Anora Group Plc Financial Statement Release 14 February 2024 at 8:30 am EET
Anora Group Plc's Financial Statement Release for 1 January - 31 December 2023
Comparable EBITDA improved in Q4 due to improved gross margin and tight cost control ? Impairments weakened operating result and distributable funds
This release is a summary of Anora Group Plc's Financial Statement Release January-December 2023. The complete report is attached to this release and is also available on the company website at: www.anora.com/en/investors
Q4 2023 in brief
- Net sales were EUR 212.4 (221.6) million, down by 4.2%.
- Comparable EBITDA was EUR 28.2 (20.9) million, or 13.3% (9.4%) of net sales, up by 35.2%.
- EBITDA was 23.1 (18.9) million, or 10.9% (8.5%) of net sales, up by 22.3%.
- Net cash flow from operating activities was EUR 100.1 (36.1) million.
- Earnings per share was EUR -0.64 (0.05).
January-December 2023 in brief
- Net sales were EUR 727.6 (702.7) million, growth of 3.5%.
- Comparable EBITDA was EUR 69.4 (76.1) million, or 9.5% (10.8%) of net sales, down by 8.9%.
- EBITDA was 68.7 (67.9) million, or 9.4% (9.7%) of net sales, up by 1.1%.
- Net cash flow from operating activities was EUR 135.3 (-0.4) million.
- Earnings per share was EUR -0.58 (0.26).
- Net debt/comparable EBITDA (rolling 12 months) was 2.0x (4.0x).
Dividend proposal
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.22 per share be paid for the financial year 2023.
Guidance
In 2024, Anora's comparable EBITDA is expected to be EUR 75-85 million (2023: EUR 69.4 million).
Key figures
| EUR million | Q4 23 | Q4 22 | Change | 2023 | 2022 | Change |
| Net sales | 212.4 | 221.6 | -4.2% | 727.6 | 702.7 | 3.5% |
| Comparable EBITDA | 28.2 | 20.9 | 35.2% | 69.4 | 76.1 | -8.9% |
| % of net sales | 13.3 | 9.4 | 9.5 | 10.8 | ||
| EBITDA | 23.1 | 18.9 | 22.3% | 68.7 | 67.9 | 1.1% |
| Comparable operating result | 20.1 | 12.2 | 64.7% | 35.9 | 42.9 | -16.3% |
| % of net sales | 9.4 | 5.5 | 4.9 | 6.1 | ||
| Operating result | -50.5 | 10.2 | -30.2 | 34.7 | ||
| Result for the period | -43.3 | 3.7 | -39.0 | 18.1 | ||
| Earnings per share, EUR | -0.64 | 0.05 | -0.58 | 0.26 | ||
| Net cash flow from operating activities | 100.1 | 36.1 | 135.3 | -0.4 | ||
| Net debt/comparable EBITDA, rolling 12 months | 2.0 | 4.0 | 2.0 | 4.0* | ||
| Personnel end of period | 1,219 | 1,251 | -2.6% | 1,219 | 1251 | -2.6% |
* If including Globus Wine LTM figures, net debt/comparable EBITDA (LTM) would have been approx. 3.7 for 2022.
CEO Jacek Pastuszka:
"Overall, the year 2023 was a challenging one for Anora, marked by multiple market headwinds and weaker financial performance. As communicated before, while remaining highly committed to our long-term growth strategy, we have recently intensified focus on profitability and on reducing net debt leverage, in order also to improve our dividend capacity going forward.
During the year, we executed several actions to renew our operational model and improve margin trajectory. We launched reorganisation related change negotiations in Q4 and a cost savings initiative in Q2. We are now well on track with the targets set out in these initiatives.
We managed to end the year in a more positive territory and saw results from these cost cuts and the most recent price increases, supported by lower raw material prices and more stabilised currencies.
Our Comparable EBITDA in Q4 was higher than last year and amounted to EUR 28.2 (20.9) million or 13.3 percent of net sales. For the full year 2023, comparable EBITDA decreased from EUR 76.1 million to EUR 69.4 million or 9.5 percent of net sales.
