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Marie Brizard Wine & Spirits: 2021 First half Results

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Charenton-le-Pont, 29 September 2021

2021 First half Results

Resilient profit delivery in the first half of 2021
taking into account the one-off impacts in the 2020 reported half-year results

  • EBITDA* of €6.0m at 30 June 2021 (-11%) compared to €6.9m in H1 2020 restated (1) which benefited from non-recurring items totalling €3.3m related to the pandemic

  • Net income from continuing operations up 22.3% to €2.5m at end of June 2021

  • Net profit (Group share): €1.5m (-€1.4m at 30 June 2020)

* EBITDA = EBIT – provisions for current assets – depreciations – pensions liabilities.

NB: Unless otherwise stated, any growth in turnover mentioned is quoted at a constant exchange rate and consolidation scope.

Marie Brizard Wine & Spirits (Euronext: MBWS) announces today its consolidated results for the first half of 2021, approved by the Group's Board of Directors held on 28th September 2021. The audit procedures have been completed.

Andrew Highcock, CEO of Marie Brizard Wine & Spirits, comments: " This first half year performance was resilient, thanks in particular to the disciplined application of management policies. Although the external situation improved from May onwards, mainly due to the roll-out of vaccinations, the health context has had disruptive effects on the business depending on the distribution networks. Moreover, the situation remains too uncertain for the end of the year to allow us to provide a short or medium-term outlook. Nevertheless, MBWS enters this period with a restored balance sheet, a more agile and efficient organisation, committed teams and an unchanged ambition to pursue its 2019-2022 strategic plan whose aim is to sustainably strengthen the Group's profitability.

Simplified income statement for First Half 2021

In €m, except EPS







H1 2020 restated (1)

H1 2021

2021/20

Change

Net sales (excluding excise tax)

86.7 (1)

81.0

-5.8%

Gross profit

37.3

32.2

-€5.1m

Gross margin

43.0%

39.7%

-3.3pt

EBITDA

6.9

6.0

-€0.8m

Current operating income

3.0

2.5

-€0.5m

Attributable net income

(1.4)

1.5

+€2.9m

Earnings per share

(0.65)

0.02

n.s.


2021 First Half Sales

In accordance with the Group’s new managerial organisation implemented on 1 January 2021, the Group’s turnover is now split between two clusters, France and International, in order to reflect the evolution of business after the different disposals in 2019 (including the business in Poland, sold on 21 October 2020 and Moncigale, sold on 16 February 2021).

H1 2021 sales reached €81m, down 5.8% on a like-for-like basis compared to the same period of 2020 (restated for Polish and Moncigale entities), reflecting the impact of Covid-related restrictions, lower demand for hydro-alcoholic gel and some shipment deferrals to the second half of the year.

Sales for the first half of 2021 increased by 3.5% after adjusting for one-off effects including both the impact of pandemic-related bulk ethyl alcohol sales in Lithuania in 2020 and the impact of the new distribution system implemented in the US as of 1 January 2020, which resulted in an initial build-up of inventory linked to the new local distribution network.

In France, revenue for the first half of 2021 was €39.1m, up 2% on 2020.

International sales amounted to €41.9m, a decline of 12% as a result of the negative comparison with the particularly high level of activity in Lituania and in the United States in H1 2020 (change in distribution model at the beginning of 2020 as mentioned above). The decline in International sales was less severe in the second quarter (-7.1%) thanks to the recovery of certain key markets, particularly the UK and Spain.

Results

Consequently, gross margin for the first half of 2021 fell by 14%, resulting in a 3.3 point reduction in the gross margin rate to 39.7% in the first half of 2021, compared with 43% (restated accounts) at 30 June 2020, a consequence of non-recurring activities and events in the first half of 2020). To note that the gross margin rate in the first half of 2019 was 38.7%.

EBITDA amounted to €6.0m in H1 2021, compared to €6.9m in 2020, a decrease of 11% excluding the currency effect, a change of -€0.9m also explained by the impact of non-recurring impacts in H1 2020.

As at 30 June 2021, the cost of net financial debt was €1.3m lower than at the end of June 2020 due to a significant reduction in the Group's debt following the capital increase launched on 14 January 20212. Overall, the financial result was €0.2m at 30 June 2021, compared with €3.7m in the restated first half of 2020, which included a non-recurring financial income.

Attributable net profit amounted to €1.5m in the first half of 2021, compared with a loss of €1.4m in the first half of 2020, with a Net Profit (Group share) from Continuing Operations of €2.5m at the end of June 2021, compared with €2m at 30 June 2020, an increase of 22.3%.

