Net sales

First-quarter 2022 revenue for Marie Brizard Wine & Spirits

Marie Brizard Wines & Spirits

Charenton-le-Pont, April 28, 2022

Q1 2022 Net sales

Q1 2022 Net sales amounted to €40.6m, up 5.2% compared to Q1 2021
(especially the first two months of the year)

  • Performance maintained in France at the start of 2022, despite an overall slowdown in the spirits market (sales growth of 4% compared to 2021), benefiting in particular from:

    • a good horeca activity which was penalized by the COVID measures in 2021;

    • a lesser drop in sales of William Peel compared to the competition and moderate growth of the other brands in the portfolio (particularly Marie Brizard).

  • Sustained recovery in international sales (+6.3% compared to Q1 2021), varying according to the region:

    • recovery in Europe compared to 2021 (health restrictions) despite the Russian-Ukrainian conflict which has so far resulted in a limited loss of sales;

    • slowdown in Sobieski’s sales in the United States in a still competitive environment in the Vodka category;

    • significant growth of our strategic brands in Asia-Pacific (mainly in Korea, Taiwan, Japan), a region that is still growing.

    • a pricing policy anticipating certain increases in the cost of raw materials.

NB: All revenue growth figures mentioned in this press release are at constant scope and exchange rates, unless otherwise stated..

Married Brizard Wines & Spirits (Euronext: MBWS) today announces its unaudited revenue for the first quarter of 2022, covering the period from January 1 to March 31, 2022.

Q1 2022 Net sales

in €m

March 31, 2021

Change to the same

Currency effect

March 31, 2022

Change to the same
(excluding currency effect)

Reported growth (incl. currency impact)

France

19.1

0.8

19.9

4.0%

4.0%

International

19.3

1.2

0.2

20.7

6.3%

7.4%

TOTAL MBWS GROUP

38.4

2.0

0.2

40.6

5.2%

5.7%

France Division

In the first quarter of 2022, the revenue of the France cluster reached 19.9 million euros, up 4.0% compared to the first quarter of 2021, thanks in particular to the strong recovery of the horeca activity, as well as resilient sales at large distributors (off-commercial) due to a favorable mix and a reduction in promotional activity, particularly on the Paddy brand.

The Group’s main brands posted positive performances at the start of 2022, notably again Marie Brizard and San José. Other brands, such as Sobieski, are making good progress in the catering segment. In a context of a sharp slowdown in sales in the blended whiskey under 12 years market (-7.0%), we note a limited decline for William Peel (-3.7%) in Q1 2022 compared to the same period in 2021, thanks in particular to the listing in the second half of 2021 with a new player in distribution, which has enabled the brand to consolidate its market share.

This positive change in turnover from one quarter to the next for the France cluster should be seen against the very disturbed context of disruption in the supply chain of raw materials since the beginning of March, in particular since the outbreak of the Russian conflict. -Ukrainian, and the significant price increases (especially for glassware in April), leading to the risk of allocations depending on the volumes available.

International pole

First-quarter 2022 revenue for the International division amounted to €20.7 million, up 6.3% at constant exchange rates compared to the first quarter of 2021.

In Western Europe, in addition to the end of COVID-related health restrictions, trading in early 2022 continued to reflect a strong recovery in the UK (after an almost complete shutdown for the same period in 2021), with good gains for Marie Marque Brizard (in value and portfolio weight).

In the Middle East, there is good development of the Marie Brizard brand in the syrups category, a business that should grow.

Spain posted sales down 2%, driven by strong growth in brand sales in the horeca sector (particularly for Marie Brizard), cross-border sales (William Peel), a proactive pricing policy but also a drop in sales of subcontracting activity, mainly due to bottle supply difficulties.

Scandinavia (following the lifting of COVID-related restrictions at the end of January) saw its revenue increase very significantly from a low volume base.

Q1 2022 sales in the Baltic States were negatively impacted by a mechanical effect of customer overstocking at the end of 2021 in anticipation of the increase in excise duties, the sharp rise in energy prices, as well as the immediate consequences of the war in Ukraine on exports to Russia and Belarus (not significant at the overall Group level). These reductions were partially offset by a proactive pricing policy.

Bulgaria recorded strong growth across its entire portfolio of spirits and wine brands in Q1 2022, both in its domestic market and in exports (Greece, Turkey, Hungary, etc.), as well as sustained subcontracting activity for Romania.

In Poland, sales of our brands experienced significant growth thanks to the fine performance of Cognac Gautier, the development of Marie Brizard liqueurs and stable sales of William Peel.

In the United States, revenue for the first quarter of 2022 was down year on year. Q1 2022 continued to be marked by a slowdown in Sobieski’s sales due to the evolution of the Vodka category.

These unfavorable effects were only partially offset by the good performance of the Marie Brizard and Cognac Gautier brands.

Canada, on the other hand, was the main contributor to the net sales growth of the direct export business during the quarter.

Brazil experienced a significant drop in sales compared to 2021, for all brands except Marie Brizard. The price increase applied to the entire portfolio limits the decrease observed.

In the Asia-Pacific region, sales in the 1st quarter of 2022 were driven by good performances in Korea, Taiwan and Japan, despite the absence of sales in the Chinese market.

Outlook
As already indicated in the press release on the 2021 annual results (disseminated on April 14), and as described above, MBWS Group, like other players in the wine and spirits sector, is regularly confronted with pressures on its supply chain related to the periodic unavailability of certain raw materials and dry goods, a streak that began with the easing of Covid restrictions and continued through the first quarter of 2022.

Sharp increases in purchasing costs were already observed at the end of 2021, in particular for glassware following the disorganization of this sector after the Covid pandemic. The Group has therefore already implemented price increases at the start of the year.

However, since the beginning of April and following the events in Ukraine, the immediate and significant additional increases in the prices of raw materials are potentially greater than the ability to pass on prices downstream to distribution partners and customers.

Combined with the volatile availability of production from suppliers, these impacts could have negative effects on the Group’s ability to supply all of its customers (in France and internationally), and on the elasticity of demand for consumers, particularly given the need for the Group to adapt its commercial policies to this new context.

This environment forces the Group to adopt a cautious view of commercial activity in the months to come and perhaps more particularly in the second half if the Russian-Ukrainian conflict has not found a satisfactory settlement by then and if its disruptive consequences persist.

Financial Calendar

Investor and shareholder relations
MBWS Group
Emily Drexler
[email protected]
Tel: +33 1 43 91 62 21

Media
Picture September
Claire Doligez – Laurence Maury
[email protected][email protected]
Tel: +33 1 53 70 74 70

About Mary Brizard Wines & Spirits

Marie Brizard Wine & Spirits is a wine and spirits group based in Europe and the United States. Marie Brizard Wine & Spirits is distinguished by its know-how, an alliance of brands with a long tradition and a resolutely innovative spirit. Since the birth of Maison Marie Brizard in 1755, the Marie Brizard Wine & Spirits Group has developed its brands in a spirit of modernity while respecting its origins.
Marie Brizard Wine & Spirits’ commitment is to offer its customers brands that are trustworthy, daring and full of flavors 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 PEA-PME EnterNext
150 indexes.

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