and Scandinavia:
- in the United States, the decline
in Sobieski and Gautier revenues is linked to a competitive and
shrinking market, as well as the significant impact of the local
distributor’s inventory rundown policy.
EBITDA for the cluster fell 17.4% to €7.8m.
Changes in International cluster revenues by
entity were as follows:MBWS International
Revenues amounted to €15.6m in 2023, down 16.2%
on 2022. In the Western European export markets, sales were down
3,6% and the strong performance by William Peel failed to offset
the decline in Marie Brizard sales. In the Americas export region,
sales were down 25.7%, impacted by a highly competitive vodka
market and a continuing unfavourable trend in the cognac category.
Finally, Asia Pacific sales fell 24.0% under the impact of the
decline in Marie Brizard sales, particularly in the Australian and
South Korean markets.
MBWS España
Revenues amounted to €26.0m, up 23.2%. Growth
was primarily driven by a significant increase in industrial
subcontracting and continuing strong performances by a number of
strategic international brands, notably William Peel in the
cross-border market.
MBWS Scandinavia
In 2023, revenues in Denmark fell 10.7% to €3.0m
as a result of market restructuring marked by consolidation
agreements between certain players and a number of on-trade
delistings.
MBWS Baltics
Revenues in Lithuania and its export zone
amounted to €32.8m in 2023, up 24.4%, mainly driven by flagship
regional brands, strategic international brands (mainly William
Peel) and continued export growth driven by the Ukrainian
market.
MBWS Bulgaria
Revenues for Bulgaria and its export zone
amounted to €22.2m, up 32.0%, driven by export markets and
industrial subcontracting.
Imperial Brands
In the United States, full-year 2023 revenues
were down 27.4% at €7.7 m, impacted in the case of Sobieski by a
highly competitive vodka market coupled with the local
distributor’s inventory rundown policy. This trend is also linked
to sluggish local sales following changes in the routes to market
in key States. Finally, Gautier sales were impacted by the sharp
decline in the US cognac market, while Marie Brizard sales were
stable.
Dubar
In Brazil, 2023 revenues surged 21.5% to €3.6m,
mainly driven by resilience among the region’s flagship brands and
the continuation of a rigorous sales policy and proactive pricing
policy.
HOLDING COMPANY
The holding company posted an EBITDA loss of
€4.0m for 2023 versus a €6.1m loss in 2022, an improvement
reflecting continued reduction and control of internal costs as
well as temporary positive exchange rate effects on operating
performance.
BALANCE SHEET AT 31 DECEMBER
2023
Shareholders’ equity, Group share, was €203.3m
at 31 December 2023, compared to €194.6m the previous year. Net
cash amounted to €38.3m at 31 December 2023, compared to €40.9m the
previous year. This reflects the improvement in the Group’s cash
flow, which did not, however, offset higher capital expenditure,
particularly in France and Lithuania, the payment of corporation
tax and the reduction in trade payables (linked in particular to
the normalisation of inventories which began in the second half of
2023). There was also an unfavourable timing effect on customer
receipts in France at the end of 2023, with 31st December falling
on a Sunday.
OUTLOOK
For several years now, the Group has focused on
creating the conditions for a profitable development of its brand
portfolio and markets (subsidiaries and sales networks, direct
export).
In the wake of the health crisis and the
subsequent disruption to markets, upstream industrial chains,
supply shortages and drastic inflation from 2022 onwards, the Group
has adopted a rigorous and proactive approach to negotiations,
brand development and commercial operations with all its
customers.
It has thus demonstrated its ability to remain
agile and resilient, by pursuing the following objectives:
- balance the necessary price
increases against inflation in raw material and other production
costs;
- maintain the value growth approach
while pursuing business development wherever the brands allow
(notably in France, Lithuania, Bulgaria, Western Europe and the
main export markets).
The year 2024 will see a continuous market
normalisation, with a resumption of the fall in consumer volumes,
combined with inventory rundowns by certain importer customers in a
context of downward pressure on prices following the exceptional
wave of inflation of the last two years.
In 2024, the Group plans to pursue its strategy
of focusing on value-creating activities, with an emphasis on:
- “good value for money” offers to
protect its market share following price increases;
- implementing growth initiatives and
projects, both organic and external, in its two clusters, in order
to expand its trading base and improve financial performance;
- normalised investment in strategic
inventories, in line with the needs identified by the Group;
- investments in productivity that
could lead to the replacement of machinery, which would require
production stoppages in the first half, without a major impact on
full-year performance.
