2020 Net Results
> Turnaround of Group profitability with an EBITDA(*) of €10.6m, including positive one-off effects
of €3.7m related to the Covid Crisis on temporary ethyl alcohol bulk sales in
to the impact of the change of distribution model in
>Significant improvement in Net Result from continuing activities : losses divided by more than 5
>Net financial debt reduced to €43.6m
(*) EBITDA = EBIT – provisions for current assets – depreciation – pension liabilities
NB: All sales growth figures mentioned in this press release are at constant exchange rates and on a like-for-like basis, unless otherwise stated.
Andrew Highcock, Chief Executive Officer of
Simplified income statement for the financial year 2020
in M€, exceptEPS | 2019 restated (*) | 2020 | Change 2020/19 | |||
Net revenues (exlcuding excise duties) | 166.9 | 169.1 | +2.0% | |||
EBITDA | -3.5 | 10.6 | + €14.1m | |||
Ebitda margin | -2.0% | 6.3% | + 830 bp | |||
Recurring operating income | -7.4 | 1.0 | + €8.4m | |||
Attributable Net income (Loss) | -65.9 | -38.4 | + €27.5m | |||
of which net income (Loss) from continuing operations | -30.2 | -5.5 | + €24.7m | |||
Of wich net income (Loss) from discontinued operations | -35.7 | -32.9 | + €2.8m | |||
Earnings per share, Group share (EPS,€) | -1.60 | -0.86 | ||||
Earnings per share from continuing operations, Group share (EPS, €) | -0.73 | -0.12 |
(*) The 2019 financial statements have been restated in accordance with IFRS 5- Discontinued operations. Following the disposal of the Group's Polish entities (MBWS Polska and its subsidiaries) in October 2020, their consolidated P&L for the 2020 and comparative 2019 fiscal years have been restated according to IFRS 5. The same applies to the entity
.
2020 Activity
Revenues | 2019 restated | 2020 | Organic Growth (excl. forex impact) | Growth (incl. forex) | |||
(in M€ ) | |||||||
BRANDED BUSINESS | 147.9 | 136.4 | -7.1% | -7.7% | |||
WEMEA | 99.2 | 90.5 | -8.7% | -8.7% | |||
CEE | 27.4 | 24.5 | -10.6% | -10.6% | |||
18.8 | 18.7 | 5.0% | -0.8% | ||||
2.5 | 2.7 | 6.1% | 6.1% | ||||
NON BRANDED | 19.0 | 32.7 | 72.7% | 72.7% | |||
TOTAL MBWS | 166.9 | 169.1 | 2.0% | 1.3% |
For both 2019 and 2020 financial year, the WEMEA cluster revenue now includes sales recorded by the Group with the purchaser of its Polish activities, in accordance with the new distribution agreements included in the disposal operation.
The slight improvement in consolidated revenue recorded in 2020 (+2.0% compared to restated 2019) reflects the context of the pandemic, which favoured bulk sales but had a very strong impact on the Brands business, following restrictive government measures in most of the markets in which the Group operates.
2020 Results
The increase in revenue and the impact of bulk sales at attractive prices helped to increase the gross margin rate to 42.4% in 2020 compared to 41.3% in 2019. As part of its proactive, value-oriented sales policy, the Group reduced its marketing spending in 2020 compared to the previous year. It is also reaping the benefits of the various structural measures implemented since 2019, resulting in EBITDA of €10.6m in 2020 compared with -€3.5m in 2019 (restated for IFRS 5). All regions are EBITDA positive.
Other non-recurring operating expenses, net of other non-recurring operating income, amounted to
-€6.7m. They mainly consist of expenses and costs related to the financial and organisational restructuring of the Group.
The net financial result amounts to €1.6m and is mainly related to the cost of financial debt and the write-back of a provision following the collection in
EBITDA | 2019 restated | Organic Growth | Change Effect | 2020 | Organic Growth (excl. forex impact) | Growth (incl. forex) | |||
(in M€ ) | |||||||||
BRANDED BUSINESS | 6.6 | 9.9 | 0.0 | 16.5 | 149,7% | 149,7% | |||
WEMEA | 6.6 | 5.1 | 0.0 | 11.7 | 77.1% | 77.1% | |||
CEE | 2.8 | -1.1 | 0.0 | 1.7 | -38.9% | -38.9% | |||
-2.1 | 4.8 | 0.0 | 2,7 | 228.5% | 228.5% | ||||
-0.7 | 1.0 | 0.0 | 0.3 | 150.0% | 150.0% | ||||
HOLDING | -9.2 | 0.7 | 0.0 | -8.5 | 7.2% | 7.2% | |||
Total BRANDED BUSINESS | -2.6 | 10.5 | 0.0 | 7.9 | |||||
NON BRANDED | -0.9 | 3.6 | 0.0 | 2.7 | 384.1% | 384.1% | |||
TOTAL MBWS | -3.5 | 14.1 | 0.0 | 10.6 | 400.5% | 400.5% |
The Branded business generated EBITDA of €16.5m (excluding Holding costs), up €9.9m on the previous financial year. This significant turnaround compared to 2019 reflects the stronger protection of the gross margin thanks to the updated commercial policies under the strategic plan.