Net sales in the fourth quarter declined by 4.2% to EUR 212.4 million, largely due to currency impacts and decrease in Industrial sales. The monopolies saw lower consumer demand, as the shoppers were trading down ahead of the holiday season. On the other hand, our lower-mainstream wine and spirit offerings had a good growth in sales and continued to gain market share, demonstrating the breadth and flexibility of our product portfolio. Our seasonal products such as Aquavits and Blossa played in our favour as well. The partner wines in Sweden declined due to termination of some contracts earlier in the year and currency impact. Important to note, we have won some important new partners recently, such as South African Spier, a producer known for its exceptional wines and commitment to sustainability and responsible winemaking practices, as well as Charles Smith Wines of The Wine Group, one of the largest wine producers in the world. For them we enable CO2 emission reduction in wine transports from US to Europe with our near-market filling capabilities.
For the full year, net sales were EUR 727.6 million, showing a growth of 3.5%. Globus Wine has been reported as part of Anora's Wine segment as of 1 July 2022. Koskenkorva net sales grew in double-digit figures and represented nearly 15% of our total spirit sales.
Our efforts to reduce our leverage also progressed well. At the end of the year the cash balance was high, supported by lower working capital due to inventory reduction and the Larsen divestment. Our cash and cash equivalents reached EUR 212.7 million. This resulted in lower net debt of EUR 137.5 million, while our net interest-bearing debt / comparable EBITDA ratio was 2.0x, well below our long-term financial target of 2.5x. This also enables our Board of Directors to propose a dividend payment of EUR 0.22 per share for the financial year 2023 to the Annual General Meeting.
As a result of our annual impairment testing, we made impairments of EUR 65.4 million to fixed assets owned and right-of-use assets in Norway following the Centre of Excellence program, weakening the Group operating result to EUR -30.2 (34.7) million. We also impaired the value of shares of our subsidiaries in Denmark mainly due to weak profitability of Globus Wine, which reduces Anora Group Plc's distributable funds by EUR 58.7 million to EUR 100.2 million. For shares owned by other Group companies, we made impairments totalling EUR 23.6 million to the values of shares of companies held by Vingruppen in Sweden and Norway due to recent partner losses, reducing the distributable funds of their respective parent companies. The impairments made do not impact the loans, cash flows or the financial targets of the Group.
As we close the year 2023, I would like to thank our customers, partners, shareholders and our approximately 1,200 Anorafolks for their contribution during our journey so far. At the end of the year, we left our science-based emission reduction targets to be validated by Science Based Targets initiative. This continues our ambitious sustainability work as the forerunners of the industry. Looking ahead to 2024, we remain committed to our near-term actions to halt profitability decline, strengthen balance sheet and invest in profitable growth. This includes further price adjustments, and a continued focus on reducing net working capital and improving inventory turnover. I am convinced that our continued customer focus combined with enhanced efficiency will enable us to deliver on our targets and strategy."
Outlook and guidance for 2024
Market outlook
In 2024, the volumes in our key markets are expected to be slightly lower than in 2023 due to challenging economic conditions.
Guidance
In 2024, Anora's comparable EBITDA is expected to be EUR 75-85 million (2023: EUR 69.4 million).
Anora's financial reporting for the year 2024
Anora will publish its interim report for January-March 2024 on 7 May 2024.
Anora applies a silent period of 30 days before the publication of financial reports.
ANORA GROUP PLC
Further information:
Jacek Pastuszka, CEO
Sigmund Toth, CFO
Contacts:
Milena Hæggström, Director, Investor Relations
tel. +358 40 5581 328
milena.haeggstrom@anora.com
Results presentation:
CEO Jacek Pastuszka and CFO Sigmund Toth will present the report today at 11:00 am EET. The presentation will be held as a Microsoft Teams Meeting. We recommend that participants join the event using the online meeting option: Join meeting here.
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: 347 339 416#
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 Helsinki
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. Anora Group also includes Anora Industrial and logistics company Vectura. In 2023, Anora's net sales were EUR 727.6 million and the company employs about 1,200 professionals. Anora's shares are listed on Nasdaq Helsinki.
