Charenton-le-Pont,
H1 2023 earnings
Strong resilience of earnings in the face of high inflation and pressure on raw materials
Profit margins stabilised, mainly due to structural cost savings initiated in 2022, amid an uncertain consumer environment
- EBITDA1 of €8.1 million in H1 2023, up €0.5 million from €7.6 million in H1 2022
- Net profit (Group share) of €5.1 million in H1 2023, up €2.6 million
Marie Brizard
Unfortunately, the challenging macroeconomic environment is still with us but we are holding our course and maintaining the development strategies presented at the
Simplified income statement - H1 2023
€m except EPS | H1 2022 | H1 2023 | Change 2023 vs 2022 | |
Net revenues (excluding excise duties) | 86.4 | 98.8 | +14.3% | |
Gross margin | 34.4 | 36.2 | +€1.8m | |
Gross margin ratio | 39.9% | 36.6% | -3.3 pp | |
EBITDA | 7.6 | 8.1 | +€0.5m | |
Underlying operating profit | 5.5 | 5.4 | -€0.1m | |
Net profit (Group share) | 2.5 | 5.1 | +€2.6m | |
Earnings per share | 0.02 | 0.05 |
First half 2023 revenues
First half 2023 revenues excluding excise duties came to €98.8 million, up 14.3% versus H1 2022 (excluding currency impact). This improvement is mainly due to increased sales in part of the international business coupled with strong resilience among strategic brands in
The
Sales improved in the on-trade sector due to price increases, but volumes were down.
This positive first half sales trend in the
International revenues amounted to €56.7 million, up 22.2% versus H1 2022 at constant exchange rates, reflecting contrasting trends across regions:
- penetration of new markets by
Lithuania ,Bulgaria and their export regions, generating strong sales growth; - strong business in
Spain in both strategic brands and subcontracting, driving strong revenue growth; - challenges in some long-standing markets (
Canada ,Australia and theUK ), particularly for the Gautier and Marie Brizard brands due to the decline in the relevant market segments (cognac, traditional liqueurs) and inventory reductions by local distributors; - slow inventory depletions among US distributors, as well as glass shortages for some references, leading to a decline in revenues over the first half of the year.
First half 2023 earnings
Against a backdrop of widespread high inflation, the gross margin ratio was 36.6% in H1 2023 compared to 39.9% in H1 2022. The 3.3 percentage point decrease reflects the impact of the continuous surge in raw material and energy prices since Q2 2022, which affected the entire first half of 2023 despite the price increases applied.
First half 2023 EBITDA amounted to €8.1 million, up €0.5 million from H1 2022 (excluding currency impact).
The
Meanwhile, the International cluster posted EBITDA of €4.1 million, down from €5.6 million in H1 2022. This decline is mainly attributable to
Group EBITDA also benefited from the continued reduction in holding company internal costs, which improved by €1.1 million.
H1 2023 EBITDA by cluster
€m | H1 2022 | LFL change | Currency impact | H1 2023 | LFL change (excl. currency impact) | Reported growth (incl. currency impact) |
5.0 | 0.9 | - | 6.0 | +18.6% | +18.6% | |
International | 5.6 | (1.5) | 0.0 | 4.1 | -27.1% | -27.0% |
Holding company | (3.0) | 1.1 | - | (1.9) | +35.8% | +35.8% |
TOTAL MBWS GROUP | 7.6 | 0.5 | 0.0 | 8.1 | +6.5% | +6.7% |
Net profit (Group share) amounted to €5.1 million in H1 2023, up €2.6 million compared to H1 2022, when results were impacted by a provision for non-recurring expenses related to the restructuring of the off-trade
Balance sheet at
Shareholders’ equity (Group share) amounted to €199.6 million at
The €4.6 million increase in inventories and work-in-progress to €56.5 million at
Outlook
After a year 2022 marked by overall resilience among Group brands and business lines in the face of inflation and availability restrictions, the effects of supply disruptions combined with declining volumes from Q4 2022 onwards also impacted the first half of 2023, particularly in
The price increases applied in 2022 and 2023 to absorb the ongoing surge in input costs (mainly energy, liquid and dry raw materials, particularly glass), do not allow us to maintain our sales margins percentage at this stage.
