Viva Wine Group AB · OMXSTO:VIVA
Viva Wine Group AB — Q4 2023 Earnings Presentation
27 slides from Viva Wine Group AB's earnings presentation, February 2024
Slide 1: Quarterly Results Q4 2023
VIVA WINE GROUP QUARTERLY RESULTS Q4 2023 . ——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 major segments The Nordic leader Profitable European e-com business 82% Nordics #1 18% eCom
Slide 5: This Is Us: Segments Nordics and eCom
THIS IS US Segment Nordics SWEDEN NORWAY FINLAND Segment eCom
Slide 6: Quarterly Update
QUARTERLY UPDATE
Slide 7: Q4 Performance Summary
Q4 PERFORMANCE SUMMARY Record high market shares in the Nordics Net sales increased by 4.3% Adj. EBITA margin of 6.3% (9.4%) Proposed dividend of SEK 1.55 (1.55) per share
Slide 8: Acquisition of Target Wines AS
ACQUISITION OF TARGET WINES AS • Transaction completed. Purchase price of NOK 44 million. Expected EBITA of NOK 6-7 million and a turnover of NOK 18-20 million in 2024. • With own brands in the highly popular Piemonte segment, Target Wines will further strengthen our position in the Nordics. • Targe
Slide 9: Financial Overview
FINANCIAL OVERVIEW
Slide 10: Growth in Net Sales
GROWTH IN NET SALES Net Sales per segment Q4 2022 vs Q4 2023, SEKm +4.3% • Strong growth in the Nordics partly 57 -10 -2 0 1053 1098 offset by slower sales in eCom. • Organic growth 4.4% (-0.4%) in the quarter. Net sales Q4 Nordics eCom Other Eliminations Net sales Q4 2022 2023
Slide 11: Adj EBITA Margin Negatively Impacted by FX and One-off Effects
ADJ EBITA MARGIN NEGATIVELY IMPACTED BY FX AND ONE-OFF EFFECTS Adjusted EBITA per segment Q4 2022 vs Q4 2023, SEKm 99 -21 • Continued pressure on GM mainly due to -5 negative fx-effects in the Nordics. -3 0 70 • Negative effects in the quarter from one-off costs related to our acquisition agenda in
Slide 12: 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 545 434 519 421 491 402 336 1.8x 11.8% 10.9% 11.0% 133 10.1% 1.1x 0.9x 0.4x 2020 2021 2022 2023 2020 2021 2022 2023
Slide 13: Strong Cash Flow in the Quarter
STRONG CASH FLOW IN THE QUARTER Cash Flow QTD, SEKm 92 -20 -14 • Strong cash flow from operating activities during the quarter. -6 -1 94 • Investing activity is related to the new eCom warehouse. • Amortization is at a lower level in the 43 quarter compared to last year as a result of the refinancin
Slide 14: Cash Flow for the Full Year Impacted by Refinancing
CASH FLOW FOR THE FULL YEAR IMPACTED BY REFINANCING Cash Flow YTD, SEKm 212 -35 -243 • Stable Cash Flow from Operating activities. • Cash flow from financing activities 339 impacted by refinancing. -160 • The refinancing will have a positive impact on the cash flow going forward -19 -1 94 - Lower de
Slide 15: Performance by Segment
PERFORMANCE BY SEGMENT
Slide 16: Segment Nordics
SEGMENT NORDICS Volume & Market share development Q4 2023 Market Viva Wine Group Viva MS% # 1 in Finland! 21.4% -2.0% +5.3% (19.9%) Record high market shares 27.4% despite soft markets. -1.5% +4.0% (26.0%) 21,3% Proactive work, agile- and consumer -3.5% +9.3% (18.8%) centric business model. 6.4% -2.
Slide 17: Segment Nordics
SEGMENT NORDICS Strong performance for both own brands and partner brands
Slide 18: Segment Nordics – Net Sales and Adj. EBITA Development
SEGMENT NORDICS – NET SALES AND ADJ. EBITA DEVELOPMENT Net Sales increased with 6.8% vs Q4 2022. Adjusted EBITA decreased in Q4. Mainly due to a Organic growth of 6.6%. lower GM negatively impacted by fx-effects. Adjusted EBITA margin +6.9% 3.238 3.029 304 229 +6.8% 835 892 81 10.0% 60 9.7% 7.1% 6.7
Slide 19: Segment Viva eCom
SEGMENT VIVA ECOM Performed better than the overall market. Synergy-work completed. Overall consumer sentiment is still low.
Slide 20: Segment Viva eCom – Net Sales and Adj. EBITA Development
SEGMENT VIVA ECOM – NET SALES AND ADJ. EBITA DEVELOPMENT Net sales -4.5% vs Q4 2022. Organic growth of Adjusted EBITA% lower than Q4 2022. Adj. EBITA -3.3%. margin reached 9.8% (11.6). GM% of 41,7% (40.8%). Adjusted EBITA margin -5.5% 775 78 732 73 -4.5% 25 214 205 20 9.9% 10.1% 11.6% 9.8% Q4 2022 Q
Slide 21: Sustainability
SUSTAINABILITY
Slide 22: Sustainability Year Summary
SUSTAINABILITY YEAR SUMMARY Warehouse Transport • We are committed to reducing our CO2 emissions per liter of wine sold to 2030 and achieve net zero climate impact by 2050. Transports • Improved methods for measurement and Stores data collection. • CSRD preparations ongoing. Production Consumption F
Slide 23: Final Comments
FINAL COMMENTS
Slide 24: 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 25: Strong Position for 2024
STRONG POSITION FOR 2024 Strong market position in both Nordics and eCom Margin focus in the Nordics and sales focus in eCom We continue to screen the M&A market actively Outlook 2024
Slide 26: Q&A
Q&A
Slide 27: Slide 27