Viva Wine Group (VIVA) Q2 2025 earnings summary

Executive summary

• Net sales rose 20.2% year-over-year to SEK 1,339 million in Q2 2025, primarily driven by the strategic acquisition of Delta Wines, expanding the group's European footprint.

• Organic growth was 1.0%, with strong performance despite tough prior-year comparables in Sweden.

• Integration of Delta Wines is proceeding as planned, with positive stakeholder reception and financials in line with expectations.

• The group remains the market leader in the Nordics, holding a 22.6% market share, though market share slightly decreased due to strong comparables.

• Earnings per share increased to SEK 0.50 from SEK 0.38 year-over-year.

Financial highlights

• Net sales reached SEK 1,339 million in Q2 2025, up 20.2% year-over-year, with organic growth at 1%.

• Adjusted EBITA/EBITDA margin declined to 7.5% from 9.6% last year, impacted by lower gross margin from Delta Wines, one-time acquisition costs, and increased OpEx.

• Gross profit increased by 13%, but gross margin percentage declined to 19.1% due to Delta Wines' lower-margin profile; excluding Delta, gross margin improved by approximately 0.5%.

• Adjusted EBITA for the quarter was SEK 101 million, including SEK 9 million in one-off transaction costs.

• Net working capital increased to SEK 640 million, and net debt rose to SEK 1,539 million, with net debt to EBITDA at 4.1x.

Outlook and guidance

• Net debt to EBITDA is expected to decrease from 4.1x to approximately 3x as EBITDA is consolidated over the next year, targeting 2.5x within a year.

• No planned OpEx step-up for 2026; OpEx as a percentage of net sales is expected to align with or be slightly below 2023 levels.

• Gross margin in Sweden is expected to improve in Q4, with total group margin impacted by Delta Wines' lower margin structure.

• Integration of Delta Wines is expected to strengthen the group’s European platform, with seasonality driving strongest performance in Q4.

• Delta Wines is expected to deliver mid-single-digit organic growth, in line with group targets.