Marie Brizard Wine & Spirits: H1 2022 earnings

Marie Brizard Wine & Spirits
Marie Brizard Wine & Spirits

                                         Charenton-le-Pont, 26 September 2022

H1 2022 earnings

Solid performance, driven by the international business, despite a highly competitive environment and pressure on raw materials and logistics.

  • EBITDA* of €7.6 million in H1 2022, versus €6.0 million in H1 2021 (+ €1.6m)

  • Net profit from continuing operations stable at €2.5 million in the first half

  • Net profit (Group share) of €2.5 million in H1 2022, up €1 million

NB: All revenue growth figures reported herein are at constant exchange rates and consolidation scope, unless otherwise stated.

* EBITDA = EBIT + depreciation and amortisation + pension liabilities

Marie Brizard Wine & Spirits (the « Company ») (Euronext: MBWS) announces its consolidated earnings for H1 2022 as approved by the Group’s Board of Directors today, 26 September 2022. The audit procedures have been carried out.

Simplified income statement - H1 2022

€m except EPS

H1 2021

 

H1 2022

Change

2022 vs 2021

Net revenues (excluding excise duties)

81.0

 

86.4

+5.9%

Gross margin

32.2

 

34.4

+€2.2m

Gross margin ratio

39.7%

 

39.9%

+0.2 pts

EBITDA

6.0

 

7.6

+€1.6m

Underlying operating profit

2.5

 

5.5

+€3.0m

Net profit (Group share)

1.5

 

2.5

+€1.0m

Net earnings per share

0.02

 

0.02

-

First half 2022 revenues

First half 2022 revenues excluding excise duties came to €86.4 million in the first half of 2022, up 5.9% versus H1 2021 (excl. currency impact). This improvement, largely driven by on-trade business, is due in particular to the recovery of a number of markets following the reopening of bars and restaurants.

The France cluster posted first half 2022 revenues of €40.1m, up 2.5% versus H1 2021, mainly due to a significant recovery in the on-trade business, albeit less pronounced in the second quarter, and flat sales in the off-trade market. The Group’s main brands posted a resilient performance in the first half of 2022.

Commercial policy adjustments across all distribution channels have been and may continue to be necessary in order to adapt to the current volatile context.

The International cluster posted H1 2022 revenues of €46.3m, up 9.2% from the first half of 2021 at constant exchange rates, reflecting contrasting trends across regions:

  • confirmed recovery in Europe, particularly in the UK following health restrictions in 2021, despite the Russia-Ukraine conflict, which led to a limited decline in certain export regions;

  • strong performances across all of the Group’s strategic brands, particularly Marie Brizard and Gautier, in Canada, South Korea, Australia and Poland;

  • decline in US sales of Sobieski vodka in a highly competitive market segment.

Earnings

Amid significant volatility and increasing prices, the H1 2022 gross margin of 39.9% was stable compared to last year at €34.4 million.

EBITDA rose to €7.6 million in H1 2022, up from €6.0 million last year.

A €1.5 million decline in EBITDA in France, related to the recognition in the first half of 2021 of part of a one-off €1.7 million discount granted by a supplier at the end of the year, was offset by a solid performance in the International cluster (up €2.3m). H1 2022 saw the recovery of several direct export markets (UK, Canada, South Korea and Australia) and subsidiaries (MBWS Baltics).

Group EBITDA was also boosted by a decrease in the holding company’s structural costs, following the reorganisation initiated in 2021.

H1 2022 EBITDA by cluster

€m

H1 2021

LFL
change

Currency impact

H1 2022

LFL change
(excl. currency impact)

Reported growth (incl. currency impact)

France

6.5

(1.5)

-

5.0

-22.9%

-22.9%

International

3.3

2.2

0.1

5.6

+67.8%

+70.1%

Holding company

(3.8)

0.8

-

(3.0)

+21.3%

+21.3%

TOTAL MBWS GROUP

6.0

1.5

0.1

7.6

+25.9%

+27.2%

Net profit (Group share) amounted to €2.5 million in the first half of 2022, up €1.0 million compared to H1 2021, which included a net loss from discontinued operations of €0.9 million.

