Marie Brizard Wine & Spirits (MBWS) H1 2024 earnings summary

Executive summary

• Revenues excluding excise duties fell 3.9% year-over-year to €94.9 million, mainly due to a decline in International Cluster sales, while France Cluster sales remained stable or grew modestly.

• Gross margin ratio improved to 38.1% from 36.6% in H1 2023, reflecting cost optimization and a rigorous sales policy, though still below pre-inflation 2022 levels.

• EBITDA increased by 4% to €8.5 million, and net profit rose to €6.5 million, up €1.4 million year-over-year, despite lower revenues and market slowdown.

Financial highlights

• H1 2024 revenues: €94.9 million (down 3.9% year-over-year).

• Gross margin: €36.2 million; gross margin ratio: 38.1% (up 1.5 pp year-over-year).

• EBITDA: €8.5 million (up 4% year-over-year); underlying operating profit: €5.2 million.

• Net profit: €6.5 million (up from €5.1 million in H1 2023); EPS: €0.06 (up from €0.05).

• Shareholders' equity increased to €211.0 million at June 30, 2024.

Outlook and guidance

• Focus on profitable development of the brand portfolio, balancing price increases with inflationary pressures, and maintaining EBITDA growth for 2024.

• 2024 expected to see normalization with falling consumer volumes and inventory rundown by importers, plus downward price pressure.

• Strategic priorities include innovation, product diversification, geographic expansion, and cost control.

• Preparing for 2025, the company anticipates significant cost increases for ageing spirits distilled during the inflationary period.

• Emphasis on sustainable practices and proactive management of production costs.