Viva Wine Group (VIVA) Q3 2025 earnings summary

Executive summary

• Net sales grew 49% year-over-year in Q3 to SEK 1,487 million, driven by the Delta Wines acquisition and organic growth in both B2B and B2C segments.

• Adjusted EBITA increased to SEK 123 million, up 25%, though the margin declined to 8.3% due to Delta Wines' lower margin profile.

• B2B now represents nearly 90% of business, with a leading position in the Nordic monopoly markets and expanded presence in seven European markets.

• B2C e-commerce, accounting for just over 10% of sales, showed strong organic growth and a 23% increase in first-time customer orders.

• The company is in the final stages of moving to the Nasdaq Stockholm Main Market, with a recent oversubscribed share issue adding 3,500 new shareholders and SEK 26 million in capital.

Financial highlights

• Net sales reached SEK 1,487 million in Q3 2025, up from SEK 998 million in Q3 2024, with organic growth of 2.8%.

• Adjusted EBITA rose to SEK 123 million from SEK 98 million year-over-year; margin decreased to 8.3% from 9.9%.

• Strong operating cash flow, aided by working capital improvements and positive contributions despite investments and loan repayments.

• Net debt to EBITDA improved to 3.6x, with a target of 2.5x expected next year.

• Gross margin declined to 19.4% in Q3 due to Delta Wines, but improved in the Nordics from price increases.

Outlook and guidance

• Updated financial targets: organic sales growth above market, adjusted EBITA margin 8–10%, net debt/EBITDA ≤2.5x, and dividend payout of 50–70% of annual net profit.

• Positive outlook for Q4, especially in B2C, with Black Week expected to be significant.

• Gross margin expected to improve slightly in Q4 for both Nordic and European markets.

• No major cost inflation or price increases anticipated for next year; cost environment expected to be stable.

• Continued focus on European growth, strategic acquisitions, and strengthening B2C channels.