Viva Wine Group AB · OMXSTO:VIVA
Viva Wine Group AB — Q3 2023 Earnings Presentation
29 slides from Viva Wine Group AB's earnings presentation, Nov 1, 2023
Slide 1: Slide 1
Slide 2: Viva Wine Group Quarterly Results Q3 2023
Viva Wine Group Quarterly Results Q3 2023
Slide 3: Agenda
Agenda Introduction to Viva Wine Group Quarterly Update Financial Overview Sustainability Update Final Comments Q&As Emil Sallnäs Linn Gäfvert CEO & Founder CFO
Slide 4: Introduction to Viva Wine Group
Introduction to Viva Wine Group
Slide 5: Two major segments, share of net sales LTM
Two major segments, The Nordic leader in wine, Pioneer and industry leader share of net sales LTM in the stable monopoly in sustainability markets 81% Nordics #1 19% eCom Sweden Finland Norway
Slide 6: Operating companies
Operating companies Segment Nordics Sweden Segment eCom Finland Norway
Slide 7: Quarterly Update
Quarterly Update
Slide 8: Another quarter with increased market shares in the Nordics – strong margin in eCom
Another quarter with increased market shares in the Nordics – strong margin in eCom • Increased market shares in the Nordics, 20.8% in Q3 compared to 19.5% last year. Strong organic growth despite a weak underlying market. • Net sales increased by 5.6% in Q3 to 952 (902) SEK million. Organic growth
Slide 9: Refinancing to support our strategic growth agenda
Refinancing to support our strategic growth agenda In the quarter Viva proactively re-negotiated financing • Former debt held by one bank. For current debt Viva Wine Group established a bank syndicate. • The term loan was reduced and conditions were renegotiated. Will have positive effects on cash f
Slide 10: Winefinder court case
Winefinder court case What has been decided? • Confirming legality of e-com sales to Sweden from another EU country (not from Swedish warehouse) but paying Swedish alcohol tax. • Status of retail monopoly (Systembolaget) confirmed. Our view • No changes of current market situation to be expected; e-
Slide 11: Financial Overview
Financial Overview
Slide 12: Growth in net sales - strong Adj EBITA margin despite FX effects
Growth in net sales - strong Adj EBITA margin despite FX effects Net sales, SEKm Gross margin, % Adjusted EBITA, SEKm +4.0% Adjusted EBITA margin -20.1% 2.882 23.3% 2.772 278 21.3% 19.8% 18.7% 222 +5.6% -11.1% 10.0% 902 952 87 7.7% 77 9.6% 8.1% Q3 2022 Q3 2023 YTD 2022 YTD 2023 Q3 2022 Q3 2023 YTD 2
Slide 13: Growth in net sales – continued pressure on EBITA
Growth in net sales – continued pressure on EBITA Net Sales per segment Q3 2022 vs Q3 2023, SEKm Adjusted EBITA per segment Q3 2022 vs Q3 2023, SEKm
Slide 14: 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 Net debt NWC/Net Sales LTM Net debt to EBITDA LTM 567 545 491 434 421 404 336 1.7x 11.8% 133 10.9% 11.0% 1.1x 10.3% 0.9x 0.4x Year Year Year YTD Sept Year Year Year YTD Sept 2020 2021 2022 20
Slide 15: Cash Flow from financing activities impacted by refinancing
Cash Flow from financing activities impacted by refinancing Cash Flow YTD, SEKm Comments • Stable Cash Flow from Operating activities of 120 SEKm. • Cash flow from financing activities amount to 402 SEKm. In the quarter our refinancing impact by 187 SEKm. • The refinancing will have a positive impac
Slide 16: Performance by segment
Performance by segment
Slide 17: Segment Nordics
Segment Nordics Volume & Market share Comments Volume & Market share Q3 2023 Volume & Market share YTD 2023 • Volume developed stronger than the market in Q3, +4.0% compared to markets -2.3%. Market share Market share Market share increased in Q3, 20.8% (19.5%). +3.9% +4.0% • Sweden: Volume develope
Slide 18: Segment Nordics
Segment Nordics Strong volume growth and increased market shares driven by long-term successful strategy Highlights The increase in volume and market shares in the Nordics comes exclusively from organic growth driven by line extensions, product launches, new formats and tender wins. • Sweden: The ma
Slide 19: Segment Nordics
Segment Nordics Net Sales, SEKm Adjusted EBITA, SEKm +6.9% -23.8% 2.346 222 Adjusted EBITA margin 2.194 169 +6.6% -11.5% 10.1% 733 781 67 59 9.1% 7.6% 7.2% Q3 2022 Q3 2023 YTD 2022 YTD 2023 Q3 2022 Q3 2023 YTD 2022 YTD 2023 • Net Sales increased with 6.6% vs Q3 2022, • Adjusted EBITA decreased in Q3
Slide 20: Segment Viva eCom
Segment Viva eCom Strong margins. Well positioned for further growth in Europe Highlights & KPIs • Sales stabilized and we see brighter outlook for our e-commerce business. • Further internationalization of Weinfürst concept into two new markets, Romania and Switzerland • New 12,000 sqm centralized
Slide 21: Segment Viva eCom
Segment Viva eCom Net Sales, SEKm Adjusted EBITA, SEKm -1.9% -5.9% 54 53 560 Adjusted EBITA margin 528 +6.0% +1.9% 16 17 10.0% 166 169 10.3% 9.6% 9.9% Q3 2022 Q3 2023 YTD 2022 YTD 2023 Q3 2022 Q3 2023 YTD 2022 YTD 2023 • Net sales increased to 169 SEKm, an increase of • Strong gross margin, through
Slide 22: Sustainability
Sustainability
Slide 23: Sustainability update
Sustainability update • Succesful implementation of software solution for climate reporting across Nordic business. • Low CO2 impact / litre sold compared to peers due to climate efficient transport solutions (rail instead of road) and innovative packaging solutions. • Remaining CO2 impact from tran
Slide 24: Final Comments
Final Comments
Slide 25: Financial targets
Financial targets >4% • For segment Nordics, average annual organic growth is to total at least 4 percent over the medium term Growth 10-15% • For segment E-com, average annual organic growth is to total at least 10–15 percent over the medium term M&A • In addition, Viva Wine Group intends to grow t
Slide 26: Final Comments
Final Comments Well positioned for further growth - Another quarter with solid growth and increasing market shares in the Nordics driven by strong performance for both own brands and partner brands. - Strengthened margins in eCom with stabilization of sales. - Our estimate is that we have outperform
Slide 27: Viva Wine Group
VIVA WINE GROUP”
Slide 28: Contact
info@vivagroup.se | +46 8 21 83 88 | vivagroup.se Viva Wine Group | Blasieholmsgatan 4A | Stockholm | Sweden
Slide 29: Slide 29