Anora Oyj : Q1 24 tulospresentaatio (englanniksi)

Q1 24 Results presentation

with CEO Jacek Pastuszka and CFO Sigmund Toth

7 May 2024

Today's agenda and speakers

1. Business review
2. Financial review
3. Summary
4. Q&A

Jacek Pastuszka	Sigmund Toth
CEO	CFO

Q1 24 Results presentation | 7 May 2024 | 2

Business review

Q1 24 Results presentation | 7 May 2024 | 3

Business review

Q1 results: Comparable EBITDA improved in Q1 due to higher gross margin and cost reduction

Net sales	Comparable EBITDA	Comparable EBITDA	EBITDA
146.9 (159.5)	8.9 (7.9)	margin, %	7.8 (6.9)
6.1 (5.0)
EUR million	EUR million		EUR million

Results visible from	Sales decline mainly	Implemented cost	Guidance for
the recent price	due to a decrease in	cuts, changes in	comparable EBITDA:
increases and	Wine and Industrial	operational model	EUR 75-85 million
cost cuts	net sales	and price increases	for 2024
		to bring further
		results in 2024

Q1 24 Results presentation | 7 May 2024 | 4

Business review

Wine

Q1 highlights

• Net sales decreased by 9.1% to EUR 66.6 million, due to Francois Lurton resignation in Sweden in March 2023 and discontinuation of low margin third party filling contracts in Denmark.
• The impact of exchange rate fluctuation was not significant on net sales due to hedging.
• Comparable EBITDA increased to EUR 2.6 (1.2) million, or 4.0% (1.6%) of net sales, due to price increases, improved gross margins and lower operating expenses.
• Especially own wines contributed positively.

Net sales (total)

EUR million

-9.1%

73.366.6

Q1 23

Q1 24

Comparable EBITDA

EUR million and %

2.6

1.2

4.0%

1.6%

Q1 23

Q1 24

New wine launches & tender wins

Q1 24 Results presentation | 7 May 2024 | 5

Business review

Spirits

Q1 highlights

• Net sales decreased by 3.3% from the

previous year and amounted to EUR 47.0

million.

• In Spirits, all four Nordic markets

delivered net sales growth in Q1, whereas

the performance of the international

sales was weaker, partly due to the

harbour strike in Finland affecting

exports with limited gross profit effect.

• The impact of exchange rate fluctuation

was not significant on net sales due to

Net sales (total)

EUR million

-3.3%

48.947.0

Q1 23

Q1 24

Comparable EBITDA

EUR million and %

Successful launches

Sweden

O.P. Anderson Dill and Explorer Organic Vodka met with great consumer acceptance

Finland

Leijona Namu Raspberry Sour, Leijona

Bangkok Pineapple, Koskenkorva Tropical

Spirit Drink and Corona Spanish Brandy.

The grocery retail portfolio got two new ready- to-drink additions from Koskenkorva - Pure Peach Raspberry and Vichy Strawberry & Kiwi.

hedging.

• Koskenkorva net sales grew from the

previous year and represented over 15%

5.8

6.8

Baltics & GTR

of the total Spirits sales.

• Comparable EBITDA improved

mainly due to the price increases and

additional cost control.

14.5%

12.0%

Q1 23

Q1 24

Koskenkorva Strawberry liqueur and Passionfruit Caipiroska novelties launched

Q1 24 Results presentation | 7 May 2024 | 6

Business review

Industrial

Q1 highlights

• External net sales decreased by

12%.

• In Industrial segment, the net sales

was negatively impacted by lower

sales prices due to the lower price of

barley combined with lower

production volumes.

• Comparable EBITDA was EUR

0.8 million, or 1.5% of net sales.

• The performance of the Industrial

Net sales (total)

EUR million

				-18%
		67.5
Internal	29.9	55.2
		21.9
External
37.7
	33.3
		Q1 23		Q1 24

Comparable EBITDA

EUR million and % of net sales

-69%

segment was negatively impacted by

lower volume and price erosion due to

barley value-based side product sales.

2.5

3.7%

0.8

1.5%

Q1 23

Q1 24

Q1 24 Results presentation | 7 May 2024 | 7

Financial review

Q1 24 Results presentation | 7 May 2024 | 8

Financial review

Net sales development

Q1 2024 net sales decreased by 7.9%

Group net sales
EUR million	2023: 727.6				YTD 2024: 146.9
159.5	182.7	173.0	212.4
146.9

	Q1			Q2		Q3	Q4		Q1
Net sales (external) by segment			Net sales (external) by segment Q1 2024
EUR million						%
-9.1%	-3.3%	-11.6%				32.0%
73						45.3%
67
		49
			47	38	33
					Q1 2023	22.7%
							Q1 2024
	Wine	Spirits	Industrial			Wine		Spirits		Industrial

• Q1/24 net sales: 146.9 (159.5) MEUR, down by 7.9%
• Net sales declined mainly due to a decrease in Wine and Industrial net sales.
• In Spirits, all the four Nordic markets delivered net sales growth in Q1, whereas the performance of international sales was weaker, partly due to the harbour strike in Finland that disrupted export deliveries.
• In the Industrial segment, net sales were negatively impacted by lower sales prices due to the lower price of barley combined with reduced production volumes.

Q1 24 Results presentation | 7 May 2024 | 9

Financial Review

In Q1 2024, net sales decreased by 7.9%

Net sales declined mainly due to a decrease in Wine and Industrial net sales

Net sales (external), EUR million

Net sales (external), EUR million and change per segment

• In Wine, net sales decreased due to Francois

Lurton resignation in Sweden in March

2023 and discontinuation of low margin

			-7.9%
		159.5
	134.2	146.9
123.0	133.4

Q1	Q1	Q1 22	Q1 23	Q1 24
20 PF	21 PF

PF = Pro forma

		-7.9%
159.5
	-6.7
		-1.6	-4.4	146.9
Q1 23	Wine	Spirits	Industrial	Q1 24

third party filling contracts in Denmark.

• In Spirits, all the four Nordic markets

delivered net sales growth in Q1, whereas

the performance of international sales was

weaker, partly due to the harbour strike in

Finland that disrupted export deliveries with

limited gross profit effect.

• In the Industrial segment, net sales were

negatively impacted by lower sales prices

due to the lower price of barley combined

with reduced production volumes.

• The divestment of Larsen was completed on

29 September 2023.

Q1 24 Results presentation | 7 May 2024 | 10