Q3: Price increases and cost cuts partly offset the decline in comparable EBITDA. The divestment of Larsen was successfully completed, strengthening net debt and cash flow.
This release is a summary of
Q3 2023 in brief
- Net sales were
EUR 173.0 (181.9) million, down by 4.9%. The one-off capital gain ofEUR 12.2 million from the divestment of Larsen was reported under other operating income, which amounted toEUR 14.3 million . -
EBITDA was
EUR 28.9 (21.8) million, or 16.7% (12.0%) of net sales, up by 32.4%. -
Comparable EBITDA was
EUR 20.2 (23.4) million, or 11.7% (12.8%) of net sales, down by 13.5%. - Net cash flow from operating activities was
EUR -13.8 (7.3) million.-
Earnings per share
EUR 0.21 (0.12).
January-September 2023 in brief- Net sales were
EUR 515.3 (481.1) million, growth of 7.1%. -
EBITDA was 45.6 (49.0) million, or 8.8% (10.2%) of net sales, down by 7.0%.
-
Comparable EBITDA was
EUR 41.1 (55.3) million, or 8.0% (11.5%) of net sales, down by 25.5%. -
Net cash flow from operating activities was
EUR 35.2 (-36.4) million. -
Earnings per share
EUR 0.06 (0.21). -
Net debt/comparable EBITDA (rolling 12 months) was 3.5x (3.6x).
Guidance
In 2023, Anora's comparable EBITDA is expected to be
Key figures
EUR million | Q3 23 | Q3 22 | Change | Q1-Q3 23 | Q1-Q3 22 | Change | 2022 |
Net sales | 173.0 | 181.9 | -4.9% | 515.3 | 481.1 | 7.1% | 702.7 |
Comparable EBITDA | 20.2 | 23.4 | -13.5% | 41.1 | 55.3 | -25.5% | 76.1 |
% of net sales | 11.7 | 12.8 | 8.0 | 11.5 | 10.8 | ||
EBITDA | 28.9 | 21.8 | 32.4% | 45.6 | 49.0 | -7.0% | 67.9 |
Comparable operating result | 11.8 | 14.4 | -17.8% | 15.9 | 30.7 | -48.2% | 42.9 |
% of net sales | 6.8 | 7.9 | 3.1 | 6.4 | 6.1 | ||
Operating result | 20.5 | 12.8 | 59.7% | 20.4 | 24.5 | -16.9% | 34.7 |
Result for the period | 14.0 | 7.9 | 76.9% | 4.3 | 14.4 | -70.1% | 18.1 |
Earnings per share, EUR | 0.21 | 0.12 | 73.1 | 0.06 | 0.21 | -69.7% | 0.26 |
Net cash flow from operating activities | -13.8 | 7.3 | 35.2 | -36.4 | -0.4 | ||
Net debt / comparable EBITDA (LTM) | 3.5 | 3.6 | 3.5 | 3.6* | 4.0 | ||
Personnel end of period | 1,249 | 1,212 | 3.1% | 1,249 | 1,212 | 3.1% | 1,251 |
* If including Globus Wine LTM figures, net debt/comparable EBITDA (LTM) would have been approx. 3.4 for Q1-Q3/22.
CEO
"In my short time as the new CEO of Anora, I have already had the opportunity to start onboarding by meeting many new colleagues. I can only say that I am impressed by their expertise and passion to serve our customers. I am convinced that this continued customer focus combined with enhanced efficiency will enable us to deliver on our targets and strategy, which were launched at last year's Capital Markets Day.
Towards the end of Q3, we carried out major price adjustments in the monopoly pricing window. We started to see the first results from the initiated price increases and also previously announced cost cuts. However, we still experienced a negative impact on sales and profitability due to lost partners in Wine and weaker currencies. The estimated impact of weaker currencies, particularly in the Wine segment, was about
Comparable EBITDA for the quarter was
Price increases late in the quarter and recent movements in currencies have given some tailwind lately. To improve profitability, a cost savings programme was launched in Q2, with a target of
Net sales in Q3 declined by 4.9% to
In the Wine segment, Anora's own wines continued to perform well, growing by 11.5% in local currencies in Q3 and continued to gain market share. The partner business struggled, both declining in net sales and losing market share. The good performance of our own wines and the wines of our new partners only partly compensated for the impact of the currency exchange rates and previous partner losses in
In the Spirits segment, net sales were flat due to the weak currency exchange rates of the NOK and SEK and a volume decline in the Monopoly markets. In local currencies, net sales improved from the previous year by 3.9%. The relative share of international sales increased to 35.1% (34.9%). Koskenkorva sales continued growing but slower than in the very strong first half. The brand represented approximately 15% of our total spirit sales. The market shares increased in
The Industrial segment sales decreased driven by lower volume and prices in the Industrial products business, mainly caused by lower starch and feed sales. The weak outlook for starch in the pulp and paper industry led to lower grain consumption at the Koskenkorva distillery.
Looking ahead to the rest of this year, our full-year guidance remains valid. We remain highly focused on executing our strategy and improving our profitability and efficiency. This includes the savings programme, price adjustments, and a focus on reducing net working capital and improving inventory turnover."
Outlook and guidance for 2023
In 2023, the volumes in the monopolies are expected to be significantly lower than during the COVID-19 restrictions. Input costs are expected to remain at a high level.
In 2023, Anora's comparable EBITDA is expected to be
The guidance was lowered on
Anora's financial reporting for the year 2023
Anora will publish Financial Statement Release for January-
Anora applies a silent period of 30 days before the publication of financial reports.
Further information:
Contacts:
Milena Hæggström, Director, Investor Relations
tel. +358 40 5581 328
milena.haeggstrom@anora.com
Results presentation:
CEO
It is also possible to dial-in to the meeting about 5 minutes earlier at the following numbers:
- FI: +358 9 2310 6678
- NO: +47 21 40 41 04
- SE: +46 8 502 428 54
- DK: + 45 32 72 56 80
UK : +44 20 7660 8309- US: +1 917-781-4622
Conference ID: 893 774 793#
Q&A
Questions to the management can be sent through the Teams chat.
Presentation material and on-demand recording
The presentation material will be shared in the online meeting and it can be downloaded at: www.anora.com/en/investors. Recording of the presentation will also be available on Anora's website.
Distribution:
Nasdaq
Principal media
www.anora.com
Anora is a leading wine and spirits brand house in the Nordic region and a global industry forerunner in sustainability. Our market-leading portfolio consists of our own iconic Nordic brands and a wide range of prominent international partner wines and spirits. We export to over 30 markets globally.
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