Within a competitive environment that remains
quite intense, the Group continually monitors the soundness of its
sales policies, the effectiveness of its route to market, any
necessary adjustments to its commercial offering and the pursuit of
intra-Group synergies, in order to continue to strengthen its
overall profitability.
Financial calendar:
- Q1 2024 revenues: 25 April 2024
- General Meeting: 27 June 2024
| Investor
and shareholder relations contact MBWS
GroupEmilie Drexlerrelations.actionnaires@mbws.comTel.:
+33 1 43 91 62 21 |
Press
contactImage Sept Claire Doligez -
Laurent Poinsotcdoligez@image7.fr – lpoinsot@image7.frTel.: +33 1
53 70 74 70 |
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 expertise, a combination of brands with a long
tradition and a resolutely innovative spirit. Since the birth of
the Maison Marie Brizard in 1755, the Marie Brizard Wine &
Spirits Group has developed its brands in a spirit of modernity
while respecting their origins. Marie Brizard Wine & Spirits is
committed to offering its customers bold and trusted brands full of
flavour and experiences. The Group now has a rich portfolio of
leading brands in their market segments, including William Peel,
Sobieski, Marie Brizard and Cognac Gautier. Marie Brizard Wine
& Spirits is listed on Compartment B of Euronext Paris
(FR0000060873 - MBWS) and is part of the EnterNext© PEA-PME 150
index.
APPENDIX
FY
2023 Consolidated Financial Statements
Income statement
|
(€000) |
2023 |
2022 |
|
|
|
|
|
|
Revenues |
236,029 |
227,121 |
|
| Excise
duties |
(41,800) |
(45,770) |
|
| Net
revenues excluding excise duties |
194,229 |
181,351 |
|
| Cost of goods
sold |
(123,504) |
(110,420) |
|
| External
expenses |
(28,675) |
(27,599) |
|
| Personnel
expense |
(27,289) |
(27,134) |
|
| Taxes and
levies |
(1,304) |
(2,483) |
|
| Depreciation and
amortisation charges |
(6,031) |
(6,075) |
|
| Other operating
income |
4,396 |
4,166 |
|
| Other operating
expenses |
(3,688) |
(4,735) |
|
|
Underlying operating profit |
8,134 |
7,071 |
|
| Non-recurring
operating income |
5,462 |
5,080 |
|
| Non-recurring
operating expenses |
(3,277) |
(10,269) |
|
|
Operating profit |
10,319 |
1,882 |
|
| Income from cash
and cash equivalents |
789 |
113 |
|
| Gross cost of
debt |
(246) |
(198) |
|
| Net cost
of debt |
543 |
(85) |
|
| Other financial
income |
582 |
1,064 |
|
| Other financial
expenses |
(467) |
(1,181) |
|
|
Net financial income/(expense) |
658 |
(202) |
|
|
Profit before tax |
10,977 |
1,680 |
|
| Income tax |
(2,225) |
(2,605) |
|
|
Net profit from continuing operations |
8,751 |
(925) |
|
|
Net profit/(loss) from discontinued
operations |
|
|
|
| |
|
|
|
|
NET PROFIT |
8,751 |
(925) |
|
| Group share |
8,732 |
(945) |
|
| of which Net
profit from continuing operations |
8,732 |
(945) |
|
|
of which Net profit/(loss) from discontinued operations |
|
|
|
| Non-controlling
interests |
20 |
20 |
|
| of which Net
profit from continuing operations |
20 |
20 |
|
| of which Net
profit/(loss) from discontinued operations |
|
|
|
|
|
|
|
|
| Earnings per
share from continuing operations, Group share (€) |
€0.08 |
(€0.01) |
|
| Diluted earnings
per share from continuing operations, Group share (€) |
€0.08 |
(€0.01) |
|
|
Earnings per share, Group share (€) |
€0.08 |
(€0.01) |
|
|
Diluted earnings per share, Group share (€) |
€0.08 |
(€0.01) |
|
|
Weighted average number of shares outstanding |
111,872,262 |
111,856,837 |
|
|
Diluted weighted average number of shares outstanding |
111,872,262 |
111,856,837 |
|
Balance sheet
|
Assets |
|
|
|
|
(€000) |
31/12/2023 |
31/12/2022 |
|
|
Non-current assets |
|
|
|
|
Goodwill |
14,704 |
14,704 |
|
|
Intangible assets |
76,137 |
77,847 |
|
