Marie Brizard Wine & Spirits: H1 2022 earnings

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

• PR 2022 Half year financial results_vfinal