Marie Brizard Wine & Spirits: Q1 2023 revenues
Charenton-le-Pont,
27 April 2023
Q1 2023 revenues
Q1 2023 revenues of €46.5m, up 14.2%
versus Q1 2022, driven by international growth with strong
disparities between regions
- Business
stalled in France at the beginning of 2023 (MBWS sales down 2.6%
versus Q1 2022) due to an overall slowdown in the spirits market
and the relative underperformance of Group brands among major
retailers:
- William Peel, Sobieski and Berger
were particularly affected in the Off-Trade in an ever-declining
spirits market in terms of sales revenue and even more in
volume;
- strong sales growth in the On-Trade
sector, up 28% compared to the already strong performance in Q1
2022.
- Sustained
performance in international sales (up 30.3% versus Q1 2022), with
persistently contrasting trends across regions:
- contrasting performances in Europe
with a declining UK market (particularly affecting the Marie
Brizard brand) compared to Lithuania, Bulgaria and Spain, which all
posted significant growth;
- a sharp decline in the United
States, still impacted by Sobieski sales amid an unstable
distribution market;
- a struggling Asia-Pacific region
(particularly Australia and South Korea) despite a solid
performance in Taiwan.
-
Significant revision of the pricing policy during the first
quarter across all markets in order to partially offset, at this
stage, the ongoing surge in input costs at the beginning of
2023.
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 quarter of 2023, covering the period from 1
January to 31 March 2023.
Q1 2023 revenues
€m |
Q12022 |
LFL change |
Currency impact |
Q12023 |
LFL change(excl. currency
impact) |
Reported growth (incl.
currency impact) |
France |
19.9 |
-0.5 |
- |
19.4 |
-2.6% |
-2.6% |
International |
20.7 |
+6.3 |
+0.1 |
27.1 |
+30.3% |
+30.9% |
TOTAL MBWS GROUP |
40.6 |
+5.8 |
+0.1 |
46.5 |
+14.2% |
+14.5% |
France cluster
The France cluster was impacted by the slowdown
in the spirits market, in line with 2022, mainly in the Off-Trade,
posting total sales of €19.4m for the quarter, down 2.6% and thus
underperforming the market (down 1.7%1) over the period.
Accordingly, revenues fell sharply by 5% in the Off-Trade, due to
disruptions that prevented the Group from meeting all customer
demand, an adverse inventory effect among some customers and the
postponement of promotional operations scheduled for Q1 until H2
2023. In the below 12-year blended whisky market, down 2.0%1 in
terms of sales revenue, William Peel recorded a sharper decline. It
is also worth noting the slowdown in consumer sales for Marie
Brizard, Sobieski and Berger, while San José increased its market
share despite the drop in sales. The Group is experiencing strong
resilience among agency brands, driven by controlled promotional
activity and targeted activation operations during the year’s high
points.
The On-Trade channel is thriving, posting Q1
2023 growth of 28% compared to the same period in 2022.
International clusterThe
International cluster posted first quarter 2023 revenues of €27.1m,
up 30.3% versus 2022 at constant exchange rates.
Spain saw an upswing of 63% over the quarter,
bolstered by the branded business (up 6%) and strong momentum in
subcontracting industrial services.
In Western Europe export markets, the 11% drop
in revenues is linked to the UK market, where the Marie Brizard
brand continues to record a significant decline in
distribution.
Lithuania posted a strong 54% increase in
revenues driven mainly by the branded business following price
increases, reinvestment and related marketing initiatives. Domestic
sales continued to rise, up 10% compared to 2022, mainly driven by
the Bajoru regional vodka brand and despite a decline in local bulk
sales. Export sales soared, driven by William Peel and the bulk
segment.
In Bulgaria, revenues rose sharply by 50%: Up
33% in the domestic market (William Peel and vodka category) and
63% in export markets (particularly subcontracting industrial
services), boosted by the price increases implemented in 2022 and
early 2023.
Scandinavia posted revenue growth of 10% in Q1,
driven by Gautier and Marie Brizard, once again reflecting price
increases and new listings.
In the Eastern European export markets, sales in
Poland were down 14% compared to 2022 (mainly Cognac Gautier and
William Peel).
In the United States, the 36% decrease in
revenues was due to inventory rundown by our local importer and the
low depletion rate following difficulties caused by the change in
some routes to market in key states for the Sobieski brand and
successive price increases in 2022 for Marie Brizard and Gautier.
Indeed, changes made by our importer in some strategic regional
routes to market have generated operational, logistical and
commercial difficulties that have affected our brands’ performance.
This was exacerbated by problems in the supply of glass for
production destined for the North American market.
Revenues rose in Brazil, mainly driven by local
brands, the positive impact of significant price increases over the
period and the ramp-up of a rigorous sales policy implemented at
the end of 2022 in order to improve the subsidiary’s earnings.
In the Americas export market, up slightly by
3%, Canada struggled, posting a significant decline in revenues
year-on-year due to stock clearance among some major customers and
tough competition in the vodka segment, partially offset by Cognac
Gautier (up 11%) and Marie Brizard (up 19%).
Lastly, Asia-Pacific revenues were down 15%,
including a sharper decline in South Korea, due to shipment phasing
during the period compared to a strong first quarter 2022.
Outlook
After a year 2022 marked by overall resilience
in the face of availability and inflation constraints, the effects
of supply disruptions and declining volumes in Q4 2022 also
impacted the first quarter of 2023, particularly in France.
However, Q1 revenue was boosted by the effects of significant
international price increases in 2022 and Q1 2023. These price
increases are intended to cushion the significant and persistent
surges in input costs (particularly for energy and raw materials),
which have further increased in early 2023 (particularly for
glassware), but have only partially offset these effects at this
stage.
The Group is therefore entering a pivotal period
during which it will have to closely monitor elasticity in consumer
demand in the face of price increases, while managing the problems
caused by disruptions in availability and logistics as well as
possible. The Group proved its ability to adapt in 2022 and is
working to remain on track despite these difficulties.
Visibility remains low in some countries more
heavily exposed to these elements, such as the concentrated and
increasingly mature French market where volumes are in sharp
decline. This persisting instability has prompted the Group to
maintain a cautious approach regarding its short and medium-term
business outlook.
Financial calendar
- General Meeting:
29/06/2023
- H1 2023 revenues:
27/07/2023
Investors
and shareholders relations contact Groupe
MBWSEmilie Drexleremilie.drexler@mbws.comPhone: +33 1 43
91 62 40 |
Press
contactImage Sept Claire Doligez -
Laurence Maurycdoligez@image7.fr – lmaury@image7.frPhone : +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 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.
1 Source: IRI Aggregate Current P03 2023 data
- PR MBWS-Net Sales Q1 2023
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