|
Property, plant and equipment |
31,206 |
26,932 |
|
|
Financial assets |
965 |
1,146 |
|
|
Deferred tax assets |
2,712 |
3,781 |
|
|
Total non-current assets |
125,724 |
124,410 |
|
|
Current assets |
|
|
|
|
Inventory and work-in-progress |
51,546 |
51,934 |
|
|
Trade receivables |
40,999 |
43,523 |
|
|
Tax receivables |
1,217 |
734 |
|
|
Other current assets |
10,852 |
10,468 |
|
|
Current derivatives |
83 |
114 |
|
|
Cash and cash equivalents |
45,132 |
47,495 |
|
|
Assets held for sale |
|
|
|
|
Total current assets |
149,829 |
154,268 |
|
|
TOTAL ASSETS |
275,553 |
278,678 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Equity & Liabilities |
|
|
|
|
(€000) |
31/12/2023 |
31/12/2022 |
|
|
Shareholders’ equity |
|
|
|
|
Share capital |
156,786 |
156,786 |
|
|
Additional paid-in capital |
72,815 |
72,815 |
|
|
Consolidated and other reserves |
(26,332) |
(25,529) |
|
|
Translation reserves |
(8,746) |
(8,520) |
|
|
Consolidated net profit/(loss) |
8,732 |
(945) |
|
|
Shareholders’ equity (Group share) |
203,254 |
194,607 |
|
|
Non-controlling interests |
94 |
333 |
|
|
Total shareholders’ equity |
203,348 |
194,940 |
|
|
Non-current liabilities |
|
|
|
|
Employee benefits |
1,497 |
1,769 |
|
|
Non-current provisions |
3,738 |
2,540 |
|
|
Long-term borrowings – due in > 1 year |
2,538 |
2,218 |
|
|
Other non-current liabilities |
1,577 |
1,518 |
|
|
Deferred tax liabilities |
145 |
139 |
|
|
Total non-current liabilities |
9,495 |
8,184 |
|
|
Current liabilities |
|
|
|
|
Current provisions |
3,633 |
5,417 |
|
|
Long-term borrowings – due in < 1 year |
656 |
641 |
|
|
Short-term borrowings |
3,615 |
3,702 |
|
|
Trade and other payables |
34,094 |
36,694 |
|
|
Tax liabilities |
416 |
1,932 |
|
|
Other current liabilities |
20,241 |
26,899 |
|
|
Current derivatives |
55 |
269 |
|
|
Liabilities held for sale |
|
|
|
|
Total current liabilities |
62,710 |
75,554 |
|
|
TOTAL EQUITY AND LIABILITIES |
275,553 |
278,678 |
|
Cash flow statement.
|
(€000) |
31/12/2023 |
31/12/2022 |
| Total
consolidated net profit |
8,751 |
-925 |
| Depreciation
and provisions |
1,265 |
6,562 |
| Gains/(losses)
on disposals and dilution |
(32) |
49 |
|
Operating cash flow after net cost of debt and
tax |
9,984 |
5,686 |
| Income tax
charge/(income) |
2,225 |
2,605 |
| Net cost of
debt |
(546) |
89 |
|
Operating cash flow before net cost of debt and
tax |
11,664 |
8,380 |
| Change in
working capital 1 (inventories, trade receivables/payables) |
(213) |
-18,280 |
| Change in
working capital 2 (other items) |
(6,755) |
-3,366 |
| Tax
paid/received |
(3,072) |
3,183 |
|
Cash flow from operating activities |
1,624 |
-10,083 |
| Purchase of
PP&E and intangible assets |
(5,112) |
-3,202 |
| Subsidies
received |
16 |
|
| Increase in
loans and advances granted |
(2) |
|
| Decrease in
loans and advances granted |
202 |
1,632 |
| Disposal of
PP&E and intangible assets |
99 |
2,872 |
| Impact of
change in consolidation scope |
(116) |
|
|
Cash flow from investment activities |
(4,913) |
1,302 |
| Capital
increase |
|
22 |
| New
borrowings |
|
16 |
| Borrowings
repaid |
(725) |
-970 |
| Net interest
paid |
677 |
-75 |
| Net change in
short-term debt |
(100) |
1,283 |
|
Cash flow from financing activities |
(147) |
276 |
| Impact of
exchange rate fluctuations |
1,074 |
1,831 |
|
Change in cash and cash equivalents |
(2,362) |
-6,674 |
| Opening cash
and cash equivalents |
47,495 |
54,169 |
| Closing cash
and cash equivalents |
45,133 |
47,495 |
|
Change in cash and cash equivalents |
(2,362) |
-6,674 |
1 EBITDA = EBIT + depreciation & amortisation + provisions
excl. current assets
- PR - MBWS 2023 Annual Results fv.
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