Marie Brizard reports Q3 sales drop

French group Marie Brizard Wine & Spirits (MBWS) has reported a 4.2% net sales loss to €99.6 million (US$114.3m) in the third quarter of 2018 and confirmed that plans to offload some of its brands are “in progress”.

Marie Brizard Wine & Spirits has reported a dip in sales for Q3 2018

In September 2018, MBWS announced it was considering offloading some of its brands after downgrading its full-year fiscal outlook.

The group has confirmed its estimated FY18 earnings before interest, taxes, depreciation, and amortisation (EBITDA) will be down by €20-€25 million (US$23-US$29m). It has obtained a temporary standstill on repayment of two loans totalling €7.5m (US$8.6m) and is currently adapting its cost structure.

In the period from 1 July to 30 September 2018, net sales in France fell by 10.9% to €22.6m (US$25.9m), attributed to the “slowdown” of the overall spirits category. According to Nielsen figures quoted by MBWS, the French spirits market declined by 2.7% in the period, with vodka declining by 2.8% and Scotch whisky dropping 5.9%.

In the Americas, net sales grew 5.5% to €4.4m (US$5m) while sales fell by 36.5% in Asia Pacific.

Net sales grew by double digits in Poland, up 24.9% to €9.7m (US$11.1m). This was boosted by “significantly lower promotional expenses, and normalised stock levels, which have been maintained since early July 2018”.

The company’s market share in vodka has “stabilised” since the start of the 2018 third quarter.

The remaining work on the group’s new Lancut distillery has moved forward with operations to begin “as soon as possible”.

MBWS’s new CEO Andrew Highcock stepped into the role on 29 October 2018.

The group expects to publish its FY 2017 and H1 2018 financial results in mid-December 2018.

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Author: Nicola Carruthers {authorlink}