Balance sheet at 30 June 2022

Shareholders’ equity (Group share) amounted to €178.3 million at 30 June 2022, up from €173.6 million at 31 December 2021, while gross debt remained stable at €6.0 million in the first half of 2022, as did positive Group cash balances of €53.4 million at 30 June 2022.

There was a substantial temporary increase in inventories and work-in-progress to €46.1 million at 30 June 2022, up €11 million from 30 June 2021, including +€7.3 million for raw materials. This increase reflects the need to anticipate potential one-off shortages and take recurring logistical challenges into account, in addition to the impact of the substantial and widespread price increases already mentioned (in particular for glass).

Outlook

As expected, the trends discussed at the 30 June 2022 General Meeting, namely increases in raw material and energy prices and the variable availability of supplier production, continued over the summer, and appear likely to persist over the coming months.

The Group therefore continues to be attentive to the impact of this volatile environment on its ability to supply all its customers worldwide, and to the strength of consumer demand, given the need to adapt its pricing policies. Against this background the Group maintains its cautious stance on business forecasts for 2022 year-end.

In this context, even if the efforts deployed within the framework of the strategic plan are generating the expected returns, the Group remains cautious regarding the outlook for the balance of the 2022 year.

Shareholder information

In view of the forthcoming expiry date of the share warrants issued by the Company (the 2022 warrants), COFEPP, the Company's controlling shareholder with 78.52% of its share capital, has indicated to the Company that it does not currently intend to initiate a public takeover bid for the remainder of the Company's capital. COFEPP has also indicated that it does not intend to exercise the warrants it holds.
COFEPP has also indicated that it reserves the right to acquire the Company's shares on or off the market, in accordance with applicable regulations and depending on the opportunities that may arise.
The Company confirms that it was not a party to the acquisition by COFEPP of the securities held by BDL and did not carry out any valuation work in this respect. The Company is complying with the rules regarding periodic and on-going disclosure of information.

Financial calendar

  • H1 2022 financial report available: 30 September 2022

    • Publication of revenues for the first nine months of 2022: 27 October 2022

Investor and shareholder relations contact
MBWS Group
Emilie Drexler
emilie.drexler@mbws.com
Tel.: +33 1 43 91 62 21

Press contact
Image Sept
Claire Doligez - Laurence Maury
cdoligez@image7.fr – lmaury@image7.fr
Tel.: +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                         H1 2022 Consolidated Financial Statements

Income statement

(€000)

H1 2022

H1 2021

 

 

 

 

 

Revenues

105,995

103,536

 

Excise duties

(19,574)

(22,507)

 

Net revenues excluding excise duties

86,421

81,028

 

Cost of goods sold

(51,978)

(48,865)

 

External expenses

(11,872)

(11,050)

 

Personnel expense

(14,013)

(16,282)

 

Taxes and levies

(953)

(1,156)

 

Depreciation and amortisation charges

(3,072)

(3,562)

 

Other operating income

1,887

3,680

 

Other operating expenses

(899)

(1,315)

 

Underlying operating profit

5,521

2,478

 

Non-recurring operating income

2,055

2,403

 

Non-recurring operating expenses

(5,152)

(2,488)

 

Operating profit

2,424

2,393

 

Income from cash and cash equivalents

29

107

 

Gross cost of debt

(96)

(343)

 

Net cost of debt

(67)

(236)

 

Other financial income

956

507

 

Other financial expenses

(593)

(86)

 

Net financial income

296

185

 

Profit before tax

2,720

2,578

 

Income tax

(196)

(89)

 

Net profit from continuing operations

2,524

2,489

 

Net profit/(loss) from discontinued operations

-

(942)

 

 

 

 

 

NET PROFIT

2,524

1,547

 

Group share

2,511

1,546

 

of which Net profit from continuing operations

2,511

2,488

 

of which Net profit/(loss) from discontinued operations

 

(942)

 

Non-controlling interests

13

1

 

of which Net profit from continuing operations

13

1

 

of which Net profit from discontinued operations

 

 

 

 

 

 

 

Earnings per share from continuing operations, Group share (€)

