Marie Brizard Wine & Spirits sold less in fiscal 2021 but turned a profit. The company reports earning EUR 5.6 million in 2021, reversing a EUR 38.5 million loss a year earlier. Sales fell 1%, or 2.4 EUR, to 166.7 million euros.
The company said 2021 was marked by a recovery in sales driven by the France cluster despite a slowdown in the Off-Trade spirits market, in particular during the second half, in favour of the On-Trade channel.
International business was impacted by multiple and successive changes in health restrictions, particularly in Europe and major Asian markets. Overall business in the USA was encouraging thanks to the new distribution model but 2021 revenues fell 8% versus 2020, impacted by the distribution model changes in the first half of 2020.
Revenues thus came in at €10.7m, down €5.4m excluding restatement and currency impact. After restatement, pro forma sales decreased by €3.0m compared to the previous year, with the positive effect of the initial stock building at our distributor evaluated at €2.4m. Changes in the US dollar exchange rate had an adverse impact of €0.4m on the company’s revenues, MBWS said.
The end of the year was marked by a slowdown in Sobieski sales due to aggressive promotional strategies pursued by competitors in the vodka category (leading to a decline in value) and postponement of sales to 2022 due to logistical constraints (particularly affecting sea freight). These adverse effects were partly offset by the strong performance from Cognac Gautier.
The gross margin ratio was 41.1% in 2021, down from 42.4% in 2020 due to:
- the sharp decrease in bulk sales (volume and margin) in the Baltic states (hand sanitizers for the COVID pandemic in 2020), a market that became highly competitive,
- the negative price effect in France due to trade negotiations and promotional expenditure to drive Sobieski and Paddy brand growth,
- partly offset by the recovery of the branded business, which posted higher gross margin contributions, particularly for the international and On-Trade business in the second half of 2021.
The various structural measures are bearing fruit and all entities except Dubar in Brazil posted positive EBITDA in 2021.
Net non-recurring operating expenses for 2021 amounted to € -0.1m, mainly due to the positive outcome of the Group’s financial restructuring plan.
The €0,25 m net financial income for 2021 was significantly lower than in 2020 (which included one-off proceeds from Trinidad & Tobago recorded in June 2020), but the cost of debt has fallen significantly, given the change in the Group’s financial structure following the February 2021 capital increase.
Net earnings from continuing operations in 2021 amounted to a €6,6m profit compared to a net loss of €5.6m in 2020, reflecting the Group’s improving profitability and the merits of its strategy of refocusing on the core “brand business”.