Viva Wine Group Ab · OMXSTO:VIVA
Viva Wine Group Ab — Q2 2024 Earnings Presentation
24 slides from Viva Wine Group Ab's earnings presentation, Aug 28, 2024
Slide 1: Quarterly Results Q2 2024
VIVA WINE GROUP QUARTERLY RESULTS Q2 2024 . ——Z x =
Slide 2: Agenda
AGENDA Introduction to Viva Wine Group Quarterly Update Financial Overview Performance by Segment Emil Sallnäs CEO & Founder Sustainability Update Linn Gäfvert CFO Final Comments Q&A
Slide 3: Introduction
INTRODUCTION
Slide 4: This Is Us
THIS IS US Two segments eCom 17% Nordics 83% Segment Nordics Segment eCom 3 11 SWEDEN FINLAND NORWAY PLATFORMS MARKETS
Slide 5: Quarterly Update
QUARTERLY UPDATE
Slide 6: Q2 Performance Summary
Q2 PERFORMANCE SUMMARY Record high market share in the Nordics Net sales increased by 6.4%. Organic growth of 6.6% Organic growth in eCom Significant increase in Adj. EBITA margin of 9.6% (7.4%)
Slide 7: 8% Alcohol Wines in Finland
8% ALCOHOL WINES IN FINLAND • New law amendment in Finland came into effect on 10 June, raising the maximum allowed alcohol content of beverages sold in grocery stores from the previous 5.5% to 8.0%. • We were well-prepared and well- positioned. • We have further strengthened our position in the Fin
Slide 8: Financial Overview
FINANCIAL OVERVIEW
Slide 9: Continued Growth in Net Sales
CONTINUED GROWTH IN NET SALES Net Sales per segment Q2 2024 vs Q2 2023, SEKm +6.4% • Strong growth in the Nordics due to continued positive underlying sales trend. • Organic growth 6.6% (3.9%) in the quarter.
Slide 10: Strengthened Adj EBITA Margin
STRENGTHENED ADJ EBITA MARGIN Adjusted EBITA per segment +37.9% Q2 2024 vs Q2 2023, SEKm • Positive effects from higher sales in the Nordics along with improved GM - a result of our long-term pricing strategy. 7.4% 9.6% • Continued strong GM in eCom along with operational efficiency work.
Slide 11: Net Working Capital – Stable Trend to Net Sales
NET WORKING CAPITAL – STABLE TREND TO NET SALES Net Working Capital, SEKm Net Debt, SEKm Net Working Capital NWC/Net Sales LTM Net debt Net debt to EBITDA LTM 640 519 491 421 402 403 2.0x 11.0% 1.8x 10.1% 9.9% 1.1x 2022 2023 2024 2022 2023 2024
Slide 12: Cash Flow Affected by Dividends and One-Time Effects
CASH FLOW AFFECTED BY DIVIDENDS AND ONE-TIME EFFECTS Cash Flow QTD, SEKm Cash flow from operating activities 74 -154 during the quarter affected by: • Planned increase in inventory. 122 -6 -2 • One-time payment of provision. Cash flow from financing activities according to plan: -14 -6 14 • Dividend
Slide 13: Performance by Segment
PERFORMANCE BY SEGMENT
Slide 14: Segment Nordics
SEGMENT NORDICS Monopoly volume & market share development # 1 in the Nordics Q2 2024 Market Viva Wine Group Viva MS% Record high market share in the Nordic monopoly markets. 22.9% -6.6% +5.1% (20.4%) The market was negatively affected by poorer weather conditions and that Easter occured in Q1 this
Slide 15: Segment Nordics – Net Sales and Adj. EBITA Development
SEGMENT NORDICS – NET SALES AND ADJ. EBITA DEVELOPMENT Net Sales increased with 8.2% vs Q2 2023. Adjusted EBITA- margin increased in Q2. Mainly Organic growth of 8.0%. driven by increase in sales and GM percentage. +8.2% Adjusted EBITA margin 92 938 867 62 9,8% 7,1% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q
Slide 16: Segment Viva eCom
SEGMENT VIVA ECOM Organic growth in the quarter of +0.1%. Improved GM percentage of 41% vs 40% in Q2 2023. Continued focus on growth in existing markets.
Slide 17: Segment Viva eCom – Net Sales and Adj. EBITA Development
SEGMENT VIVA ECOM – NET SALES AND ADJ. EBITA DEVELOPMENT Organic growth of 0.1%. Adjusted EBITA% higher than Q2 2023. Improved GM% of 41.0% (40.0%). Net sales -2.1% vs Q2 2023 due to discountinued businesses. -2.1% Adjusted EBITA margin 176 173 17 16 9.6% 8.9% Q2 2023 Q2 2024 Q2 2023 Q2 2024
Slide 18: Sustainability
SUSTAINABILITY
Slide 19: Sustainability Update
SUSTAINABILITY UPDATE Warehouse Transport • During the spring we have strengthened our sustainability organization both at group level and in the companies, a work that will continue during the fall. Transports Stores • Our work on the CSRD implementation is progressing according to plan. Production
Slide 20: Final Comments
FINAL COMMENTS
Slide 21: Financial Targets
FINANCIAL TARGETS Annual Organic Growth Nordics Profitability Dividend policy Indebtedness >4% 10-12% Net debt/ EBITDA 50-70% eCom Adjusted EBITA margin <2.5x of annual net profit 10-15%
Slide 22: Summary
Summary Very strong quarter – continued sales growth and improved profitability Margin focus in the Nordics have given results Focus on sales growth in e-Com We continue to screen the M&A market actively Positive outlook 2024
Slide 23: Q&A
Q&A
Slide 24: Slide 24