January –
- Net sales increased by 2.4% to
SEK 904 (883) million. - EBITA, adjusted, decreased to
SEK 57 (68) million. EBITA margin, adjusted, was 6.3% (7.7). - Cash flow from operating activities increased to
SEK 96 (84) million. - Operating profit decreased to
SEK 33 (38) million. Operating margin was 3.6% (4.3). - Market share in volume increased in all our Nordic markets. Share increased to 28.1% (26.7) in
Sweden , 21.1% (18.8) inFinland and 6.8% (5.9) inNorway . - Earnings per share was
SEK 0.44 (0.30).
Significant events during the quarter
- On
1 January 2024 ,Viva Wine Group 's Swedish subsidiariesChris Wine & Spirits AB andWinemarket Nordic AB merged to formMorningstar Brands AB . - Viva Wine Group completed the acquisition of the Norwegian wine supplier Target Wines AS during the first quarter.
Emil Sallnäs, CEO comments:
RECORD HIGH MARKET SHARES IN THE NORDICS – CONTINUED EXPANSION IN ECOM
Strong organic growth and increased sales volumes in the Nordics in the quarter. Our European e-commerce business continued to be affected by weak consumer sentiment, but we expect a turnaround during the year.
CONTINUED GROWTH IN A CHALLENGING MARKET
Our Nordic segment developed strong, with organic growth as high as 6.1 percent. In the European e-commerce market, we are still feeling the effects of low consumer sentiment. However, slightly positive signals in the market contribute to our continued expectation of a turnaround in the latter part of the year.
INCREASING NORDIC MARKET SHARES
We are continuing to gain market shares in all the monopoly markets and reached new record levels in all our markets for the first quarter. Sales volumes in the Nordic region increased by 7.5 percent, in a market that, despite the positive effects of the early Easter this year, grew by only 0.4 percent. Following alcohol tax increases at the beginning of the year, together with balanced price adjustments, we see that consumers have remained loyal to our strong portfolio of brands.
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CURRENCY EFFECTS ARE CONTINUING TO PRESSURE GROSS MARGIN IN THE NORDICS
The gross margin for Nordics decreased in the quarter to 14.4 percent. We have not fully been able to benefit from the strengthening of the Swedish and Norwegian currencies from the beginning of the year as we have some currency hedges from previous quarters.
Looking ahead we expect to see a gradual improvement, which is, however, dependent on future exchange rate movements.
At the same time, we are continuing to work on good cost control and our effective price adjustment strategy.
STRONG GROSS MARGIN IN VIVA ECOM
Consumer sentiment in European e-commerce markets was cautious in the quarter, particularly in the German market. Sales in eCom were lower than in the same quarter of 2023, impacted by the weaker market and some shifts in marketing campaigns between years. However, Viva eCom is continuing to show a strong gross margin, at 39.8 percent. Operating costs are lower than in the previous year, mainly driven by lower personnel expenses, and we are continuing to balance growth and profitability.
WE CONTINUED OUR EXPANSION IN
In market research, we see cautiously positive signs that a turnaround in the consumer sentiment in
WE ARE PREPARING FOR CSRD
During the quarter, we consolidated our sustainability results from 2023. Our climate impact from packaging has decreased during the year – the share of both climate-smart packaging and lightweight glass packaging has increased. Looking ahead, we continue to have an ambitious sustainability agenda, focusing fully on the preparation and implementation of the forthcoming EU Corporate Sustainability Reporting Directive (CSRD).
GOOD PROSPECTS FOR THE FUTURE
Despite tough market conditions, we are continuing to grow the business in the Nordics and maintain gross margins in Viva eCom. Our success in the Nordics is a strong proof of that our business model really works and our ability to adapt quickly to changing demand is one of our key success factors. Viva eCom has a strong and scalable platform that we will leverage when the market in
We see great potential ahead. Viva eCom has had a good start in terms of sales in the second quarter, trending towards organic growth. In
Emil Sallnäs, CEO of
Please see the full report in the attached pdf.
Publication and presentation
Certified Adviser
For more information, please contact:
Linn Gäfvert, CFO
Tel: +46 73 086 89 90
Email: linn.gafvert@vivagroup.se
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