0.02

0.02

 

Diluted earnings per share from continuing operations, Group share (€)

0.02

0.02

 

Earnings per share, Group share (€)

0.02

0.02

 

Diluted earnings per share, Group share (€)

0.02

0.02

 

Weighted average number of shares outstanding

111,825,601

99,866,838

 

Diluted weighted average number of shares outstanding

111,825,601

99,866,838

 

Balance sheet

Assets

 

 

 

(€000)

30/06/2022

31/12/2021

 

Non-current assets

 

 

 

Goodwill

14,704

14,704

 

Intangible assets

78,667

79,361

 

Property, plant and equipment

27,007

27,181

 

Financial assets

1,148

4,001

 

Deferred tax assets

1,026

452

 

Total non-current assets

122,552

125,699

 

Current assets

 

 

 

Inventory and work-in-progress

46,116

35,094

 

Trade receivables

36,321

35,891

 

Tax receivables

300

4,125

 

Other current assets

9,282

9,714

 

Current derivatives

88

281

 

Cash and cash equivalents

53,397

54,169

 

Assets held for sale

-

3,058

 

Total current assets

145,504

142,332

 

TOTAL ASSETS

268,056

268,031

 

 

 

 

 

 

 

 

 

 

 

 

Equity & Liabilities

 

 

 

(€000)

30/06/2022

31/12/2021

 

Shareholders’ equity

 

 

 

Share capital

156,738

156,729

 

Additional paid-in capital

72,761

72,751

 

Consolidated and other reserves

(45,623)

(51,638)

 

Translation reserves

(8,085)

(9,806)

 

Consolidated net profit/(loss)

2,511

5,564

 

Shareholders’ equity (Group share)

178,302

173,600

 

Non-controlling interests

346

332

 

Total shareholders’ equity

178,648

173,932

 

Non-current liabilities

 

 

 

Employee benefits

1,509

2,214

 

Non-current provisions

3,124

4,116

 

Long-term borrowings – due in > 1 year

2,246

2,546

 

Other non-current liabilities

1,687

1,735

 

Deferred tax liabilities

16,290

15,965

 

Total non-current liabilities

24,856

26,576

 

Current liabilities

 

 

 

Current provisions

6,423

2,546

 

Long-term borrowings – due in < 1 year

773

888

 

Short-term borrowings

3,033

2,542

 

Trade and other payables

31,860

31,113

 

Tax liabilities

245

135

 

Other current liabilities

22,044

29,942

 

Current derivatives

174

198

 

Liabilities held for sale

 

159

 

Total current liabilities

64,552

67,523

 

TOTAL EQUITY AND LIABILITIES

268,056

268,031

 

Cash flow statement.

(€000)

H1 2022

H1 2021

Total consolidated net profit/(loss)

2,524

1,547

Depreciation and provisions

4,930

1,124

Gains/(losses) on disposals and dilution

(51)

466

Operating cash flow after net cost of debt and tax

7,403

3,137

Income tax charge/(income)

196

89

Net cost of debt

67

214

Operating cash flow before net cost of debt and tax

7,666

3,440

Change in working capital 1 (inventories, trade receivables/payables)

(10,473)

(5,108)

Change in working capital 2 (other items)

(7,497)

(2,021)

Tax paid

3,716

(7,881)

Cash flow from operating activities

(6,588)

(11,570)

Purchase of PP&E and intangible assets

(1,412)

(1,147)

Decrease in loans and advances granted

2,733

893

Disposal of PP&E and intangible assets

2,872

94

Impact of change in consolidation scope

-

1,947

Cash flow from investment activities

4,193

1,787

Capital increase

19

16,709

New borrowings

159

7,149

Borrowings repaid

(791)

(831)

Net interest paid

(67)

(214)

Net change in short-term debt

525

(3,008)

Cash flow from financing activities

(155)

19,805

Impact of exchange rate fluctuations

1,778

508

Change in cash and cash equivalents

(772)

10,530

Opening cash and cash equivalents

54,169

42,075

Closing cash and cash equivalents

53,397

52,605

Change in cash and cash equivalents

(772)

10,530

Attachment