WEMEA (
EBITDA for this region increased by 77.1% in 2020 to €11.7m.
With revenues of €75.8m, down -3.3% on 2019,
EBITDA for the rest of the cluster amounted to €1m in 2020, down -46% on 2019. It was impacted by the effects of the Covid crisis, particularly on sales in THE
CEE (Central and
EBITDA of the entire region remained positive at €1.7m but declined by €1.1m compared to 2019 with revenues of €24.5m, down -10.6% compared to 2019. The Covid restrictions in
Americas
2020 revenue for the
In
Asia-Pacific
2020 EBITDA for the region amounted to €0.3m, an improvement of €1.0m compared to 2019, driven by a 6.1% growth in revenue (€2.7m) and a reduction in structural costs (reorganisation in
Non Branded
EBITDA improved by €3.6m in 2020, to €2.7m compared to EBITDA of -€0.9m in 2019. The solid results of private label sales and bulk activities, which grew by a very strong 72.7% compared to 2019, enabled optimal use of the production site in
Holding cost improved by €0.7m compared to the end of 2019, thanks to operating cost reductions (including in particular the favourable effect of the change in headquarters that took place during
Balance sheet at
The Group's shareholders’ equity amounted to €66.3m at
At the end of
Lastly, the Group benefited from the deferral of charges related to Covid government aid and also the implementation at the end of 2020 of a new moratorium concerning part of the tax and social charges on activities in
Outlook
Despite the difficulties linked to the global pandemic, the Group implemented the operational execution of its plan, with a focus on operations that contribute to the improvement of the profitability of its activities leading to a gradual return to positive EBITDA. It has worked to create the conditions for the profitable development of its brand portfolio and the commercial areas where it is present with a systematic focus in the commercial strategy on value as well as volume, particularly in
The sale of the Polish activities in
In addition, the capital increase finalized on
After repayment of the balance of the above-mentioned
After the completion of the capital increase, the Group's net financial position as at
Although 2020 may present encouraging results in the context of a quite disruptive pandemic, the Group remains cautious about its roadmap for 2021 due to the continued impact of the pandemic on the beginning of the year and the likely more lasting consequences on consumption patterns.
Financial agenda
- General Meeting :
June 30 th, 2021 - 2021 First Half
Net Sales :July 28 th, 2021
About
150 index.
Contact Image Sept cdoligez@image7.fr – flarger@image7.fr Tél : +33 1 53 70 74 70 |
APPENDIX
FY 2020 Consolidated Financial Statements
INCOME STATEMENT
(in €000) | ||
220,774 | 220,476 | |
Excices tax | (51,691) | (53,616) |
NET SALES EXCL TAX | 169,083 | 166,860 |
Cost of goods sold | (97,474) | (97,911) |
External charges | (24,795) | (28,288) |
Salary expenses | (32,028) | (40,927) |
Taxes and Duties | (1,989) | (2,044) |
Depreciation and Amortization | (9,699) | (9,203) |
Other operating income | 4,127 | 7,832 |
Other operating expenses | (6,178) | (3,749) |
RÉCURRING OPERATING PROFIT | 1,046 | (7,428) |
Extraordinary income | 8,587 | 5 861 |
Extraordinary expenses | (15,303) | (26 839) |
OPERATING PROFIT | (5,671) | (28,406) |
Interest income | 89 | 25 |
Interest expenses | (2,934) | (2,197) |
NET COST OF DEBT | (2,845) | (2,172) |
Other interest income | 6,364 | 1,060 |
Other interest expenses | (1,870) | (258) |
NET INTEREST EXPENSES | 1,649 | (1,370) |
PRE-TAX INCOME | (4,023) | (29,776) |
Income tax/credit | (1,511) | (433) |
INCOME FROM ONGOING OPERATIONS | (5,533) | (30,209) |
INCOME FROM DISCONTINUED OPERATIONS (1) | (32,912) | (35,711) |
NET INCOME | (38,445) | (65,921) |
Attributable net income | (38,465) | (65,926) |
Of which net income from ongoing operations | (5,553) | (30,215) |
Of which net income from discontinued operations | (32,912) | (35,711) |
Non-controlling interests | 20 | 5 |
Of which net income from ongoing operations | 20 | 5 |
Of which net income from discontinued operations | ||
Attributable Net income per share (in €) | -0.12 € | -0.73 € |
