B&S S A : Half yearly fcial & audit reports / ltd reviews - BS HY 2022 results - EN

Half Year 2022 results

B&S Group S.A.

19.4% topline growth in first half 2022, yet margins impacted by economic developments.

Mensdorf, Luxembourg - August 22, 2022 (07:00 CET)

B&S Group S.A. ("B&S") tech company in the consumer goods industry, today publishes its half year 2022 results ("HY 2022").

Highlights HY 2022 (compared to HY 2021)

Overall turnover increased by 19.4% to € 983.2 M (15.1% on a constant currency basis);

Organic turnover increase of 18.8% (14.5% on a constant currency basis);

EBITDA amounted to € 40.6 M (HY 2021: € 45.6 M) with EBITDA margin of 4.1% (HY

2021: 5.5%) driven by increased operating expenses and a provision for a doubtful debtor of USD 7.5 M in the Food segment. Adjusted for the provision, EBITDA stood at

• 47.7 M with EBITDA margin of 4.8%;

Net cash from operations amounted to € -23.8 M (HY 2021: € -29.1 M);

Net debt / EBITDA at June 30, 2021 stood at 3.7 as a result of substantially increased inventory positions to stay ahead of the scarcity and rising purchase prices while securing inventory positions for the seasonally stronger H2;

Net profit amounted to € 16.7 M (HY 2021: € 21.8 M).

Highlights Q2 2022 (compared to Q2 2021)

Overall turnover increased by 23.8% to € 529.9 M (18.3% on a constant currency basis) of which 22.8% was organic.

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Tako de Haan, CEO: "In the first half of 2022 turnover grew double digit and was driven by the Liquor segment and further aided by Retail and Food. Nevertheless, industry wide supply chain challenges and increased product scarcity had their impact on gross margins in the first half of 2022. A provision in the Food segment further impacted gross margin. Also, staff costs continued to rise due to a tight labour market in Europe as well as expansion and increased hourly rates for warehousing staff in the US. This led to an EBITDA margin of 4.1% in the first half of 2022 (4.8% excluding the one-off provision in the Food segment).

Despite the challenging global economy, we continued to enhance our brand partnerships and further expanded our portfolio. With the recent acquisition of a French beauty company we further strengthened our direct-to-consumer activities and gained direct access to brand owners in the premium beauty segment. Also, our Retail segment is strengthened further with the upcoming opening of the first shops in Abu Dhabi and the addition of the newly won tender contracts in Barcelona and Palma de Mallorca.

Our investments were mainly related to the acquisition of the French beauty company, the expansion and further automation of our B2C warehousing operations, additional warehousing capacity for B&S Personal Care and centralisation of our operations as part of our digital transformation. With our integrated logistical set-up we continue to look for expansion of our service proposition to serve wholesalers, resellers and brands into places, channels and regions where they desire a (stronger) presence or establishment. This is supported by continuing the digitisation of our services driven by our B&S Nfinity backbone.

Besides our commercial focus and as communicated in our FY 2021 results publication, we have made it our priority to update our sustainability strategy, policies and programmes in line with our 2021 - 2023 strategic direction. The three business priorities that are central to our overall strategy have been translated into clear goals and actions to drive our business forward sustainably. I am proud to share our 'Reach with Impact' strategy with you in the Sustainability section of this press release.

All in all we are positive on our progress on strategy and I am pleased to see the team working together in shaping it further. Yet, the effects of the current global economy undeniably impacted H1 results with continued pressure on the sourcing of goods and disruption of international supply chains. Consequently and in preparation for the seasonally stronger second half of the year, inventory positions were build up in an earlier stage to ensure more favorable purchase prices in order to preserve margins in H2. This resulted in significantly higher working capital in H1 and thus a higher net debt position. This position is expected to decrease again in H2 following the seasonally stronger business in the second half of the year.

In sum, our company is strategically in good shape to navigate through the current economic circumstances and continue to execute on our 2021 - 2023 strategy. Nevertheless, we remain cautious in our turnover and EBITDA projections for the second half of the year due to the unpredictable macro-environment with continued influence of the Russia-Ukraine war and the zero-covid policy in Asian countries."

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Key figures HY 2022

€ million (unless	HY 2022		HY 2021		(%)
otherwise indicated)	reported		reported		reported
Profit or loss account
Turnover	983.2		823.6		19.4%
Gross profit (margin)	139.0	14.1%	126.8	15.4%	9.6%
EBITDA (margin)	40.6	4.1%	45.6	5.5%	(11.0%)
Depreciation & Amortisation	15.7		15.1		4.0%
Profit before tax	21.5		28.5		(24.6%)
Net profit	16.7		21.8		(23.4%)
EPS (in euro)	0.15		0.17
ROIWC	21.5%		22.8%
Financial position
Inventory in days	95		87
Working capital	518.4		442.1
Solvency Ratio	34.2%		34.8%
Net Debt*	414.8		317.6
Net Debt/EBITDA*	3.7		3.2

• These comparative figures have been changed to conform to the new financial covenant definition according to the new agreed loans and borrowings agreement on December 30, 2021.

Financial performance

Turnover

The turnover levels of HY 2022 grew 19.4% compared to 2021 levels. Organically, turnover increased by 18.8% and was mainly driven by the Liquor segment and further aided by the Food and Retail segments. The stronger EUR USD exchange rate positively impacted our turnover by 4.3%. Acquired turnover contributed 0.5%, stemming from the acquisition of a French beauty company in the Beauty segment.

0.5%4.3%

14.5%

Turnover breakdown HY 2022 in € million (unless otherwise indicated)

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B&S Liquors

The 37.9% growth in turnover for this segment was driven by the increased demand in the international market as well as higher sales in the domestic market within Europe. Gross margins stabilised in the second quarter after growth in Q1 2022. Although the container shortages seem to be flattening for the international liquor business, supply chain constraints in certain international markets remain challenging and are expected to delay order flows for H2 2022.

B&S Beauty

Turnover increased by 4.6%, driven by the acquisition of a French beauty company and further aided by the strong US dollar that helped online B2C sales - albeit at lower gross margins when compared to HY 2021. In Q2 2022 these margins were at pre-covid levels, with increased marketing and shipping expenses compared to the same period last year. In the B2B market, product scarcity continued to hold back growth in Q2 2022.

B&S Personal Care

Turnover grew 9.8% in the first half of 2022, aided by the broad variety of in-stock items that continued to meet market demand. Growth in Q2 2022 was similar to Q1 2022 and driven by key customers that were open after the forced shop closures of value retail in 2021.

B&S Food

Turnover in the Food segment grew 15.1% compared to HY 2021, with 18.3% growth in Q2 2022. This was driven by the brand distribution service in Duty Free markets that benefitted from travel recovery and food service in the Maritime sector that saw increased customer orders via further digitisation of order flows. Gross margin however was negatively impacted by a provision of USD

7.5 M for a doubtful debtor and an altered business mix with reduced (higher margin) remote business.

B&S Health

After a weak Q1, the Health segment saw 20.6% turnover growth in Q2 when compared to the same quarter last year. This resulted in 1.3% growth for H1 2022 and was mainly driven by volume deals and recovery of the travel vaccine business although not yet back at pre-covid levels.

B&S Retail

With travel markets continuing to recover, turnover for the Retail segment increased by 244.8% in the first half of 2022. Still, this remained below pre-covid levels. When comparing the quarters with last year, the Q2 turnover growth was less steep given (temporary) easing of travel restrictions in Q2 2021.

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