Marie Brizard Wine & Spirits: Q1 2024 revenues

                                                                                      Charenton-le-Pont, 25 April 2024

Q1 2024 revenues

Revenues of €43.3m, down 6.9% versus Q1 2023

Sales hold up well in France in a still declining market

International sales fall, with geographical disparities, as a number of customers cut inventories

• In France, sales rose slightly by 0.5% at end-March 2024 versus 2023, despite a shrinking spirits market
  • volume sales in the Off-Trade were down, largely because reduced promotional intensity in Q1 2024 than in Q1 2023. But the Marie Brizard brand enjoyed a bump in sales thanks to new product listings;
  • On-Trade Sales rose 7.9% in Q1 2024, up from an already strong basis for comparison in Q1 2023.
    
    
• International sales fell 12.3% during the quarter versus Q1 2023, with contrasting operating performances by region:
  
  
  • a decline in sales at European subsidiaries, particularly Lithuania, Bulgaria and Spain, as a number of customers ran down their inventories and the Industrial Services segment contracted, including the bulk market. William Peel, however, posted a strong quarter with growing revenues;
    • first quarter of recovery in the United States, with Sobieski doing better following a dismal Q1 2023, and growing revenues in Brazil as 2023 price rises fed through;
    • declining export markets, particularly in Asia Pacific, with significant decreases in Australia, Korea and Europe, where strong growth in Benelux, Italy and Germany were unable to offset declining sales in Poland.

NB: All figures for changes in revenues reported herein are at constant exchange rates and consolidation scope, unless otherwise stated.

Marie Brizard Wine & Spirits (Euronext: MBWS) today announces its unaudited revenues for the first quarter of 2024, covering the period from 1 January to 31 March 2024.

Q1 2024 revenues

France cluster

France cluster revenues edged up by 0.5% in Q1 2024 versus Q1 2023, to €19.5m. Volume sales of spirits in the Off-Trade continued to decline, however this was offset by market share gains for William Peel, San José and Sobieski, by price rises introduced on 1 March 2023 that fed through, and by strong performances in the On-Trade which were up 7.9% as the portfolio of premium Agency brands arrived on the shelves.

Overall, the market for spirits sold through major retailers shrank by 5.9%¹, with a particularly sharp decline in the 12-year blended scotch whisky market, where volumes were down 6.5%¹. This weighed on revenues for international strategic brands over the quarter, though Marie Brizard bucked the trend, growing strongly as new listings came onstream in 2024.

International cluster

The International cluster posted Q1 2024 revenues of €23.8m, down 12.3% versus Q1 2023 at constant exchange rates.

Spain saw a 12.8% drop in sales in Q1 2024 after a production line was forced to shut down for retooling during the month of March, some products were delisted in 2023 and a number of customers ran down inventories.

In the export markets of Western Europe, the Middle East and Africa, Q1 revenues fell by 11.2%. This reflected poor sales in a number of markets, notably Africa, the Middle East and the French overseas departments and territories, which were only partly mitigated by strong performances in Benelux, Germany and Italy, led by rising sales of the William Peel, Sobieski and Marie Brizard brands.

Revenues in Lithuania fell by 16.5%, mainly due to a drop-off in Industrial Services, which faced falling market prices for bulk sales and a reduction in the bottling of private label products. Exports also contributed to the decline, as bottlenecks at the Ukrainian border caused logistical problems. International Strategic and Flagship Regional Brands like Sobieski and Bajoru held up well in the local market, and export sales of William Peel continue to progress apace.

In Bulgaria, Q1 sales were down 20.5%, resulting from two contrasting factors:

• a decline in Industrial Services after a strong quarter in Q4 2023 as customers ran down their existing inventories;
• an expanding domestic market driven by the International Strategic Brands William Peel and Sobieski and Flagship Regional brands, particularly wine, whose sales rose during the quarter.

Revenues in Scandinavia fell 3.7% in Q1 2024, although there was a mild pick-up late in the quarter, with declines for Agency Brands and for the International Strategic Brands, except Gautier.

In Eastern Europe export markets, Q1 sales fell sharply after our Polish distributor decided to massively reduce inventories.

In the United States, Q1 2024 revenues rose 51.0%, up from a weak basis for comparison in Q1 2023. Growth was led by Sobieski, whose inventory at our local distributor now seems to have stabilised.

Export sales in the Americas recorded modest growth of 1.7%, with solid performances by international Strategic Brands, particularly in Canada, including Cognac Gautier.

In Brazil, Q1 2024 revenues were up 5.9% on Q1 2023, primarily thanks to strong performances by Flagship Regional and Agency Brands. Revenues were also helped by the continuing impact of price hikes in 2023.

Finally, Asia Pacific saw a sharp decline in sales of 40.5% in Q1 2024 versus the previous year, particularly in Korea where the distributor cut down inventories over the quarter, and in Australia, where sales of Marie Brizard declined, though this was partly offset by a strong brand performance in Japan.

Outlook

Following a generally positive dynamic in the end of 2023, the downward trend in the wines and spirits markets hit sales in the first quarter of 2024, affecting the Group's main operating regions.

As indicated in the last Press Release of 17 April and looking ahead to full-year 2024, the Group sees a climate of price pressure from retailers, coupled with declining consumption. It anticipates a gradual normalisation of the market in terms of inflation over the first half of 2024.

Given the current slowdown in the wines and spirits sector, amid an increasingly tense and fast-changing international and geopolitical environment, the Group is standing by its policy of wise operational management.

The Group is determined to continue rolling out its development strategies, namely organic growth through the international expansion of Strategic Brands, local development of Flagship Regional Brands, growth in the Agency Brands business and development of the Industrial Services offering, while at the same time seeking out complementary growth opportunities. Its key strength remains its capacity to offer consumers quality products at affordable prices, despite declining purchasing power.

Financial calendar

• General Meeting: 27 June 2024
• H1 2024 revenues: 25 July 2024

About Marie Brizard Wine & Spirits
Marie Brizard Wine & Spirits is a wine and spirits group based in Europe and the United States. Marie Brizard Wine & Spirits stands out for its expertise, a combination of brands with a long tradition and a resolutely innovative spirit. Since the birth of the Maison Marie Brizard in 1755, the Marie Brizard Wine & Spirits Group has developed its brands in a spirit of modernity while respecting their origins. Marie Brizard Wine & Spirits is committed to offering its customers bold and trusted brands full of flavour and experiences. The Group now has a rich portfolio of leading brands in their market segments, including William Peel, Sobieski, Marie Brizard and Cognac Gautier.
Marie Brizard Wine & Spirits is listed on Compartment B of Euronext Paris (FR0000060873 - MBWS) and is part of the EnterNext© PEA-PME 150 index.

1 Source: Circana cumulative P3 2024

Attachment

• MBWS - Net Sales FY - Q1 2024 FV ENG