Marie Brizard Wine & Spirits: H1 2023 revenues

                                                                Charenton-le-Pont, 27th July 2023

H1 2023 revenues

H1 2023 revenues of €98.8m, up 14.3% versus H1 2022 revenues, driven by the strong performance of part of the international business and growth in sales for our strategic brands in France

• Business growth in France in Q2 2023 with sales up 12.6% versus Q2 2022, driven by fewer supply disruptions compared with Q1 2023. This performance was made possible, despite a spirits market that is still slowing down, thanks to a lower out of stock rate than in Q1 2023, combined with the price increases implemented in the first half of the year
  • Increase in sales for William Peel, San José and Berger among major retailers, largely attributable to the tariff increase, whose impact does not fully cover the sharp rise in input costs since 2022
  • The availability of raw materials, particularly glass, remained unstable for certain key products, but improving in Q2
  • The on-trade business slowed down after a solid performance in the first quarter.
• Sustained growth in international sales (up 15.5% versus Q2 2022), with disparities between regions:
  • Increased sales in Europe making up for the difficulties encountered in the British market where the Group’s sales continued their downward trend. In contrast, Lithuania, Bulgaria and their export markets, as well as Spain posted a sharp increase in sales, particularly for international strategic brands (William Peel, Marie Brizard, etc.) and for industrial subcontracting services;
  • Temporary business recovery in the United States in the second quarter, particularly for the Marie Brizard brand, despite the persistently challenging distribution landscape for Sobieski and Gautier amid a disrupted Cognac market;
  • Decline in Asia Pacific (mainly in Australia and, to a lesser extent, in South Korea), not offset by the strong growth in Taiwan.
• The surge in input costs witnessed since 2022, only partly offset by pricing revisions in Q1 2023 across almost all of the Group’s markets, especially internationally.
  
  

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

Marie Brizard Wine & Spirits (Euronext: MBWS) today announces its unaudited revenues for the first half of 2023, covering the period from 1 January to 30 June 2023.

H1 2023 revenues

€m	H1 2022	LFL change	Currency impact	H1 2023	LFL change (excl. currency impact)	Reported growth (incl. currency impact)
France	40.1	+2.0	-	42.1	+5.0%	+5.0%
International	46.3	+10.3	+0.1	56.7	+22.2%	+22.4%
TOTAL MBWS GROUP	86.4	+12.3	+0.1	98.8	+14.3%	+14.4%

Q2 2023 revenues

€m	Q2 2022	LFL change	Currency impact	Q2 2023	LFL change (excl. currency impact)	Reported growth (incl. currency impact)
France	20.2	+2.5	-	22.7	+12.6%	+12.6%
International	25.6	+4.0	0.0	29.6	+15.5%	+15.5%
TOTAL MBWS GROUP	45.8	+6.5	-	52.3	+14.2%	+14.2%

France cluster

Despite the continued slowdown of the spirits market in France, particularly among major retailers, the France cluster posted Q2 2023 sales of €22.7m, up 12.6% versus Q2 2022, mainly boosted by the solid performance of the Group’s strategic brands, particularly William Peel and San José. Revenue growth among major retailers is therefore partly attributable to a proactive pricing revisions policy, the recovery in supplies following the disruptions (particularly for glass) of the first quarter with inventory replenishment in the second quarter among affected customers, and a competitive environment among major retailers which was favourable to certain brands of the Group.

First half 2023 revenues for the France cluster came to €42.1m, up 5.0%.

International cluster

The International cluster posted first half 2023 revenues of €56.7m, up 22.2% versus the first half of 2022 at constant exchange rates. The cluster’s sales in the second quarter of 2023 came to €29.6m, up 15.5% versus 2022.

Spain posted a sharp 21.7% increase in sales in the second quarter, driven by the strategic brands and the continued buoyancy of industrial subcontracting services.

In Western Europe export markets, revenues in the second quarter were up 11.4%, mainly bolstered by the strong sales performance of Benelux, Italy, North Africa and, to a lesser extent, Germany. The British market, which remains challenging for the Marie Brizard brand, still recorded new listings across the Group’s brands, Sobieski in particular.

Lithuania recorded revenue growth of 25.0% in the second quarter of 2023, particularly in the export brand business, mainly related to the increase in sales to the Ukrainian market. Domestic sales were stable compared with the first half of 2022.

In Bulgaria, revenues continued to increase significantly in the second quarter of 2023 (up 25.2% versus 2022) following a sustained performance in the first quarter (up 50.2% versus Q1 2022). The increase in sales was mainly driven by export markets (particularly industrial subcontracting services).

Revenues in Scandinavia fell 28.2% in the second quarter, from a record high in Q2 2022, which saw a sharp business recovery following the lifting of health restrictions earlier that year. This decline in revenues was also due to price elasticity impacting sales volumes following price increases, along with the tight competitive environment at the start of this year.

In the Eastern European export markets, sales in Poland dropped significantly in the first half of the year compared to 2022, which was bolstered by the inventory build-up of the Gautier brand as part of its launch. It is worth noting the general market slowdown across all categories.

In the United States, after a sharp drop in revenues in the first quarter of 2023, mainly due to inventory rundown by our local distributor and a low depletion trend following difficulties caused by the change in some routes to market in key states, sales in the second quarter were up 15.3% versus a sluggish Q2 2022, despite operational, logistical and commercial difficulties that impacted our brands’ performance.

In line with the first quarter, Brazil posted solid revenue growth, driven mainly by local brands and the implementation of strict sales and pricing policies over the period.

The Americas export market continued to be impacted by the significant revenue decline in Canada in the second quarter, at similar rates to that of the first quarter and for the same reasons: mainly the highly competitive vodka market and, more recently, an unfavourable Cognac market trend.

Lastly, Asia Pacific revenues were down 6.4% in the second quarter of 2023, particularly in Australia, while Korea started to recover compared with Q2 2022.

Outlook

The first quarter of 2023 showed that the rise in input costs remained significant and supply disruptions were still a reality, causing volumes to decline, particularly in France. The availability of materials and products somewhat improved recently, but remains highly unstable for some key products.

It is worth recalling that at this stage, the price hikes intended to cushion increases in input costs since 2022 do not fully offset them, thereby weighing down on profitability.

The Group continues to closely monitor the elasticity of consumer demand with respect to price increases and its impacts on certain product categories (particularly vodka and cognac) and is committed to maintaining its adaptability and operational focus, despite these challenges.

International growth remains a priority for the Group’s development, even if the current economic climate enabled a buoyant second quarter performance in France, which is a more mature and concentrated market.

The Group continues to implement its development strategies, namely expanding strategic brands internationally, strengthening its regional brands’ local positioning, growing our agency brand business and developing our industrial services offering. The lack of visibility in the short and medium term still requires a certain degree of caution regarding the Group’s annual outlook.

Financial calendar

• H1 2023 earnings: 28/09/2023
• Q3 2023 revenues: 26/10/2023

Investors and shareholders relations contact MBWS Group Emilie Drexler emilie.drexler@mbws.com Phone: +33 1 43 91 62 40

Press contact Image Sept Claire Doligez - Laurence Maury cdoligez@image7.fr – lmaury@image7.fr Phone : +33 1 53 70 74 70

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, Cognac Gautier and San José. Marie Brizard Wine & Spirits is listed on Compartment B of Euronext Paris (FR0000060873 - MBWS) and is part of the EnterNext PEA-PME 150 index.

Attachment

• PR_MBWS_Net Sales H1 - Q2 2023_VF