Yahoo Finance Marie Brizard Wine & Spirits: 2021 First half Results
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 2021 | 2021/20 | ||
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 | Organic growth | FX |
| Organic growth | Variation |
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 |
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
Shareholders’ equity | ||
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