2021 First Half EBITDA by cluster

(in €m)

H1 2020
restated

Organic growth

FX
impact



H1 2021

Organic growth
(excl. FX)

Variation
(incl. FX)

FRANCE CLUSTER

4.9

1.6

-

6.5

32.3%

32.3%

INTERNATIONAL CLUSTER

7.5

(4.1)

(0.1)

3.3

-54.1%

-55.5%

HOLDING

(5.5)

1.7

-

(3.8)

-30.1%

-30.1%

TOTAL MBWS

6.9

(0.8)

(0.1)

6.0

-11.0%

-12.5%

The France cluster contributes €6.5m to Group EBITDA in H1 2021, compared to €4.9m in H1 2020 restated. At end-June, €1.7m of a one-off, non-recurring discount granted to MBWS as part of the renegotiation of the whisky supply contract finalised in early 2021 was recognised.

The entities under the International cluster reported EBITDA of €3.3m for the first half of 2021, compared to €7.5m in the restated first half of 2020, reflecting in particular the cyclical impact of bulk ethyl alcohol sales in Lithuania in 2020, as well as the initial build-up of inventories on listings linked with the new distribution system in the USA on 1 January 2020.

Holding: EBITDA amounted to -€3.8m, an improvement of €1.7m vs. 2020, mainly driven by three factors: the reduction of operating costs and central teams in line with the new size of the group and the operational organisation implemented at the beginning of 2021, controlled operating budgets and the postponement of certain expenses to the second half of 2021.

Balance sheet at 30th June 2021

Shareholders' equity (Group share) was €168.2m at 30 June 2021, compared with €66m at 31 December 2020, while net financial debt was €6.3m at 30 June 2021, down by €79.3m compared with 31 December 2020.

These changes reflect the capital increase conducted in January 2021, which led to the incorporation into the Company's capital of all the bank debt (excluding factoring) purchased by COFEPP from the Company's bank lenders (principal amount of €45m) and the overdraft facilities drawn down (principal amount of €1,1m), the incorporation of all the current account advances paid or still to be paid by COFEPP to the Company and its subsidiary MBWS France (total principal amount of €32m) as well as the first tranche of the Poland advance granted by COFEPP to the Company (amount of €3m).

Outlook

The Group is pursuing the implementation of its 2019-2022 Strategic Plan aimed at creating the conditions for profitable and sustainable development, with in particular the sale of the Polish activities and the wine business in France. The resulting simplification of operational structures has led to a new organisation with two clusters (France - International and wines) under the overall management of the Holding Company on 1 January 2021. This strategy and cost alignment to the size of the activities country by country will be pursued to strengthen the Group's profitability.
After an encouraging trend in results in 2020, the Group faced a mixed context as the pandemic evolved in the first half of 2021. With its disruptive impact on the business differing by distribution channel and the uncertainty about its evolution by the end of the year, the Group is currently cautious about predicting future trading performance.

Financial calendar

- Availability of the 2021 first half financial report: 30 September 2021
- Publication of Sales at end-September 2021: 28 October 2021

About Marie Brizard Wine & Spirits

Marie Brizard Wine & Spirits is a Group of wines and spirits 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 its origins.
Marie Brizard Wine & Spirits' commitment is to offer its customers brands of confidence, daring and full of flavours 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.

Contact
Image Sept
Claire Doligez- Flore Larger
cdoligez@image7.fr – flarger@image7.fr
Tél : +33 1 53 70 74 70


APPENDIX

FIRST HALF 2021 Consolidated Financial Statements (1)

INCOME STATEMENT

(in €000)

30.06.2021

30.06.2020 Restated

NET SALES

103,536

111,981

Excices tax

(22,507)

(25,227)

NET SALES EXCL TAX

81,028

86,753

Cost of goods sold

(48,865)

(49,469)

External charges

(11,050)

(12,494)

Salary expenses

(16,282)

(17,092)

Taxes and Duties

(1,156)

(1,372)

Depreciation and Amortization

(3,562)

(4,691)

Other operating income

3,680

2,639

Other operating expenses

(1,315)

(1,289)

RÉCURRING OPERATING PROFIT

2,478

2,986

Extraordinary income

2,403

2,781

Extraordinary expenses

(2,488)

(5,978)

OPERATING PROFIT

2,393

(211)

Interest income

107

65

Interest expenses

(343)

(1,623)

NET COST OF DEBT

(236)

(1,558)

Other interest income

507

6,747

Other interest expenses

(86)

(1,479)

NET INTEREST EXPENSES

185

3,710

PRE-TAX INCOME

2,578

3,499

Income tax/credit

(89)

(1,465)

INCOME FROM ONGOING OPERATIONS

2,489

2,034

INCOME FROM DISCONTINUED OPERATIONS

(942)

(3,404)

NET INCOME

1,546

(1,370)

Attributable net income

1,546

(1,392)

Of which net income from ongoing operations

2,488

2,012

O which net income from discontinued operations

(942)

(3,404)

Non-controlling interests

1

22

Of which net income from ongoing operations

1

22

O which net income from discontinued operations

1,547

Attributable Net income per share (in €)

0.02 €

0.05 €

Attributable net income from ongoing operations per share fully diluted (in €)

0.02 €

0.05 €

Net income per share (in €)

0.02 €

-0.65 €

Net income per share diluted (in €)

0.02 €

-0.64 €

Weighted average number of outstanding shares

99,866,838

37,366,868

Weighted average diluted number of outstanding shares

99,866,838

37,835,336

(1) For all tables and figures, "30.06.2020 restated" refers to the financial statements as at 30 June 2020 which have been restated for the effects of the application of IFRS 5 Discontinued operations.