Attributable net income from ongoing operations per share fully diluted (in €) | -0.12 € | -0.73 € |
Net income per share (in €) | -0.86 € | -1.60 € |
Net income per share diluted (in €) | -0.86 € | -1.60 € |
Weighted average number of outstanding shares | 44,571,246 | 41,249,151 |
Weighted average diluted number of outstanding shares | 44,571,246 | 41,249,151 |
(1) The financial statements (income statement) as at
B
Assets
(in €000) | ||
Long term assets | ||
14,704 | 15,039 | |
Intangible assets | 83,167 | 88,031 |
Property, plant and equipment | 28,111 | 56,180 |
Financial assets | 5,639 | 2,387 |
Long-term derivative instruments | 0 | |
Deferred taxes | 1,225 | 1,328 |
Total long-term assets | 132,846 | 162,965 |
Current assets | ||
Inventory | 37,811 | 53,991 |
Trade receivables | 20,813 | 46,669 |
Tax receivables | 554 | 1,735 |
Other short-term assets | 22,123 | 32,686 |
Short-term derivative instruments | 70 | 157 |
Cash and cash equivalents | 42,075 | 26,193 |
Assets held for disposal | 12,900 | |
Total current assets | 136,346 | 161,431 |
TOTAL ASSETS | 269,192 | 324,396 |
Liabilities
(in €000) | ||
Shareholders’ equity | ||
Capital | 62,578 | 89,396 |
Premiums | 66,711 | 66,710 |
Consolidated and other reserves | (14,083) | 25,568 |
Conversion reserves | (10,720) | (22,234) |
Net Income | (38,465) | (65,926) |
Attributable Shareholders’equity | 66,020 | 93,514 |
Non-controlling interests | 328 | 223 |
Total Shareholders’ equity | 66,348 | 93,737 |
Total long-term liabilities | ||
Employee benefits | 3,150 | 5,533 |
Long-term provisions | 3,926 | 3,238 |
Long-term loans | 65,352 | 9,689 |
Other long-term liabilities | 1,751 | 1,855 |
Long-term derivative instruments | ||
Deferred tax liabilities | 17,879 | 16,424 |
Total long-term liabilities | 92,058 | 36,739 |
Current liabilities | ||
Short-term provisions | 7,049 | 10,178 |
Short-term portion of long-term debt | 15,023 | 50,933 |
Short-term debt | 5,287 | 12,292 |
Supplier and other payables | 34,777 | 63,719 |
Tax liabilities | 5,667 | 481 |
Other short-term liabilities | 32,584 | 56,315 |
Short-term derivative instruments | 98 | 2 |
Liabilities held for disposal | 10,301 | |
Total current liabilities | 110,787 | 193,920 |
TOTAL LIABILITIES | 269,192 | 324,396 |
CONSOLIDATED CASH FLOW STATEMENT
(in €000) | 31.12.2019 | |
Total consolidated net profit | (38,445) | (65,921) |
Eliminations : | ||
Amortization and provisions | 5,143 | 31,407 |
Revaluation gains / losses (fair value) | 2,953 | 279 |
Gains/losses on disposals and dilution | 20,840 | 8,550 |
Operating cash flow after net cost of debt and tax | (9,508) | (25,685) |
Income tax charge (credit) | 8,776 | 512 |
Net cost of debt | 4,100 | 6,101 |
Operating cash flow before net cost of debt and tax | 3,368 | (19,072) |
Change in working capital 1 (inventories, trade receivables and payables) | 2,290 | 19,922 |
Change in working capital 2 (other items) | (898) | (17,524) |
Tax paid | (335) | (301) |
Cash flow from operating activities | 4,425 | (16,975) |
Acquisition of minority interests | 0 | (1,102) |
Purchase of property, plant and equipement and intangible assets | (5,025) | (9,056) |
Purchase of financial assets | 0 | 187 |
Increase in loans and advances granted | (3,421) | (117) |
Decrease in loans and advances granted | 6,823 | 435 |
Disposal of property, plant and equipement and intangible assets | 1,039 | 2,429 |
Impact of change in consolidation scope | 1,733 | (238) |
Cash flow from investing activities | 1,148 | (7,462) |
Capital increase | 0 | 58,576 |
Share buybacks | 0 | 13 |
New loans | 29,371 | 235 |
Loans repayment | (12,356) | (5,356) |
Net interest paid | (702) | (6,877) |
Net change in short-term debt | (4,791) | (17,933) |
Cash Flow from financing activites | 11,521 | 28,658 |
Impact from changes in foreign exchange rates | (1,212) | 140 |
Cash flow from discontinued operations and disposal proceeds | 0 | 0 |
Change in cash and cash equivalents | 15,882 | 4,361 |
Opening cash position | 26,193 | 21,832 |
Closing cash position | 42,075 | 26,193 |
Change in cash and cash equivalents | 15,882 | 4,361 |
Attachment
- MBWS_PR_2020AnnualResults_EN_28APRIL2021
© OMX, source