Anora Group (ANORA) Q1 2025 Pre Silent earnings summary

2024 performance and key drivers

• Net sales in 2024 were EUR 692 million, down 4.7% from EUR 727 million in 2023, mainly due to loss of partners, divestments, discontinued low-margin business, and lower industrial sales.

• About one-third of the sales decline was from lower industrial segment sales, especially ethanol, feed, and starch.

• All segments improved gross margins in 2024, with Wine segment profitability increasing and Spirits and Industrial segments facing volume and cost pressures.

• Board proposed a dividend of EUR 0.22 per share for 2024, with a payout ratio of 141.2% and an effective yield of 7.7%, pending AGM approval.

• Liquidity reserves ended at EUR 352 million, with net interest-bearing debt at EUR 122 million and a leverage ratio of 1.8.

Q1 2024 trading update and market trends

• Q1 is a seasonally small quarter for both turnover and profitability, with comparable EBITDA typically EUR 8–9 million.

• Monopoly channel volumes declined year-to-date February: Norway down 4–5%, Finland down 11–12%, Sweden down about 1%.

• Q1 2024 is expected to show another strong volume decline, with some negative Easter timing effects compared to last year.

• Long-term volume development is expected to be flat, with a small increase versus 2019.

• Nordic wine and spirits market faced 15 consecutive quarters of negative growth in monopoly channels, but stable volumes are expected long-term.

Margin, cost, and FX management

• Gross margin recovery continued, supported by improved revenue management and active FX hedging since late 2023.

• Input costs have stabilized, with no major changes recently.

• FX hedging locks currency effects between pricing windows; short-term impact from stronger SEK is negative, but positive in the long run.

• Gross margin expansion is expected to continue into 2025.