BALANCE SHEET
Assets

(in €000)

30.06.2021

31.12.2020

Non-current assets

Goodwill

14,704

14,704

Intangible assets

82,303

83,167

Property, plant and equipment

27,320

28,111

Financial assets

4,840

5,639

Non-curent derivatives

Deferred tax assets

1,573

1,225

Total non-current assets

130,740

132,846

Current assets

Inventory and work-in-progress

39,094

37,811

Trade receivables

25,997

20,813

Tax receivables

2,677

554

Other current assets

17,105

22,123

Current derivatives

133

70

Cash and cash equivalents

52,605

42,075

Assets held for disposal

12,900

Total current assets

137,611

136,346

TOTAL ASSETS

268,350

269,192

Liabilities

Shareholdersequity

Share Capital

156, 729

62,578

Additional paid-in capital

72,750

66,711

Consolidated and other reserves

(52,554)

(14,083)

Translation reserves

(10,230)

(10,720)

Consolidated net profit/(loss)

1,546

(38,465)

Shareholders’ equity (Group share)

168,241

66,020

Non-controlling interest

329

328

Total Shareholders’ equity

168,570

66,348

Non-current liabilities

Employee benefits

3,345

3,150

Non-current provisions

3,815

3,926

Long-term borrowings – due in > 1 year

2,915

65,352

Other non-current liabilities

1,719

1,751

Non-current derivatives

-

-

Deferred tax liabilities

18,188

17,879

Total non-current liabilities

29,983

92,058

Current liabilities

Current provisions

4,816

7,049

Long-term borrowings – due in < 1 year

1,159

15,023

Short-term borrowings

2,265

5,287

Trade and other payables

32,157

34,777

Tax liabilities

(12)

5,667

Other current liabilities

29,242

32,584

Current derivatives

170

98

Liabilities held for sale

10,301

Total current liabilities

69,798

110,786

TOTAL EQUITY AND LIABILITIES

268,350

269,192

CONSOLIDATED CASH FLOW STATEMENT

(in €000)

30.06.2021

30.06.2020

Total consolidated net profit

1,547

(1,370)

Eliminations :

Amortization and provisions

1,124

(8,199)

Revaluation gains / losses (fair value)

-

-

Gains/losses on disposals and dilution

466

5,844

Operating cash flow after net cost of debt and tax

3,137

(3,724)

Income tax charge (credit)

89

2,002

Net cost of debt

214

2,351

Operating cash flow before net cost of debt and tax

3,440

629

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

(5,108)

(4,073)

Change in working capital 2 (other items)

(2,021)

(1,552)

Tax paid

(7,881)

(87)

Cash flow from operating activities

(11,570)

(5,082)

Purchase of property, plant and equipement and intangible assets

(1,147)

(3,179)

Purchase of financial assets

-

-

Decrease in loans and advances granted

893

7,072

Disposal of property, plant and equipement and intangible assets

94

510

Impact of change in consolidation scope

1,947

23

Cash flow from investing activities

1,787

4,427

Capital increase

16,709

4

New loans

7,149

19,546

Loans repayment

(831)

-

Net interest paid

(214)

(1,455)

Net change in short-term debt

(3,008)

(4,734)

Cash Flow from financing activities

19,805

13,360

Impact from changes in foreign exchange rates

508

(430)

Change in cash and cash equivalents

10,530

12,275

Opening cash position

42,075

26,193

Closing cash position

52,605

38,468

Change in cash and cash equivalents

10,530

12,275


1 On 16 February 2021, MBWS France sold all the shares in Moncigale to the Boisset group. Due to the high likelihood of this disposal on 31 December 2020, the Moncigale activity had been reclassified as a discontinued operation under IFRS 5: in the income statement, its contribution over the period to the consolidated net income, as well as the capital loss on disposal, are reported on the line "income from discontinued or sold operations" (detailed income statement in the appendix), the comparative period is also restated in the income statement. This restatement also includes the impact of the disposal of the Group's Polish activities on 21 October 2020.

2 See "Balance sheet at 30 June 2021" on page 3 below

Attachment


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