The Group therefore continues to closely monitor elasticity in consumer demand in the face of price increases and is determined to maintain its ability to adapt, despite these challenges.
For some countries that are more sensitive to these factors, such as
Despite this instability that has persisted for nearly three years, the Group will continue to do its best to maintain annual earnings growth through the combined effects of restructuring, structural cost savings and gradual improvement in profit margins through rigorous commercial and operational management, while remaining cautious regarding the short to medium-term business outlook.
Financial calendar
- H1 2023 financial report available:
29 September 2023 - Publication of revenues for the first nine months of 2023:
26 October 2023
- Publication of revenues for the first nine months of 2023:
Investors and shareholders relations contact relations.actionnaires@mbws.com Phone: +33 1 43 91 62 40 | Press contact Image Sept cdoligez@image7.fr – lmaury@image7.fr Phone : +33 1 53 70 74 70 |
About Marie Brizard
APPENDIX H1 2023 Consolidated Financial Statements
Income statement
(€000) | H1 2023 | H1 2022 |
Revenues | 116,955 | 105,995 |
Excise duties | (18,192) | (19,574) |
Net revenues excluding excise duties | 98,763 | 86,421 |
Cost of goods sold | (62,578) | (51,978) |
External expenses | (13,617) | (11,872) |
Personnel expense | (13,894) | (14,013) |
Taxes and levies | (835) | (953) |
Depreciation and amortisation charges | (2,936) | (3,072) |
Other operating income | 1,834 | 1,887 |
Other operating expenses | (1,387) | (899) |
Underlying operating profit | 5,350 | 5,521 |
Non-recurring operating income | 1,440 | 2,055 |
Non-recurring operating expenses | (1,489) | (5,152) |
Operating profit | 5,300 | 2,424 |
Income from cash and cash equivalents | 59 | 29 |
Gross cost of debt | (124) | (96) |
Net cost of debt | (65) | (67) |
Other financial income | 115 | 956 |
Other financial expenses | (123) | (593) |
Net financial income/(expense) | (74) | 296 |
Profit before tax | 5,226 | 2,720 |
Income tax | (120) | (196) |
Net profit from continuing operations | 5,106 | 2,524 |
Net profit/(loss) from discontinued operations | - | - |
NET PROFIT | 5,106 | 2,524 |
Group share | 5,102 | 2,511 |
of which Net profit from continuing operations | 5,102 | 2,511 |
of which Net profit/(loss) from discontinued operations | ||
Non-controlling interests | 4 | 13 |
of which Net profit from continuing operations | 4 | 13 |
of which Net profit/(loss) from discontinued operations | ||
Earnings per share from continuing operations, Group share (€) | €0.05 | €0.02 |
Diluted earnings per share from continuing operations, Group share (€) | €0.05 | €0.02 |
Earnings per share, Group share (€) | €0.05 | €0.02 |
Diluted earnings per share, Group share (€) | €0.05 | €0.02 |
Weighted average number of shares outstanding | 111,856,360 | 111,825,601 |
Diluted weighted average number of shares outstanding | 111,856,360 | 111,825,601 |
Balance sheet
Assets | ||||||
(€000) | ||||||
Non-current assets | ||||||
14,704 | 14,704 | |||||
Intangible assets | 77,174 | 77,847 | ||||
Property, plant and equipment | 26,665 | 26,932 | ||||
Financial assets | 1,007 | 1,146 | ||||
Deferred tax assets | 4,009 | 3,781 | ||||
Total non-current assets | 124,558 | 124,410 | ||||
Current assets | ||||||
