Marie Brizard registers 1.5% net sales drop

French drinks group Marie Brizard Wine & Spirits has reported a 1.5% organic net sales drop in the first nine months of 2019 and has gained approval to sell its Polish distribution arm, Sobieski Trade.

The firm’s third quarter saw sales fall 0.6% to €98.9m (US$109.2m).

In the first nine months of this year, net sales for the Western Europe, Middle East and Africa (WEMEA) region fell 7.3% to €80.1m (US$88.4m). The sales reflect MBWS’s “value-oriented marketing strategy and the downturn for the aromatised wine-based beverage (BABV) segment”.

France – “still a highly competitive and promotion-driven market” – witnessed a “modest” drop of 2.1% to €22.1m (US$24.4m).

Net sales for the Central and Eastern Europe (CEE) region grew 21.9% to €45.8m (US$50.5m). During the third quarter, the CEE region saw sales fall 2.3% to €16.3m (US$18m) due to a “challenging base for comparison in Poland” and the “impact of stricter promotional policies”.

The Americas saw net sales increase 5.8% to €12.9m (US$14.2m), impacted by Sobieski vodka in the US which was “hit by persistent and strong price pressures in the vodka market affecting all players”.

Net sales in Asia Pacific fell 0.2% to €1.9m (US$2.1m), which were said to be “stable” compared to the same period last year.

The Polish competition authority approved the company’s proposed sale of Sobieski Trade on 20 September 2019, which will enable the deal to be completed soon.

MBWS expects that earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2019 full year will be a loss totalling between €20m (US$22m) and €25m (US$27.6m).

The French firm will report its net sales for the 2019 fourth quarter and fiscal year on 13 February 2020.


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Author: Nicola Carruthers {authorlink}