Inventory and work-in-progress | 56,519 | 51,934 | ||||
Trade receivables | 39,181 | 43,523 | ||||
Tax receivables | 1,023 | 734 | ||||
Other current assets | 10,222 | 10,468 | ||||
Current derivatives | 281 | 114 | ||||
Cash and cash equivalents | 44,892 | 47,495 | ||||
Total current assets | 152,118 | 154,268 | ||||
TOTAL ASSETS | 275,676 | 278,678 | ||||
Equity & Liabilities | ||||||
(€000) | ||||||
Shareholders’ equity | ||||||
Share capital | 156,786 | 156,786 | ||||
Additional paid-in capital | 72,815 | 72,815 | ||||
Consolidated and other reserves | (26,477) | (25,529) | ||||
Translation reserves | (8,586) | (8,520) | ||||
Consolidated net profit/(loss) | 5,102 | (945) | ||||
Shareholders’ equity (Group share) | 199,640 | 194,607 | ||||
Non-controlling interests | 79 | 333 | ||||
Total shareholders’ equity | 199,719 | 194,940 | ||||
Non-current liabilities | ||||||
Employee benefits | 1,747 | 1,769 | ||||
Non-current provisions | 2,582 | 2,540 | ||||
Long-term borrowings – due in > 1 year | 2,079 | 2,218 | ||||
Other non-current liabilities | 1,568 | 1,518 | ||||
Deferred tax liabilities | 179 | 139 | ||||
Total non-current liabilities | 8,155 | 8,184 | ||||
Current liabilities | ||||||
Current provisions | 4,513 | 5,417 | ||||
Long-term borrowings – due in < 1 year | 602 | 641 | ||||
Short-term borrowings | 3,698 | 3,702 | ||||
Trade and other payables | 38,344 | 36,694 | ||||
Tax liabilities | 230 | 1,932 | ||||
Other current liabilities | 20,403 | 26,899 | ||||
Current derivatives | 13 | 269 | ||||
Total current liabilities | 67,803 | 75,554 | ||||
TOTAL EQUITY AND LIABILITIES | 275,676 | 278,678 |
Cash flow statement
(€000) | H1 2023 | H1 2022 |
Total consolidated net profit | 5,106 | 2,524 |
Depreciation and provisions | 1,580 | 4,930 |
Gains/(losses) on disposals and dilution | 18 | (51) |
Operating cash flow after net cost of debt and tax | 6,704 | 7,403 |
Income tax charge/(income) | 120 | 196 |
Net cost of debt | 63 | 67 |
Operating cash flow before net cost of debt and tax | 6,887 | 7,666 |
Change in working capital 1 (inventories, trade receivables/payables) | 607 | (10,473) |
Change in working capital 2 (other items) | (5,270) | (7,497) |
Tax paid/received | (2,317) | 3,716 |
Cash flow from operating activities | (93) | (6,588) |
Purchase of PP&E and intangible assets | (1,858) | (1,412) |
Decrease in loans and advances granted | 116 | 2,733 |
Disposal of PP&E and intangible assets | - | 2,872 |
Impact of change in consolidation scope | (116) | - |
Cash flow from investment activities | (1,858) | 4,193 |
Capital increase | - | 19 |
New borrowings | 37 | 159 |
Borrowings repaid | (360) | (791) |
Net interest paid | (11) | (67) |
Net change in short-term debt | (55) | 525 |
Cash flow from financing activities | (389) | (155) |
Impact of exchange rate fluctuations | (263) | 1,778 |
Change in cash and cash equivalents | (2,603) | (772) |
Opening cash and cash equivalents | 47,496 | 54,169 |
Closing cash and cash equivalents | 44,893 | 53,397 |
Change in cash and cash equivalents | (2,603) | (772) |
1 EBITDA = EBIT + depreciation & amortisation + provisions excl. current assets.
NB: All revenue growth figures reported herein are at constant exchange rates and consolidation scope, unless otherwise stated. Financial data individually rounded up or down.
Attachment
- PR 2023 Half Year Results VF
© OMX, source